Q2 Earnings Press Release

Exhibit I


		TEEKAY CORPORATION 4^th Floor, Belvedere Building, 69 Pitts Bay Road Hamilton, HM 08 Bermuda

EARNINGS RELEASE

TEEKAY CORPORATION REPORTS
PRELIMINARY SECOND QUARTER RESULTS;
TEEKAY CORPORATION TO RESTATE RESULTS FOR ACCOUNTING UNDER SFAS 133

Highlights

•		Teekay Corporation plans to restate certain financial results for accounting of derivatives under SFAS 133. The preliminary results announced today do not reflect these corrections. The restatements will have no impact on the Company’s cash flows, liquidity, or shareholders’ equity as at June 30, 2008.

•		Generated cash flow from vessel operations of $221.7 million, up from $184.8 million in the prior quarter

•		Reported preliminary second quarter net income of $104.5 million, or $1.43 per share (including specific items, predominantly unrealized gains relating to interest rate swaps, which increased net income by $27.4 million, or $0.38 per share)⁽¹⁾

•		Completed accretive acquisitions and follow-on equity offerings in Teekay LNG Partners L.P. and Teekay Offshore Partners L.P.

•		Acquired the remaining 35.3 percent interest in Teekay Petrojarl, increasing ownership to 100 percent

Hamilton, Bermuda, August 7, 2008 — Teekay Corporation (Teekay or the Company) (NYSE: TK) today reported preliminary second quarter 2008 financial results. The Company also announced today that it plans to restate previous financial results from 2003 through the end of the second quarter of 2008, including preliminary and previously announced results included in this earnings release, to adjust its accounting treatment for certain derivative transactions under the Statement of Financial Accounting Standards (SFAS) 133, Accounting for Derivative Instruments and Hedging Activities, as more fully discussed below under “-Restatement of Financial Statements for Accounting Under SFAS 133.” None of the results included in this earnings release reflect restatement adjustments.

Summary of Preliminary Results

The Company reported net income of $104.5 million, or $1.43 per share, for the quarter ended June 30, 2008, compared to net income of $78.4 million, or $1.04 per share, for the quarter ended June 30, 2007. The results for the quarters ended June 30, 2008 and 2007 included a number of specific items which had the net effect of increasing net income by $27.4 million (or $0.38 per share) and by $10.8 million (or $0.14 per share), respectively, as detailed in Appendix A to this release. Net revenues⁽²⁾ for the second quarter of 2008 increased to $599.7 million from $442.6 million for the same period in 2007, and income from vessel operations increased to $119.7 million from $117.6 million.

Net income for the six months ended June 30, 2008 was $119.6 million, or $1.63 per share, compared to $154.8 million, or $2.07 per share, for the same period last year. The results for the six months ended June 30, 2008 and 2007 included a number of specific items which had the net effect of decreasing net income by $18.2 million (or $0.25 per share) and increasing net income by $3.4 million (or $0.05 per share), respectively, as detailed in Appendix A to this release. Net revenues⁽²⁾ for the six months ended June 30, 2008 increased to $1.2 billion from $902.0 million for the same period in 2007, and income from vessel operations decreased to $230.7 million from $243.1 million.


(1)		Please refer to Appendix A to this release for information about specific items affecting net income.

(2)		Net revenues represents revenues less voyage expenses. Net revenues is a non-GAAP financial measure used by certain investors to measure the financial performance of shipping companies. Please see the Company’s Web site at www.teekay.com for a reconciliation of this non-GAAP measure as used in this release to the most directly comparable financial measure under United States generally accepted accounting principles (GAAP).

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Executing on Drop-down Strategy

Teekay LNG Partners L.P.

During the second quarter of 2008, Teekay sold two 1993-built, 88,000 cubic meter liquefied natural gas (LNG) carriers (the Kenai LNG Carriers), and interests in four newbuilding, 217,000 cubic meter LNG carriers (the RasGas 3 LNG Carriers), to its majority-owned subsidiary, Teekay LNG Partners L.P. (Teekay LNG). These transactions were partially funded from proceeds raised through a follow-on public offering of Teekay LNG common units in April 2008. Concurrently with the public offering, Teekay acquired in a private placement additional common units of Teekay LNG at the public offering price for $50.0 million. Gross equity proceeds of the two offerings totaled $208.7 million (including the general partner’s 2 percent proportionate capital contribution). As a result of the offering, Teekay’s ownership interest in Teekay LNG was reduced to 57.7 percent from 63.7 percent (including its 2 percent general partner interest). Reflecting the contribution from the acquired Kenai LNG Carriers, Teekay LNG increased its quarterly cash distribution by 4 percent to an annualized distribution of $2.20 per unit, and expects to increase the distribution further as a result of the contribution from the Ras Gas 3 Carriers.

Teekay Offshore Partners L.P.

During the second quarter of 2008, Teekay sold to its subsidiary, Teekay Offshore Partners L.P. (Teekay Offshore), an additional 25 percent interest in Teekay Offshore Operating L.P. (OPCO), a Marshall Islands limited partnership, for $205 million. The transaction reduced Teekay’s ownership in OPCO to 49 percent. At the same time, Teekay also sold to OPCO two 2008-built Aframax lightering tankers for $106.0 million.

These transactions were partially funded from proceeds raised through a follow-on public offering of Teekay Offshore common units. The offering of 7.0 million common units at a price of $20.00 per unit was completed on June 18, 2008 and raised gross proceeds of $140.0 million. On July 16, 2008, the underwriters exercised 375,000 common units of their 30-day over-allotment option, resulting in an additional $7.5 million in gross proceeds to Teekay Offshore.

Concurrently with the public offering, Teekay acquired in a private placement 3.25 million common units of Teekay Offshore at the same public offering price for $65.0 million. As a result of these transactions, Teekay Offshore raised gross equity proceeds of $216.8 million (including the general partner’s 2 percent proportionate capital contribution), and Teekay’s ownership interest in Teekay Offshore was reduced to 49.99 percent from 59.75 percent (including its 2 percent general partner interest).

Reflecting its increased ownership in OPCO and contribution from the acquired Aframax lightering tankers, Teekay Offshore intends to increase its quarterly cash distribution by 12 to 15 percent over the current annualized distribution of $1.60 per unit. If approved, this increase will be reflected in the third quarter’s distribution, which will be paid in November 2008.

Teekay Tankers Ltd.

During the second quarter of 2008, Teekay sold two double-hull Suezmaxes to its majority-owned subsidiary, Teekay Tankers Ltd. (Teekay Tankers), for $186.9 million. In connection with a pre-existing agreement, Teekay is obligated to offer Teekay Tankers the opportunity to purchase an additional two Suezmaxes by July 2009. On August 5, 2008, Teekay Tankers declared a quarterly dividend of $0.90 per share.

