Eagle Bulk Shipping Inc. Reports First Quarter 2006 Results


NEW YORK, May 8, 2006 (PRIMEZONE) -- Eagle Bulk Shipping Inc. (Nasdaq:EGLE), a global marine transportation company specializing in the Handymax segment of the dry bulk shipping industry, today announced its results for the first quarter of 2006.

First quarter 2006 highlights included:



 -- Net Income of $10.8 million or $0.33 per share (based on
    a weighted average of 33,150,106 diluted shares outstanding
    for the quarter) on net revenues of $23.8 million.

    -- Adjusting for a non-cash, non-dilutive compensation charge
      of $0.7 million, net income was $11.5 million or $0.35 per share.

 -- EBITDA, as adjusted for exceptional items under the terms of the
    Company's credit agreement, of $19.4 million. Please see below
    in this press release for a reconciliation of EBITDA to net income.

 -- Dividend of $0.50 per share, paid on May 3, 2006, to shareholders
    of record as of April 28, 2006.

 -- Gross time charter revenue of $26 million.

 -- Efficiently drydocked 4 vessels in 44 days against budgeted
    60 days.

Sophocles Zoullas, Chairman and Chief Executive Officer, commented, "We are extremely pleased with our performance and free cash flow for the first quarter, which enabled us to pay a dividend to shareholders of $0.50 per share. We have now paid aggregate dividends of $1.61 per share, in just three quarters.

Mr. Zoullas continued, "At present, over 92% of our fleet's projected 2006 earnings are covered by fixed rate time charters at an average daily rate in excess of $22,100, providing significant insulation from volatility from the Baltic Dry Index, as well as earnings visibility. We continue to maintain one of the lowest cash break-evens in the dry bulk sector, and our very strong capital structure positions us well to continue to make additional investments to grow the business."

Results for First Quarter 2006:

Because the Company's inception occurred on January 26, 2005 and vessel operations began in April 2005, comparable historical data for the three months is not presented.

For the first quarter of 2006, the Company reported net income of $10,792,501 or $0.33 per share, based on a weighted average of 33,150,106 diluted shares outstanding. Net income included a non-cash, non-dilutive compensation expense of $705,653 and a non-cash stock option expense of $47,033. Excluding these charges, net income for the quarter was $11,545,187 or $0.35 per share.

Revenues

All of the Company's revenues for the quarter ended March 31, 2006 were earned from time charters. Net revenues, for the quarter ended March 31, 2006, of $23,790,052 includes time charter revenues of $26,048,116 and deductions for brokerage commissions of $1,321,064 and $937,000 in non-cash amortization of net prepaid and deferred charter revenue. As is common in the shipping industry, the Company pays commissions ranging from 1.25% to 6.25% of the total daily charter hire rate of each charter to unaffiliated ship brokers and in-house brokers associated with the charterers, depending on the number of brokers involved with arranging the charter.

Vessel Expenses

For the quarter ended March 31, 2006, total vessel expenses incurred amounted to $4,704,997. These expenses included $4,369,997 in vessel operating costs and $335,000 in technical management fees.

Vessel operating expenses include crew wages and related costs, the cost of insurance, expenses relating to repairs and maintenance, the cost of spares and consumable stores, tonnage taxes, other miscellaneous expenses, and technical management fees. With regard to vessel operating expenses, the Company has entered into technical management agreements for each of its vessels with V. Ships Management Ltd, an independent technical manager. In conjunction with management, V. Ships has established an operating expense budget for each vessel and performs the technical management of the Company's vessels. All deviations from the budgeted amounts are for the Company's account. For the quarter ended March 31, 2006, the Company paid its technical manager, V. Ships, a fixed management fee of $8,638 per month for each vessel in the operating fleet in respect of which it provides technical management services. These fees are included in vessel expenses.

