Aries Maritime Transport Limited Announces Fourth Quarter and Full Year 2007 Financial Results

3/25/2008

ATHENS, Greece, April 22 /PRNewswire-FirstCall/ -- Aries Maritime Transport Limited (Nasdaq: RAMS - News) today reported its financial results for the three months and year ended December 31, 2007. The following financial review discusses the results for the three months ended December 31, 2007 compared with the three months ended September 30, 2007 to provide a more meaningful comparison. It also refers to the results for the three months ended December 31, 2007 compared with the results for the three months ended December 31, 2006 as well as results for the twelve months ended December 31, 2007 compared with the results for the twelve months ended December 31, 2006.

Sequential Quarterly Results

Revenues of $25.5 million were recorded for the three months ended December 31, 2007, compared to revenues of $23.2 million recorded for the three months ended September 30, 2007. The increase in revenues is primarily due to less off-hire time for certain vessels during the three months ended December 31, 2007 compared to the three month period ended September 30, 2007.

As of December 31, 2007, the fleet comprised ten products tankers and five container ships, which is the same number of vessels as of September 30, 2007. During the three months ended December 31, 2007, vessel operating days totaled 1,380, compared to total vessel operating days of 1,380 for the three months ended September 30, 2007. Actual revenue days for the three month period ended December 31, 2007 were 1,340 days, which includes 60 days of loss-of-hire insurance proceeds in respect to the Ostria, compared with 1,230 days for the three month period ended September 30, 2007. Net loss for the three months ended December 31, 2007 was $7.0 million or $0.25 per basic and diluted common share, compared to net loss of $6.5 million or $0.23 per basic and diluted common share recorded for the three months ended September 30, 2007.

Results for the three month period ended December 31, 2007 include an unrealized loss of $2.5 million from the change in the fair value of derivatives, which are interest rate swaps entered into to hedge the Company's exposure to US$ interest rates on its debt and do not represent results from operations. Excluding this non-cash unrealized loss, the net loss for the three month period ended December 31, 2007, was $4.5 million, or $0.16 per basic and diluted common share. Results for the three month period ended September 30, 2007 include an unrealized loss of $3.3 million from the change in the value of the same derivatives. Excluding this non-cash unrealized loss, net loss was $3.1 million, or $0.11 per basic and diluted common share.

Adjusted EBITDA for the three months ended December 31, 2007 was $9.8 million compared to $10.8 million for the three months ended September 30, 2007. (Please refer to the Summary of Selected Data table later in this document for a reconciliation of Adjusted EBITDA to net income.)

Mons S. Bolin, President and Chief Executive Officer, commented, "During 2007 and into 2008, Aries took active measures to optimize its future commercial performance and support its long-term dividend objectives. Specifically, we further implemented our period charter strategy by signing new contracts for three vessels at attractive rates with an average minimum duration of 22 months. Second, we engaged alternative ship management for all 12 vessels managed by our main ship management service provider. Third, we entered into agreements to sell three of our oldest ships, a 1986-built products tanker and two container vessels, at favorable prices. During a time when we continue the exploration of strategic alternatives, we remain committed to resuming the distribution of quarterly dividends beginning with the first quarter of 2008."

Year-Over-Year Fourth Quarter Results

Revenues of $25.5 million were recorded for the three months ended December 31, 2007, compared to revenues of $27.1 million recorded for the three months ended December 31, 2006. The decrease in revenues is primarily attributable to higher revenues earned by certain ships during the three months ended December 31, 2006 compared to the three month period ended December 31, 2007. Net loss was $7.0 million or $0.25 per basic and diluted common share for the three months ended December 31, 2007, compared to net income of $1.5 million or $0.05 per basic and diluted common share recorded for the three months ended December 31, 2006.

Results for the three month period ended December 31, 2007, included an unrealized loss of $2.5 million from the change in the fair value of derivatives. Excluding this non-cash unrealized loss, the net loss for the three month period ended December 31, 2007, was $4.5 million, or $0.16 per basic and diluted common share. Results for the three month period ended December 31, 2006 include an unrealized gain of $0.1 million from the aforementioned derivatives. Excluding this non-cash unrealized gain, the net income for the three month period ended December 31, 2006, was $1.4 million, or $0.05 per basic and diluted common share.

Adjusted EBITDA for the three months ended December 31, 2007 was $9.8 million compared to $12.4 million for the three months ended December 31, 2006. (Please refer to the Summary of Selected Data table later in this document for a reconciliation of Adjusted EBITDA to net income.)

Twelve-Month Results

Revenues of $99.4 million were recorded for the twelve months ended December 31, 2007, compared to revenues of $94.2 million recorded for the twelve months ended December 31, 2006. The increase in revenues is primarily due to an increase in operating days. During the twelve months ended December 31, 2007 vessel operating days totaled 5,475 compared to total vessel operating days of 5,265 for the twelve months ended December 31, 2006. Net loss was $8.7 million or $0.31 per basic and diluted common share for the twelve months ended December 31, 2007, compared to net income of $2.2 million or $0.08 per basic and diluted common share recorded for the twelve months ended December 31, 2006.

Results for the twelve month period ended December 31, 2007 include an unrealized loss of $4.1 million from the change in the fair value of derivatives. Excluding this non-cash unrealized loss, the net loss for the twelve month period ended December 31, 2007, was $4.6 million, or $0.16 per basic and diluted common share. Results for the twelve month period ended December 31, 2006 include an unrealized loss of $1.8 million from derivatives. Excluding this non-cash unrealized loss, net income for the twelve month period ended December 31, 2006, was $4 million, or $0.14 per basic and diluted common share.