Acquisition of Remaining Interest in Teekay Petrojarl

On June 20, 2008, Teekay purchased a 30.1 percent interest in Teekay Petrojarl ASA (Teekay Petrojarl) from Prosafe Production for a total cost of $257.1 million. As a result, Teekay’s ownership of Teekay Petrojarl increased to 94.8 percent. Pursuant to Norweigian Public Limited Liability Companies law, on July 9, 2008 Teekay exercised its right to effect the compulsory acquisition of the remaining 5.2 percent of Teekay Petrojarl for a total cost of $45.1 million, thereby increasing its ownership interest to 100 percent.

Based on a pre-existing agreement, Teekay is obligated to offer Teekay Offshore, within one year after having acquired 100 percent of Teekay Petrojarl, its interests in Teekay Petrojarl’s existing floating production, storage and offloading (FPSO) units that operate under charter contracts with remaining terms greater than three years.

In addition, Teekay is also obligated to offer Teekay Offshore its interest in future FPSO projects with charter contracts greater than three years.

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Supplemental Financial Information

Appendix B to this release includes supplemental financial information for each of the Company’s publicly-listed subsidiaries (Teekay LNG, Teekay Offshore, and Teekay Tankers), its wholly-owned subsidiary, Teekay Petrojarl, and the remaining business (referred to as Teekay Corp. Standalone). Appendix B also includes consolidation adjustments required to reconcile to Teekay’s consolidated balance sheet and statement of income as at and for the three and six months ended June 30, 2008.

Preliminary Operating Results

During the second quarter of 2008, fixed-rate businesses generated approximately 53 percent of the Company’s cash flow from vessel operations, down from 69 percent in the second quarter of 2007, primarily due to an increase in spot tanker segment cash flows resulting from a significant increase in spot tanker rates during the quarter, as well as an increase in cash flow from the Company’s fixed-rate businesses.

The following table highlights certain financial information for Teekay’s four main operating segments: the offshore segment, the fixed-rate tanker segment, the liquefied gas segment, and the spot tanker segment (please refer to the “Teekay Fleet” section of this release below and Appendix B for further details):



	Three Months Ended June 30, 2008⁽¹⁾
	(unaudited)

	Fixed-Rate		Liquefied		Spot
	Offshore		Tanker		Gas		Tanker
(in thousands of U.S. dollars)	Segment		Segment		Segment		Segment		Total

Net revenues⁽²⁾		227,937		65,270		53,044		253,420		599,671
Vessel operating expenses		101,055		16,387		13,125		28,381		158,948
Time-charter hire expense		32,262		11,445		—		98,995		142,702
Depreciation & amortization		53,772		11,289		14,209		27,430		106,700
Cash flow from vessel Operations⁽³⁾		53,113		29,835		33,784		104,958		221,690



	Three Months Ended June 30, 2007⁽¹⁾
	(unaudited)

	Fixed-Rate		Liquefied		Spot
	Offshore		Tanker		Gas		Tanker
(in thousands of U.S. dollars)	Segment		Segment		Segment		Segment		Total

Net revenues⁽²⁾		210,169		45,195		38,488		148,721		442,573
Vessel operating expenses		74,427		11,822		7,881		14,721		108,851
Time-charter hire expense		39,549		3,981		—		57,717		101,247
Depreciation & amortization		35,627		8,260		11,571		12,637		68,095
Cash flow from vessel Operations⁽³⁾		64,503		24,870		25,118		52,563		167,054


(1)		The Company plans to restate financial results included in this financial summary to adjust its accounting treatment of certain derivative transactions under SFAS 133, as more fully discussed below under "—Restatement of Financial Statements for Accounting under SFAS 133." Results exclude accounting corrections related to SFAS 133.

(2)		Net revenues for the spot tanker segment has been reduced by $11.8 million in the three months ended June 30, 2008 relating to unrealized losses from synthetic time charters and forward freight agreements, which is not included in Appendix A of this release.

(3)		Cash flow from vessel operations represents income from vessel operations before depreciation and amortization expense, vessel write-downs/(gain) loss on sale of vessels and unrealized gains or losses relating to derivatives. Cash flow from vessel operations is a non-GAAP financial measure used by certain investors to measure the financial performance of shipping companies. Please see the Company’s Web site at www.teekay.com for a reconciliation of this non-GAAP measure as used in this release to the most directly comparable GAAP financial measure.

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Offshore Segment

The Company’s offshore segment is comprised of shuttle tankers, floating storage and off-take (FSO) units, and FPSO units.

Cash flow from vessel operations from the Company’s offshore segment decreased to $53.1 million in the second quarter of 2008, compared to $64.5 million in the second quarter of 2007, primarily due to an increase in crewing costs, an increase in repair and maintenance expenditures coinciding with the seasonal maintenance of offshore oil facilities in the North Sea, and depreciation of the U.S. dollar. This was partially offset the addition of the Siri FPSO unit, which commenced its full charter-hire rate in mid-April 2008.

Fixed-Rate Tanker Segment

The Company’s fixed-rate tanker segment includes its conventional tankers, that operate under fixed-rate charter contracts with an initial term of three or more years.

Cash flow from vessel operations from the Company’s fixed-rate tanker segment increased to $29.8 million in the second quarter of 2008, compared to $24.9 million in the second quarter of 2007. This increase was primarily due to an increase in the size of the Company’s fixed-rate tanker fleet, partially offset by an increase in vessel crewing costs and depreciation of the U.S. dollar.

Liquefied Gas Segment

The liquefied gas segment includes LNG and liquefied petroleum gas (LPG) carriers.

The Company’s cash flow from vessel operations from its LNG and LPG carriers during the second quarter of 2008 was $33.8 million, compared to $25.1 million in the second quarter of 2007. This increase was primarily due to the contribution from the two Kenai LNG Carriers acquired in December 2007.

In May 2008, Teekay announced that it had agreed to take over from subsidiaries of IM Skaugen ASA (Skaugen) the existing shipbuilding contracts for two 12,000 cubic meter multi-gas ships capable of carrying LNG, LPG and Ethylene. The vessels have a total cost of approximately $94 million and are expected to deliver in 2010, at which time they are scheduled to commence service on 15-year, fixed-rate charters to Skaugen. The vessels are expected to generate a total of approximately $9.5 million per year in operating cash flow.

Spot Tanker Segment

The Company’s spot tanker segment includes its conventional tankers that operate on voyage and time charters with an initial term of less than three years.

