NewLead Holdings Ltd. Completes $147 million Acquisition of Five Vessels

PIRAEUS, Greece, July 28 /PRNewswire-FirstCall/ -- NewLead Holdings Ltd. (Nasdaq: NEWL) ("NewLead" or the "Company") today announced the successful completion of the dropdown of five dry bulk vessels, including two newbuildings with long-term quality time charters attached and the right of first refusal for three additional newbuildings from Grandunion Inc. ("Grandunion").

Total consideration for the dropdown of the five vessels is approximately $147.0 million, which includes approximately $93.0 million in assumed bank debt and other liabilities. The balance will be payments towards the newbuilding installments and will be financed with committed bank and shipyard credit facilities as well as cash from balance sheet. As a result of this transaction, NewLead's fleet, including newbuildings, consists of 24 vessels - nine product tankers and 15 dry bulk carriers.

Michael Zolotas, President and Chief Executive Officer stated, "NewLead continues to transform its core fleet. Since we took control of the Company in October 2009, we acquired 17 vessels, including five newbuildings, while divesting inefficient non-core vessels. The three vessels in operation, Grand Markela, Grand Spartounta and Grand Esmeralda, are expected to generate approximately $11 million annual vessel EBITDA, based on prevailing market rates."

Michael Zolotas continued, "We are continuously focused on refining our fleet and operations to create operational scale and an appropriate platform to support our growth."

The two newbuildings are 35,000 dwt Handysize vessels, under construction at a first-class shipyard in Korea, scheduled to be delivered in the first quarter of 2011 and third quarter of 2012, respectively. Once delivered, each vessel will immediately be chartered-out for 12 years at a floor rate of $12,000 per day plus 40/60 profit sharing above $14,000 from a first-class European charterer. Upon delivery, the vessels are expected to add approximately $5 million in aggregate vessel EBITDA annually based on prevailing market rates.

As part of the overall transaction, NewLead has also secured the right of first refusal for three additional newbuildings. The three newbuildings are 81,000 dwt Kamsarmaxes, being constructed at a first-class shipyard in Korea, scheduled for delivery in 2013 with long-term charters attached.

About NewLead Holdings Ltd.

NewLead Holdings Ltd. is an international shipping company that owns and operates product tankers, and dry bulk vessels. NewLead's common shares are traded under the symbol "NEWL" on the NASDAQ Global Select Market. To learn more about NewLead Holdings Ltd., please visit the new website at www.newleadholdings.com.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995

This press release includes assumptions, expectations, projections, intentions and beliefs about future events. These statements, as well as words such as "anticipate," "estimate," "project," "plan," and "expect," are intended to be ''forward-looking" statements. We caution that assumptions, expectations, projections, intentions and beliefs about future events may vary from actual results and the differences can be material. Forward-looking statements include, but are not limited to, such matters as future operating or financial results; statements about planned, pending or recent acquisitions and business strategy. The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, management's examination of historical operating trends, data contained in our records and other data available from third parties. Although NewLead believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, NewLead cannot assure you that it will achieve or accomplish these expectations, beliefs or projections described in the forward looking statements. Important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the strength of world economies and currencies, general market conditions, including changes in charter rates and vessel values, failure of a seller to deliver one or more vessels, and other factors discussed in NewLead's filings with the U.S. Securities and Exchange Commission from time to time. NewLead expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in NewLead's expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.

SOURCE NewLead Holdings Ltd.