SOURCE: Quintana Maritime Limited

August 01, 2006 09:42 ET

Quintana Maritime Limited Takes Delivery of Its First Kamsarmax Newbuilding

ATHENS, GREECE -- (MARKET WIRE) -- August 1, 2006 -- Quintana Maritime Limited (NASDAQ: QMAR) announced today that it took delivery of its first Kamsarmax bulk carrier Iron Vassilis, on July 27, 2006 from Tsuneishi, a Japanese shipyard. Iron Vassilis has a carrying capacity of 82,257 deadweight tons (dwt).

Iron Vassilis is employed under a master time charter agreement with Bunge S.A., a wholly owned subsidiary of Bunge Limited (NYSE: BG), until December 2010. The vessel was delivered to Bunge S.A. on July 29, 2006.

Iron Vassilis is the first of seventeen vessels that Quintana Maritime has agreed to acquire from Metrobulk, an unaffiliated seller. The remaining fleet to be delivered to Quintana includes three 76,000-dwt 2004-built Panamaxes and thirteen 83,000-dwt Kamsarmax bulkers, six of which were built between February 2005 and May 2006, and the remaining seven of which the Company expects to be delivered between August 2006 and May 2007. All seventeen vessels are sister ships built at Tsuneishi. Kamsarmaxes are a Panamax sub-class that have more carrying capacity than typical Panamax designs. Once all Kamsarmax vessels are delivered, Quintana believes it will control approximately one-quarter of the actively trading Kamsarmax fleet.

Stamatis Molaris, President and Chief Executive Officer of Quintana Maritime, commented, "We are happy to announce the delivery, ahead of schedule, of the first of the seventeen vessels we agreed to acquire from Metrobulk. This acquisition transforms Quintana Maritime into one of the largest U.S.-listed dry bulk shipping companies by tonnage, with what we believe to be the youngest U.S.-listed dry bulk fleet and the highest and longest contract coverage among our public peers.

"In fewer than seventeen months since we commenced operations, Quintana Maritime has established a leadership position in international drybulk shipping, focusing on larger and modern vessels, implementing a long-term employment strategy for our fleet and balancing growth with stable dividends for the benefit of our shareholders.

"The master charter agreement with Bunge S.A. is a variable charter hire within floor and ceiling rates. This long-term charter agreement controls sixteen of the seventeen vessels to be acquired from Metrobulk. We believe this structure will enable us to count on stable cash flows and also share in the market's upside."

Fleet Table as of July 31, 2006

CURRENT            Type        DWT     Year     Age    TC Expiration Date
 FLEET                                 Built  (in yrs)  (minimum period)
Fearless 1(A)   Panamax        73,427  5-1997   9.2     March 2008
King Coal       Panamax        72,873  1-1997   9.5     March 2008
Coal Glory (A)  Panamax        73,670  3-1995  11.3     June 2008
Coal Age (A)    Panamax        72,861  6-1997   9.1     August 2006
Iron Man (A)    Panamax        72,861  6-1997   9.1     March 2010
Barbara (B)     Panamax        73,390  2-1997   9.4     June 2007
Coal Pride      Panamax        72,600  12-1999  6.6     February 2007
Linda Leah (B)  Panamax        73,390  2-1997   9.4     June 2008
Iron Vassilis   Kamsarmax      82,257  7-2006   0.0     December 2010
Iron Beauty©  Capesize      165,500  7-2001   5.0     April 2010
Kirmar©       Capesize      165,500  10-2001  4.8     February 2007
Total Current
 Fleet          11 Vessels    998,329          7.0 years
                                                avg (D)

ADDITIONAL       Type          DWT     Year     Age   Delivery Range
 VESSELS                               Built  (in yrs)
Grain Express   Panamax        76,466  4-2004  2.3     Sep 06 - Oct 06
Iron Knight     Panamax        76,429  6-2004  2.1     Sep 06 - Oct 06
Grain Harvester Panamax        76,417  8-2004  1.9     Sep 06 - Oct 06
Iron Fuzeyya    Kamsarmax      82,209  1-2006  0.5     Aug 06
Pascha          Kamsarmax      82,300    *             Nov 06 - Jan 07
Iron Lindrew    Kamsarmax      82,300    *             Jan 07 - March 07
Coal Gypsy      Kamsarmax      82,300    *             Dec 06
Coal Hunter     Kamsarmax      82,300    *             Dec 06
Iron Brooke     Kamsarmax      82,300    *             March 07 - May 07
Iron Manolis    Kamsarmax      82,300    *             May 07
Iron Anne       Kamsarmax      82,000    *             Sep 06
Iron Elizabeth  Kamsarmax      82,224  5-2006  0.2     Aug 06
Ore Hansa       Kamsarmax      82,224  3-2006  0.3     Sep 06
Santa Barbara   Kamsarmax      82,224  3-2006  0.3     Aug 06
Iron Kalypso    Kamsarmax      82,224  1-2006  0.5     Sep 06
Iron Bradyn     Kamsarmax      82,769  2-2005  1.4     Aug 06
Total Additional
 Vessels        16 Vessels  1,298,986
TOTAL FLEET     27 Vessels  2,297,315

* Under Construction

(A), (B) and © indicate sister ships. As of June 30, 2006 Quintana has three sets of 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.

(D) 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 1 Kamsarmax bulker, 8 Panamax size vessels and 2 Capesize vessels with a total carrying capacity of 998,329 dwt and an average age of 7.0 years on a dwt weighted average. It has also entered into an agreement to acquire 16 additional vessels, including 3 Panamaxes and 13 Kamsarmax bulkers with expected delivery between August 2006 and May 2007 and with an aggregate capacity of 1,298,789 dwt. Once all acquisitions are completed Quintana will have a fleet of 27 dry bulk vessels, including 2 Capesize vessels, 11 Panamax vessels and 14 Kamsarmax vessels with a total capacity of 2,297,315 dwt.

Forward-Looking Statement

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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