Cash flow from vessel operations from the Company’s spot tanker segment increased to $105.0 million for the second quarter of 2008, from $52.6 million for the second quarter of 2007, primarily due to an increase in the size of the Company’s spot tanker fleet and a significant increase in spot tanker rates, partially offset by an increase in time-charter hire expenses and an increase in vessel crewing costs.

On a net basis, fleet changes increased the total number of revenue days in the Company’s spot tanker segment to 7,461 for the second quarter of 2008, compared to 5,207 for the second quarter of 2007. Revenue days represent the total number of vessel calendar days less off-hire associated with major repairs, drydockings, or mandated surveys.

Crude tanker spot rates increased significantly during the second quarter of 2008, rising to levels not experienced since record high rates during the fourth quarter of 2004. This counter-seasonal strength in tanker rates was primarily driven by continued growth in oil demand from energy-intensive economies in Asia and higher oil production from OPEC suppliers during the quarter, which resulted in increased tanker tonne-mile demand. Spot rates early in the third quarter of 2008 have been volatile but have averaged higher than in the second quarter of 2008, as Saudi Arabia continues to increase output and Asian refineries have come back on-line following maintenance.

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In the first half of 2008, Chinese crude imports averaged 3.6 million barrels per day, which was 11 percent higher than for the same period in the prior year. Thirty-five percent of Chinese import volumes were sourced from long-haul suppliers in the Atlantic basin, further increasing tanker tonne-mile demand.

The trend of tanker sales for conversion to offshore units and dry bulk vessels increased during the quarter and continues to dampen tanker supply growth. Record-high scrap steel prices have also led to an increase in oil tankers being sold for demolition. Overall, the world tanker fleet grew by only 1.6 percent during the first half of 2008, the slowest rate since 2002. In addition, increased discrimination against single-hull tankers, a series of port strikes at Fos-Lavera in the Mediterranean, and Iran using VLCCs and Suezmax tankers for floating storage, contributed to higher tanker freight rates during the quarter by reducing the effective supply of vessels.

The following table highlights the operating performance of the Company’s spot tanker segment measured in net revenues per revenue day (before deducting commissions), or time-charter equivalent (TCE) rates, and includes the realized gains and losses from forward freight agreements (FFAs) and synthetic time charters, which are entered into as hedges against a portion of the Company’s exposure to spot market rates or for speculative purposes:



	Three Months Ended
Spot Tanker Segment	June 30, 2008		March 31, 2008		June 30, 2007

Suezmax Tanker Fleet
Spot revenue days		432		553		197
Average spot rate⁽¹⁾	$	73,356	$	45,672	$	40,221

Time charter revenue days		740		668		140
Average time charter rate⁽²⁾⁽³⁾	$	30,609	$	28,138	$	18,108

Aframax Tanker Fleet
Spot revenue days		3,635		3,708		2,729
Average spot rate⁽¹⁾	$	43,606	$	36,253	$	33,270

Time charter revenue days		180		142		91
Average time charter rate⁽²⁾	$	31,803	$	31,759	$	28,500

Large/Medium-Size Product Tanker Fleet
Spot revenue days		1,156		1,062		876
Average spot rate⁽¹⁾	$	30,870	$	27,585	$	31,549

Time charter revenue days		431		813		273
Average time charter rate⁽²⁾	$	28,156	$	22,794	$	29,191

Small Product Tanker Fleet
Spot revenue days		887		902		901
Average spot rate⁽¹⁾	$	13,750	$	13,745	$	15,466


(1)		Average spot rate includes short-term time-charters and fixed-rate contracts of affreightment less than 1 year, and realized gains and losses from FFAs less than 1 year.

(2)		Average time charter rate includes short-term time charters and fixed-rate contracts of affreightment with terms of between 1-3 years, and realized gains and losses from synthetic time charters and FFAs with terms of between 1-3 years.

(3)		Suezmax average time charter rate excludes the cost of in-chartering vessels on a spot basis for contract of affreightment cargoes.

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Teekay Fleet

As at July 31, 2008, Teekay’s fleet consisted of 189 vessels, including chartered-in vessels and newbuildings on-order, but excluding vessels managed for third parties.

The following table summarizes the Teekay fleet as at July 31, 2008:



	Number of Vessels⁽¹⁾
	Owned		Chartered-in
	Vessels		Vessels		Newbuildings		Total

Offshore Segment
Shuttle Tankers⁽²⁾		28		9		4		41
Floating Storage & Offtake (“FSO”) Units⁽³⁾		5		—		—		5
Floating Production Storage & Offloading (“FPSO”) Units		5		—		—		5

Total Offshore Segment		38		9		4		51


Fixed-Rate Tanker Segment
Conventional Tankers⁽⁴⁾		19		6		—		25

Total Fixed-Rate Tanker Segment		19		6		—		25


Liquefied Gas Segment
LNG Carriers⁽⁵⁾		13		—		6		19
LPG Carriers		1		—		5		6

Total Liquefied Gas Segment		14		—		11		25


Spot Tanker Segment
Suezmaxes⁽⁶⁾		7		5		9		21
Aframaxes⁽⁷⁾		22		24		—		46
Panamaxes		—		1		—		1
Large/Medium Product Tankers		9		10		1		20

Total Spot Tanker Segment		38		40		10		88

Total		109		55		25		189


(1)		Excludes vessels managed on behalf of third parties.

(2)		Includes six shuttle tankers in which the Company’s ownership interest is 50 percent.

(3)		Includes one unit in which the Company’s ownership interest is 89 percent.

(4)		Includes eight Suezmax tankers owned by Teekay LNG.

(5)		All of the existing LNG vessels are owned by Teekay LNG. Teekay LNG has agreed to acquire Teekay’s 70 percent interest in two of the LNG newbuildings upon delivery of the vessels.

(6)		Includes two Suezmax tankers owned by Teekay Tankers.

(7)		Includes nine Aframax tankers owned by Teekay Offshore and chartered to Teekay and nine Aframaxes owned by Teekay Tankers.

During the second quarter of 2008, the Company sold and delivered one Handymax product tanker for net proceeds of $39.3 million and recognized a $0.2 million gain on the sale of this vessel. During the third quarter of 2008, the Company expects to deliver three vessels sold previously (one Handymax product tanker, one MR product tanker and one older Aframax tanker) for net proceeds of $152.0 million and a net gain of approximately $33.8 million from the sale of these vessels.

In July 2008, the Company sold its 50 percent interest in the Swift Product Tanker Pool, which included 10 of the Company's in-chartered intermediate product tankers, for gross proceeds of $49 million. The closing of the sale is subject to regulatory approvals.

For a detailed listing of recent vessel sales and deliveries, please refer to the Company’s Web site at www.teekay.com.

