Maritrans Reports First Quarter 2006 Earnings and Declares Quarterly Dividend

First Quarter 2006 and Current Highlights:

   --  Commenced the Double-Hull Rebuilding of the Company's Seventh
        Barge, the M210

   --  Agreed to Build Two 8,000 Horsepower Tugboats

   --  Elected New Independent Director to Board

   --  Declared $0.11 Per Share Dividend Payable to Stockholders on
        May 31, 2006 - 47th consecutive quarterly dividend

   Maritrans Inc. (NYSE:TUG), a leading U.S. flag marine petroleum
transport company, today announced its first quarter financial results
and declared its quarterly dividend.
   Net income for the quarter ended March 31, 2006 was $5.8 million,
or $0.48 diluted earnings per share, on revenues of $47.4 million.
This compares with net income of $3.7 million, or $0.43 diluted
earnings per share, on revenues of $43.5 million for the quarter ended
March 31, 2005. Net income for the first quarter of 2006 includes $4.0
million of insurance proceeds resulting in a gain of $2.9 million,
equivalent to $0.15 diluted earnings per share, net of tax, related to
the loss of the tugboat VALOUR. Operating income for the quarter ended
March 31, 2006 was $8.5 million compared to $6.3 million for the
quarter ended March 31, 2005. Results for the quarter ended March 31,
2005 included a $2.4 million charge, equivalent to $0.18 diluted
earnings per share, net of tax, related to the early retirement of the
Company's former Executive Chairman of the Board, and a $0.6 million
gain, equivalent to $0.05 diluted earnings per share, net of tax,
resulting from the sale of a vessel that was not part of the Company's
core fleet. During the quarter, the Company continued to earn strong
average daily rates on its vessels deployed in the clean product spot
market despite lower fleet utilization due to higher than expected
refinery maintenance turnarounds in the Gulf of Mexico, the slow
ramping up of production of a number of Gulf refineries still out of
service as a result of the 2005 hurricane season, and Gulf refineries
shut down for retooling to prepare for the new ultra low sulfur diesel
specifications. Demand by the Company's Delaware River refinery
customers for the Company's crude-oil lightering services was affected
in the first quarter by three refineries undergoing scheduled
maintenance for a portion of the quarter. Barrels delivered to
crude-oil lightering customers during the first quarter of 2006 were
down approximately 2% from the volumes delivered during the fourth
quarter of 2005.
   On a Time Charter Equivalent ("TCE") basis, a commonly used
industry measure where direct voyage costs are deducted from voyage
revenue, TCE revenue was $35.7 million for the quarter ended March 31,
2006 compared to $34.6 million for the quarter ended March 31, 2005,
an increase of $1.1 million, or 3.2%. TCE revenue is a non-GAAP
financial measure and a reconciliation of TCE revenue to revenue
calculated in accordance with GAAP is attached hereto.
   During the first quarter of 2006, the Company experienced lower
overall utilization than in the first quarter of 2005. Utilization for
the first quarter of 2006 was 79.5% compared to 81.8% in the first
quarter of 2005. In the quarter ended March 31, 2006, utilization was
affected by the Company's out of service time for maintenance and
capital projects as well as idle time in the Company's spot fleet. In
the quarter ended March 31, 2006, the Company experienced 108 days of
out of service time for vessel maintenance and capital projects. This
compares to out of service time for maintenance and capital projects
of 145 days in the first quarter of 2005. In the quarter ended March
31, 2006, the Company also experienced 80 days of out of service for
idle time in its spot fleet due to refinery outages and refinery
maintenance, as discussed above. This compares to out of service for
idle time in the Company's spot fleet of 5 days in the first quarter
of 2005. For the second quarter of 2006, the Company expects to have
at least 138 days of out of service time for maintenance and capital
projects, which does not include any unscheduled out of service time
for repairs. In April 2006, the Company experienced 33 days of out of
service time for vessel maintenance and capital projects and 46 days
of idle time in its spot fleet. At this time, the M/V ALLEGIANCE is
returning from her most recent grain voyage and the Company has not
booked the vessel for her next voyage. Although the Company will
continue to search for cargos for the vessel, the Company anticipates
the vessel may remain idle for the remainder of the second quarter
with reduced manning on board. Additionally, scheduled maintenance on
a refinery on the Delaware River continued into April and continues to
dampen demand for the Company's lightering services.
   Operating expenses increased to $38.9 million in the first quarter
of 2006 from $37.2 million in first quarter of 2005 primarily because
of increases in fuel, port and crew expenses, as well as $2.7 million
due to the charter expense for the M/V Seabrook.
   Jonathan Whitworth, Chief Executive Officer of Maritrans,
commented, "During the first quarter of 2006, higher than expected
refinery maintenance reduced the volume of products available to move
and lowered our results. While we anticipate that this heavy refinery
maintenance will continue until June of 2006, this is a temporary
situation that doesn't affect our outlook for the second half of 2006
and beyond. With 69 percent of our oil-carrying fleet double-hulled,
an ongoing double-hull barge rebuilding program, and three newbuilds
expected to be delivered in 2007 and 2008, we believe Maritrans is
well positioned to capitalize on favorable market fundamentals in the
U.S. Jones Act industry for the benefit of the Company and its
stockholders."