Adjusted EBITDA for the twelve months ended December 31, 2007 was $48.8 million compared to $43.5 million for the twelve months ended December 31, 2006. (Please refer to the Summary of Selected Data table later in this document for a reconciliation of Adjusted EBITDA to net income.)

Fleet Report

Aries currently operates a fleet of ten double-hull products tankers and five container ships. In March 2008, the Company announced agreements for the sale of the Arius, a 1986-built double-hull products tanker, as well as the Energy 1, a 1989-built container vessel, and its sister ship, the MSC Oslo, for a net price totaling approximately $61.8 million. These transactions are expected to realize a book profit totaling approximately $17 million upon delivery of the three vessels during the second quarter of 2008. The Company will use the proceeds to reduce outstanding borrowings under its fully revolving credit facility.

Fleet Deployment

Currently, 11 of Aries' 15 vessels are deployed on period charters with established international charterers and state-owned entities. The charters have remaining periods ranging from approximately 0.1 to 2.4 years.

On January 13, 2008, the Ostria, a 2000-built products tanker, returned to service in the spot market following the completion of previously announced repairs and preventative maintenance works. Aries received an initial payment of approximately $850,000 in respect to its claim under repairs insurance and $1.2 million in full settlement of its claim under loss-of-hire insurance. Both claims were recognized in the fourth quarter of 2007. The Company expects to recognize further payments from repairs insurance during the first quarter ended March 31, 2008.

In respect to the Energy 1, this vessel is currently undergoing previously announced repairs and is expected to return to service in May of 2008. Aries intends to submit insurance claims with respect to both out-of-service time and engine repairs related to this vessel. The charterer has exercised its option to redeliver the Energy 1 due to the vessel exceeding the maximum off- hire time allowed under the contract. Aries expects to deliver the Energy 1 under the aforementioned sale agreement upon the completion of repairs to the vessel.

In March 2008, the period charter for the High Rider, a 1991-built double- hull products tanker, expired. The vessel is currently operating in the spot market as the Company seeks long-term period charter opportunities. The initial voyage charter for the High Rider is expected to generate a TCE equivalent of approximately $21,000 per day.

On March 7, 2008, Aries announced that its Board of Directors initiated a review to evaluate strategic alternatives to enhance shareholder value. These alternatives may include, but are not limited to the sale or merger of the Company, other strategic transactions, potential capital raises, and the continued execution of the Company's operating plan. The Company has retained Merrill Lynch & Co. as an advisor in connection with the evaluation process. There can be no assurance that the exploration of strategic alternatives will result in any transaction and it undertakes no obligation to make any further announcements regarding the exploration of strategic alternatives until the outcome of the process is completed or until there are material developments.

Credit Facility

On March 25, 2008, the Company announced it received consent from its lenders to a relaxation of the interest coverage covenant contained in its fully revolving credit facility from December 31, 2007 through September 30, 2008. The Company also voluntarily agreed to reduce the commitment under its fully revolving credit facility to $290 million.

2007 Dividend

Aries' Board of Directors declared and paid an aggregate dividend of $0.56 per share for three quarters of 2007. The Company temporarily suspended payment of its quarterly dividend for the fourth quarter of 2007. The Company expects to resume the distribution of quarterly dividends, as determined by its Board of Directors and consistent with its dividend policy, beginning with the dividend for the first quarter of 2008. Aries expects to declare a first quarter dividend for the three-month period ended March 31, 2008 on May 13, 2008.

Aries' policy is to pay a quarterly dividend in March, May, August and November of each year, in an amount equal to the charter hire received by Aries during the preceding quarter less cash expenses for that quarter (principally vessel operating expenses, debt service and administrative expenses) and any reserves our Board of Directors determines we should maintain. The payment of dividends is at the discretion of the Board.

Conference Call and Webcast Information

The Company announced that it will hold a conference call on Tuesday, April 22, 2008, at 10:00 a.m. Eastern Time to discuss results for the fourth quarter of 2007. To access the conference call, dial (877) 741-4253 for domestic callers, or (719) 325-4799 for international callers, and use the reservation number 2706746. Following the teleconference, a replay of the call may be accessed by dialing (888) 203-1112 for domestic callers, or (719) 457-0820 for international callers, and using the reservation number 2706746. The replay will be available through May 6, 2008. The conference call will also be webcast live on the Company's website: www.ariesmaritime.com . A replay of the webcast will be available following the call through May 6, 2008.

About Aries Maritime Transport Limited

Aries Maritime Transport Limited is an international shipping company that owns and operates products tankers and container vessels. All of the Company's products tanker vessels are double-hulled with an average age of 7.3 years, which excludes the Arius. Upon completing the sale of the Arius, the Company's products tanker fleet will consist of five MR tankers and four Panamax tankers. The Company also owns a fleet of three container vessels, which excludes the Energy 1 and the MSC Oslo, that have an average age of 18.4 years and range in capacity from 1,799 to 2,917 TEU. Currently, 11 of the Company's 15 vessels have period charter coverage. Charters for 30% of the Company's products tanker fleet currently have profit sharing components.

Aries Maritime Transport Limited press release