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Capital Expenditures and Liquidity

As of June 30, 2008, the Company’s remaining capital commitments relating to its portion of newbuildings were as follows:



(in millions)	2008		2009		2010		2011		2012		Total

Offshore Segment		—	$	23	$	231	$	163		—	$	417

Fixed-Rate Tanker Segment		—		—		—		—		—		—

Liquefied Gas Segment		120		149		46		157		45		517

Spot Tanker Segment		227		193		—		—		—		420

Total	$	347	$	365	$	277	$	320	$	45	$	1,354

Pre-arranged debt facilities are in place for $1.3 billion of these capital commitments. Additionally, as of June 30, 2008, the Company had total liquidity of $1.8 billion (excluding debt related to capital commitments), comprised of $499 million in cash and cash equivalents and $1.3 billion in undrawn credit facilities.

Restatement of Financial Statements for Accounting Under SFAS 133

The Company plans to restate financial results from 2003 through the end of the second quarter of 2008, including preliminary and previously announced results included in this earnings release, to adjust its accounting treatment for certain derivative transactions under SFAS 133.

The restatements will correct the Company’s accounting for certain of its interest rate swaps, foreign exchange forward contracts, and freight forward agreements used in its hedging strategies to manage interest rate, foreign currency, and tanker freight rate risks. To date, the Company has accounted for the applicable derivatives as hedging instruments in accordance with SFAS 133. The fair values of these derivatives were recorded as derivative assets and liabilities on the Company’s consolidated balance sheet, with the fair value changes each quarter recorded in accumulated other comprehensive income (loss). The Company recently discovered that since 2003 certain of its derivatives did not qualify for hedge accounting treatment under SFAS 133 because aspects of the Company’s hedge documentation did not meet the strict technical requirements of the standard. Accordingly, the Company will recognize changes in the fair value of these derivatives through the statement of income (loss) rather than as a component of accumulated other comprehensive income (loss) on the Company’s consolidated balance sheet and statement of changes in stockholders’ equity.

The Company believes that the applicable derivative transactions were consistent with its risk management policies and that its overall hedging strategy continues to be sound. The change to the accounting treatment for these transactions will not affect the economics of the derivative transactions nor the Company’s cash flows, liquidity, or total stockholders’ equity as at June 30, 2008. However, the restatements will result in greater fluctuations in reported net income for the restated periods and are expected to affect the preliminary financial results announced today for the three- and six-month periods ended June 30, 2008. The Company will finalize restatement amounts for the current period and applicable previous periods as soon as practicable and will release restated results and file amendments to its previous filings with the U.S. Securities and Exchange Commission as required. Accordingly, the Company’s previously reported financial statements for the periods from 2003 through the first quarter of 2008 should not be relied upon and the financial results included in this earnings release, which do not reflect the accounting adjustments described above, should be considered preliminary. Ernst & Young LLP, the Company’s independent registered public accounting firm, will complete its review of the financial statements as at June 30, 2008 and for the three-and six-month periods ended June 30, 2008 and 2007 following the completion of the restatements noted above.

The Company’s Audit Committee has discussed the matters related to the restatement with Ernst & Young LLP.

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About Teekay

Teekay Corporation transports more than 10 percent of the world’s seaborne oil, has built a significant presence in the liquefied natural gas shipping sector through its publicly-listed subsidiary, Teekay LNG Partners L.P. (NYSE: TGP), is further growing its operations in the offshore oil production, storage and transportation sector through its publicly-listed subsidiary, Teekay Offshore Partners L.P. (NYSE: TOO), and continues to expand its conventional tanker business through its publicly-listed subsidiary, Teekay Tankers Ltd. (NYSE: TNK). With a fleet of approximately 189 vessels, offices in 22 countries and 6,400 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.

Teekay’s common stock is listed on the New York Stock Exchange where it trades under the symbol “TK”.

Earnings Conference Call

The Company plans to host a conference call on Thursday, August 7, 2008 at 11:00 a.m. (ET) to discuss the results for the quarter. All shareholders and interested parties are invited to listen to the live conference call and view the Company’s earnings presentation through the Company’s Web site at www.teekay.com. The Company plans to make available a recording of the conference call until midnight August 14, 2008, by dialing (888) 203-1112 or (647) 436-0148, access code 7394678, or via the Company’s Web site until September 6, 2008.

For Investor Relations enquiries contact:
Kent Alekson
Tel: +1 (604) 844-6654

For Media enquiries contact:
Alana Duffy
Tel: +1 (604) 844-6605

Web site: www.teekay.com

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TEEKAY CORPORATION
PRELIMINARY SUMMARY CONSOLIDATED STATEMENTS OF INCOME ⁽¹⁾
(in thousands of U.S. dollars, except share and per share data)


	Three Months Ended									Six Months Ended
	June 30,			March 31,			June 30,			June 30,			June 30,
	2008			2008			2007			2008			2007

	(unaudited)			(unaudited)			(unaudited)			(unaudited)			(unaudited)

REVENUES		790,530			736,391			566,127			1,526,921			1,144,522


OPERATING EXPENSES
Voyage expenses		190,859			168,723			123,554			359,582			242,493
Vessel operating expenses⁽²⁾		158,948			145,443			108,851			304,391			206,292
Time-charter hire expense		142,702			144,921			101,247			287,623			199,748
Depreciation and amortization		106,700			97,707			68,095			204,407			147,358
General and administrative⁽²⁾		69,899			67,671			58,358			137,570			117,155
Gain on sale of vessels and equipment		(2,925	)		(496	)		(11,613	)		(3,421	)		(11,613	)
Restructuring charge		4,617			1,500			—			6,117			—

		670,800			625,469			448,492			1,296,269			901,433

Income from vessel operations		119,730			110,922			117,635			230,652			243,089

OTHER ITEMS
Interest expense⁽³⁾		(25,398	)		(87,188	)		(64,158	)		(112,586	)		(124,541	)
Interest income		16,703			18,359			23,390			35,062			39,558
Income tax recovery (expense)		10,160			(2,726	)		(287	)		7,434			3,795
Equity loss from joint ventures		(2,063	)		(3,609	)		(2,092	)		(5,672	)		(3,687	)
Foreign exchange gain (loss)		958			(29,483	)		1,214			(28,525	)		(4,674	)
Minority interest (expense) income		(20,951	)		3,472			(6,341	)		(17,479	)		(11,981	)
Other — net		5,328			5,431			9,050			10,759			13,227

		(15,263	)		(95,744	)		(39,224	)		(111,007	)		(88,303	)

Net income		104,467			15,178			78,411			119,645			154,786

Earnings per common share
— Basic	$	1.44		$	0.21		$	1.06		$	1.65		$	2.11
— Diluted	$	1.43		$	0.21		$	1.04		$	1.63		$	2.07

Weighted-average number of common shares outstanding
— Basic		72,377,684			72,644,397			73,843,784			72,511,041			73,488,668
— Diluted		73,279,213			73,435,167			75,310,567			73,357,190			74,929,991


(1)		The Company plans to restate financial results included in this financial statement to adjust its accounting treatment for certain derivative transactions under SFAS 133, as more fully discussed above under “-Restatement of Financial Statements for Accounting Under SFAS 133.” Results exclude accounting corrections related to SFAS 133.