   FLEET AND MARKET REPORT

   Maritrans operates a fleet of oil tankers and oceangoing married
tug/barge units. The Company currently operates its fleet at
approximately 35% spot and 65% contract, and intends to maintain
similar spot market exposure in the second quarter to that of the
first quarter of 2006. The overall spot market rates, for the first
quarter of 2006, increased approximately 14% compared to the first
quarter of 2005. The Company believes that spot market rates will
remain relatively flat compared to the first quarter of 2006 until the
Gulf refineries return to full production this summer. However,
following that return to production, the Company believes those rates
will increase as a result of the continued strong product demand in
the markets the Company serves and the lower supply of Jones Act
vessels. 
   Mr. Whitworth, continued, "In terms of fleet deployment, our focus
will remain on achieving an optimal balance of spot and contract
coverage in an effort to continue to benefit from any increases in the
spot market following the Gulf refineries' return to full production
while ensuring utilization and contribution from our strong level of
contracted revenues. Due to our expectation that vessel supply will
continue to decrease and demand for refined petroleum products will
remain strong in our core Florida markets, we expect to continue to
trade approximately 35% of our fleet in the spot market. At the same
time, we will continue to look for opportunities to take advantage of
the expected strong rate environment and renew contracts at higher
rates."

   DOUBLE-HULL REBUILDING PROGRAM

   Since 1998, Maritrans has been actively engaged in a double-hull
rebuilding program aimed at ensuring that the Company's Jones Act
fleet is compliant with the U.S. Oil Pollution Act of 1990 ("OPA").
Maritrans' patented barge rebuilding process enables the Company to
convert its vessels for significantly less cost than building new
vessels.
   During 2006, Maritrans has continued to successfully implement its
rebuilding program. The rebuild of the Company's seventh barge the
M210 commenced on January 26, 2006. The vessel's rebuild is expected
to have a total cost of approximately $30 million. The rebuild of the
Company's eighth barge, the OCEAN 211, is expected to commence
following the return to service of the M210. The OCEAN 211's rebuild
is also expected to have a total cost of approximately $30 million.
The rebuilds of the M 210 and OCEAN 211 will also include the
insertions of mid-bodies that will increase each of their respective
capacities by approximately 38,000 barrels, or 17%. The rebuilds of
the M 210 and the OCEAN 211 are expected to be completed in the third
quarter of 2006 and the second quarter of 2007, respectively. Upon
completion of their double-hulling, and reflecting their larger
carrying capacities, the M 210 and OCEAN 211 will be renamed the M 242
and M 243, respectively.

