TBS International Limited Reports Third Quarter and Nine Months 2008 Financial Results

Market Wire, November, 2008

TBS International Limited (NASDAQ: TBSI) announced today its financial and operating results for the third quarter and nine months ended September 30, 2008.

Third Quarter and Nine Months 2008 highlights:

Metric                            Q3 2008    Q3 2007    9M 2008    9M 2007
                                ---------- ---------- ---------- ----------
Revenue (thousands)             $  183,322 $   91,570 $  471,845 $  238,558
Net Income (thousands) (1)      $   59,143 $   27,003 $  157,162 $   63,095
Income (excl. non-recurring
 items) (thousands) (1) (2)     $   59,143 $   27,003 $  159,480 $   57,875
EPS (diluted) (1)               $     1.96 $     0.96 $     5.41 $     2.25
EPS (excl. non-recurring
 items) (1) (2)                 $     1.96 $     0.96 $     5.49 $     2.06
Weighted Average Number of
 Shares (diluted)               30,145,204 28,081,678 29,036,752 28,059,545
EBITDA (thousands) (1) (3)      $   83,895 $   38,484 $  221,001 $   96,207
Drydock Days                           229        261        568        823

Freight Voyages
Average Daily Voyage TCE        $   33,143 $   22,527 $   31,463 $   20,392
Freight Voyage Days                  3,296      2,157      8,429      6,064
Tons of Cargo Shipped
 (thousands)                         2,628      1,661      6,960      4,784
Average Freight Rate for All
 Cargoes                        $    61.40 $    42.66 $    55.78 $    38.29
Average Freight Rate excluding
 Aggregates                     $    95.85 $    69.24 $    91.92 $    63.91
Bunker Cost/Voyage Day          $    8,585 $    4,956 $    7,434 $    4,555

Time Charter out Voyages
Average Daily Time Charter TCE  $   32,206 $   24,656 $   30,876 $   19,935
Time Charter Days                      577        807      2,384      2,640

(1) Net Income and EPS for the nine months ended September 30, 2008 include
    $2.3 million for the loss on extinguishment of debt, or $0.08 per
    share, which was incurred during the first quarter of 2008. Net Income
    and EPS for the nine months ended September 30, 2007 include a gain of
    $6.0 million from the sale and insurance recovery of the M.V. Huron
    Maiden, which occurred during the second quarter of 2007, and a loss of
    $800 thousand from the sale of the M.V. Maya Princess, which occurred
    during the first quarter of 2007, or $0.22 and $(0.03) per share
    respectively.
(2) Income and EPS before non-recurring items is a non-GAAP financial
    measure. For a reconciliation of Income and EPS before non-recurring
    items for the three months and nine months ended September 30, 2008,
    please refer to "Non-GAAP Reconciliations" later in this press release.
(3) EBITDA is a non-GAAP financial measure. Please refer to "Non-GAAP
    Reconciliations-EBITDA" following the financial statements included in
    this press release for a reconciliation of EBITDA to Net Income.

Management Commentary:

Joseph E. Royce, Chairman and Chief Executive Officer and President, stated: "We attribute these record results to the efforts of our worldwide team of shipping professionals delivering our TBS Five Star Service (Ocean Transportation, Logistics, Portside Services, Operations and Strategic Planning) to our global customer base. TBS owns its vessels, deals directly with our clients and presently does not have vessels on long term time charters.

"We are in unprecedented times for the global economy and dry cargo shipping industry. The stagnation caused by the crisis in the financial community has interrupted normal trade and reduced cargo movement. When normal trading patterns resume, we believe that the inevitable global recession that we are facing will result in reduced levels of cargo movement. At TBS we are taking a cautious approach.

"TBS is conserving its cash. We have delayed our program to build additional Roymar Class Multipurpose Tweendeckers; we are deferring the purchase of additional second-hand vessels; and TBS is a growth company that does not pay out its cash flow in dividends. We are evaluating our entire cost matrix to identify potential savings.

"At TBS we are preparing for difficult circumstances while positioning the Company to take advantage of opportunities that present themselves. TBS uses interest rate derivatives to hedge a portion of its floating rate debt; however, TBS does not use freight rate derivatives, such as freight forward agreements (FFA's), in its business.

"With our Five Star Service and our team of approximately 300 dedicated employees throughout the world, we are able to provide complete logistics and transportation solutions for our customers. We believe that this value-added approach combined with our efficient and reliable service will serve TBS well through the challenging times we will face in 2009."

Ferdinand V. Lepere, Executive Vice President and Chief Financial Officer, commented: "TBS has liquidity, moderate debt and strong banking relationships. These are competitive advantages particularly in today's market place and they enhance our operating flexibility and our ability to pursue our prudent growth plans.