Eitzen Maritime Services ASA - Company update

6/18/2012 2:53 AM EST

Reference is made to the press release dated 30 May 2012 regarding amendments to
the 12 % Eitzen Maritime Services ASA Senior Unsecured Callable Bond Issue
2011/2014 (the "Loan").

Eitzen Maritime Services ASA ("EMS" or the "Company") today secured MUSD 9.0 in
net proceeds in a tap issue under the Loan. The liquidity will fund the planned
profitability improvement roadmap, including a scheduled operational
restructuring and a much needed working capital to improve the supply chain and
procurement set-up.

Also, the Company announce as follows:

  * The Company has decided to recapitalize its subsidiary EMS Spain S.A.U, with
    a combination of a cash injection and a debt conversion. The
    recapitalization is a part of a project to improve internal processes and
    secure long term profitability in the Spanish market.
  * The Company has identified certain matters which could result in write-offs
    being booked in the Company's Q2 2012 financial statement. The complete
    scope is under evaluation and will be announced in the Company's Q2 2012
    report. The matters pertain to the following circumstances:

      * The Company has been notified that the local Spanish tax inspection has
        uncovered additional tax liabilities during a tax inspection in H1 2012
        in EMS' Spanish subsidiary covering the years 2006 and 2007, i.e. prior
        to EMS' acquisition of the subsidiary.
      * The Company has decided to close down the operations of Seven Seas in
        Kuwait.
      * The Company has decided to withdraw from operations in Uruguay and is
        currently evaluating exit strategies.

  * The Company has in the past practiced a policy with limited public
    disclosure of information on contracts in cases where such information has
    not been subject to the statutory disclosure requirements. In a move to
    improve the financial and operational transparency in the Company, the
    Company has decided to practice increased public disclosure in the future,
    and to inform about renewals of important contracts in the existing
    portfolio as well as non-renewals.

As part of this new policy, the Company herby announces that EMS has secured
extension of two existing military contracts in the Middle East - with a total
estimated value MUSD 50 -70 for the remainder of 2012. The contracts are both to
a major NATO country and EMS largest customer, which has been an important
business partner to EMS' Middle East subsidiary since 1988. The contracts will
to a large extent secure the budgeted sales for the region; however, the Company
will continue its endeavors to obtain new contracts to replace the loss of a
contract during 2011.

  * On 6 January 2012, the Company publicly disclosed that it had initiated a
    process for evaluating strategic alternatives. Such process is still on
    going.

For further information, please contact:
Morten Persen
Chief Executive Officer
Ph: +47 908 33 624

Ole Anton Gulsvik
Chief Financial Officer
Ph: +47 995 68 520

This information is subject of the disclosure requirements acc. to §5-12 vphl
(Norwegian Securities Trading Act)



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