(2)		The Company has entered into foreign exchange forward contracts, which are economic hedges of vessel operating expenses and general and administrative expenses; however, certain of these forward contracts have not been designated as cash flow hedges pursuant to GAAP. As a result, gains and losses from these undesignated contracts are reflected in foreign exchange gain (loss) in the above Statements of Income. During the three months ended June 30, 2008 and March 31, 2008, the Company recorded approximately $3.7 million and $4.7 million of gains, respectively, relating to these undesignated forward contracts, which effectively reduced the Company’s vessel operating expenses and general and administrative expenses.

(3)		The three months ended June 30, 2008 includes $48.1 million of unrealized gains from interest rate swaps.

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TEEKAY CORPORATION
PRELIMINARY SUMMARY CONSOLIDATED BALANCE SHEETS⁽¹⁾
(in thousands of U.S. dollars)


	As at June 30,		As at December 31,
	2008		2007

	(unaudited)		(unaudited)

ASSETS
Cash and cash equivalents		498,933		442,673
Other current assets		538,833		461,546
Restricted cash — current		53,067		33,479
Vessels held for sale		18,203		79,689
Restricted cash — long-term		661,758		652,717
Vessels and equipment		6,664,153		6,229,809
Advances on newbuilding contracts		693,292		617,066
Other assets		893,160		848,632
Intangible assets		256,070		259,952
Goodwill		491,911		434,590

Total Assets		10,769,380		10,060,153

LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts payable and accrued liabilities		438,867		364,635
Current portion of long-term debt		426,189		474,873
Long-term debt		5,708,236		5,285,397
Other long-term liabilities / In process revenue contracts		792,472		719,884
Minority interest		588,916		527,494
Stockholders’ equity		2,814,700		2,687,870

Total Liabilities and Stockholders’ Equity		10,769,380		10,060,153


(1)		The Company plans to restate financial results included in this financial statement to adjust its accounting treatment for certain derivative transactions under SFAS 133, as more fully discussed above under “-Restatement of Financial Statements for Accounting Under SFAS 133.” Results exclude accounting corrections related to SFAS 133.

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TEEKAY CORPORATION
PRELIMINARY SUMMARY CONSOLIDATED STATEMENTS OF CASH FLOWS⁽¹⁾
(in thousands of U.S. dollars)


	Six Months Ended
	June 30,
	2008			2007

	(unaudited)			(unaudited)

Cash and cash equivalents provided by (used for)
OPERATING ACTIVITIES

Net operating cash flow		164,420			152,702


FINANCING ACTIVITIES
Net proceeds from long-term debt		1,155,095			1,783,863
Scheduled repayments of long-term debt		(198,320	)		(31,816	)
Prepayments of long-term debt		(645,321	)		(710,506	)
Increase in restricted cash		(11,503	)		(79,230	)
Repurchase of common stock		(20,512	)		(3,035	)
Net proceeds from the public offering of Teekay LNG		148,345			84,186
Net proceeds from the public offering of Teekay Offshore		134,265			—
Other		(36,188	)		10,879

Net financing cash flow		525,861			1,054,341


INVESTING ACTIVITIES
Expenditures for vessels and equipment		(410,495	)		(356,104	)
Proceeds from sale of vessels and equipment		79,224			118,975
Purchase of marketable securities		(542	)		(28,636	)
Proceeds from sale of marketable securities		11,058			49,059
Purchase of Teekay Petrojarl ASA		(257,142	)		—
Purchase of 50 percent of OMI Corporation		—			(896,841	)
Loan to joint ventures		(87,198	)		(144,270	)
Other		31,074			(808	)

Net investing cash flow		643,021			(1,258,625	)


Increase (decrease) in cash and cash equivalents		56,260			(51,582	)
Cash and cash equivalents, beginning of the period		442,673			343,914

Cash and cash equivalents, end of the period		498,933			292,332


(1)		The Company plans to restate financial results included in this financial statement to adjust its accounting treatment for certain derivative transactions under SFAS 133, as more fully discussed above under “-Restatement of Financial Statements for Accounting Under SFAS 133.” Results exclude accounting corrections related to SFAS 133.

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TEEKAY CORPORATION
APPENDIX A — PRELIMINARY SPECIFIC ITEMS AFFECTING NET INCOME⁽¹⁾
(in thousands of U.S. dollars, except per share data)

Set forth below are some of the significant items of income and expense that affected the Company’s net income for the three months ended June 30, 2008 and 2007, all of which items are typically excluded by securities analysts in their published estimates of the Company’s financial results:



	Three Months Ended						Six Months Ended
	June 30, 2008						June 30, 2008
	(unaudited)						(unaudited)
				$ Per						$ Per
	$			Share			$			Share

Gain on sale of vessels and equipment		2,925			0.04			3,421			0.05
Foreign currency exchange losses⁽²⁾		(2,764	)		(0.04	)		(36,987	)		(0.50	)
Deferred income tax expense on unrealized foreign exchange gains⁽³⁾		(284	)		—			(8,680	)		(0.12	)
Unrealized gains from interest rate swaps		48,092			0.66			36,637			0.50
Net effect from non-cash changes in purchase price allocation for the acquisition of Teekay Petrojarl ASA⁽⁴⁾		(6,398	)		(0.09	)		(6,398	)		(0.09	)
Net effect from non-cash changes in purchase price allocation for the acquisition of 50 percent of OMI Corporation⁽⁵⁾		(3,084	)		(0.04	)		(7,028	)		(0.10	)
Restructuring charge⁽⁶⁾		(4,617	)		(0.06	)		(4,617	)		(0.06	)
Other⁽⁷⁾		(712	)		(0.01	)		(4,810	)		(0.07	)
Minority owners’ share of items above⁽⁸⁾		(5,768	)		(0.08	)		10,285			0.14

Total		27,390			0.38			(18,177	)		(0.25	)



	Three Months Ended						Six Months Ended
	June 30, 2007						June 30, 2007
	(unaudited)						(unaudited)
				$ Per						$ Per
	$			Share			$			Share

Gain on sale of vessels		11,613			0.16			11,613			0.16
Gain on sale of marketable securities		4,836			0.06			4,836			0.06
Foreign currency exchange gains (losses)⁽²⁾		1,214			0.02			(4,674	)		(0.06	)
Deferred income tax expense on unrealized foreign exchange gains⁽³⁾		(4,382	)		(0.06	)		(7,713	)		(0.10	)
Net effect from non-cash changes in purchase price allocation for acquisition of Teekay Petrojarl ASA⁽⁴⁾		(4,240	)		(0.06	)		(4,240	)		(0.06	)
Minority owners’ share of items above⁽⁸⁾		1,711			0.02			3,561			0.05

Total		10,752			0.14			3,383			0.05


(1)		The Company plans to restate financial results included in this Appendix A to adjust its accounting treatment for certain derivative transactions under SFAS 133, as more fully discussed in the earnings release to which this Appendix A is attached under “-Restatement of Financial Statements for Accounting Under SFAS 133.” Results exclude accounting corrections related to SFAS 133.