Depreciation and Amortization

The cost of the Company's vessels is depreciated on a straight-line basis over the expected useful life of each vessel. Depreciation is based on the cost of the vessel less its estimated residual value. The Company estimates the useful life of its vessels to be 28 years from the date of initial delivery from the shipyard to the original owner. Furthermore, the Company estimates the residual values of its vessels to be $150 per lightweight ton, which it believes is common in the dry bulk shipping industry. Depreciation charges will increase as the fleet is enlarged, which will also lead to an increase of ownership days.

Depreciation and Amortization expense recorded for the quarter ended March 31, 2006 amounted to $4,819,582, of which amount $4,697,471 relates to depreciation and $122,111 relates to the amortization of deferred drydocking costs

Amortization of deferred financing costs for the quarter ended March 31, 2006 is included in interest expense. These costs of $32,950 relate to the amortization of financing costs associated with the Company's revolving credit facility.

General and Administrative Expenses

The Company's general and administrative expenses include recurring administrative costs and non-recurring formation and advisory costs. Recurring costs include onshore vessel administration related expenses such as legal and professional expenses and administrative and other expenses including payroll and expenses relating to the Company's executive officers and office staff, office rent and expenses, directors and officers insurance and directors fees and expenses. Non-recurring costs include costs relating to the formation of the Company and related advisory costs. The Company expects general and administrative expenses to increase as its fleet is expanded.

For the quarter ended March 31, 2006, general and administrative expenses amounted to $985,479, all of which was recurring. The Company had incurred general and administrative costs in the period since inception on January 26, 2005 to March 31, 2005 in an amount of $757,003 of which recurring costs were $246,443 and non-recurring costs were $510,560.

Non-Cash Compensation Expense

For the quarter ended March 31, 2006, the Company recorded a non-cash compensation charge of $752,686. This amount includes $705,653 in non-cash, non-dilutive charges relating to profits interests awarded to members of the Company's management by the Company's principal shareholder Eagle Ventures LLC. The profits interests dilute only the interests of the owners of Eagle Ventures LLC, and not holders of the Company's common stock. However, Generally Accepted Accounting Principles require that share-based awards to an employee of the Company by a shareholder (such as Eagle Ventures LLC) be accounted for as compensation for services provided to the Company. Consequently, the Company's income statement reflects such non-cash charges for compensation related to the profits interests in Eagle Ventures LLC.

Non-Cash Compensation Expense also includes a non-cash amount of $47,033 which relates to the fair value of the stock options granted to certain directors of the Company under the 2005 Stock Incentive Plan.

Interest Expense

Interest expense for the first quarter of 2006 was $2,066,351 and included $1,841,290 in loan interest, $192,111 in commitment fees and $32,950 in amortization of deferred financing costs associated with the Company's revolving credit facility. During the first quarter, the Company earned $331,544 in interest income from its cash balances.

As of March 31, 2006, the Company's debt consisted of $140,000,000 drawn under its 10-year revolving credit facility. The facility bears interest at LIBOR plus a margin of 0.95%. The Company also pays a commitment fee of 0.4% per annum on the unused portion of the revolving credit facility. During the quarter ended March 31, 2006, interest rates applicable on the debt ranged from 5.17% to 5.49% (including the margin). The weighted average effective interest rate was 5.26%.

The Company has entered into interest rate swaps to effectively convert a portion of its debt from a floating to a fixed-rate basis. The swaps are designated and qualify as cash flow hedges. Interest rate swap contracts for notional amounts of $100,000,000 and $30,000,000 were entered into in 2005. These contracts mature in September 2010. Exclusive of a margin of 0.95%, the Company will pay fixed-rate interest of 4.22% and 4.54% respectively, and receive floating-rate interest amounts based on three month LIBOR settings (for a term equal to the swaps' reset periods). The Company records the fair value of the interest rate swap as an asset or liability on the balance sheet. The effective portion of the swap is recorded in accumulated other comprehensive income. Accordingly, $4,664,130 has been recorded in Other Assets in the financial statements as of March 31, 2006.

