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 half of 2007. Revenue stood at Euro 77.53 mln against Euro 62.30 mln in the first half of 2006, an increase of 24.4%. Earnings before taxes, investing and financial results, depreciation and amortization (EBITDA) grew to Euro 20.69 mln against Euro 14.79 mln (39.9% increase) while Earnings after tax and minority interests stood at Euro 9.56 mln increased considerably from Euro 6.24 mln in the same period of the previous year (53.2% increase).

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



Contributing to the growth in revenue was the marked improvement in total volumes carried in the Dodecanese islands routes, both in passengers and private vehicles as well as in freight units, due to the deployment of car – passenger ferry Diagoras throughout the first half of 2007. It should be noted that the vessel was acquired in July 2006 and was deployed in August 2006. The increase in revenue is also due to the increase in yield obtained per passenger and vehicle carried in the Cyclades islands and the Dodecanese routes.

Lastly, the improvement in load factors across the Greece – Italy routes, also contributed to the revenue growth, where by executing 46% fewer sailings, after the redeployment of vessel Blue Star 1 in the North Sea route, the Group significantly improved the volumes carried and revenue per sailing compared to the same period last year.

In the Scotland – Belgium route in the North Sea, where Group’s vessel Blue Star 1 is deployed since 29th of January 2007, load factors have reached particularly high levels while average revenue per passenger, private vehicle and freight unit carried is much higher compared to revenue produced by the same vessel in the Greece – Italy routes in the same period of the previous year.

Operational profitability for the Group (EBITDA) improved by 39.9% mainly due to the significant revenue growth, the slight decrease of fuel oil prices compared to the same period of last year and the deployment of vessels on routes on which they can be fully exploited year-round. Furthermore, it should be noted that the cost of sales increased at a slower pace compared to the increase in revenue, thus improving the gross profit margin.

It is worth noting that in the course of the first half of 2007 the Earnings after Taxes and Minority Interests do not include any extraordinary profit from vessels’ sales, which in the first half of 2006 stood at Euro 1 mln approximately. This confirms the Group’s enhanced financial performance in the present period.

As regards the Balance Sheet and the Cash Flow Statement, the Group maintained its strong cash position and reduced significantly its long-term liabilities. Furthermore, cash flow from operating activities improved and stood at Euro 6.22 mln against Euro 2.20 mln in the first half of 2006, confirming the sound management of Group’s assets.

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

In January 2007, Blue Star 1 was redeployed from the Greece-Italy route to the Scotland-Belgium route in the North Sea. Blue Star 1 commenced successfully 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.

In June 2007, our Group launched a new service connecting the island of Karpathos to the port of Piraeus, operated by car – passenger ferry Blue Star 2, offering departures every Monday from Piraeus to the island of Karpathos and every Tuesday from Karpathos to Piraeus. This connection expands the Group’s ports of call and offers service to one more island of the Dodecanese complex. This new service reduces the time required to travel to Karpathos and improves the standard of services offered to islanders and visitors.

In June 2007, the Annual General Meeting of Shareholders decided upon the distribution of dividend for the fiscal year 2006 of Euro 0.09 per share. The payment of dividend began on Monday 9th July, 2007.

Also, in June 2007, the Group released its first report regarding the Group’s Social Responsibility program that includes the activities that Blue Star Ferries undertook in 2006 and in the first months of 2007 with respect to Corporate Social Responsibility.

Total volumes for the Group, for the first half stood at 1,602,861 passengers, 218,600 private vehicles and 81,751 freight units. Compared to the same period last year, total volumes carried grew by 2.2% in passengers, by 6.0% in private vehicles and by 15.9% in freight units.

Following the positive developments presented above, 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, expects a further improvement in the financial results.

However, it should be mentioned that fuel oil prices keep recording an upward trend. An indicative evidence of this situation is the fact that fuel oil prices of July 2007 have exceeded previous year’s highest prices posted in July 2006. Should such a trend continues, it will be affect the Group’s performance.

The Group’s management continues to examine the development of new routes and 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. The Group’s management is in contact with shipyards for building new vessels.