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Blue Star Maritime (BSMD)

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Friday 26 May, 2006

Blue Star Maritime

1st Quarter Results

Blue Star Maritime S.A.
26 May 2006

                              BLUE STAR MARITIME S.A.

                                  PRESS RELEASE

                             REVENUE ROSE BY 23.8%
                           EBITDA IMPROVED BY 35.9%

The Board of Directors of Blue Star Maritime S.A. is pleased to announce that
Blue Star Group significantly improved its financial results for the first
quarter of 2006. Revenue stood at Euro 21.18 mln against Euro 17.11 mln in the
first quarter of 2005, an increase of 23.8%. Earnings before taxes, investing
and financial results, depreciation and amortization (EBITDA) grew to Euro 1.46
mln against Euro 1.07 mln (35.9% increase) while Losses after tax and minority
interests stood at Euro 2.05 mln reduced considerably from Euro 4.38 mln in the
same period of previous year.

The Group's key financials for the first quarter of 2006 compared to the first
quarter of 2005 were:

In Euro thousand                         2006           2005        Ch.%
(except sailings)

Sailings                                  807            921      -12.4%
Revenue                                21,185         17,115      +23.8%
Earnings before Taxes,
Investing & Financial Results,
Depreciation &
Amortization (EBITDA)                   1,462          1,077      +35.9%
Losses after Tax
& Minority interests                   (2,049)        (4,379)     -53.2%

Contributing factors to the Group's increased revenue were:

•         The improvement in load factors across the Cyclades and Dodecanese
routes, where, over 19.3% fewer sailings compared to the same period last year,
total volumes carried increased significantly both in passengers and private
vehicles as well as in freight units.

•         The significant growth in freight carried on the Greece - Italy
routes, where whilst executing approximately double the sailings compared to the
first quarter of the previous year, total freight units carried more than

Operational profitability for the Group (EBITDA) improved considerably despite
the continuous upward trend in the price of fuel oil. Total fuel and lubricants
expenses for the Group rose by 63.7% compared to the same period in the previous
year despite the fewer sailings performed. Nevertheless, operational
profitability (EBITDA) improved considerably due to:

•         The significant revenue growth.

•         The deployment of vessels on routes on which they can be fully
exploited year-round.

•         The upholding of all other operational expenses of the vessels at
approximately the same level as in the previous year.

The significant decrease of Losses after taxes was due to the reduction in
financial expenses following the successful refinancing of the Group's debt
obligations in June 2005 and the approximately Euro 1 mln profit booked from the
sale of passenger catamaran Seajet 2 which was concluded in March 2006.

As regards the Balance Sheet and the Cash Flow Statement, it is worth noting
that the Group maintained its cash position at the same level as at year-end
2005, although it fully repaid its short-term debt obligations, which stood at
Euro 2.2 mln, using its own cash. This confirms that, although the first quarter
is traditionally the slowest in terms of both volumes and revenue, owing to the
seasonal nature of tourism, the Group achieved an impressive performance due to
the sound management of its assets.

The most significant development in the sector was the recent (May 2006)
liberalization of fares in the Greek domestic market. This decision of the Greek
government is a step closer towards the harmonization of the Greek regulatory
framework with European Regulation 3577/92 on maritime transport within Member
States, although there are still many issues to be resolved until a fully
liberalized environment of operation is in place.

As a result of this decision, companies in the sector are now able to apply a
flexible pricing policy based on demand and supply aiming at the expansion of
their customer base.

Total volumes for the Group, for the first quarter stood at 477,026 passengers,
64,204 private vehicles and 29,736 freight units. Compared to the same period
last year, total volumes carried grew by 5.7% in passengers, by 5.9% in private
vehicles and by 31.1% in freight units. It should be noted that the above growth
was attained against 12.4% fewer sailings compared to the first quarter of 2005.

Following the positive developments presented earlier, in terms of financial
results and traffic volumes as well as regarding the developments on the
liberalization of Greek domestic market, the Group's management is planning for
this summer to apply a flexible commercial policy, based on market demand and on
the level of services offered.

Furthermore, judging from the volumes carried during the Easter period and
awaiting a better summer traffic compared to last year, the Group's management
expects a further improvement in the financial results of the current year.

Lastly, it should be noted that the Group's management will continue to examine
the development of new routes or the strengthening of the existing ones in the
Greek domestic market, through the acquisition or building of modern
conventional vessels, provided that suitable market conditions develop.

                             Voula, 26th May, 2006

                             The Board of Directors

The Consolidated and Company Financial Statements will be published in the press
and will be posted on the Athens Exchange and Group (www.
websites today, Friday 26th  May, 2006.

For more information please contact:
Mr. Dionissis Theodoratos
Tel.: +30 210 891 9820
Fax: +30 210 891 9829
e-mail: [email protected]

                      This information is provided by RNS
            The company news service from the London Stock Exchange                                                                     

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