(2)		Foreign currency exchange gains and losses primarily relate to the Company’s debt denominated in Euros and deferred tax liability denominated in Norwegian Kroner. Nearly all of the Company’s foreign currency exchange gains and losses are unrealized and have been included in the amounts in the above table except for $3.7 million and $8.4 million of gains in the three- and six-month periods ended June 30, 2008, respectively, from foreign exchange forward contracts relating to vessel operating expenses and general and administrative expenses not designated as hedges.

(3)		Portion of deferred income tax related to unrealized foreign exchange gains and losses.

(4)		Primarily relates to changes in amortization of in-process revenue contracts as a result of adjustments to the purchase price allocation of Teekay Petrojarl ASA.

(5)		Primarily relates to changes in amortization of intangible assets as a result of adjustments to the purchase price allocation of OMI Corporation.

(6)		Restructuring charges relate to the reorganization of certain of the Company’s operational functions.

(7)		Primarily relates to a change in a non-cash deferred tax balance related to 2006, settlement of a previous claim against OMI Corporation, and loss on bond repurchases (8.875% Notes due 2011).

(8)		Primarily relates to minority owners’ share of foreign currency exchange gains (losses) and unrealized gains from interest rate swaps.

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TEEKAY CORPORATION
APPENDIX B — PRELIMINARY SUPPLEMENTAL FINANCIAL INFORMATION ⁽¹⁾
SUMMARY BALANCE SHEET AS AT JUNE 30, 2008
(in thousands of U.S. dollars)

(unaudited)


										Teekay
	Teekay		Teekay		Teekay		Teekay			Corp.		Consolidation
	Offshore		LNG		Tankers		Petrojarl			Standalone		Adjustments			Total

ASSETS
Cash and cash equivalents		113,021		78,811		19,706		44,155			243,240		—			498,933
Other current assets		112,456		17,385		25,655		73,217			328,323		—			557,036
Restricted cash (current & non-current)		—		695,128		—		2,745			16,952		—			714,825
Other assets ⁽²⁾		70,906		402,222		994		(13,055	)		432,093		—			893,160
Vessels and equipment		1,751,281		1,810,796		441,135		1,413,694			1,247,247		—			6,664,153
Advances on vessels		—		322,897		—		—			370,395		—			693,292
Equity investment in subsidiaries		—		—		—		—			1,715,893		(1,715,893	)		—
Intangibles and goodwill		177,436		185,650		—		273,859			111,036		—			747,981

TOTAL ASSETS		2,225,100		3,512,889		487,490		1,794,615			4,465,179		(1,715,893	)		10,769,380

LIABILITIES AND EQUITY
Accounts payable and accrued liabilities		73,973		64,136		11,899		78,503			210,356		—			438,867
Current portion of debt and leases		96,988		253,835		3,600		47,100			24,666		—			426,189
Long-term debt and capital leases		1,521,519		2,247,031		317,028		398,900			1,223,758		—			5,708,236
Other long-term liabilities / in process revenue contracts		111,168		66,915		6,792		420,114			187,483		—			792,472
Minority interest ⁽³⁾		29,148		20,288		—		534			4,215		534,730			588,915
Equity		392,304		860,684		148,171		849,464			2,814,701		(2,250,623	)		2,814,701

TOTAL LIABILITIES AND EQUITY		2,225,100		3,512,889		487,490		1,794,615			4,465,179		(1,715,893	)		10,769,380


(1)		The Company plans to restate financial results included in this Appendix B to adjust its accounting treatment for certain derivative transactions under SFAS 133, as more fully discussed in the earnings release to which this Appendix B is attached under “-Restatement of Financial Statements for Accounting Under SFAS 133.” Results exclude accounting corrections related to SFAS 133.

(2)		Other assets includes equity investments in joint ventures.

(3)		Minority interest in the Teekay Offshore, Teekay LNG, Teekay Tankers and Teekay Petrojarl columns represent the joint venture partners’ share of the joint venture net assets. Minority interest in the Consolidation Adjustments column represents the public’s share of the net assets of Teekay’s publicly-traded subsidiaries.

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TEEKAY CORPORATION
APPENDIX B — PRELIMINARY SUPPLEMENTAL FINANCIAL INFORMATION⁽¹⁾
SUMMARY STATEMENTS OF INCOME FOR THE THREE MONTHS ENDED JUNE 30, 2008
(in thousands of U.S. dollars)

(unaudited)


													Teekay
	Teekay			Teekay			Teekay			Teekay			Corp.			Consolidation
	Offshore			LNG			Tankers			Petrojarl			Standalone			Adjustments			Total

Voyage revenues		222,282			71,592			35,745			92,104			435,815			(67,008	)		790,530


Voyage expenses		59,811			649			618			—			129,781			—			190,859
Vessel operating expense		45,970			20,792			7,669			55,017			29,500			—			158,948
Time charter hire expense		32,262			—			—			6,718			170,730			(67,008	)		142,702
Depreciation and amortization		35,747			18,872			5,429			22,565			24,087			—			106,700
General and administrative		15,869			5,745			1,670			11,431			35,184			—			69,899
Gain on disposal of vessels and equipment		—			—			—			—			(2,925	)		—			(2,925	)
Restructuring charge		—			—			—			—			4,617			—			4,617

Total operating expenses		189,659			46,058			15,386			95,731			390,974			(67,008	)		670,800


Income from vessel operations		32,623			25,534			20,359			(3,627	)		44,841			—			119,730