Disclosure of Non-GAAP Financial Measures

EBITDA represents operating earnings before extraordinary items, depreciation and amortization, interest expense, and income taxes, if any. EBITDA is included because it is used by certain investors to measure a company's financial performance. EBITDA is not an item recognized by GAAP and should not be considered a substitute for net income, cash flow from operating activities and other operations or cash flow statement data prepared in accordance with accounting principles generally accepted in the United States or as a measure of profitability or liquidity. EBITDA is presented to provide additional information with respect to the Company's ability to satisfy its obligations including debt service, capital expenditures, and working capital requirements. While EBITDA is frequently used as a measure of operating results and the ability to meet debt service requirements, the definition of EBITDA used here may not be comparable to that used by other companies due to differences in methods of calculation.

The Company's revolving credit facility permits it to pay dividends in amounts up to its earnings before extraordinary or exceptional items, interest, taxes, depreciation and amortization (Credit Agreement EBITDA), less the aggregate amount of interest incurred and net amounts payable under interest rate hedging agreements during the relevant period and an agreed upon reserve for dry-docking, provided that there is not a default or breach of loan covenant under the credit facility and the payment of the dividends would not result in a default or breach of a loan covenant. Therefore, the Company believes that this non-GAAP measure is important for its investors as it reflects its ability to pay dividends. The following table is a reconciliation of net income, as reflected in the condensed consolidated statements of operations, to the Credit Agreement EBITDA for the quarter ended March 31, 2006:



                                               -----------------------
                                                  Three Months ended
                                                    March 31, 2006
                                                      -----------
 Net Income                                           $10,792,501
 Interest Expense                                       2,066,351
 Depreciation and Amortization                          4,819,582
 Amortization of Prepaid Revenue                          937,000
                                                      -----------
 EBITDA                                                18,615,434
 Adjustments for Exceptional Items:

 Non-cash Compensation Expense (a)                        752,686
                                                      -----------
 Credit Agreement EBITDA                              $19,368,120
                                                      ===========

 (a) Management's participation in profits interests in Eagle
     Ventures LLC and Options Expense.

Liquidity and Capital Resources

Net cash provided by operating activities during the quarter ended March 31, 2006, was approximately $15,750,000. As of March 31, 2006, our cash balance was $21,379,146. In addition, $6,500,000 in cash deposits are maintained with the Company's lender for loan compliance purposes and this amount is recorded in Restricted Cash in the financial statements as of March 31, 2006 and December 31, 2005. Also recorded in Restricted Cash is an amount of $124,616 which is collateralizing a letter of credit relating to the Company's office lease.

The Company has $330,000,000 in long-term credit availability, of which $190,000,000 is unused as of March 31, 2006. The revolving credit facility was entered in July 2005. Under the terms of the revolving credit agreement, the facility will be available in full for five years, and there are no principal repayment obligations for the first five years. Over the remaining period of five years, the amount available under the facility will reduce in semi-annual amounts of $20,500,000 with a final reduction of $125,000,000 occurring simultaneously with the last semi-annual reduction. The revolving credit agreement also provides the Company with the ability to borrow up to $10,000,000 for working capital purposes.

The Company anticipates that its current financial resources, together with cash generated from operations and, if necessary, borrowings under the revolving credit facility will be sufficient to fund the operations of its fleet, including working capital requirements, for at least the next 12 months.

It is the Company's intention to fund its future acquisition related capital requirements initially through borrowings under the revolving credit facility and to repay all or a portion of such borrowings from time to time with the net proceeds of equity issuances. The Company believes that funds will be available to support its growth strategy, which involves the acquisition of additional vessels, and will allow it to pay dividends to its stockholders as contemplated by its dividend policy.

