The Board of Directors of Blue Star Maritime S.A. is pleased to announce that Blue Star Group significantly improved its financial results for the first quarter of 2007. Revenue stood at Euro 28.45 mln against Euro 21.18 mln in the first quarter of 2006, an increase of 34.3%. Earnings before taxes, investing and financial results, depreciation and amortization (EBITDA) grew to Euro 3.79 mln against Euro 1.46 mln (159.6% increase) while Losses after tax and minority interests stood at Euro 1.85 mln reduced considerably from Euro 2.05 mln in the same period of previous year.

The Group’s key financials for the first quarter of 2007 compared to the first quarter of 2006 were:



Contributing to the growth in revenue was the marked improvement in load factors across the Cyclades routes, where, total volumes carried increased both in passengers and private vehicles as well as in freight units. The percentage increase of the volumes carried exceeded the percentage increase of the executed sailings. Contributing to the increase in revenue was also the deployment of car – passenger ferry Diagoras, which was acquired in July 2006, during the first quarter to the Dodecanese Island’s routes and the increase in yield obtained per passenger and vehicle carried following the partial liberalization of the pricing policy in the Greek domestic market routes in May 2006 and the introduction by our Group of a flexible commercial policy matching supply and demand.

Lastly, the improvement in load factors across the Greece – Italy routes, also contributed to the revenue growth, where by executing 39% fewer sailings, after the redeployment of vessel Blue Star 1 in the North Sea route, the Group has significantly improved the volumes carried and revenue per sailing compared to the same period last year.

Operational profitability for the Group (EBITDA) was more than doubled mainly due to the significant revenue growth, the reduction in the price of fuel oil compared to the same period of last year and also the deployment of vessels on routes on which they can be fully exploited year-round.

Lastly, it is worth noting that in the course of the first quarter of 2007 the Losses after Taxes and Minority Interests were reduced despite the fact that during the current period there was no extraordinary profit from vessels’ sale, which in the course of the first quarter of 2006 stood at Euro 1 mln approximately. This confirms the Group’s significantly improved performance in the present period.

As regards the Balance Sheet and the Cash Flow Statement, it is worth noting that the Group improved its cash position compared to 31/12/2006, although the first quarter is traditionally the slowest in terms of both volumes and revenue, owing to the seasonal nature of tourism. The sound management of Group’s assets and mainly of its receivables and payables, contributed to this improvement.

The most important developments in our Group in the course of the first quarter of 2007 were:

In January 2007, the vessel Blue Star 1 has been redeployed from the Greece-Italy route to the Scotland-Belgium route in the North Sea. Based on the performance of the route, Blue Star Ferries Management expects that the redeployment of the vessel in the North Sea will further enhance the financial results of the Group. Blue Star 1 commenced its service on the route on 29th January, 2007.

In March 2007, our Group was voted “Best Shipping Company for traveling to the Greek Islands” by readers of Voyager magazine for second consecutive year. Our Group was specifically awarded top votes by the readers of the magazine across the categories of: Feeling of safety, Cleanliness, Quality of Service, Cabins.

Total volumes for the Group, for the first quarter stood at 544,349 passengers, 76,084 private vehicles and 38,545 freight units. Compared to the same period of last year, total volumes carried grew by 14.1% in passengers, by 18.5% in private vehicles and by 29.6% in freight units.

Following the positive developments presented earlier, in terms of financial results as well as regarding the developments on traffic volumes, the Group’s management considering the full year operation of vessel Diagoras, the redeployment of vessel Blue Star 1 to the North Sea route, the application of a flexible pricing policy in the Greek domestic market and at the same time awaiting a better summer traffic compared to last year and that the price of fuel oil will remain lower compared to last year, expects a further improvement in the financial results of the current year.

Lastly, it should be noted that the Group’s management will continue to examine the development of new routes or the strengthening of the existing ones in the International and Greek domestic market, through the acquisition or building of modern conventional vessels, provided that suitable market conditions develop.