   AGREEMENT TO BUILD TWO NEW TUG BOATS

   Maritrans entered into a letter of intent and is close to
finalizing an agreement with Bender Shipbuilding & Repair Co., Inc. to
build two new 8,000-horsepower tugboats. The two new tugboats are
expected to be delivered in the fourth quarter of 2008 and the first
quarter of 2009. The total cost for the two tugboats is expected to be
$32 million. Once delivered, one of the tugboats will replace the
tugboat VALOUR. The Company has entered into a charter to lease a
substitute tugboat for the VALOUR until the new tugboat is delivered.
The Company plans to pair the second newbuild tugboat with the M215,
the final single-hulled barge slated for rebuilding.
   Mr. Whitworth continued, "By adding two 8,000-horsepower tug boats
that have the latest version of the Intercon connection system, we
should further enhance the speed of our fleet in a manner that adheres
to our strict safety and environmental policies. Building these two
boats supports our view that articulated tug barge units (ATB's) best
serve the Company and its customers and is consistent with our
previous decision to build three state of the art tug/barge units as
well as our successful barge rebuilding program that has been in place
since 1998. We believe the combination of the attractive price of the
three newbuildings and the two tugboats announced today as well as the
cost effective nature of our rebuilding program positions Maritrans to
earn a strong return on its investment while satisfying customer needs
at a lower cost than competitors. Going forward, we remain committed
to build upon our past success and seek opportunities to further
expand our leadership in the U.S. Jones Act trade."

   BOARD APPOINTMENT

   The Company also announced the re-election of Mr. William A. Smith
as Non-Executive Chairman of the Board and the election of Mr.
Jonathan P. Whitworth, CEO, and Mr. Gary K. Wright to its Board of
Directors at its Annual Meeting of Stockholders held, on April 28,
2006. Mr. Wright replaces Dr. Robert E. Boni, who retired from the
Board after serving from 1990 to 2006. Mr. Wright has more than 33
years of experience working with energy companies and is currently a
director of Penn Virginia Corporation. Mr. Wright retired after 28
years with JPMorgan Chase and predecessor banks starting in 1973 with
Texas Commerce Bank and was most recently President of LNB Energy
Advisors, a provider of bank credit facilities and strategic advice to
small to mid-sized oil and gas producers.
   Mr. Smith commented, "We are pleased to welcome Gary and Jonathan
to the Board and look forward to drawing on their knowledge and
experience. We would also like to extend our appreciation to Dr. Boni
for his counsel and leadership during his 16 years of service on the
Board and wish him well in the future."

   DIVIDEND

   Maritrans' Board of Directors declared a quarterly dividend of
$0.11 per share, payable on May 31, 2006, to stockholders of record on
May 17, 2006. The ex-dividend date will be May 12, 2006.

   CONFERENCE CALL INFORMATION

   Maritrans' management will host a conference call on May 2, 2006,
at 9:00 a.m. eastern time to discuss the Company's first quarter
results. To access this call, please dial 800-732-8470. A replay of
the call may be accessed by dialing 800-633-8284 and providing the
reservation number 21289838. The replay will be available from 11:00
a.m. eastern time on Tuesday, May 2, 2006, to 11:00 a.m. eastern time
on Tuesday, May 16, 2006. The conference call will also be webcast
live on Maritrans' website, www.maritrans.com and will be available on
the website through Tuesday, May 16, 2006.

   ABOUT MARITRANS

   Maritrans Inc. is a U.S. based company with a 78-year commitment
to building and operating petroleum transport vessels for the U.S.
domestic trade. Maritrans employs a fleet of tug/barge units and
tankers. One of these vessels, our tanker Allegiance, was redeployed
in December 2005 to the transportation of non-petroleum cargo.
Approximately 69% of our oil carrying fleet capacity is double-hulled.
Our current oil carrying fleet capacity aggregates approximately 3.6
million barrels, 72% of which is barge capacity. Maritrans is
headquartered in Tampa, Florida, and maintains an office in the
Philadelphia area.