Capital Expenditures and Drydocking

The Company makes capital expenditures from time to time in connection with its vessel acquisitions. These expenditures relate to purchase of vessels and capital improvements to acquired vessels, which are expected to enhance the revenue earning capabilities of these vessels. In addition to acquisitions that the Company may undertake in future periods, other major capital expenditures include funding the Company's maintenance program of regularly scheduled drydocking necessary to preserve the quality of our vessels as well as to comply with international shipping standards and environmental laws and regulations. Although the Company has some flexibility regarding the timing of its dry docking, the costs are relatively predictable. Management anticipates that vessels are to be drydocked every two and a half years. Funding of these requirements is anticipated to be met with cash from operations. The Company anticipates that this process of recertification will require it to reposition these vessels from a discharge port to shipyard facilities, which will reduce available days and operating days during that period.

In the quarter ended March 31, 2006, the Company spent $1,464,473 on vessel drydockings and this amount will be amortized to expense on a straight-line basis over the period through the date the next drydocking is scheduled to occur. The following table represents certain information about the estimated costs for anticipated vessel drydockings in the remainder of 2006 and calendar 2007 along with the anticipated off-hire days:



 ---------------------------------------------------------------------
 Quarter Ending                 Off-hire Days(a)    Projected Costs(b)
 --------------                 ----------------    ------------------
 June 30, 2006                          --                  --
 September 30, 2006                     15             $0.35 million
 December 31, 2006                      15             $0.35 million
 March 31, 2007                         30             $0.70 million
 June 30, 2007                          --                  --
 September 30, 2007                     30             $0.70 million
 December 31, 2007                      15             $0.35 million
 ---------------------------------------------------------------------
   (a) Actual length of drydocking will vary based on the condition of
       the vessel, yard schedules and other factors.
   (b) Actual costs will vary based on various factors, including
       where the drydockings are actually performed.
 ---------------------------------------------------------------------

Dividends

The Company's policy is to declare quarterly dividends to stockholders in February, April, July and October in amounts that are substantially equal to its available cash from operations during the previous quarter less any cash reserves for drydocking and working capital.

The Company's revolving credit facility permits us to pay quarterly dividends in amounts up to our quarterly earnings before extraordinary or exceptional items, interest, taxes, depreciation and amortization (Credit Agreement EBITDA), less the aggregate amount of interest incurred and net amounts payable under interest rate hedging agreements during the relevant period and an agreed upon reserve for dry-docking for the period, provided that there is not a default or breach of loan covenant under the credit facility and the payment of the dividends would not result in a default or breach of a loan covenant. Depending on market conditions in the dry bulk shipping industry and acquisition opportunities that may arise, the Company may be required to obtain additional debt or equity financing which could affect its dividend policy.

On January 30, 2006 the Company declared a cash dividend for the fourth quarter of 2005 of $0.57 per share which was paid on February 24, 2006 to all shareholders of record as of February 15, 2006. The aggregate amount of this cash dividend was $18,895,500.

On April 14, 2006 the Company's Board of Directors declared a cash dividend for the first quarter of 2006 of $0.50 per share, based on 33,150,000 shares of common stock outstanding, payable on May 3, 2006 to all shareholders of record as of April 28, 2006. The aggregate amount of the cash dividend paid to the Company's shareholders on May 3, 2006 was $16,575,000.

Summary Consolidated Financial and Other Data:

The following table summarizes the Company's selected consolidated financial and other data for the periods indicated below.



 Condensed Consolidated Statements of Operations:
 ------------------------------------------------
                                                         Period from
                                        Three Months   January 26, 2005
                                            ended       (inception) to
                                       March 31, 2006   March 31, 2005
                                        ------------     ------------
 Revenues, net of commissions           $ 23,790,052     $         --
 Vessel Expenses                           4,704,997           49,210
 Depreciation and Amortization             4,819,582               --
 General and Administrative Expenses         985,479          757,003
 Non-cash Compensation Expense               752,686               --
                                        ------------     ------------
   Total Operating Expenses               11,262,744          806,213
                                        ------------     ------------

 Operating Income                         12,527,308         (806,213)

