NewLead Holdings Ltd. Announces Agreements for $112.7 Million Purchase of Two Kamsarmaxes and $8.5 Million Sale of Product Tanker

2/23/2010

PIRAEUS, Greece, Feb 23, 2010 /PRNewswire via COMTEX News Network/ -- NewLead Holdings Ltd. (Nasdaq: NEWL) (the "Company") today announced that it has signed a Stock Purchase Agreement providing for the purchase of two Kamsarmaxes for an aggregate purchase price of $112.7 million and signed a Memorandum of Agreement for the sale of the product tanker Chinook for $8.5 million.

"NewLead's fleet continues to transform, becoming younger and more versatile," said Mr. Michael S. Zolotas, President and Chief Executive Officer. "As we sell non-productive assets, we will be seeking to add new vessels particularly those with favorable charters. These two high quality dry bulk Kamsarmaxes add a unique class of vessel to our fleet and seven years of revenue visibility."

Acquisition of Two Vessels
The company is acquiring two geared, 80,000 DWT Kamsarmaxes from COSCO Dalian Shipyard Co. Ltd. to be delivered in the fourth quarter of 2010 and 2011, respectively. The charter for the first vessel is for a five-year initial term at $28,710 (net) a day. The charter for the second vessel is for a seven-year term at $27,300 (net) a day.

Disposition of One Vessel
In relation to this transaction, the Company has entered into a Memorandum of Agreement for the sale of the product tanker Chinook for $8.5 million. The Chinook is a Romanian 2001 built, 38,700 dwt MR tanker that has been operating on the spot market and generating operating losses. Divesting this inefficient vessel will result in estimated operational savings of approximately $2.0 million annually.

Financing
The $112.7 million purchase price for the two Kamsarmaxes will be paid by $80.0 million of debt financing, $24.2 million of cash from the balance sheet (associated with the shipbuilding contracts and related expenses) and the sale of the Chinook for a consideration of $8.5 million to be delivered against the purchase price.

About NewLead Holdings Ltd.
NewLead Holdings Ltd. is an international shipping company that owns and operates product tanker and dry bulk vessels. The Company's products tanker fleet consists of five MR tankers and four Panamax tankers, all of which are double-hulled. The Company also owns dry bulk vessels, three Capesize, secured on period charters.

NewLead Holdings Ltd.