First Ship Lease Trust to Distribute US$14.0 Million to Unitholders for 2Q FY08

SINGAPORE, July 22 /Xinhua-PRNewswire-FirstCall/ --

-- Distribution per unit ("DPU") of US2.80 cents
-- 27.9% higher than DPU of US2.19 cents (Note 1)for 2Q FY07
-- 8.1% higher than DPU of US2.59 cents for 1Q FY08
-- Revenue of US$20.7 million for 2Q FY08
-- 71.2% higher compared to 2Q FY07
-- Total asset acquisitions of US$280 million for the six months ended
30 June 2008
-- Trustee-Manager on track to meet US$300 million target for FY08

FSL Trust Management Pte Ltd ("FSLTM"), Trustee-Manager of First Ship
Lease Trust ("FSL Trust"), today announced a total distribution of US$14.0
million to unitholders of FSL Trust for the quarter ended 30 June 2008 ("2Q
FY08"). This represents 100% of the amount available for distribution.
Based on 500,098,000 outstanding units, the Distribution per Unit ("DPU")
is US2.80 cents, an increase of 8.1% over the previous quarter's DPU of US2.59
cents.
Mr Philip Clausius, Chief Executive Officer of FSLTM, said, "This has been
another excellent quarter for FSL Trust. Since our listing in March last
year,
we have increased our DPU every single quarter. The DPU of US2.80 cents to be
paid for the second quarter is 28% more than the DPU paid a year ago."
He added, "The acquisition of the three Yang Ming vessels announced in May
will further raise DPU from the next quarter onwards. This is testament of
our commitment to enhance value for our unitholders."
Note 1: Normalised on a quarterly basis (actual DPU for the period 19
March 2007 to 30 June 2007 was US2.30 cents).

SUMMARY OF RESULTS

2Q FY08 2Q FY07 Change
US$'000 US$'000 %
Revenue 20,667 12,072 +71.2
Net profit after tax 1,990 2,195 -9.3
Net Distributable Amount 14,243 10,952 +30.0
Amount to be distributed 14,003 11,500 +21.8

2Q FY08 2Q FY07 Change
US Cents US Cents %
Distribution Per Unit
("DPU") (Note 2)
For the period 2.80 2.19 +27.9
(Note 3)
Annualised 11.20 8.76 +27.9

Note 2: FSL Trust's distribution policy is to apply at least 90% of the
Net Distributable Amount towards payment of distributions and
incentive fee. For 2Q FY08, FSL Trust will apply 100% of the Net
Distributable Amount for distribution to unitholders and incentive
fee payment to the Trustee-Manager.
Note 3: Actual DPU for the period 19 March 2007 to 30 June 2007 was US2.30
cents.

2Q FY08 VS 2Q FY07
The acquisitions and concurrent leasebacks of six vessels after 30 June
2007 contributed primarily to the 71.2% increase in lease revenue for 2Q 2008
compared to the same period last year. The six vessels acquired were two
product tankers from Groda Shipping & Transportation Ltd ("Groda") in November
2007, two crude oil tankers from Geden Lines ("Geden") in April 2008 and two
containerships from Yang Ming Marine Transport Corporation ("Yang Ming") in
May and June 2008 respectively.
The increased revenue resulted in a higher Net Distributable Amount of
US$14.2 million against US$11.0 million generated in 2Q FY07. After
accounting for an incentive fee of US$239,000 payable to the Trustee-Manager,
US$14.0 million will be distributed to unitholders for this quarter.
DISTRIBUTION
For 2Q FY08, unitholders will receive US2.80 cents for each unit they own.
This translates into an annualised DPU of US11.20 cents, or 27.9% higher than
the annualised DPU of US8.76 cents for 2Q FY07. Based on FSL Trust's closing
unit price of S$1.23 and assuming an exchange rate of US$1 = S$1.35 on 21 July
2008, this translates into a distribution yield of 12.3% p.a.
The increase in DPU of US0.61 cents (or 27.9%) from US2.19 cents in 2Q
FY07 to US2.80 cents in 2Q FY08 was made possible by incremental cash flows
resulting from the acquisition and concurrent leaseback of two product tankers
with Groda in November 2007, two crude oil tankers with Geden in April 2008
and two containerships with Yang Ming in May and June 2008. A full quarter's
cash flow impact from the acquisition of the two Yang Ming vessels will come
into effect from 3Q FY08 onwards.
FSLTM has progressively raised FSL Trust's DPU since its listing in March
2007.
Please visit: http://xprnnews.xfn.info/FSLT/20080722/charts.pdf for chart
on DPU growth.
The Books Closure Date is 30 July 2008, and payment to unitholders of the
distribution of US2.80 cents per unit (Note 4) will be made on 26 August 2008.
Note 4: Unitholders whose units are held directly through CDP will receive
their distribution in the Singapore dollar equivalent of the
US2.80 cents declared. Unitholders who wish to receive the
distribution in US dollars can do so by submitting a
"Distribution Election Notice" to CDP by 13 Aug 2008.

SUBORDINATION AND FEES PAID TO FSLTM
The period under review falls under the Subordination Period (listing date
of 27 March 2007 to 30 June 2009). During this Subordination Period, the
Sponsor (Note 5) has agreed to subordinate its entitlement to the distribution
in respect of 50% of its Units, and FSLTM has agreed to subordinate its
management fees, should the forecasted Net Distributable Amount ("DAU") per
unit not be achieved in any quarter.
The DAU per unit for 2Q 2008 is US2.848 cents, which exceeds the targeted
minimum DAU per unit of US2.237 cents for this quarter. Accordingly, the
Sponsor and FSLTM do not have to surrender any of their distributions and
management fees respectively.
In addition, in accordance with the terms of the Trust Deed signed on 19
March 2007, as the DAU per unit in 2Q 2008 of US2.848 cents exceeds US2.450
cents (115% of the benchmark DPU of US$2.13 cents), an incentive fee of
US$239,000 is payable to FSLTM.
FSLTM has elected to receive 99.99% of the incentive fee in the form of
new units to be issued with the balance 0.01% in the form of cash. The issue
of new units is subject to the in-principle approval of the Singapore Exchange
Securities Trading Limited.
Note 5: The Sponsor is First Ship Lease Pte. Ltd. As at 30 June 2008, the
Sponsor owns 30.1% of the units in FSL Trust.