 Interest Expense                          2,066,351               --
 Interest Income                            (331,544)              --
                                        ------------     ------------
   Net Interest Expense                    1,734,807               --
                                        ------------     ------------
 Net Income                             $ 10,792,501     $   (806,213)
                                        ============     ============
 Weighted Average Shares Outstanding:
 Basic                                    33,150,000       12,750,000
 Diluted                                  33,150,106       12,750,000

 Per Share Amounts:
 Basic                                  $       0.33     $      (0.06)
 Diluted                                $       0.33     $      (0.06)

 Fleet Operating Days
 --------------------
 Ownership Days                                1,170               --
 Available Days                                1,126               --
 Operating Days                                1,116               --
 Fleet Utilization                              99.1%              --


 Condensed Consolidated Balance Sheet:
 -------------------------------------
                                            March 31,      December 31,
                                               2006            2005
                                          -------------    -------------
 ASSETS:                                   (Unaudited)
 Current Assets:
   Cash                                   $ 21,379,146    $ 24,526,528
   Accounts Receivable                         332,239         281,094
   Prepaid Charter Revenue                   7,166,000       8,508,000
   Prepaid Expenses                          1,782,835         513,145
                                          ------------    ------------
  Total Current Assets                      30,660,220      33,828,767
 Fixed Assets:
   Vessels and Vessel Improvements,
    at cost, net of Accumulated
    Depreciation of  $15,081,718 at March
    31, 2006 and $10,384,247 at December
    31, 2005                               412,884,139     417,581,610

   Restricted Cash                           6,624,616       6,624,616
   Deferred Drydock Costs, net of
    Accumulated Amortization of $150,091 at
    March 31, 2006, and $27,980 at December
    31, 2005                                 1,736,064         393,702
   Deferred Financing Costs, net of
    Accumulated Amortization of $131,015 at
    March 31, 2006 and $98,065 at December
    31, 2005                                 1,236,789       1,268,209
   Other Assets                              4,664,130       2,647,077
                                          ------------    ------------
   Total Assets                           $457,805,958    $462,343,981
                                          ============    ============

 LIABILITIES & STOCKHOLDERS' EQUITY
 Current Liabilities:
  Accounts Payable                        $  3,273,454    $  1,861,145
  Accrued Interest                             521,906         514,631
  Other Accrued Liabilities                    383,342         424,669
  Deferred Revenue                             901,000       1,306,000
  Unearned Charter Hire Revenue              2,266,502       2,444,522
                                          ------------    ------------

    Total Current Liabilities                7,346,204       6,550,967
   Long-term Debt                          140,000,000     140,000,000
                                          ------------    ------------

   Total Liabilities                       147,346,204     146,550,967
   Commitment and Contingencies

   Stockholders' Equity:

 Preferred Stock, $.01 par value,
  25,000,000 shares authorized, none issued        --              --
 Common stock, $.01 par value,
  100,000,000 shares authorized,
  33,150,000 shares issued and outstanding     331,500         331,500
 Additional Paid-In Capital                321,574,723     320,822,037
 Retained Earnings (net of cumulative
   Dividends declared of $33,556,500 at
   March 31, 2006 and $14,661,000 at
   December 31, 2005)                      (16,110,599)     (8,007,600)
 Accumulated Other Comprehensive Income      4,664,130       2,647,077
                                          ------------    ------------
    Total Stockholders' Equity             310,459,754     315,793,014
                                          ------------    ------------
    Total Liabilities and Stockholders'
     Equity                               $457,805,958    $462,343,981
                                          ============    ============

