Safe Bulkers Fleet and Employment Update

Safe Bulkers, Inc. an international provider of marine drybulk transportation services, announced updates to its fleet and employment profile.

The company has cancelled one of its two Capesize class newbuilds and has substituted it with another newbuild to be delivered in April 2010. The company has also delayed the delivery of its second Capesize class newbuild until September 2011. The company anticipates that the net effect of these three transactions will be the reduction of capital expenditure requirements, excluding commissions to brokers, of approximately $12m. The cancelled newbuild vessel and the delayed newbuild vessel were subject to period time charter agreements. In the case of the cancelled newbuild vessel, the relevant charterer has agreed in principle to vessel substitution subject to final documentation. In the case of the postponed newbuild vessel, the relevant charterer has agreed to postponed delivery during 2012 with a decrease in the gross daily charter rate from $40,000 to $38,000.

In addition, the company announced that it has agreed to accept delayed delivery of one Post-Panamax class newbuild from 2010 to a later date between June and August, 2011, subject to final documentation. There is no charter party agreement associated with this newbuild.

The company has also announced that it has entered into: a period time charter with a duration of 23 to 27 months for a Panamax class vessel with a delivery date in June or July of 2009, at a gross daily charter rate of $15,500, less 4.75% in total commissions; a period time charter with a duration of 14 to 17 months for a Panamax class vessel with a delivery date in June or July of 2009, at a gross daily charter rate of $18,000, less 3.75% in total commissions and a period time charter for a Kamsarmax class vessel with a delivery date in June or July of 2009, with a duration, at charterer’s option, of either 23 to 27 months at a gross daily charter rate of $18,500 less 4.75% in total commissions, or of 13 to 17 months at a gross daily charter rate of $21,000 less 4.75% in total commissions.

Polys Hajioannou, Chairman of the Board of Directors and Chief Executive Officer of the company said “We continue to closely manage our business through the current recession, reducing our capital expenditure requirements, maintaining our relationships with our customers and increasing our coverage.”