First Ship Lease Trust To Distribute US$9.0 Million To Unitholders For 4Q FY09

• Distribution per unit (“DPU”) of US1.50¢ for 4Q FY09
• All customers continue to perform to contract resulting in stable cash flow
• Improving shipping industry outlook for 2010
• DPU guidance of US1.50¢ for 1Q FY10

Singapore, 25 January 2010 – FSL Trust Management Pte. Ltd. (“FSLTM”), the Trustee- Manager of First Ship Lease Trust (“FSL Trust” or the “Trust”), announced today the financial results for FSL Trust for the quarter and financial year ended 31 December 2009.

For the quarter ended 31 December 2009 (“4Q FY09”), FSL Trust will distribute US$9.0 million or DPU of US1.50¢ to its unitholders. The 4Q FY09 DPU of US1.50¢ is in line with the DPU guidance provided previously and unchanged from 3Q FY09. The total distribution for FY2009 is US$42 million or US7.90¢ per unit, which is 31% lower than for FY2008. The retained cash from the lower distribution payout was primarily applied towards voluntary debt prepayment as well as scheduled loan amortization following the credit facility amendment.

Net cash generated from operations grew 15% to US$67.9 million in FY2009 compared to US$59.1 million in FY2008. This increase is attributable to the full year impact of the acquisition of five vessels between April and October 2008. Net cash generated for 4Q FY09 was US$16.2 million, unchanged from 4Q FY08.

Mr Philip Clausius, Chief Executive Officer of FSLTM, said: “2009 proved to be the most difficult year for the global shipping industry since the mid 1980s. 2010 however started on a significantly more positive note: major container liner companies, following various successful freight rate restoration efforts and capacity reductions, are at or close to cash flow breakeven levels; the tanker freight market is enjoying a mini-bull run with current rates at 12-month highs; the dry bulk market has come off somewhat but is still well above long-term historical averages. All of this leads us to believe that asset values are at or close to bottom valuations at this point.

This in turn should point to a slowly improving industry credit profile. Put in another way, we think we have moved beyond the point of highest counterparty default risk in this cycle.” Mr Clausius added: “2009 was a year for us to strengthen our balance sheet with a view to position ourselves for further growth once the market bottoms out. To that end we have put three important measures into place:

- Changed to a more conservative distribution policy
- Amended our credit facility to obtain significant covenant relief
- Raised US$28 million in fresh equity earmarked for growth

Our focus will now shift again to growing our business, at a time when the achievable riskadjusted returns in the long term shipleasing business are very attractive.”

About First Ship Lease Trust (Bloomberg: FSLT SP; Reuters: FSLT.SI; OTCQX: FSHPY)

First Ship Lease Trust (“FSL Trust” or the “Trust”) is a provider of leasing services on a long-term bareboat charter basis to the international shipping industry. The 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 4.7 years^ and an average remaining lease period of approximately 7.8 years^ (excluding extension periods and early buy-out options). FSL Trust Management Pte. Ltd., the Trustee-Manager of the Trust, is focused on growing and diversifying the portfolio of the Trust through accretive acquisitions of vessels with long-term leases.

FSL Trust is listed on the main board of the Singapore Exchange Securities Trading Limited (SGX-ST) and its American Depository Receipts are quoted on the PrimeQX tier of International OTCQX. FSL Trust is a component stock of the FTSE ST Maritime Index.

First Ship Lease Trust