 Condensed Consolidated Statements of Cash Flows
 -----------------------------------------------
                                                         Period from
                                         Three Months  January 26, 2005
                                             ended       (inception) to
                                         March 31, 2006  March 31, 2005
                                          ------------    ------------
 Cash Flows from Operating Activities
 Net Income                               $ 10,792,501    $   (806,213)
 Adjustments to Reconcile Net Income
  to Net Cash provided by Operating
  Activities:
 Items included in net income not
  affecting cash flows:
 Depreciation                                4,697,471              --
 Amortization of Deferred Drydocking Costs     122,111              --
 Amortization of Deferred Financing Costs       32,950              --
 Amortization of Prepaid and Deferred
  Charter Revenue                              937,000              --
 Non-cash Compensation Expense                 752,686              --
  Changes in Operating Assets and
   Liabilities:
 Accounts Receivable                           (51,145)             --
 Prepaid Expenses                           (1,269,690)        (19,124)
 Accounts Payable                            1,412,309         237,717
 Accrued Interest                                7,275              --
 Accrued Expenses                              (41,327)        500,526
 Drydocking Expenses                        (1,464,473)             --
 Unearned Charter Hire Revenue                (178,020)             --
                                          ------------    ------------
  Net Cash Provided by/(Used in)
   Operating Activities                     15,749,648         (87,094)
  Cash Flows from Investing Activities

 Advances for Vessel Deposits                       --     (36,518,100)
                                          ------------    ------------

  Net Cash Used in Investing Activities             --     (36,518,100)

  Cash Flows from Financing Activities

 Issuance of Common Stock                           --      40,822,278
 Deferred Financing Costs                       (1,530)        (30,000)
 Cash Dividend                             (18,895,500)             --
                                          ------------    ------------
  Net Cash (Used in)/Provided by
   Financing Activities                    (18,897,030)     40,792,278
  Net (Decrease)/ Increase in Cash          (3,147,382)      4,187,084
  Cash at Beginning of Period               24,526,528              --
                                          ------------    ------------

  Cash at End of Period                   $ 21,379,146    $  4,187,084
                                          ============    ============
  Supplemental Cash Flow Information:

 Cash paid during the period for Interest
  (including Fees)                        $  2,025,940    $         --

The Fleet

As of March 31, 2006, the Company owned and operated a fleet of 13 vessels with a combined carrying capacity of 643,980 deadweight tons and an average age of under 6 years. All of the Company's vessels are employed on time charters.



                                             Daily Time
                                               Charter
                      Year   Vessel             Hire     Time Charter
 Vessel        dwt    Built  Acquired          Rate (a)  Expiration (b)
 ------        ---    -----  --------          -------   -------------
   Supramax Vessels
   ----------------
 Cardinal     55,408  2004   April 18, 2005    $26,500   March 2007 to
                                                          June 2007
 Condor       50,296  2001   April 29, 2005    $24,000   November 2006
                                                          to March 2007
 Falcon       50,296  2001   April 21, 2005    $20,950   February 2008
                                                          to June 2008
 Harrier      50,296  2001   April 19, 2005    $23,750   March 2007 to
                                                          June 2007
 Hawk I       50,296  2001   April 26, 2005    $23,750   March 2007 to
                                                          June 2007
 Merlin       50,296  2001   October 26, 2005  $24,000   October 2007
                                                          to December
                                                          2007
 Osprey I (c) 50,206  2002   August 31, 2005   $21,000   July 2008 to
                                                          November 2008
 Peregrine    50,913  2001   June 30, 2005     $24,000   October 2006
                                                          to January
                                                          2007
 Heron        52,827  2001   December 1, 2005  $24,000   December 2007
                                                          to February
                                                          2008
   Handymax Vessels
   ----------------
 Sparrow      48,220  2000   July 19, 2005     $22,500   November 2006
                                                          to Feb 2007
 Kite (d)     47,195  1997   May 9, 2005       $25,000   April 2006
 Griffon (e)  46,635  1995   June 1, 2005      $13,550   January 2007
                                                          to February
                                                          2007
 Shikra       41,096  1984   April 29, 2005    $22,000   July 2006 to
                                                          November 2006
 ----------------------------------------------------------------------
 (a) The time charter rates are gross daily charter hire rates before
     unaffiliated ship-broker commissions ranging from 1.25% to 6.25%
     of the charter hire rate. As all our vessels are employed on time
     charters, the charterer is responsible for voyage expenses such as
     port and canal charges, bunker (fuel oil) costs and port and canal
     agents costs and other voyage related costs.
 (b) The date range provided represents the earliest and latest date on
     which the charterer may redeliver the vessel to the Company upon
     the termination of the charter.
 (c) The charterer of the Osprey I has an option to extend the charter
     period by up to 26 months at a daily time charter hire rate of
     $25,000.
 (d) Upon completion of the charter in April 2006, the KITE has
     commenced a new charter at $14,750 per day until March 2007 to May
     2007.
 (e) The initial charter on the GRIFFON at a daily charter rate of
     $28,000 ended in February 2006.

