Nov 5, 2008 (GlobeNewswire via COMTEX) ----

   
   
   * 52% Increase in Third Quarter Revenues
   * 50% Increase in Third Quarter Net Income
   * 42% Increase in Third Quarter EBITDA
   
   

NEW YORK, Nov. 5, 2008 (GLOBE NEWSWIRE) -- Eagle Bulk Shipping Inc. (Nasdaq:EGLE) today announced its results for the third quarter of 2008.

Financial Highlights for the Third Quarter included:

   
   
   * Net Income of $23.2 million or $0.49 per share (based on a weighted
   average of 47,066,254 diluted shares outstanding for the quarter),
   up 50% from net income of $15.5 million or $0.37 per share (based
   on a weighted average of 42,365,252 diluted shares outstanding for
   the quarter) in the third quarter of 2007.
   * Gross time charter revenue increased by $17 million, or 46%, to
   $53.9 million for the third quarter of 2008, from $36.9 million for
   the third quarter of 2007.  Net time charter revenue increased by
   $17.6 million, or 52%, to $51.6 million for the third quarter of
   2008, from $34.0 million for the third quarter of 2007.
   * EBITDA, as adjusted for exceptional items under the terms of the
   Company's credit agreement, increased by 42% to $38.9 million for
   the third quarter of 2008, from $27.4 million for the third quarter
   of 2007. Please see below for a reconciliation of EBITDA to net
   income.
   * Declared and paid a dividend of $0.50 per share, or $23.4 million,
   on August 23, 2008, based on the second quarter 2008 results.
   
   

Based on the third quarter results, the Company has declared a cash dividend of $0.50 per share payable on or about November 26, 2008, to shareholders of record as of November 20, 2008.

Sophocles N. Zoullas, Chairman and Chief Executive Officer, commented, "We are very pleased with the achievement of record results in the third quarter, which reflect strong across-the-board execution."

Mr. Zoullas continued, "In today's challenging global environment, Eagle Bulk's strategy since inception of focusing on the versatile Supramax asset class and securing medium- to long-term charter contracts has positioned the Company well. Specifically, we have over $1 billion of contracted revenues, while maintaining one of the industry's lowest cash break-even levels."

Results of Operations for the three month periods ended September 30, 2008 and 2007

All of the Company's revenues were earned from Time Charters. Net revenues during the three months ended September 30, 2008, and 2007 were $51,553,232 and $33,955,704, respectively, an increase of 52%. Gross revenues in the third quarter of 2008 were $53,905,696, an increase of 46% from the $36,934,096 recorded in the comparable quarter in 2007, primarily due to a larger fleet size, as reflected by increased operating days, and an increase in daily time charter rates. Brokerage commissions incurred on revenues earned were $2,616,517 and $1,898,392 in the third quarters of 2008 and 2007, respectively. Included in net revenues in the third quarters of 2008 and 2007 are an amortization amount of $264,053 relating to the fair value below contract value of time charters acquired and $1,080,000 relating to the fair value above contract value of time charters acquired, respectively.

For the third quarter of 2008, total vessel expenses incurred amounted to $9,344,348. These expenses included $8,792,573 in vessel operating costs and $551,775 in technical management fees paid to the Company's third-party technical managers. For the corresponding quarter in 2007, total vessel expenses were $6,647,223 which included $6,144,820 in vessel operating costs and $502,403 in technical management fees.

General and administrative expenses for the three-month periods ended September 30, 2008 and 2007 were $6,666,748 and $1,691,594, respectively. The increase in general and administrative expenses is attributed to expenses, including non-cash compensation charges, associated with a larger fleet.

EBITDA, as adjusted for exceptional items under the terms of the Company's credit agreement, increased by 42% to $38,858,408 for the third quarter of 2008, from $27,421,413 for the comparable quarter in 2007. (Please see below for a reconciliation of EBITDA to net income)

Net income for the third quarter of 2008 was $23,221,617, an increase of 50% from $15,501,895 in the comparable quarter in 2007. Diluted earnings per share in the third quarter of 2008 were $0.49, based on a weighted average of 47,066,254 diluted shares outstanding. In the comparable quarter of 2007, earnings per share were $0.37, based on a weighted average of 42,365,252 diluted shares outstanding.

