Costamare Purchases, Disposes of Vessels

(Press Release) September 20, 2011

Costamare Inc. (NYSE: CMRE)has reached agreements for the purchase and time charter of two secondhand vessels; time charter extensions for six existing vessels; and the disposal of two older vessels which the company agreed to sell for demolition. In addition, it finalized the financing arrangements for its Newbuilding Program.
The Company has reached an agreement to acquire:
1) the 6,724 TEU, 2003-built containership MSC Viviana (to be renamed MSC Messinia) for a purchase price of $60 million. The vessel is expected to be delivered by the end of October 2011 and immediately upon delivery it will commence a time charter with MSC for a duration of approximately 10 years, at a daily rate of $29,000; and
2) subject to final documentation, the 4,132 TEU, 2002-built MSC Ulsan for a purchase price of $30 million. The vessel is expected to be delivered within the first quarter of 2012 and immediately upon delivery it will commence a time charter with MSC for a duration of approximately 63 months, at a daily rate of $16,500.
Both acquisitions will be financed by cash from operations and the use of a committed credit line.

The Company has entered into agreements to extend the time charters for the following six existing vessels:
1) The time charter agreement with MSC for the 1991-built, 2,023 TEU c/v MSC Sierra II, has been extended as from July 1, 2012, for a further period of approximately two years, at a daily rate of $11,500.
2) The time charter agreement with MSC for the 1991-built, 2,023 TEU c/v MSC Namibia II, has been extended as from August 2, 2012, for a further period of approximately two years, at a daily rate of $11,500.
3) The time charter agreement with MSC for the 1992-built, 2,024 TEU c/v MSC Sudan II, has been extended as from July 27, 2012, for a further period of approximately two years, at a daily rate of $11,500.
4) The time charter agreement with MSC for the 1991-built, 2,020 TEU c/v MSC Pylos, has been extended as from February 28, 2012, for a further period of approximately two years, at a daily rate of $11,500.
5) The time charter agreement with MSC for the 1986-built, 2,633 TEU c/v MSC Challenger, has been extended as from October 13, 2012, for a further period until approximately August 30, 2015, at a daily rate of $10,000.
6) The time charter agreement with MSC for the 1984-built, 3,584 TEU c/v MSC Austria, has been extended as from December 1, 2012, for a further period until approximately October 1, 2018, at a minimum daily rate of $13,500 plus 50% of the amount by which the market rate exceeds the minimum daily rate. The market rate is to be determined annually during the extension period, based on the Hamburg Contex 3500 TEU index.

The Company has agreed to sell the 1978-built vessels MSC Tuscany and MSC Fado for demolition, with delivery due to the buyers by mid-December 2011, for a total sale price of approximately $8.8 million.
Costamare also finalized the financing arrangements for three out of the five newbuild vessels ordered from Sungdong Shipbuilding & Marine Engineering Co., Ltd. of Korea, with a consortium of European and US financial institutions.
The Company has also accepted a firm offer from a consortium of European and Asian banks, which is subject to documentation, but not subject to further credit approval, for the financing of the remaining two newbuild vessels.
All five newbuild containerships, each of approximately 8,800 TEU capacity, have been time chartered to members of the Evergreen Group and are expected to be delivered between the first and the third quarters of 2013.