StealthGas inc. Announces the acquisition of one resale newbuild 47,000 deadweight


ATHENS, GREECE, April 21, 2008. STEALTHGAS INC. (NASDAQ: GASS)
(the “Company”), a ship owning company serving primarily the liquefied petroleum gas (LPG) sector of the international shipping industry, announced today that is has entered into an agreement to acquire from an unaffiliated entity a resale new build Korean built 47,000 deadweight IMO 3 M.R. type Product Carrier. The purchase price of the vessel is $57.5 million and she will be financed through a combination of bank debt and internally generated cash resources.
Upon her expected delivery to the Company in April 2009 she will be deployed on a three year time charter to a Far Eastern based ship operator at a rate of $22,000 per day. STEALTHGAS INC. ANNOUNCES THE ACQUISITION OF ONE RESALE NEWBUILD 47,000 DEADWEIGHT M.R. TYPE PRODUCT CARRIER FOR DELIVERY IN APRIL 2009, AND ITS DEPLOYMENT ON A THREE YEAR TIME CHARTER, THE DELIVERY OF THE GAS PREMIERSHIP WITH ESCALATING FOUR YEAR TIME CHARTER, THE COMPLETION OF THE SALE OF THE GAS RENOVATIO AND A NEW 5 YEAR BAREBOAT CHARTER FOR THE CHILTERN.

ATHENS, GREECE, April 21, 2008. STEALTHGAS INC. (NASDAQ: GASS) (the “Company”), a ship owning company serving primarily the liquefied petroleum gas (LPG) sector of the international shipping industry, announced today that is has entered into an agreement to acquire from an unaffiliated entity a resale new build Korean built 47,000 deadweight IMO 3 M.R. type Product Carrier. The purchase price of the vessel is $57.5 million and she will be financed through a combination of bank debt and internally generated cash resources.
Upon her expected delivery to the Company in April 2009 she will be deployed on a three year time charter to a Far Eastern based ship operator at a rate of $22,000 per day.

The Company also announced that it completed on March 19, 2008 the previously announced purchase of the Gas Premiership Japanese built 7,200 cbm Fully Pressurized LPG carrier; she has been deployed on a near four year time charter to an international gas trader. The time charter rate will increase annually in January 2009 by 4.0%, in January 2010 by 3.8% and in January 2011 by 3.7% respectively.

The Company also announced that it has completed the third of three previously announced sales of Handy Size LPG carriers. The Gas Renovatio was delivered to her new owners on March 19, 2008.

The Company also announced that upon completion of her existing bare boat charter in mid May the Chiltern will immediately commence a new 5 year bare boat charter to a European LPG operator at a rate representing a circa 20% increase over the existing bare boat charter rate.

Commenting on the latest acquisition and re chartering of the Chiltern CEO Harry Vafias said “We are still finding it extremely difficult to acquire either modern second hand or re sale new build Handy Size LPG carriers with near term delivery dates, so we have made a further prudent and accretive investment in a brand new high specification Product Carrier with immediate deployment on an attractive time charter when she is delivered to us in April of next year. The lack of readily available LPG tonnage to purchase further emphasizes in our view, that the outlook for our core sector over the coming years is very positive, and therefore owners are not prepared to sell at a time when prospects appear to be so attractive. Therefore, we have as we indicated we would, deployed a further amount of capital in the Product Carrier sector with a secure and accretive time charter in a market which personally I am quite confident about in terms of its outlook and prospects over the medium term and is allied to some extent with our core LPG sector.

Finally we are very pleased also to announce the re chartering of the Chiltern on a five year bare boat charter at a rate equating to a near 20% increase over her existing employment. The structure of this type of charter as I have discussed before shields the company from risks, costs and cost increases over the life of the charter, particularly crew costs and crew availability, an issue which is proving to be quite challenging for the maritime industry as a whole at this moment in time”.

