SOURCE: Quintana Maritime Limited

April 26, 2007 09:23 ET

Quintana Maritime Limited Agrees to Acquire a Newbuilding Capesize Bulk Carrier and Secures a Five Year Charter at a Net Daily Rate of $39,000

ATHENS, GREECE -- (MARKET WIRE) -- April 26, 2007 --Quintana Maritime Limited (NASDAQ: QMAR), a leading international provider of dry bulk transportation services, announced today that it has agreed to acquire a newbuilding Capesize bulk carrier of 180,000 deadweight tons (dwt). The vessel will be constructed by Imabari Shipbuilding Co., Ltd., the largest shipyard in Japan, with expected delivery during the fourth quarter of 2008.

The expected total cost at delivery, including contract costs and financing costs, will approximate $93 million. Quintana Maritime will make a down payment of $9.2 million in early May, followed by another installment of $9.2 million six months later. A further amount of approximately $28 million will be paid in June 2008 with the remaining balance of $46.6 million due at delivery of the vessel. The Company intends to finance the construction costs with existing cash, borrowings under its revolving credit facility, and cash flow from future operations.

Furthermore, Quintana has secured the vessel under a five year time charter, from delivery, at a net daily rate of $39,000 with Transfield, a major operator in the Capesize market that operates in excess of 40 Capes.

Stamatis Molaris, Chief Executive Officer and President of Quintana Maritime, commented: "This latest acquisition further reinforces our recent expansion in the Capesize sector consistent with our articulated strategy. We are building our presence at attractive prices and securing profitable long term employment opportunities. We believe this acquisition will be an accretive use of the Company's excess cash flow. We remain committed to grow Quintana within the fast growing Capesize sector in a manner that enhances long term returns to our shareholders."

Once the company takes delivery of the vessel, as well as the other three recently contracted Capesize newbuildings for delivery 2010, Quintana's fleet will be one of the most modern in the industry with an average age of 2.5 years on a dwt-weighted average basis, consisting of 33 vessels in total, including 11 Panamaxes, 14 Kamsarmaxes and 8 Capesizes, with total cargo-carrying capacity of almost 3,366,043 dwt.

Fleet Table as of April 26, 2007

                                           Year    Age   TC Expiration Date
CURRENT FLEET           Type       DWT    Built  (in yrs)  (minimum period)
                      ---------  -------  -----  ------- ------------------
Lowlands Beilun(C)     Capesize  170,162   1999      8.0         March 2010
Iron Manolis(A)       Kamsarmax   82,300   2007      0.1      December 2010
Iron Brooke(A)        Kamsarmax   82,300   2007      0.1      December 2010
Iron Miner             Capesize  177,000   2007      0.1       January 2012
Iron Lindrew(A)       Kamsarmax   82,300   2007      0.2      December 2010
Iron Knight(A)          Panamax   76,429   2004      2.9      December 2010
Coal Hunter(A)        Kamsarmax   82,300   2006      0.3      December 2010
Pascha(A)             Kamsarmax   82,300   2006      0.4      December 2010
Coal Gypsy(A)         Kamsarmax   82,300   2006      0.4      December 2010
Iron Anne(A)          Kamsarmax   82,000   2006      0.6      December 2010
Iron Vassilis(A)      Kamsarmax   82,000   2006      0.7      December 2010
Iron Bill (A)         Kamsarmax   82,000   2006      0.9      December 2010
Santa Barbara(A)      Kamsarmax   82,266   2006      1.1      December 2010
Ore Hansa(A)          Kamsarmax   82,229   2006      1.1      December 2010
Iron Kalypso(A)       Kamsarmax   82,204   2006      1.2      December 2010
Iron Fuzeyya(A)       Kamsarmax   82,229   2006      1.2      December 2010
Iron Bradyn(A)        Kamsarmax   82,769   2005      2.2      December 2010
Grain Harvester(A)      Panamax   76,417   2004      2.7          July 2009
Grain Express(A)        Panamax   76,466   2004      3.1      December 2010
Kirmar(B)              Capesize  165,500   2001      5.6         March 2008
Iron Beauty(B)         Capesize  165,500   2001      5.7         April 2010
Coal Pride(E)           Panamax   72,600   1999      7.4           Feb 2009
Iron Man (C)            Panamax   72,861   1997      9.8         March 2010
Coal Age (C)            Panamax   72,861   1997      9.8     September 2007
Fearless 1(C)           Panamax   73,427   1997     10.0         March 2008
Barbara (D)             Panamax   73,390   1997     10.2          July 2007
Linda Leah (D)          Panamax   73,390   1997     10.2      February 2008
King Coal               Panamax   72,873   1997     10.3         March 2008
Coal Glory (D)          Panamax   73,670   1995     12.2          June 2008
                      ---------  -------  -----  ------- ------------------
Total Current Fleet  29 Vessels 2,644,043        4.0 years
                                                  avg (I)

