Maritrans Announces Favorable Settlement of Lawsuit

Maritrans Inc. (NYSE:TUG), today announced that the
Company agreed to settle its pending lawsuit against Penn Maritime
Inc. and Penn Tug & Barge Inc. (together "Penn Maritime") on
Maritrans' claims for patent infringement and misappropriation of
trade secrets. Penn Maritime agreed to pay Maritrans $4 million to
settle all of Maritrans' claims. Penn Maritime agreed that the Court
will issue a judgment attesting to the validity of Maritrans' patents
for the process of converting single hull barges to double hull.
Maritrans agreed to give Penn Maritime a license of Maritrans' patent
covering all barges presently owned by Penn Maritime. The $4 million
payment is to be made by June 1, 2005. The settlement is subject to
the execution of definitive releases and settlement documentation.

   ABOUT MARITRANS

   Maritrans Inc. is a U.S. based company with a 77-year commitment
to building and operating petroleum transport vessels for the U.S.
domestic trade. Maritrans owns and operates one of the largest fleets
serving the U.S. coastwise trade. The fleet consists of four oil
tankers and eleven oceangoing married tug/barge units with an
aggregate fleet capacity of approximately 3.6 million barrels, of
which 64 percent of the total capacity is double-hulled. Maritrans is
headquartered in Tampa, Florida, and maintains an office in the
Philadelphia area.

   SAFE HARBOR STATEMENT

   The information in this news release includes certain
forward-looking statements. These statements involve known and unknown
risks, uncertainties and other factors that may cause actual results,
levels of activity, growth, performance, earnings per share or
achievements to be materially different from those expressed in or
implied by such forward-looking statements. These statements are based
on assumptions the Company believes are reasonable, but a variety of
factors could cause the Company's actual results, goals, targets or
objectives to differ materially from those contemplated, projected,
forecast, estimated, anticipated, planned or budgeted. Such factors
include, among others, changes in oil companies' decisions as to the
type and origination point of the crude that it processes, changes in
the amount of imported petroleum products, competition for marine
transportation, domestic oil consumption, the continuation of federal
law restricting United States point-to-point maritime shipping to U.S.
vessels (the Jones Act), the timing and success of our double-hull
rebuilding program, demand for petroleum products, future spot market
rates, demand for our services, levels of foreign imports, changes in
interest rates, the effect of war or terrorist activities and the
general financial, economic, environmental and regulatory conditions
affecting the oil and marine transportation industry in general. The
Company is under no duty to update any of these forward-looking
statements after the date of this release to conform such statements
to actual results.