NewLead Holdings Ltd. Announces Dropdown of Six Vessels and Ship Management Company

PIRAEUS, Greece, April 6, 2010 /PRNewswire via COMTEX News Network/ -- NewLead Holdings Ltd. (Nasdaq: NEWL) ("NewLead" or "the Company") today announced it has completed the dropdown of six vessels (four drybulk vessels and two product tankers) and Newlead Shipping S.A., an integrated technical and commercial management company, from Grandunion Inc. ("Grandunion"). In connection with this transaction, NewLead transferred to Grandunion 8,844,444 shares of NewLead's common stock and assumed existing liabilities.

Michael S. Zolotas, President and Chief Executive Officer of NewLead Holdings Ltd., stated, "The successful closing of this transaction is another step in transforming NewLead Holdings. The six vessels have quality time charters and are expected to add approximately $19.4 million in EBITDA annually." Mr. Zolotas continued, "Newlead Shipping S.A. provides us with technical and commercial management necessary for a fully integrated maritime company. We anticipate that technical and commercial management will create significant contribution to our operating profit through higher vessel utilization and operating cost efficiencies and allow NewLead to achieve a competitive cost structure."

As a result of this transaction, NewLead Holdings' fleet consists of eleven product tankers and seven drybulk carriers.

Newlead Shipping S.A.
Newlead Shipping S.A. is an integrated technical and commercial management company, appropriately licensed and staffed to provide a broad spectrum of technical and commercial management services to all segments within the maritime industry. Newlead has the following accreditations:

• ISO 9001 from American Bureau of Shipping Quality Evaluations for a quality management system, by consistently providing a service that meets customer and applicable statutory and regulatory requirements, and enhancing customer satisfaction through, among other things, processes for continual improvement;
• ISO 14001 from American Bureau of Shipping Quality Evaluations for environmental management, including policy and objectives targeting compliance to the legal and other requirements to which the Company subscribes;
• Certificate of Company Compliance from ABS to the Safety, Quality and Environmental from American Bureau of Shipping.
Newlead Shipping S.A.'s management has broad expertise, including specialized knowledge required for managing oil tankers, gas carriers, chemical carriers and bulkers. Senior personnel have a successful performance record and the support of a dedicated pool of senior engineers and top-class masters.

Related Matters

Based on the outstanding shares at March 31, 2010, we believe the number of NewLead's shares outstanding, giving effect to this transaction, will be 88,298,265.

As a result of this transaction, Grandunion owns approximately 28.5% of the Company and, as a result of the voting agreement, controls the vote of approximately 48.4% of the Company's outstanding common shares.

For more detailed information concerning this transaction, please see the Form 6K which is anticipated to be filed shortly.

About NewLead Holdings Ltd.

NewLead Holdings Ltd. is an international shipping company that owns and operates product tankers, and dry bulk vessels. To learn more about the Company, please visit the Company's website at www.newleadholdings.com.

Source: NewLead Holdings Ltd.