Ultrapetrol Announces Substitution of Certain FFAs Cleared Through LCH Clearnet for...

Ultrapetrol Announces Substitution of Certain FFAs Cleared Through LCH Clearnet
for Non-Cleared Over the Counter FFAs for Second Half of 2008

Ultrapetrol (Bahamas) Limited (Nasdaq:ULTR), an industrial transportation
company serving marine transportation needs in four markets (River Business,
Offshore Supply Business, Ocean Business and Passenger Business), today
announced that it executed two similar sets of transactions through which it has
bought and sold respectively the same number of Forward Freight Agreements
("FFA") positions with almost neutral overall effect in its year-end results and
beneficial effects on its working capital requirements.

Len Hoskinson, the Company's Chief Financial Officer said, "The market rates for
Capesize vessels have increased substantially, culminating in another record
high today. The robust Capesize market bodes well for Ultrapetrol strengthening
its results in general as we have substantially more open days on our vessels
than we have FFAs. We have substituted a large portion of our FFA positions sold
through LCH Clearnet by an equivalent number of over the counter FFA contracts
sold to reliable parties. In fact, we have bought a total of 274 days of FFAs
through the clearing house in the third and fourth quarter and simultaneously we
sold in total the same 274 days of FFAs over the counter at almost the same
values. The effect of these transactions at year-end is expected to be close to
zero and at the same time it contributes to our working capital."

On Friday, May 16, 2008, the Company entered into an FFA contract whereby one of
its subsidiaries contracted with a counterparty through the facilities of LCH
Clearnet to charge the average time charter rate for the 4 Capesize Time Charter
Routes ("C4TC") for a total of 90 days (15 days in July 2008, 15 days in August
2008, 15 days in September 2008, 15 days in October 2008, 15 days in November
2008 and 15 days in December 2008) in exchange for a fixed rate of $170,000 (one
hundred and seventy thousand U.S. Dollars) per day. Through this FFA we offset
an equal number of days of the FFA positions previously sold by our subsidiary
for the second half of 2008.

Simultaneously on May 16, 2008, the Company entered into an over the counter
Forward Freight Agreement ("OTC FFA") contract whereby one of its subsidiaries
contracted to pay the average time charter rate for the C4TC for a total of 90
days (15 days in July 2008, 15 days in August 2008, 15 days in September 2008,
15 days in October 2008, 15 days in November 2008 and 15 days in December 2008)
in exchange for a fixed rate of $168,000 (one hundred and sixty eight thousand
U.S. Dollars) per day.

Similarly, on May 19, 2008, the Company entered into an FFA whereby one of its
subsidiaries contracted with a counterparty through the facilities of LCH
Clearnet to charge the average time charter rate for the C4TC for a total of 184
days (31 days in July 2008, 31 days in August 2008, 30 days in September 2008,
31 days in October 2008, 30 days in November 2008 and 31 days in December 2008)
in exchange for a fixed rate of $166,000 (one hundred and sixty six thousand
U.S. Dollars) per day. Through this FFA we offset an equal number of days of the
FFA positions previously sold by our subsidiary for the second half of 2008.

Simultaneously on May 19, 2008, the Company entered into an OTC FFA contract
whereby one of its subsidiaries contracted to pay the average time charter rate
for the C4TC for a total of 184 days (31 days in July 2008, 31 days in August
2008, 30 days in September 2008, 31 days in October 2008, 30 days in November
2008 and 31 days in December 2008) in exchange for a fixed rate of $165,000 (one
hundred and sixty five thousand U.S. Dollars) per day.

All the FFAs entered into as OTC FFAs have no margin account requirements and as
such bear a higher counterparty risk than cleared FFAs.

The Company believes that the net effect of the transactions described above
will be almost neutral (a charge to net income of $(0.4) million through year
end). The short-term effect on earnings and net income of having offset some of
our cleared positions will, however, likely require us to record in our Income
Statement for the second quarter of 2008 a one-time charge to net income of
$(24.2) million. All but $0.4 million of this charge is expected to be offset
over the balance of 2008.

The Company also believes that through these transactions it has reduced its
future working capital requirements without affecting in any significant way its
year end results.

About Ultrapetrol

Ultrapetrol is an industrial transportation company serving the marine
transportation needs of its clients in the markets on which it focuses. It
serves the shipping markets for grain, vegetable oils, minerals, crude oil,
petroleum and refined petroleum products, as well as the offshore oil platform
supply market and the leisure passenger cruise market, with its extensive and
diverse fleet of vessels. These include river barges and push boats, platform
supply vessels, tankers, oil-bulk-ore and capesize bulk vessels and a passenger
ship. More information about the Company can be found on its Web Site at
http://www.ultrapetrol.net.

The Ultrapetrol (Bahamas) Limited logo is available at
http://www.primenewswire.com/newsroom/prs/?pkgid=3164

Forward-Looking Language

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, the Company's management's examination of
historical operating trends, data contained in our records and other data
available from third parties. Although the Company 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 its control, the Company cannot assure you
that the Company will achieve or accomplish these expectations, beliefs or
projections.

In addition to these important factors, other important factors that, in the
Company's view, could cause actual results to differ materially from those
discussed in the forward-looking statements include future operating or
financial results; pending or recent acquisitions, business strategy and
expected capital spending or operating expenses, including dry docking and
insurance costs; general market conditions and trends, including charter rates,
vessel values, and factors affecting vessel supply and demand; its ability to
obtain additional financing; its financial condition and liquidity, including
its ability to obtain financing in the future to fund capital expenditures,
acquisitions and other general corporate activities; its expectations about the
availability of vessels to purchase, the time that it may take to construct new
vessels, or vessels' useful lives; its dependence upon the abilities and efforts
of its management team; changes in governmental rules and regulations or actions
taken by regulatory authorities; adverse weather conditions that can affect
production of the goods the Company transports and navigability of the river
system; the highly competitive nature of the oceangoing transportation industry;
the loss of one or more key customers; fluctuations in foreign exchange rates
and devaluations; potential liability from future litigation; and other factors.
Please see the Company's filings with the Securities and Exchange Commission for
a more complete discussion of these and other risks and uncertainties.

ULTR-G

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CONTACT: The IGB Group
Leon Berman, Principal
212-477-8438
Fax: 212-477-8636
lberman@igbir.com
www.igbir.com