First Ship Lease Trust Provides Update To Investors

• All lessees have been prompt in their lease payments
• Reaffirm 1Q FY09 DPU guidance of US2.45 cents
• In full compliance with loan covenants
• No current requirement for additional funding

Singapore, 4 March 2009 – FSL Trust Management Pte. Ltd. (“FSLTM”), the Trustee-Manager of First Ship Lease Trust (“FSL Trust”), notes recent developments in the shipping and capital markets and would like to provide investors with the following updates:

Lease Portfolio

All of FSL Trust’s eight lessees have been making full and prompt advance payment of their monthly lease rentals, including those for March 2009. Consequently, FSLTM is reaffirming its guidance for FSL Trust’s distribution per unit (“DPU”) of US2.45 cents for 1Q FY09. In addition, and based on intensive credit due diligence conducted recently on all of its lessees, FSLTM has no reason to expect any payment default by its lessees, notwithstanding the very challenging market conditions.

All lease contracts that FSL Trust has entered into with its lessees are structured on a “Hell and High Water” bareboat charter basis, the tightest contractual standard in the shipping industry. Under such lease terms, the lessee is contractually obligated to continue lease payments to FSL Trust throughout the lease term regardless of the lessee’s business circumstances, and the prevailing economic and market conditions. The lease rate for a particular lease is generally fixed for the entire lease term and is contractually non-negotiable by either party. Unlike time charter lessors, a bareboat charter lessor such as FSL Trust, does not bear the operating risks and expenses nor the technical performance risk of the vessel. This significantly enhances the predictability of the revenue stream and eliminates maneuverability for contract re-negotiation.

FSLTM exercises extreme care in structuring its long-term leasing transactions. It is common place in the shipping industry that large charterers use offshore special purpose vehicles as counterparties when entering into long-term leasing obligations without granting corporate recourse. FSLTM has not accepted such structures and has always insisted on substantive support of the lessees’ parents via a full recourse corporate guarantee^. In certain transactions, FSLTM has negotiated further credit enhancement via features such as charge over earnings accounts, assignment of specific sub-charters and/or contracts of affreightment, and/or the pledge of cash security deposits. FSLTM believes that this care in structuring transactions will prove to be especially beneficial in the current industry environment.

Funding

FSL Trust is in full compliance with all its loan covenants. All vessels in FSL Trust’s portfolio are fully financed and there is no committed capital expenditure that would require additional funding. Further, there are no loan maturities for at least three years from 31 December 2008 under the three loan tranches that FSL Trust has entered into with its lenders. Finally, FSLTM currently has no plans to raise equity for FSL Trust. FSLTM believes that the lease portfolio of FSL Trust will prove to be resilient under these very adverse market conditions, enabling FSL Trust to continue delivering attractive returns to its unitholders.

About First Ship Lease Trust (“FSL Trust”)

First Ship Lease Trust (Reuters: FSLT.SI; Bloomberg: FSLT SP; OTCQX: FSHPY) is a provider of leasing services on a bareboat charter basis to the international shipping industry. FSL Trust has a diversified portfolio of 23 modern and high quality vessels, consisting of seven containerships, nine product tankers, three chemical tankers, two dry bulk carriers and two crude oil tankers. These vessels have an average age of approximately 3.7 years^ and an average remaining lease period of approximately 8.7 years^ (excluding extension periods and early buy-out options).

FSL Trust is listed on the main board of the Singapore Exchange Securities Trading Limited (“SGX-ST”) and its American Depository Receipts (“ADRs”) are traded on the PrimeQX tier of International OTCQX. It is managed by FSL Trust Management Pte. Ltd. (“FSLTM”), the Trustee-Manager. FSLTM is focused on growing the vessel portfolio of FSL Trust through accretive acquisitions with long-term bareboat charters. More details on FSL Trust are available at www.FSLTrust.com.

______
^ Except for Groda/Rosneft transaction, in which FSL Trust has full legal recourse to OJSC Rosneft Oil Company via the assignment of a vessel specific contract of affreightment.
^ As at 31 December 2008, and on a dollar-weighted average basis by net book value.

First Ship Lease Trust