FLEET TO BE                                Year    Age
DELIVERED               Type       DWT    Built  (in yrs)  Delivery Range
                      ---------  -------  -----  ------- ------------------
Newbuilding 1(E) (G)   Capesize  180,000   2010      *           March 2010
Newbuilding 2(F) (H)   Capesize  181,000   2010      *         October 2010
Newbuilding 3(F) (H)   Capesize  181,000   2010      *        December 2010
Newbuilding(E)         Capesize  180,000   2010      *        November 2008
                      ---------  -------  -----  ------- ------------------
Total Fleet to be
  Delivered           4 Vessels  722,000
                      ---------  -------  -----  ------- ------------------
TOTAL FLEET          33 Vessels 3,366,043        2.5 years
                                                  avg (I)
* Under Construction

(A), (B), (C), (D), (E) and (F) indicate sister ships. As of April 26, 2007 Quintana had five sets of sister ships, including the vessels recently acquired from Metrobulk. All seventeen ships that are part of the Metrobulk acquisition are sister ships. Sister ships indicate vessels of the same class made in the same shipyard. The sister-ship concept further enhances our operational flexibility and efficiency.

(G) Quintana holds a 42.8% interest in the joint venture that will own this vessel.

(H) Quintana will hold a 50% interest in the joint ventures that will own these vessels.

(I) On a dwt weighted average


Quintana Maritime Limited, based in Greece, is an international provider of dry bulk cargo marine transportation services. As of today, the company owns and operates a fleet of 29 vessels, including 14 Kamsarmax bulkers, 11 Panamax size vessels and 4 Capesize vessels with a total carrying capacity of 2,473,881 dwt and an average age of 4.0 years on a dwt weighted average. In addition, Quintana is a 42.8% owner in a joint venture that has recently ordered a Capesize newbuilding of an aggregate capacity of 180,000 dwt with expected delivery ex-yard in March 2010. In addition, Quintana will hold a 50% interest in two joint ventures that will own two Capesize newbuildings of an aggregate capacity of 362,000 dwt with expected delivery ex-yard in fourth quarter 2010. In addition, Quintana has recently entered into an agreement to acquire an additional newbuild Capesize vessel with 180,000 dwt cargo capacity with expected delivery ex-yard in fourth quarter 2008. Once all acquisitions and newbuild orders are completed and assuming no vessel disposals, Quintana will have a fleet of 33 dry bulk vessels, including 8 Capesize vessels, 11 Panamax vessels and 14 Kamsarmax vessels, with a total capacity of 3,366,043 dwt. The deadweight average age of the whole fleet, including the Capesize vessels on order, currently is 2.5 years.

Forward-Looking Statements

This press release contains forward-looking statements (as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) concerning future events and the Company's growth strategy and measures to implement such strategy; including expected vessel acquisitions and entering into further time charters. Words such as "expects," "intends," "plans," "believes," "anticipates," "hopes," "estimates," and variations of such words and similar expressions are intended to identify forward-looking statements. Such statements include comments regarding expected revenues and time charters. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. These statements involve known and unknown risks and are based upon a number of assumptions and estimates which are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of the Company. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to changes in the demand for dry bulk vessels, competitive factors in the market in which the Company operates; risks associated with operations outside the United States; and other factors listed from time to time in the Company's filings with the Securities and Exchange Commission. The Company expressly disclaims any obligations 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 statement is based.

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