Safe Bulkers, Inc. Announces Agreement for Early Termination of Existing Charter in Exchange for Compensation

ATHENS, GREECE – December 21, 2009 – Safe Bulkers, Inc. (the “Company”) (NYSE: SB), announced today that it has agreed to terminate the existing charter of the Kamsarmax-class vessel “Pedhoulas Merchant”. The charter was contractually due to expire in November 2010. Following this agreement, the vessel is expected to be redelivered between February and March, 2010. In exchange for the early redelivery of the vessel, the charterer has agreed to pay the Company cash compensation between $5.1 and $6.5 million, depending on the vessel’s actual redelivery date. Following redelivery the vessel will be available for employment.

Polys Hajioannou, CEO and Chairman of the Board of Directors of the Company, said: “During 2009, we have entered into similar early termination agreements with proper compensation, which strengthen our cash position. Traditionally we seek to maintain a high charter coverage ratio, while employing certain of our vessels in the spot market to take advantage of the higher rates until meaningful period time charters can be contracted.”

About Safe Bulkers, Inc.
The Company is an international provider of marine drybulk transportation services, transporting bulk cargoes, particularly coal, grain and iron ore, along worldwide shipping routes for some of the world’s largest users of marine drybulk transportation services. The Company's common stock is listed on the NYSE, where it trades under the symbol “SB”. The Company’s current fleet consists of 14 drybulk vessels, all built post-2003, and the Company has contracted to acquire six additional drybulk newbuild vessels to be delivered at various times through 2012 and has agreed to sell one vessel.

Safe Bulkers, Inc.