Net interest expense		18,911			(16,774	)		1,655			(6,774	)		(5,713	)		—			(8,695	)
Income tax recovery (expense)		5,942			551			—			—			3,667			—			10,160
Equity income (loss)		—			(1,627	)		—			—			(436	)		—			(2,063	)
Equity in earnings of subsidiaries⁽²⁾		—			—			—			—			57,976			(57,976	)		—
Foreign exchange gain (loss)		(532	)		(29	)		(8	)		(248	)		1,775			—			958
Minority interest income (expense)⁽³⁾		(486	)		(1,114	)		—			180			(348	)		(19,183	)		(20,951	)
Other (net)		2,315			1,093			—			(784	)		2,704						5,328

Total other income		26,150			(17,900	)		1,647			(7,626	)		59,625			(77,159	)		(15,263	)

NET INCOME (LOSS)		58,773			7,634			22,006			(11,253	)		104,466			(77,159	)		104,467

CASH FLOW FROM VESSEL OPERATIONS⁽⁴⁾		68,370			44,406			25,788			7,024			76,102			—			221,690


(1)		The Company plans to restate financial results included in this Appendix B to adjust its accounting treatment for certain derivative transactions under SFAS 133, as more fully discussed in the earnings release to which this Appendix B is attached under “-Restatement of Financial Statements for Accounting Under SFAS 133.” Results exclude accounting corrections related to SFAS 133.

(2)		Teekay Corporation’s proportionate share of the net earnings of its publicly-traded subsidiaries.

(3)		Minority interest income (expense) in the Teekay Offshore, Teekay LNG, Teekay Tankers and Teekay Petrojarl columns represent the joint venture partners’ share of the net income (loss) of the respective joint ventures. Minority interest income (expense) in the Consolidation Adjustments column represents the public’s share of the net income (loss) of Teekay’s publicly-traded subsidiaries.

(4)		Cash flow from vessel operations represents income from vessel operations before depreciation and amortization expense, vessel write-downs/(gain) loss on sale of vessels and unrealized gains or losses relating to derivatives. Cash flow from vessel operations is a non-GAAP financial measure used by certain investors to measure the financial performance of shipping companies. Please see the Company’s Web site at www.teekay.com for a reconciliation of this non-GAAP financial measure as used in this release to the most directly comparable GAAP financial measure.

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TEEKAY CORPORATION
APPENDIX B — PRELIMINARY SUPPLEMENTAL FINANCIAL INFORMATION⁽¹⁾
SUMMARY STATEMENTS OF INCOME FOR THE SIX MONTHS ENDED JUNE 30, 2008
(in thousands of U.S. dollars)

(unaudited)


													Teekay
	Teekay			Teekay			Teekay			Teekay			Corp.			Consolidation
	Offshore			LNG			Tankers			Petrojarl			Standalone			Adjustments			Total

Voyage revenues		426,068			137,614			62,416			185,953			836,471			(121,601	)		1,526,921


Voyage expenses		111,188			944			714			—			246,736			—			359,582
Vessel operating expense		87,456			36,192			13,249			101,679			65,815			—			304,391
Time charter hire expense		65,908			—			—			13,712			329,604			(121,601	)		287,623
Depreciation and amortization		68,293			34,944			8,918			40,568			51,684			—			204,407
General and administrative		31,463			9,705			2,991			25,108			68,303			—			137,570
Gain on disposal of vessels and equipment		—			—			—			—			(3,421	)		—			(3,421	)
Restructuring charge		—			—			—			—			6,117			—			6,117

Total operating expenses		364,308			81,785			25,872			181,067			764,838			(121,601	)		1,296,269


Income from vessel operations		61,760			55,829			36,544			4,886			71,633			—			230,652


Net interest expense		(3,806	)		(37,885	)		(487	)		(10,796	)		(24,550	)		—			(77,524	)
Income tax recovery (expense)		5,745			228			—			—			1,461			—			7,434
Equity income (loss)		—			(1,691	)		—			—			(3,981	)		—			(5,672	)
Equity in earnings of subsidiaries⁽²⁾		—			—			—			—			54,780			(54,780	)		—
Foreign exchange gain (loss)		(3,870	)		(33,920	)		(13	)		(5,970	)		15,248			—			(28,525	)
Minority interest income (expense)⁽³⁾		(1,119	)		(1,019	)		—			180			(704	)		(14,817	)		(17,479	)
Other (net)		4,940			1,092			—			(1,031	)		5,758						10,759

Total other income		1,890			(73,195	)		(500	)		(17,617	)		48,012			(69,597	)		(111,007	)

NET INCOME (LOSS)		63,650			(17,366	)		36,044			(12,731	)		119,645			(69,597	)		119,645

CASH FLOW FROM VESSEL OPERATIONS⁽⁴⁾		130,053			90,773			45,462			15,228			124,956			—			406,472


(1)		The Company plans to restate financial results included in this Appendix B to adjust its accounting treatment for certain derivative transactions under SFAS 133, as more fully discussed in the earnings release to which this Appendix B is attached under “-Restatement of Financial Statements for Accounting Under SFAS 133.” Results exclude accounting corrections related to SFAS 133.

(2)		Teekay Corporation’s proportionate share of the net earnings of its publicly-traded subsidiaries.

(3)		Minority interest income (expense) in the Teekay Offshore, Teekay LNG, Teekay Tankers and Teekay Petrojarl columns represent the joint venture partners’ share of the net income (loss) of the respective joint ventures. Minority interest income (expense) in the Consolidation Adjustments column represents the public’s share of the net income (loss) of Teekay’s publicly-traded subsidiaries.

(4)		Cash flow from vessel operations represents income from vessel operations before depreciation and amortization expense, vessel write-downs/(gain) loss on sale of vessels and unrealized gains or losses relating to derivatives. Cash flow from vessel operations is a non-GAAP financial measure used by certain investors to measure the financial performance of shipping companies. Please see the Company’s Web site at www.teekay.com for a reconciliation of this non-GAAP financial measure as used in this release to the most directly comparable GAAP financial measure.

