GSTL Genco Shipping & Trading Ltd (MM)

Increases Time Charter Coverage for 2007 NEW YORK, Dec. 14 /PRNewswire-FirstCall/ -- Genco Shipping & Trading Limited (NASDAQ:GSTL) today announced it has reached an agreement in principle to enter into a time charter for the Genco Carrier, a 1998-built Handymax vessel, with Pacific Basin Chartering Ltd. The Company also reached an agreement in principle to extend the time charter for the Genco Wisdom, a 1997-built Handymax vessel, currently on charter with Hyundai Merchant Marine Co., Ltd. Both time charters would be for eleven to thirteen months at a rate of $24,000 per day, less a 5% third party brokerage commission. The Company also announced that it has reached an agreement in principle to commence a new time charter with Baumarine AS for the Genco Trader, a 1990-built Panamax vessel for ten to twelve months at a net rate of $25,750 per day, equivalent to a gross rate of approximately $27,105. Since December of 2005, the vessel traded in the Baumarine Pool, a spot pool of approximately 45 vessels. The time charters for the Genco Trader and the Genco Wisdom are expected to commence on or about December 23, 2006 and January 14, 2007, respectively. The time charter for the Genco Carrier is expected to commence following the expiration of its current time charter. All three time charters are subject to the completion of definitive agreements. Robert Gerald Buchanan, President, said, "Since our inception, management's ability to take advantage of strong freight markets and lock away a large portion of our fleet on time charters has served our shareholders well. Consistent with this approach, we are pleased to sign these most recent time charters at favorable rates. As a result of these three agreements with leading international charterers, we have increased significantly our secured revenue stream and currently have approximately 47% of our fleet's available days secured on contracts for 2007." The following table sets forth information about the current employment of Genco's fleet: 2006 Vessel Vessel Type Expiration 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 October 2007 $25,750(4) 5 Genco Vigour Panamax December 2006 $29,000 6 Genco Acheron Panamax January 2007 $28,500 7 Genco Surprise Panamax November 2007 $25,000 8 Genco Muse Handymax September 2007 $26,500(5) 9 Genco Marine Handymax March 2007 $18,000(6) 10 Genco Prosperity Handymax March 2007 $23,000 11 Genco Carrier Handymax December 2006 $24,000 11 to 13 months from delivery to new charterer $24,000(7) 12 Genco Wisdom Handymax January 2007 $24,000 December 2007 $24,000(8) 13 Genco Success Handymax January 2007 $23,850 January 2008 $24,000(9) 14 Genco Glory Handymax December 2006 $18,250 15 Genco Commander Handymax October 2007 $19,750 16 Genco Explorer Handysize July 2007 $13,500 17 Genco Pioneer Handysize August 2007 $13,500 18 Genco Progress Handysize August 2007 $13,500 19 Genco Reliance Handysize July 2007 $13,500 20 Genco Sugar Handysize July 2007 $13,500 (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 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 Leader entered into the Baumarine Pool arrangement in February 2006. (4) The Genco Trader is currently trading under the Baumarine Pool arrangement, and is planned to deliver to the charterer for the commencement of the time charter on or about December 23, 2006. The time charter rate presented is the net daily charterhire rate. There are no payments of brokerage commissions associated with this time charter agreement. Time charter rate agreed to in principle is subject to the completion of definitive agreements acceptable to both Genco and Baumarine AS. (5) 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. (6) 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. (7) Time charter rate agreed to in principle is subject to the completion of definitive agreements acceptable to both Genco and Pacific Basin Chartering Ltd. (8) The Company extended the time charter for an additional eleven to thirteen months at a rate of $24,000 per day, less a 5% third party brokerage commission. The time charter would commence January 14, 2007 following the expiration of the vessel's current time charter in January 2007. The extension is subject to completion of definitive agreements acceptable to both Genco and Hyundai Merchant Marine Co., Ltd. (9) The Company extended the time charter for an additional eleven to thirteen months at a rate of $24,000 per day, less a 5% third party brokerage commission. The time charter would commence February 1, 2007 following the expiration of the vessel's current time charter in January 2007. The extension is subject to completion of definitive agreements acceptable to both Genco and Korea Line Corporation. About Genco Shipping & Trading Limited Genco Shipping & Trading Limited transports iron ore, coal, grain, steel products and other drybulk cargoes along worldwide shipping routes. Currently, Genco Shipping & Trading Limited owns 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 the terms and conditions of any definitive agreements that the Company and Hyundai Merchant Marine Co.,Ltd., Pacific Basin Chartering Ltd., and Baumarine AS may enter into for such extension, 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, Genco Shipping & Trading Limited, +1-646-443-8555 Web site: http://www.gencoshipping.com/

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