GSTL Genco Shipping & Trading Ltd (MM)

NEW YORK, Aug. 14 /PRNewswire-FirstCall/ -- Genco Shipping & Trading Limited (NASDAQ:GSTL) today announced that the Company has entered into an agreement in principle to time charter the Genco Commander, a 1994 Japanese-built Handymax vessel, for eleven to thirteen months with A/S Klaveness for a gross rate of $19,750 per day minus five percent in third party brokerage commissions. The Company also announced that it has entered into an agreement in principle to time charter the Genco Surprise, a 1998 Japanese-built Panamax vessel, for twelve to fourteen months with Cosco Bulk Carrier Co., Ltd. for a gross rate of $25,000 per day minus five percent in third party brokerage commissions. The time charters are subject to the completion of definitive agreements acceptable to both the Company and the charterers. The time charters would commence upon delivery to Genco of the Genco Commander and Genco Surprise, which are expected between August and November of 2006. On July 10, 2006, the Company agreed to acquire the Genco Commander and Genco Surprise as well as the Genco Acheron, a 1999 Japanese-built Panamax vessel, from affiliates of Franco Compania Naviera S.A. Robert Gerald Buchanan, President, commented, "We are pleased to further our strategy of entering into time charter agreements with high quality charterers. With these most recent agreements, Genco has taken advantage of a strengthening market and has increased its time charter coverage for both 2006 and 2007." The following table sets forth information about the employment of Genco's fleet after giving effect to the new vessel acquisitions and time charters: Vessel Expiration Vessel Type Date(1) Time Charter Rates (2) 1 Genco Beauty Panamax February 2007 $29,000 2 Genco Knight Panamax February 2007 $29,000 3 Genco Leader Panamax Spot(3) N/A 4 Genco Trader Panamax Spot(3) N/A 5 Genco Vigour Panamax December 2006 $29,000 6 Genco Muse Handymax September 2007 $26,500 (4) 7 Genco Marine Handymax March 2007 $18,000 (5) 8 Genco Prosperity Handymax March 2007 $23,000 9 Genco Carrier Handymax December 2006 $24,000 10 Genco Wisdom Handymax January 2007 $24,000 11 Genco Success Handymax January 2007 $23,850 12 Genco Glory Handymax December 2006 $18,250 13 Genco Explorer Handysize August 2006 $17,250 July 2007 $13,500 (6) 14 Genco Pioneer Handysize September 2006 $17,250 August 2007 $13,500 (6) 15 Genco Progress Handysize September 2006 $17,250 (7) August 2007 $13,500 (6) 16 Genco Reliance Handysize August 2006 $17,250 July 2007 $13,500 (6) 17 Genco Sugar Handysize August 2006 $17,250 July 2007 $13,500 (6) 12 to 14 months 18 Genco Surprise(8) Panamax from delivery date $25,000 11 to 13 months from 19 Genco Commander(8) Handymax delivery date $19,750 20 Genco Acheron (8) Panamax To be determined To be determined (1) The dates presented on this table represent the earliest dates that our charters may be terminated. Except with respect to the Genco Trader and Genco Leader charters, under the terms of the contracts, charterers are entitled to extend time charters from two to four months in order to complete the vessel's final voyage plus any time the vessel has been off-hire. (2) Time charter rates presented are the gross daily charterhire rates before the payments of brokerage commissions ranging from 1.25% to 5% to unaffiliated third parties. In a time charter, the charterer is responsible for voyage expenses such as bunkers, port expenses, agents' fees and canal dues. (3) The Genco Trader and Genco Leader entered into the Baumarine Pool arrangement in December 2005 and February 2006, respectively. (4) Since this vessel was acquired with an existing time charter at an above market rate, the Company allocates the purchase price between the vessel and a deferred asset for the value assigned to the above market charterhire. This deferred asset is amortized as a reduction to voyage revenues over the remaining term of the charter, resulting in a daily rate of approximately $21,500 recognized as revenue. For cash flow purposes, the Company will continue to receive $26,500 per day less commissions. (5) The time charter rate was $26,000 until March 2006 and $18,000 thereafter. For purposes of revenue recognition, the charter contract is reflected on a straight-line basis in accordance with GAAP. (6) The company intends to extend the time charters with Lauritzen for an additional eleven to thirteen months at a rate of $13,500 per day per vessel less a 1.25% third party brokerage commission. (7) The time charter rate was $21,560 through March 2005 and $17,250 thereafter. For purposes of revenue recognition, the charter contract is reflected on a straight-line basis in accordance with GAAP. (8) On July 10, 2006, Genco Shipping & Trading Limited agreed to acquire three drybulk vessels from affiliates of Franco Compania Naviera S.A. The acquisition is subject to customary closing conditions and the vessels are expected to be delivered between August and November of 2006. About Genco Shipping & Trading Limited Genco Shipping & Trading Limited transports iron ore, coal, grain, steel products and other drybulk cargoes along worldwide shipping routes. After the acquisition of the three vessels, Genco Shipping & Trading Limited will own a fleet of 20 drybulk vessels, consisting of seven Panamax, eight Handymax and five Handysize vessels, with a carrying capacity of approximately 1,029,000 dwt. "Safe Harbor" Statement Under the Private Securities Litigation Reform Act of 1995 This press release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management's current expectations and observations. Included among the factors that, in our view, could cause actual results to differ materially from the forward-looking statements contained in this report are (i) the fulfillment of the closing conditions under the Company's agreement to acquire the three drybulk vessels; (ii) increases in costs and expenses including but not limited to: crew wages, insurance, provisions, repairs, maintenance and general and administrative expenses; (iii) changes in the condition of the Company's vessels or applicable maintenance or regulatory standards (which may affect, among other things, our anticipated drydocking or maintenance and repair costs) and unanticipated drydock expenditures; and other factors listed from time to time in our public filings with the Securities and Exchange Commission including, without limitation, our Annual Report on Form 10-K for the year ended December 31, 2005, our Quarterly Reports on Form 10-Q, and our reports on Form 8-K. DATASOURCE: Genco Shipping & Trading Limited CONTACT: John C. Wobensmith, Chief Financial Officer of Genco Shipping & Trading Limited, +1-646-443-8555 Web site: http://www.gencoshipping.com/

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