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TEEKAY CORPORATION
APPENDIX C — PRELIMINARY SUPPLEMENTAL SEGMENT INFORMATION⁽¹⁾
(in thousands of U.S. dollars)


	Three Months Ended June 30, 2008
	(unaudited)

				Fixed-Rate		Liquefied		Spot
	Offshore			Tanker		Gas		Tanker
	Segment			Segment		Segment		Segment		Total

Net revenues⁽²⁾		227,937			65,270		53,044		253,420		599,671
Vessel operating expenses		101,055			16,387		13,125		28,381		158,948
Time-charter hire expense		32,262			11,445		—		98,995		142,702
Depreciation and amortization		53,772			11,289		14,209		27,430		106,700
General and administrative		26,266			7,237		5,914		30,482		69,899
Gain on sale of vessels and equipment		(3,150	)		—		—		225		(2,925	)
Restructuring charge		3,327			58		221		1,011		4,617

Income from vessel operations		14,405			18,854		19,575		66,896		119,730



	Three Months Ended March 31, 2008
	(unaudited)

			Fixed-Rate		Liquefied		Spot
	Offshore		Tanker		Gas		Tanker
	Segment		Segment		Segment		Segment			Total

Net revenues⁽²⁾		219,887		60,135		55,982		231,664			567,668
Vessel operating expenses		86,353		16,370		11,623		31,097			145,443
Time-charter hire expense		35,475		11,720		—		97,726			144,921
Depreciation and amortization		46,074		9,673		14,195		27,765			97,707
General and administrative		27,682		5,667		5,611		28,711			67,671
Gain on sale of vessels and equipment		—		—		—		(496	)		(496	)
Restructuring charge		—		1,500		—		—			1,500

Income from vessel operations		24,303		15,205		24,553		46,861			110,922



	Three Months Ended June 30, 2007
	(unaudited)

				Fixed-Rate		Liquefied		Spot
	Offshore			Tanker		Gas		Tanker
	Segment			Segment		Segment		Segment		Total

Net revenues⁽²⁾		210,169			45,195		38,488		148,721		442,573
Vessel operating expenses		74,427			11,822		7,881		14,721		108,851
Time-charter hire expense		39,549			3,981		—		57,717		101,247
Depreciation and amortization		35,627			8,260		11,571		12,637		68,095
General and administrative		24,627			4,522		5,489		23,720		58,358
Gain on sale of vessels and equipment		(11,613	)		—		—		—		(11,613	)

Income from vessel operations		47,552			16,610		13,547		39,926		117,635


(1)		The Company plans to restate financial results included in this Appendix C to adjust its accounting treatment for certain derivative transactions under SFAS 133, as more fully discussed in the earnings release to which this Appendix C is attached under “-Restatement of Financial Statements for Accounting Under SFAS 133.” Results exclude accounting corrections related to SFAS 133.
(2)		Net revenues represents revenues less voyage expenses, which comprise all expenses relating to certain voyages, including bunker fuel expenses, port fees, canal tolls and brokerage commissions. Net revenues is a non-GAAP financial measure used by certain investors to measure the financial performance of shipping companies. Please see the Company’s Web site at www.teekay.com for a reconciliation of this non-GAAP measure as used in this release to the most directly comparable GAAP financial measure.

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TEEKAY CORPORATION
APPENDIX C — PRELIMINARY SUPPLEMENTAL SEGMENT INFORMATION⁽¹⁾
(in thousands of U.S. dollars)


	Six Months Ended June 30, 2008
	(unaudited)

				Fixed-Rate		Liquefied		Spot
	Offshore			Tanker		Gas		Tanker
	Segment			Segment		Segment		Segment			Total

Net revenues⁽²⁾		447,824			125,405		109,026		485,084 1			,167,339
Vessel operating expenses		187,408			32,757		24,748		59,478			304,391
Time-charter hire expense		67,737			23,165		—		196,721			287,623
Depreciation and amortization		99,846			20,962		28,404		55,195			204,407
General and administrative		53,948			12,904		11,525		59,193			137,570
Gain on sale of vessels and equipment		(3,150	)		—		—		(271	)		(3,421	)
Restructuring charge		3,327			1,558		221		1,011			6,117

Income from vessel operations		38,708			34,059		44,128		113,757			230,652



	Six Months Ended June 30, 2007
	(unaudited)

				Fixed-Rate		Liquefied		Spot
	Offshore			Tanker		Gas		Tanker
	Segment			Segment		Segment		Segment		Total

Net revenues⁽²⁾		430,318			89,224		75,960		306,527 9		02,029
Vessel operating expenses		137,141			23,512		14,339		31,300		206,292
Time-charter hire expense		80,866			7,818		—		111,064		199,748
Depreciation and amortization		81,349			16,728		22,365		26,916		147,358
General and administrative		50,133			8,998		10,688		47,336		117,155
Gain on sale of vessels and equipment		(11,613	)		—		—		—		(11,613	)

Income from vessel operations		92,442			32,168		28,568		89,911		243,089


(1)		The Company plans to restate financial results included in this Appendix C to adjust its accounting treatment for certain derivative transactions under SFAS 133, as more fully discussed in the earnings release to which this Appendix C is attached under “-Restatement of Financial Statements for Accounting Under SFAS 133.” Results exclude accounting corrections related to SFAS 133.

(2)		Net revenues represents revenues less voyage expenses, which comprise all expenses relating to certain voyages, including bunker fuel expenses, port fees, canal tolls and brokerage commissions. Net revenues is a non-GAAP financial measure used by certain investors to measure the financial performance of shipping companies. Please see the Company’s Web site at www.teekay.com for a reconciliation of this non-GAAP measure as used in this release to the most directly comparable GAAP financial measure.

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FORWARD LOOKING STATEMENTS

This release contains forward-looking statements (as defined in Section 21E of the Securities Exchange Act of 1934, as amended) which reflect management’s current views with respect to certain future events and performance, including statements regarding: the Company’s future growth prospects; tanker market fundamentals, including the balance of supply and demand in the tanker market, and spot tanker charter rates; the Company’s future capital expenditure commitments and the financing requirements for such commitments; the timing of newbuilding deliveries; the commencement of charter contracts; and the timing of the Company’s determination of restated results for prior periods and the effect of restatements on prior period results. The following factors are among those that could cause actual results to differ materially from the forward-looking statements, which involve risks and uncertainties, and that should be considered in evaluating any such statement: changes in production of or demand for oil, petroleum products, LNG and LPG, either generally or in particular regions; greater or less than anticipated levels of tanker newbuilding orders or greater or less than anticipated rates of tanker scrapping; changes in trading patterns significantly affecting overall vessel tonnage requirements; changes in applicable industry laws and regulations and the timing of implementation of new laws and regulations; changes in the typical seasonal variations in tanker charter rates; changes in the offshore production of oil or demand for shuttle tankers, FSOs and FPSOs; the potential for early termination of long-term contracts and inability of the Company to renew or replace long-term contracts; changes affecting the offshore tanker market; shipyard production delays; the Company’s future capital expenditure requirements; the Company’s, Teekay LNG’s, Teekay Offshore’s, and Teekay Tankers’ potential inability to raise financing to purchase additional vessels; conditions in the United States capital markets; changes affecting the conventional tanker market; the determination of the Company’s restatement of prior period results; and other factors discussed in Teekay’s filings from time to time with the SEC, including its Report on Form 20-F for the fiscal year ended December 31, 2007. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company’s expectations with respect thereto or any change in events, conditions or circumstances on which any such statement is based.

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