Results of Operations for the nine month periods ended September 30, 2008 and 2007

All of the Company's revenues were earned from Time Charters. Net revenues during the nine-month periods ended September 30, 2008, and 2007 were $125,462,448 and $89,202,283, respectively, an increase of 41%. Gross revenues in the nine-month period of 2008 were $131,687,130, an increase of 35% from the $97,422,371 recorded in the comparable period in 2007, primarily due to a larger fleet size, as reflected by increased operating days, and an increase in daily time charter rates. Third party brokerage commissions incurred on revenues earned were $6,488,735 and $4,980,088 in the nine-month periods of 2008 and 2007, respectively. The nine-month periods of 2008 and 2007 also reflected an amortization amount of $264,053 relating to the fair value below contract value of time charters acquired and $3,240,000 relating to the fair value above contract value of time charters acquired, respectively.

For the nine-month period of 2008, total vessel expenses incurred amounted to $24,932,088. These expenses included $23,343,511 in vessel operating costs and $1,588,577 in technical management fees paid to the Company's third-party technical managers. For the corresponding period in 2007, total vessel expenses were $19,749,702 which included $18,416,785 in vessel operating costs and $1,332,917 in technical management fees.

General and administrative expenses for the nine-month periods ended September 30, 2008 and 2007 were $16,478,840 and $8,292,167, respectively. The increase in general and administrative expenses is attributed to expenses, including non-cash compensation charges, associated with a larger fleet.

EBITDA, as adjusted for exceptional items under the terms of the Company's credit agreement, increased by 32% to $94,208,782 for the nine-month period of 2008, from $71,527,623 for the comparable period in 2007. (Please see below for a reconciliation of EBITDA to net income)

Net income for the nine-month period of 2008 was $52,473,557, an increase of 46% from $35,914,378 in the comparable period in 2007. Diluted earnings per share for the nine-month period of 2008 were $1.11, based on a weighted average of 47,062,811 diluted shares outstanding. In the comparable period of 2007, earnings per share were $0.88, based on a weighted average of 40,590,796 diluted shares outstanding.

Liquidity and Capital Resources

Net cash provided by operating activities during the nine month periods ended September 30, 2008 and 2007 was $81,593,271 and $62,587,594, respectively. The increase was primarily due to cash generated from the operation of the fleet at a higher time charter rate for 5,094 days in the nine month period ended September 30, 2008 compared to 4,417 days during the same period in 2007.

Net cash used in investing activities during the nine month period ended September 30, 2008, was $273,887,573, compared to $391,953,782 during the corresponding period in 2007. Investing activities during the current nine month period included an amount of $146,688,116 spent for the acquisition of GOLDENEYE and REDWING, which were delivered in the second and third quarter of 2008, respectively, and advancing a total of $127,078,734 for the newbuilding vessel construction program. Investing activities during the comparable nine month period in 2007 primarily related to the expenditure of $138,876,098 for the acquisition of three Supramax vessels, SHRIKE, SKUA and KITTIWAKE, advances of $265,089,166 for the newbuilding vessel construction program, and net proceeds of $12,011,482 from the sale of SHIKRA, a 1984-built Handymax vessel, to an unrelated third party.

Net cash provided by financing activities during the nine month period ended September 30, 2008 was $72,374,980, compared to net cash provided by financing activities of $462,037,833 during the corresponding nine month period in 2007. Financing activities during the current nine month period primarily relates to borrowings of $144,724,967 from the Company's revolving credit facility to fund the newbuilding program, and paying $70,149,063 in dividends. Financing activities during the comparable nine month period in 2007 primarily relates to gross proceeds of $239,848,266 from the issuance of common shares of the Company's stock, incurring costs of $5,701,127 associated with the share sale, borrowings of $300,304,279 from the revolving credit facility, debt repayments of $12,440,000 from the proceeds of the sale of the SHIKRA, and payment $58,771,405 in dividends.

