First Ship Lease Trust Not To Proceed With Proposed Senior Notes Offering

Singapore, 7 December 2009 - FSL Trust Management Pte. Ltd. (“FSLTM”), Trustee-Manager of First Ship Lease Trust (“FSL Trust”), refers to its announcement dated 23 November 2009 relating to the proposed plan to issue up to US$200 million senior notes due 2016 (the “Notes”) and wishes to announce that it has decided not to proceed with the proposed plan to issue the Notes at this time.

Philip Clausius, CEO of FSLTM said, “The start of the investor roadshow coincided with the outbreak of the Dubai World credit crisis. This impacted fixed-income investor sentiment, particularly in Asia and Europe. We could most likely have concluded this offering, but only on terms that would not have been in the best interests of FSL Trust unitholders. Since we have no external pressure, including that from our bank lenders, to conclude this offering, we have decided to suspend it for now. We will revisit it when market circumstances change.”

FSL Trust enjoys stable and predictable cashflow from its portfolio of long-term lease contracts which has remaining contracted revenue of US$782 million as at 30 September 2009. It does not have any outstanding capital expenditure that requires additional funding and it has no loan maturing before 2 April 2012.

First Ship Lease Trust