Eagle Bulk Shipping Inc. a global marine transportation company specializing in the Supramax segment of the dry bulk shipping industry, today announced several vessel transactions. The transactions, described below, bring Eagle's contracted revenues to more than $275 million, and advance the Company's strategy of deploying a young, efficient fleet comprised of Supramax vessels.

 

First, the Company has purchased three Japanese-built Supramax vessels for a total price of $138.7 million. The vessels include the following:





 

    * The Shrike, (ex FORTUNE BRIGHT) a 2003 built 53,343 dwt Supramax vessel expected to 
      deliver in April, which will commence an 24-27 month time charter 
      at a daily rate of $24,600 per day. The charterer has an option
      to extend the charter period by 12-14 months at a rate of $25,600.

    * The Kittiwake, a 2002 built 53,146 dwt Supramax vessel expected 
      to deliver June will commence an 11-13 month time charter at a 
      rate of $30,400 per day. The charter may reset at the beginning 
      of each month based on the average time charter rate for the 
      Baltic Supramax Index, but in no case will be less than $24,400
      per day.

    * The Skua (ex FORTUNE GLORY), a 2003 built 53,350 dwt Supramax vessel expected to 
      deliver in June, which will commence a 23-25 month time charter at
      a rate of $24,200 per day. The charterer has an option to extend 
      the charter period by 11-13 months at a rate of $25,200.

Second, the Company has entered into a Letter of Intent with IHI Marine United Inc., one of Japan's pre-eminent shipyards, for the construction of two 'Future-56' class Supramax vessels. These 56,000 deadweight ton vessels have a contract price of approximately $33.2 million each and are expected to be delivered in the fourth quarter of 2008 and the first quarter of 2009, respectively. In order to effectively eliminate currency risk on its vessel construction program, the Company has entered into forward currency hedges to swap $66,400,000 into Japanese yen.

Finally, on February 28, 2006, the Company sold the oldest and smallest vessel in its fleet, the Shikra. This Handymax was sold for a gross sales price of $12.525 million, basis drydocking and intermediate surveys due.

After taking delivery of the three vessels and selling the Shikra, the Eagle fleet will consist of 22 vessels: 19 Supramaxes including four newbuilds and three Handymax bulk carriers. Eagle Bulk's dwt of the on-the-water fleet increases to 915,502, or a net increase of 15%, with an additional 224,000 dwt from the newbuilds. The average age of the on-the-water fleet will decline from approximately six years to approximately five years, and the Company's contracted revenue coverage will increase to 98% from 97% for 2007 and to 53% from 44% for 2008.

Eagle Bulk Chairman and Chief Executive Officer Sophocles Zoullas commented, "We are very pleased to announce these vessel transactions, which affirm Eagle Bulk's commitment to operating young, high-build quality assets on medium-to-long term time charters, including profit-sharing arrangements when appropriate. The new vessels also enhance the Company's ability to generate steady cash flows, while maintaining liquidity to fund continued growth."