Teekay Increases Dividend by 14%

Teekay Shipping

Teekay Shipping Corporation (NYSE:TK) says that its Board of Directors has voted to declare a cash dividend on its common stock of $0.2375 per share, representing a 14 percent increase over the previous quarterly dividend of $0.2075 per share. The dividend will be paid on October 27, 2006 to all shareholders of record as at October 13, 2006.

"We are pleased to announce the fourth consecutive yearly increase in Teekay's dividend," commented Bjorn Moller, Teekay's President and Chief Executive Officer. Mr. Moller continued, "During the past four years, we have increased our annual dividend by over 120 percent, from $0.43 per share to $0.95 per share, primarily as a result of the rapid growth of our fixed-rate businesses. Going forward, we will evaluate possible future dividend increases based mainly on our free cash flow generation."

Teekay Shipping Corporation transports more than 10 percent of the world's seaborne oil and has expanded into the liquefied natural gas shipping sector through its publicly-listed subsidiary, Teekay LNG Partners L.P. With a fleet of over 145 tankers, offices in 17 countries and 5,100 seagoing and shore-based employees, Teekay provides a comprehensive set of marine services to the world's leading oil and gas companies, helping them seamlessly link their upstream energy production to their downstream processing operations. Teekay's reputation for safety, quality and innovation has earned it a position with its customers as The Marine Midstream Company.