   SAFE HARBOR STATEMENT

   Certain statements in this news release are forward-looking
statements within the meaning of Section 27A of the Securities Act of
1933, as amended and Section 21E of the Securities Exchange Act of
1934, as amended, including statements made with respect to present or
anticipated utilization, future revenues and customer relationships,
capital expenditures, future financings, and other statements
regarding matters that are not historical facts, and involve
predictions. 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 any future results, levels of
activity, growth, performance, earnings per share or achievements
expressed in or implied by such forward-looking statements. In some
cases you can identify forward-looking statements by terminology such
as "may," "seem," "should," "believe," "future," "potential,"
"estimate," "offer," "opportunity," "quality," "growth," "expect,"
"intend," "plan," "focus," "through," "strategy," "provide," "meet,"
"allow," "represent," "commitment," "create," "implement," "result,"
"seek," "increase," "establish," "work," "perform," "make,"
"continue," "can," "will," "include," or the negative of such terms or
comparable terminology. These forward-looking statements inherently
involve certain risks and uncertainties, although they are based on
our current plans or assessments that are believed to be reasonable as
of the date of this prospectus supplement. The forward-looking
statements are subject to a number of risks and uncertainties and
include the following: demand for, or level of consumption of, oil and
petroleum products; future spot market charter rates; ability to
attract and retain experienced, qualified and skilled crewmembers;
competition that could affect our market share and revenues; risks
inherent in marine transportation; the cost and availability of
insurance coverage; delays or cost overruns in the building of new
vessels, the double-hulling of our remaining single hulled vessels and
scheduled shipyard maintenance; decrease in demand for lightering
services; environmental and regulatory conditions; reliance on a
limited number of customers for revenue; the continuation of federal
law restricting United States point-to-point maritime shipping to US
vessels (the Jones Act); asbestos-related lawsuits; fluctuating fuel
prices; high fixed costs; capital expenditures required to operate and
maintain a vessel may increase due to government regulations; reliance
on unionized labor; federal laws covering our employees that may
subject us to job-related claims; and significant fluctuations of our
stock price. Given these uncertainties, you should not place undue
reliance on these forward-looking statements. You should read this
news release completely and with the understanding that our actual
future results may be materially different from what we expect. These
forward-looking statements represent our estimates and assumptions
only as of the date of this news release. Except for our ongoing
obligations to disclose material information under the federal
securities laws, we are not obligated to update these forward-looking
statements, even though our situation may change in the future. We
qualify all of our forward-looking statements by these cautionary
statements.
-0-
*T

            RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
                            ($ Thousands)


                                                Three Months Ended
                                                    March 31,
                                               2006          2005
                                            ------------  ------------

Revenue                                     $    47,384   $    43,540
Voyage Costs                                     11,664         8,929
                                            ------------  ------------
Time Charter Equivalent                     $    35,719   $    34,611
                                            ============  ============



        UNAUDITED CONDENSED CONSOLIDATED FINANCIAL HIGHLIGHTS
               ($ Thousands, Except Per Share Amounts)


                                                Three Months Ended
                                                    March 31,
                                               2006          2005
                                            ------------  ------------

Revenue                                     $    47,384   $    43,540
Operations expense
   Operations                                    17,312        13,114
   Voyage costs                                  11,664         8,929
Maintenance expense                               5,277         4,925
General and administrative expense                2,305         5,386
Depreciation and amortization expense             5,244         5,496
Gain on disposal of assets                        2,868           647
                                            ------------  ------------
Operating Income                                  8,450         6,337
Other Income                                        754           107
Interest Expense                                   (273)         (688)
                                            ------------  ------------
Pre-tax income                                    8,931         5,756
Income Tax Provision                              3,157         2,101
                                            ------------  ------------
Net Income                                  $     5,774   $     3,655
                                            ============  ============

Diluted Earnings Per Share                  $      0.48   $      0.43
Diluted Shares Outstanding                       12,038         8,510
Capital Expenditures                        $    11,069   $     7,974

Utilization of Calendar days                       79.5%         81.8%
Barrels carried (in millions)                      43.6          45.2
Available days                                    1,307         1,189



      UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET INFORMATION
                            ($ Thousands)
                            -------------


                                             March 31,    December 31,
                                                2006          2005
                                            ------------  ------------

Cash and cash equivalents                   $    55,698   $    58,794
Other current assets                             42,381        35,680
Net vessels and equipment                       238,266       233,572
Other assets                                      3,742         3,957
                                            ------------  ------------
Total assets                                $   340,087   $   332,003
                                            ============  ============

