GSTL Genco Shipping & Trading Ltd (MM)

Increases Time Charter Coverage to 75% for 2007 NEW YORK, March 13 /PRNewswire-FirstCall/ -- Genco Shipping & Trading Limited (NASDAQ:GSTL) today announced it has reached an agreement to enter into a time charter for the Genco Vigour, a 1999-built Panamax vessel, with STX Panocean (UK) Co. Ltd. The time charter will be for 23 to 25 months at an average rate of approximately $29,000(1) per day, less a 5% third party brokerage commission. Specifically, the time charter rate will be $33,000 per day for the first 11 months, $25,000 per day for the following 11 months and $29,000 per day thereafter. The time charter will commence following the expiration of the vessel's current time charter. Robert Gerald Buchanan, President, said, "Our two-year time charter for the Genco Vigour further demonstrates management's expertise in locking away a large portion of our fleet on time charters through a balanced portfolio comprised of both medium-term and longer-term contracts at favorable rates with top-tier charterers. With this agreement, we currently have approximately 75% of our fleet's available days secured on contracts for the year. We remain committed to seeking to provide our shareholders with sizable dividends while maintaining our financial flexibility as we continue to pursue our growth strategy." (1) For purposes of revenue recognition, the time charter contract will be reflected on a straight-line basis at approximately $29,000 per day for 23 to 25 months in accordance with generally accepted accounting principles in the United States, or U.S. GAAP. The following table sets forth information about the employment of Genco's fleet: Vessel Charterer Charter Time Charter Expiration (1) Rate (2) Panamax Vessels Genco Beauty Cargill April 2007 $29,000 Genco Knight BHP April 2007 29,000 Genco Leader AS Klaveness December 2008 25,650(3) Genco Trader Baumarine AS October 2007 25,750(3) Genco Vigour BHP April 2007 29,000 STX Panocean (UK) Co. Ltd. 23 to 25 months from delivery to new charterer 29,000(4) Genco Acheron Global Maritime Investments Ltd. March 2007 28,500 STX Panocean (UK) Co. Ltd. February 2008 30,000(5) Genco Surprise Cosco Bulk Carrier Co., Ltd. November 2007 25,000 Handymax Vessels Genco Success KLC January 2008 24,000 Genco Commander A/S Klaveness October 2007 19,750 Genco Carrier DBCN Corporation March 2007 24,000 Pacific Basin January 2008 24,000(6) Chartering Ltd. Genco Prosperity DS Norden April 2007 23,000 A/C Pacific Basin Chartering Ltd. 11 to 13 months from delivery to new charterer 26,000 Genco Wisdom HMMC November 2007 24,000 Genco Marine NYK Europe March 2007 18,000(7) February 2008 24,000 Genco Muse Qatar Navigation QSC September 2007 26,500(8) Handysize Vessels Genco Explorer Lauritzen Bulkers July 2007 13,500 Genco Pioneer Lauritzen Bulkers August 2007 13,500 Genco Progress Lauritzen Bulkers August 2007 13,500 Genco Reliance Lauritzen Bulkers July 2007 13,500 Genco Sugar Lauritzen Bulkers July 2007 13,500 (1) The charter expiration dates presented represent the earliest dates that our charters may be terminated in the ordinary course. Under the terms of each contract, the charterer is 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, except as indicated for the Genco Trader and the Genco Leader in note 3 below. 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 and the Genco Trader were delivered to the charterer for the commencement of the time charter on January 15, 2007 and December 24, 2006, respectively. For each of these vessels, the time charter rate presented is the net daily charterhire rate. There are no payments of brokerage commissions associated with these time charters. (4) We have reached an agreement to commence a time charter for 23 to 25 months at a rate of $33,000 per day for the first 11 months, $25,000 per day for the following 11 months and $29,000 per day thereafter, less a 5% third-party brokerage commission. For purposes of revenue recognition, the time charter contract is reflected on a straight-line basis at approximately $29,000 per day for 23 to 25 months in accordance with generally accepted accounting principles in the United States, or U.S. GAAP. (5) We have reached an agreement to commence a time charter for 11 to 13 months at a rate of $30,000 per day, less a 5% third-party brokerage commission. The estimated charter expiration is based on the time charter beginning in March 2007, the earliest possible termination of the previous charterer. (6) The estimated charter expiration is based on the time charter beginning in March 2007, the earliest possible termination of the previous charterer. (7) The time charter rate was $26,000 until March 2006 and $18,000 thereafter until March 2007. For purposes of revenue recognition, the time charter contract through March 2007 is reflected on a straight- line basis in accordance with U.S. GAAP. Additionally, we have reached an agreement with the current charterer for an additional 11 to 13 months at a rate of $24,000 per day, less a 5% third-party brokerage commission. (8) Since this vessel was acquired with an existing time charter at an above-market rate, we allocated the purchase price between the vessel and an intangible asset for the value assigned to the above-market charterhire. This intangible asset is amortized as a reduction to voyage revenues over the remaining term of the charter, resulting in a daily rate of approximately $22,000 recognized as revenues. For cash flow purposes, we will continue to receive $26,500 per day until the charter expires. About Genco Shipping & Trading Limited Genco Shipping & Trading Limited transports iron ore, coal, grain, steel products and other drybulk cargoes along worldwide shipping routes. Genco Shipping & Trading Limited owns a fleet of 19 drybulk vessels, consisting of seven Panamax, seven Handymax and five Handysize vessels, with a carrying capacity of approximately 988,000 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 documentation that the Company may execute with STX Panocean (UK) Co. Ltd. for the time charter described above or other charters for which definitive documentation has not yet been executed 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, 2006, 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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