As of September 30, 2008, the Company's cash balance was $32,984,370 compared to a cash balance of $152,903,692 at December 31, 2007. In addition, $10,500,000 in cash deposits are maintained with our lender for loan compliance purposes and this amount is recorded in Restricted Cash in our financial statements as of September 30, 2008. Also recorded in Restricted Cash is an amount of $276,056 which is collateralizing a letter of credit relating to the Company's office leases.

As of September 30, 2008, total availability under the $1,600,000,000 revolving credit facility is $858,032,143. The facility also provides the Company with the ability to borrow up to $20,000,000 for working capital purposes. The Company anticipates that its current financial resources, together with cash generated from operations and, if necessary, borrowings under the revolving credit facility will be sufficient to fund the operations of its fleet, including working capital requirements, for the foreseeable future. The Company is in compliance with all of the covenants contained in its debt agreements as of September 30, 2008.

The Company's policy is to declare quarterly dividends to shareholders in March, May, August and November. Payment of dividends is in the discretion of the Board of Directors and is limited by the terms of certain agreements to which the Company and its subsidiaries are parties to and provisions of Marshall Islands law. The Company's revolving credit facility permits it to pay quarterly dividends in amounts up to its cumulative free cash flows, which is our earnings before extraordinary or exceptional items, interest, taxes, depreciation and amortization (Credit Agreement EBITDA), less the aggregate amount of interest incurred and net amounts payable under interest rate hedging agreements during the relevant period and an agreed upon reserve for dry-docking for the period, provided that there is not a default or breach of a loan covenant under the credit facility and the payment of the dividends would not result in a default or breach of a loan covenant. In this connection, the drybulk market has recently declined substantially. Depending on market conditions in the dry bulk shipping industry and acquisition opportunities that may arise, the Company may be required to obtain additional debt or equity financing which could affect its dividend policy. In addition, any determination by the Board of Directors to pay dividends in the future will depend upon the Company's results of operations, financial condition, liquidity needs, capital restrictions, loan covenants and other factors deemed relevant by the Board of Directors in its discretion.

Disclosure of Non-GAAP Financial Measures

EBITDA represents operating earnings before extraordinary items, depreciation and amortization, interest expense, and income taxes, if any. EBITDA is included because it is used by certain investors to measure a company's financial performance. EBITDA is not an item recognized by GAAP and should not be considered a substitute for net income, cash flow from operating activities and other operations or cash flow statement data prepared in accordance with accounting principles generally accepted in the United States or as a measure of profitability or liquidity. EBITDA is presented to provide additional information with respect to the Company's ability to satisfy its obligations including debt service, capital expenditures, and working capital requirements. While EBITDA is frequently used as a measure of operating results and the ability to meet debt service requirements, the definition of EBITDA used here may not be comparable to that used by other companies due to differences in methods of calculation.

The Company's revolving credit facility permits it to pay dividends in amounts up to its cumulative free cash flows which is earnings before extraordinary or exceptional items, interest, taxes, depreciation and amortization (Credit Agreement EBITDA), less the aggregate amount of interest incurred and net amounts payable under interest rate hedging agreements during the relevant period and an agreed upon reserve for dry-docking. Therefore, the Company believes that this non-GAAP measure is important for its investors as it reflects its ability to pay dividends. The following table is a reconciliation of net income, as reflected in the consolidated statements of operations, to the Credit Agreement EBITDA:

   
   
   Three Months Ended        Nine Months Ended
   ---------------------------------------------------------------------
   Sept 30,     Sept 30,     Sept 30,     Sept 30,
   2008         2007         2008         2007
   ---------------------------------------------------------------------
   Net Income         $23,221,617  $15,501,895  $52,473,557  $35,914,378
   ---------------------------------------------------------------------
   Interest Expense     3,714,458    3,476,977   10,513,928    9,789,541
   ---------------------------------------------------------------------
   Depreciation and
   Amortization        8,991,877    7,241,927   23,718,898   19,079,511
   ---------------------------------------------------------------------
   Amortization of
   fair value
   (below) above
   market of time
   charter acquired     (264,053)   1,080,000     (264,053)   3,240,000
   ---------------------------------------------------------------------
   EBITDA              35,663,899   27,300,799   86,442,330   68,023,430
   ---------------------------------------------------------------------
   Adjustments for
   Exceptional Items:
   ---------------------------------------------------------------------
   Non-cash
   Compensation
   Expense (1)         3,194,509      120,614    7,766,452    3,504,193
   ---------------------------------------------------------------------
   Credit Agreement
   EBITDA            $38,858,408  $27,421,413  $94,208,782  $71,527,623
   -------------------==================================================
   