Fleet Profile and Fleet Deployment:
The table below show the Company’s fleet development and deployment as of today:

LPG Carrier Fleet
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Product Tanker Fleet
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  • F.P.: Fully-Pressurized
  • S.R.: Semi-Refrigerated
  • M.R.: Medium Range
  1. Earliest date charters could expire. Most charters include options to shorten or extend their term.
  2. Lyne is employed under a bareboat charter until May 2009. Thereafter, at the charterer’s option, the bareboat charter can be extended for an additional year.
  3. Gas Emperor is currently employed under a time charter until June 2008. Thereafter she will be employed under a new four-year time charter to a major international gas operator until June 2012.
  4. Sir Ivor is employed under a bareboat charter until May 2009. Thereafter, at the charter’s option, the bareboat charter can be extended for an additional year.
  5. Gas Icon is currently employed under a time charter with an initial term expiring in July 2008, which has been extended for two years until July 2010.
  6. Gas Kalogeros is currently employed under a time charter until May 2008, which has been extended to April 2010.
  7. Gas Sincerity is currently employed under a time charter until July 2008, which has been extended to July 2009.
  8. Gas Spirit is currently employed under a time charter until June 2008, which has been extended to June 2010.
  9. Gas Prophet has for the three year duration of bareboat charter been renamed the M.T. Ming Long.
  10. Gas Shanghai is currently employed under a time charter until September 2008, which has been extended until September 2009.
  11. Gas Legacy is currently employed under a time charter until April 2008, which has been extended for two years until April 2010.
  12. Gas Eternity has for the duration of bareboat charter been renamed the M.T. Yu Tian 9.
  13. Gas Sikousis is currently employed under a time charter until May 2009. Thereafter, at the charterer’ option, the time charter can be extended for two one-year periods, the first one to be negotiated in May 2009.
  14. Gas Ice is currently employed under a bareboat charter until April 2008. Thereafter, she will be employed under a new three year bareboat charter, until April 2011.
  15. Chiltern is currently employed under a bareboat charter until May 2008. Thereafter, she will be employed under a new five year bare boat charter until May 2013.
  16. Gas Defiance is expected to be delivered by the end of July 2008 whereupon she will commence a one year time charter to a major international gas trader.
  17. Gas Nathalie is expected to be delivered by the end of September 2008 whereupon she will continue a bareboat charter for a further three years to a major international LPG operator. The charterer has an option in September 2009 and 2010 to cancel the existing charter upon the payment of a cancellation fee in the amount of $336,000, if exercised in 2009, or $180,000, if exercised in 2010.
  18. Gas Shuriken is expected to be delivered by the end of October 2008 whereupon she will commence a two year time charter to a major international gas trader.
  19. The to be named 47,000 deadweight M.R. type product carrier is expected to be delivered to the Company in April 2009, whereupon she will commence a three year time charter.
About STEALTHGAS INC.
Headquartered in Athens, Greece, STEALTHGAS INC. is a ship-owning company serving primarily the liquefied petroleum gas (LPG) sector of the international shipping industry. STEALTHGAS INC. currently has a fleet of 36 LPG carriers with a total capacity of 160,286 cubic meters (cbm) and two MR Product Tankers. In addition, the company has also entered into agreements to acquire one second-hand LPG carrier with expected delivery in September 2008; four new resale LPG carriers with expected delivery from July 2008 until June 2009; five new building LPG carriers with expected delivery from September 2010 through December 2011 and one new resale MR Product Carrier with expected delivery in April 2009. Once these acquisitions are completed, STEALTHGAS INC.’s fleet will be composed of 46 LPG carriers with a total capacity of 210,499 cubic meters (cbm) and 3 MR Product Tankers with a total capacity of 141,000 deadweight tons (dwt). STEALTHGAS Inc.’s shares are listed on the NASDAQ Global Select Market and trade under the symbol “GASS”.

Forward-Looking Statement
Matters discussed in this release may constitute forward-looking statements. Forward-looking statements reflect our current views with respect to future events and financial performance and may include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts. The forward-looking statements in this release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, management’s examination of historical operating trends, data contained in our records and other data available from third parties. Although STEALTHGAS INC. 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 our control, STEALTHGAS INC. cannot assure you that it will achieve or accomplish these expectations, beliefs or projections. Important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the strength of world economies and currencies, general market conditions, including changes in charterhire rates and vessel values, changes in demand that may affect attitudes of time charterers to scheduled and unscheduled drydocking, changes in STEALTHGAS INC.’s operating expenses, including bunker prices, dry-docking and insurance costs, or actions taken by regulatory authorities, potential liability from pending or future litigation, domestic and international political conditions, potential disruption of shipping routes due to accidents and political events or acts by terrorists.

Risks and uncertainties are further described in reports filed by STEALTHGAS INC. with the U.S. Securities and Exchange Commission.

Visit our website at www.stealthgas.com

Company Contact:

Andrew J. Simmons
Chief Financial Officer
STEALTHGAS INC.
011-30-210-6250-001
E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.



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