Global Ship Lease Reports Results for the First Quarter of 2011

LONDON, May 16, 2011 (GLOBE NEWSWIRE) - Global Ship Lease, Inc. (NYSE:GSL), a containership charter owner, announced today its unaudited results for the three months ended March 31, 2011.

First Quarter and Year To Date Highlights

• Reported revenue of $39.1 million for the first quarter 2011, down slightly from $39.2 million for the first quarter 2010 due to three days offhire in first quarter 2011 for a planned drydocking
• Reported net income of $10.8 million for the first quarter 2011, including a $5.0 million non-cash interest rate derivative mark-to-market gain. Reported net income for the first quarter 2010 was $3.3 million, including $4.9 million non-cash mark-to-market loss
• Generated $26.2 million EBITDA(1) for the first quarter 2011, down on $28.3 million for the first quarter 2010 due mainly to increased crew costs and the timing of maintenance and stores spend
• Excluding the non-cash mark-to-market items, normalized net income(1) was $5.9 million for the first quarter 2011 compared to normalized net income of $8.2 million for the first quarter 2010
• Loan-to-value under the Company's credit facility as at April 30, 2011 was less than 75%. Therefore, the interest margin paid on borrowings decreases to 3.00% from 3.50%, prepayment of borrowings becomes fixed at $10 million per quarter and dividends to common shareholders are permitted

Ian Webber, Chief Executive Officer of Global Ship Lease, stated, "During the first quarter, our fleet performed as expected, enabling the Company to once again achieve strong utilization. With our entire 17 vessel fleet operating on time charters, we continue to generate sizeable cash flows. As we progress through the year, we remain committed to seeking opportunities to capitalize on the industry's strong fundamentals while maintaining a significant focus on preserving our financial strength."

Mr. Webber continued, "As containerized trade has continued to recover, we have seen steady improvement in asset values. This improvement, together with aggressive pay down of debt, has had a favorable effect on our loan-to-value ratio which was below 75% at the last test date, benefiting Global Ship Lease in a number of ways. First, the interest margin paid on borrowings will decrease to 3.00% from 3.50% which will save approximately $2.5 million of cash interest in a full year. Second, the cash sweep mechanism to prepay borrowings no longer applies and prepayments become fixed at $10 million per quarter. Finally, the Company is permitted to pay dividends to common shareholders. We believe that the Company's business model supports the delivery of dividends to common shareholders over the long-term and the Board will continue to evaluate the dividend policy on a quarterly basis."

Full report at: www.globalshiplease.com

Global Ship Lease press release