Current portion of debt                     $     4,029   $     3,973
Total other current liabilities                  29,124        27,893
Long-term debt                                   54,372        55,400
Deferred shipyard costs and other                17,575        14,998
Deferred income taxes                            36,640        35,756
Stockholders' equity                            198,347       193,983
                                            ------------  ------------
Total liabilities and stockholders' equity  $   340,087   $   332,003
                                            ============  ============



UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS INFORMATION
                            ($ Thousands)
                            -------------


                                                Three Months Ended
                                                    March 31,
                                               2006          2005
                                            ------------  ------------

Cash flows from operating activities:
Net income                                  $     5,774   $     3,655
Depreciation and amortization                     5,244         5,496
Other                                            (4,755)        5,075
                                            ------------  ------------
Total adjustments to net income                     489        10,571
                                            ------------  ------------
   Net cash provided by operating
    activities                                    6,263        14,226

Net cash used in investing activities            (7,069)       (7,327)
                                            ------------  ------------

Net cash provided by (used in) financing
 activities                                      (2,290)       (1,623)
                                            ------------  ------------

Net (decrease)/increase in cash and cash
 equivalents                                     (3,096)        5,276
Cash and cash equivalents at beginning of
 period                                          58,794         6,347
                                            ------------  ------------
Cash and cash equivalents at end of period  $    55,698   $    11,623
                                            ============  ============



                                        Barge or
                                         Tanker
                    Capacity             Initial
                       in     Double- Construction/
Barges/Tugs        Barrels(1)  Hull   Rebuild Date
----------------------------------------------------------------------
M 400/Constitution   410,000      Yes         1981 Originally built
                                                    with double-hull
M 300/Liberty        263,000      Yes         1979 Originally built
                                                    with double-hull
M 254/Intrepid       250,000      Yes         2002 Double-hull rebuild
M 252/Navigator      250,000      Yes         2002 Double-hull rebuild
M 244/Seafarer       240,000      Yes         2000 Double-hull rebuild
M 215/Freedom        214,000       No         1975 Decision to rebuild
                                                    has not yet been
                                                    made(2)
Ocean                212,000       No         2007 Scheduled double-
 211/Independence                                   hull delivery(3)
M 210/Columbia       213,000       No         2006 Scheduled double-
                                                    hull delivery(3)
M 214/Honour         208,000      Yes         2004 Double-hull
                                                    rebuild(4)
M 209/Enterprise     206,000      Yes         2005 Double-hull
                                                    rebuild(4)
M 192/Valour *       172,000      Yes         1998 Double-hull rebuild
                   ----------
   Total oil
    carrying
    capacity       2,638,000
                   ==========

Oil Tankers
----------------------------------------------------------------------
Perseverance         251,000       No         1981 (5)
Integrity            270,000      Yes         1975 Originally built
                                                    with double-hull
Diligence            270,000      Yes         1977 Originally built
                                                    with double-hull
Seabrook             224,000       No         1983 (6)
                   ----------
   Total oil
    carrying
    capacity       1,015,000
                   ==========

Other
----------------------------------------------------------------------
Allegiance           251,000       No         1980 Redeployed in
                                                    transport of grain
                   ----------
   Total capacity  3,904,000
                   ==========


(1) Represents 98% capacity, which is of the effective carrying
    capacity of a tank vessel.

(2) If rebuilt, we anticipate that a 30,000 barrel mid-body would be
    inserted.

(3) Vessels are being rebuilt with 38,000 barrel mid-body insertions.

(4) Completion of the double-hull rebuild included a 30,000 barrel
    mid-body insertion.

(5) Expected to be redeployed for transportation of non-petroleum
    cargo upon mandated OPA phase-out.

(6) Chartered in from Seabrook Carriers Inc.

*   In January 2006, the tugboat Valour sank. The Company has entered
    into an agreement with Bender Shipbuilding & Repair Co Inc. to
    build a new tugboat.  Prior to the delivery of the new tugboat,
    the Company will lease a substitute tugboat.

*T