Trailer Bridge Wins Appeal to Remain On Nasdaq National Market

Business Wire, August 13, 2002

Business Editors

JACKSONVILLE, Fla.--(BUSINESS WIRE)--Aug. 13, 2002

Trailer Bridge, Inc. (NASDAQ National Market: TRBR) has been notified by the Nasdaq Listing Qualifications Panel that, based upon a transaction it finalized today, it has regained compliance with Nasdaq's maintenance standards and its common stock will continue to be listed on The Nasdaq National Market.

Upon receipt of the favorable decision of the Nasdaq Listing Qualifications Panel, Trailer Bridge completed the exchange of $20,378,615 of inter-company debt, the entire amount outstanding at March 31, 2002, to its affiliate Kadampanattu Corp. ("K Corp.)" into non-convertible preferred stock. The exchange had been previously approved by both companies' boards of directors and was conditioned solely upon a favorable response from the Nasdaq Listing Qualifications Panel. Under the terms of the new preferred stock, no dividends will accrue until April 1, 2003. Commencing on that date, dividends will accrue at 90-day LIBOR plus 350 basis points. Starting in 2004, the dividend rate will increase 25 basis points per quarter up to a maximum dividend rate of 90-day LIBOR plus 650 basis points. Including the effect of this transaction, Trailer Bridge's proforma tangible net worth would have exceeded $11 million at June 30, 2002, a level well above Nasdaq requirements. Trailer Bridge believes it will remain in compliance with Nasdaq listing requirements.

"We are grateful to K Corp. for agreeing to this change. We are also appreciative for the insight of the listing panel in recognizing that the facts related to our company, our sector and our present point in a specific cycle justify Trailer Bridge's continued listing on The Nasdaq National Market," said John D. McCown, Chairman & CEO.

Trailer Bridge provides integrated trucking and marine freight service to and from all points in the lower 48 states and Puerto Rico, bringing efficiency, environmental and safety benefits to domestic cargo in that traffic lane. This total transportation system utilizes its own trucks, drivers, trailers, containers and U.S. flag vessels to link the mainland with Puerto Rico via marine facilities in Jacksonville and San Juan. Additional information on Trailer Bridge is available at the www.trailerbridge.com website.

This press release contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The matters discussed in this press release include statements regarding the intent, belief or current expectations of the Company, its directors or its officers with respect to the future operating performance of the Company. Investors are cautioned that any such forward looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those in the forward looking statements as a result of various factors. Without limitation, these risks and uncertainties include the risks of the company maintaining sufficient liquidity to operate its business, continued support of its lenders, vendors and employees, economic recessions, severe weather, changes in demand for transportation services offered by the Company, capacity conditions in the Puerto Rico trade lane and changes in rate levels for transportation services offered by the Company.