Commercial and strategic management of the fleet is carried out by a wholly-owned subsidiary of the Company, Eagle Shipping International (USA) LLC, a Marshall Islands limited liability company with offices in New York City.

Glossary of Terms:

Ownership days: The Company defines ownership days as the aggregate number of days in a period during which each vessel in its fleet has been owned. Ownership days are an indicator of the size of the fleet over a period and affect both the amount of revenues and the amount of expenses that is recorded during a period.

Available days: The Company defines available days as the number of ownership days less the aggregate number of days that its vessels are off-hire due to vessel familiarization upon acquisition, scheduled repairs or repairs under guarantee, vessel upgrades or special surveys and the aggregate amount of time that we spend positioning our vessels. The shipping industry uses available days to measure the number of days in a period during which vessels should be capable of generating revenues.

Operating days: The Company defines operating days as the number of its available days in a period less the aggregate number of days that the vessels are off-hire due to any reason, including unforeseen circumstances. The shipping industry uses operating days to measure the aggregate number of days in a period during which vessels actually generate revenues.

Conference Call Information

As previously announced, members of Eagle Bulk's senior management team will host a teleconference and webcast at 8:30 a.m. ET tomorrow, May 9th to discuss these results.

To participate in the teleconference, investors and analysts are invited to call 800-291-9234 in the U.S., or 617-614-3923 outside of the U.S., and reference participant code 96196041. A simulcast webcast can be accessed by visiting the Company's website at: www.eagleships.com

IMPORTANT: Investors participating in the teleconference are encouraged to access an accompanying slide presentation, which management will reference during the call. This presentation will be available Tuesday morning at www.eagleships.com. A replay will be available following the call until 12:00 a.m. ET on May 16, 2006. To access the replay, call 888-286-8010 in the U.S., or 617-801-6888 outside of the U.S., and reference passcode 81802376.

About Eagle Bulk Shipping Inc.

Eagle Bulk Shipping Inc. is a Marshall Islands corporation headquartered in New York. The Company is the largest U.S. based owner of Handymax dry bulk vessels. Handymax vessels range in size from 35,000 to 60,000 deadweight tons and transport a broad range of major and minor bulk cargoes, including iron ore, coal, grain, cement and fertilizer, along worldwide shipping routes.

Forward-Looking Statements

Matters discussed in this release may constitute forward-looking statements. Forward-looking statements reflect our current views with respect to future events and financial performance and may include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts.

The forward-looking statements in this release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, management's examination of historical operating trends, data contained in our records and other data available from third parties. Although Eagle Bulk Shipping Inc. believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, Eagle Bulk Shipping Inc. cannot assure you that it will achieve or accomplish these expectations, beliefs or projections.

Important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the strength of world economies and currencies, general market conditions, including changes in charter hire rates and vessel values, changes in demand that may affect attitudes of time charterers to scheduled and unscheduled drydocking, changes in our vessel operating expenses, including dry-docking and insurance costs, or actions taken by regulatory authorities, potential liability from future litigation, domestic and international political conditions, potential disruption of shipping routes due to accidents and political events or acts by terrorists.

Risks and uncertainties are further described in reports filed by Eagle Bulk Shipping Inc. with the US Securities and Exchange Commission.

Visit our website at www.eagleships.com



            

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