LEASE PORTFOLIO
Assuming the third containership from Yang Ming (currently subject to
financing, documentation and closing) had been part of FSL Trust's portfolio
as at 30 June 2008, the pro-forma breakdown by revenue and net book value for
FSL Trust is as follows:
Please visit: http://xprnnews.xfn.info/FSLT/20080722/charts.pdf for charts
on lease portfolio.
OUTLOOK AND PROSPECTS
The third containership to be acquired from Yang Ming in October 2008,
costing US$70.0 million, is subject to financing, documentation and closing.
FSLTM is currently in discussions with the lead arrangers of the recent US$200
million revolving credit facility (The Bank of Tokyo-Mitsubishi UFJ Co., Ltd,
Singapore Branch and Bayerische Hypo- und Vereinsbank AG, Singapore Branch) to
increase the facility to US$265 million. This increased facility will be
drawn upon to acquire the third containership from Yang Ming. FSLTM will give
guidance on the DPU accretion for the acquisition of this vessel once the
financing has been finalised.
With the completion of the third Yang Ming vessel expected in October
2008,
FSLTM will have injected US$350 million worth of vessels into FSL Trust,
exceeding the target of US$300 million set for this financial year.
FSLTM will continue to pursue DPU accretive acquisition opportunities to
grow FSL Trust, while exploring various capital raising options to facilitate
the growth.
About First Ship Lease Trust ("FSL Trust")
First Ship Lease Trust (Reuters: FSLT.SI; Bloomberg: FSLT SP) is a
provider of leasing services on a bareboat charter basis to the international
shipping industry. It has a modern, high quality and diverse portfolio of 23
(Note 6) vessels consisting of seven containerships, nine product tankers,
three chemical tankers, two dry bulk carriers and two crude oil tankers. These
vessels have an average age of approximately three (Note 6) years, and an
average remaining lease period of approximately nine (Note 6) years (excluding
extension periods and early buy-out options).
FSL Trust is listed on the Singapore Exchange Securities Trading Limited
and is managed by FSL Trust Management Pte. Ltd. ("FSLTM"), the Trustee-
Manager. FSLTM is focused on rapidly growing the vessel portfolio of FSL
Trust through accretive acquisitions with long-term bareboat charters. It has
an acquisition target of US$300 million for financial year 2008. Note 6:
Assuming the third containership from Yang Ming is part of FSL
Trust's portfolio as at 30 June 2008.

This news release may contain forward-looking statements that involve
risks and uncertainties. Actual future performance, outcomes and results may
differ materially from those expressed in forward-looking statements as a
result of a number of risks, uncertainties and assumptions. Representative
examples of these factors include (without limitation) general industry and
economic conditions, interest rate trends, cost of capital and capital
availability, competition from other companies, changes in operating expenses,
trust expenses and governmental and public policy changes and the continued
availability of financing in the amounts and the terms necessary to support
future business. Investors are cautioned not to place undue reliance on these
forward-looking statements, which are based on current view of management on
future events.
The initial public offering of units of First Ship Lease Trust (the
"Offering") commenced on 19 March 2007 and closed on 22 March 2007. In the
Offering, Deutsche Bank AG, Singapore Branch was the Sole Global Co-ordinator,
Joint Lead Manager and Joint Bookrunner, and J.P. Morgan (S.E.A.) Limited was
the Joint Lead Manager and Joint Bookrunner. The Co-Lead Managers to the
Offering were CLSA Merchant Bankers Limited and Macquarie Securities (Asia)
Pte Limited. The Manager and Co-ordinator of the Singapore Public Offer was
Oversea-Chinese Banking Corporation Limited.
This announcement has been prepared and released by FSL Trust Management
Pte. Ltd., as trustee-manager of First Ship Lease Trust. Deutsche Bank AG,
Singapore Branch and J.P. Morgan (S.E.A.) Limited, in their capacity as Joint
Lead Managers and Joint Bookrunners, are not required to and have not been
involved in the preparation or release of this announcement and have not
verified the accuracy, completeness or adequacy of the information contained
herein. The Joint Lead Managers and Joint Bookrunners do not accept any
responsibility for, and disclaim any liability with respect to, the accuracy,
completeness or adequacy of the information contained in this announcement or
incorporated by reference herein.
Media/Analysts Contact:

Singapore:
Weber Shandwick Worldwide
Ivan Tan
Tel: +65-9635-9765
Email: itan@webershandwick.com

Danny Cham
Tel: +65-9696-9128
Email: dcham@webershandwick.com

United States:
IGB Group
Leon Berman
Tel: +1-212-477-8438
Email: lberman@igbir.com

Michael Cimini
Tel: +1-212-477-8261
Email: mcimini@igbir.com

SOURCE FSL Trust Management Pte. Ltd.

Singapore, Ivan Tan, +65-9635-9765, or itan@webershandwick.com, or Danny Cham,
+65-9696-9128, or dcham@webershandwick.com, both of Weber Shandwick Worldwide;
or United States, Leon Berman, +1-212-477-8438, or Iberman@igbir.com, or
Michael Cimini, +1-212-477-8261, or mcimini@igbir.com, both of IGB Group, all
for FSLT