   (1)  Stock based compensation related to stock options, restricted
   stock units, and management's participation in profits interests
   in the Company's former principal shareholder Eagle Ventures LLC.
   
   

Capital Expenditures and Drydocking

The Company's capital expenditures relate to the purchase of vessels and capital improvements to its vessels which are expected to enhance the revenue earning capabilities and safety of these vessels. As of September 30, 2008, the fleet currently consists of 21 vessels which are currently operational. The Company also has a newbuilding program for the construction of 34 Supramax vessels which will be delivered between 2008 and 2012.

In addition to acquisitions that may be undertaken in future periods, the Company's other major capital expenditures include funding the Company's maintenance program of regularly scheduled drydocking necessary to preserve the quality of our vessels as well as to comply with international shipping standards and environmental laws and regulations. Management anticipates that vessels are to be drydocked every two and a half years and funding is to be met with cash from operations. Drydocking costs incurred are amortized to expense on a straight-line basis over the period through the date the next drydocking for those vessels are scheduled to occur. The Company drydocked two vessels in the nine-month period ended September 30, 2008. The following table represents certain information about the estimated costs for anticipated vessel drydockings in the next four quarters, along with the anticipated off-hire days:

   
   
   ---------------------------------------------------------------------
   Quarter Ending               Off-hire Days(1)      Projected Costs(2)
   --------------               ----------------      ------------------
   December 31, 2008                   44                  $1.00 million
   March 31, 2009                      88                  $2.00 million
   June 30, 2009                       22                  $0.50 million
   September 30, 2009                  88                  $2.00 million
   ---------------------------------------------------------------------
   (1) While we estimate 22 days per vessel, actual duration of
   drydocking a vessel will vary based on the condition of the
   vessel, yard schedules and other factors.
   
   (2) Actual costs will vary based on various factors, including where
   the drydockings are actually performed.
   ---------------------------------------------------------------------
   
   

Summary Consolidated Financial and Other Data:

The following table summarizes the Company's selected consolidated financial and other data (unaudited) for the periods indicated below.

   
   
   CONSOLIDATED
   STATEMENTS OF     --------------------------------------------------
   OPERATIONS           Three Months Ended        Nine Months Ended
   --------------     ------------------------  ------------------------
   
   Sept 30,     Sept 30,     Sept 30,     Sept 30,
   -----------  -----------  -----------  -----------
   2008         2007         2008         2007
   -----------  -----------  -----------  -----------
   
   
   Revenues, net of
   commissions       $51,553,232  $33,955,704 $125,462,448  $89,202,283
   
   Vessel expenses      9,344,348    6,647,223   24,932,088   19,749,702
   Depreciation and
   amortization        8,991,877    7,241,927   23,718,898   19,079,511
   General and
   administrative
   expenses            6,666,748    1,691,594   16,478,840    8,292,167
   Gain on sale
   of vessel                  --           --           --    (872,568)
   -----------  -----------  -----------  -----------
   Total operating
   expenses        25,002,973   15,580,744   65,129,826   46,248,812
   -----------  -----------  -----------  -----------
   
   Operating income    26,550,259   18,374,960   60,332,622   42,953,471
   
   Interest expense     3,714,458    3,476,977   10,513,928    9,789,541
   Interest income       (385,816)    (603,912)  (2,654,863)  (2,750,448)
   -----------  -----------  -----------  -----------
   Net interest
   expense          3,328,642    2,873,065    7,859,065    7,039,093
   -----------  -----------  -----------  -----------
   
   Net income         $23,221,617  $15,501,895  $52,473,557  $35,914,378
   ===========  ===========  ===========  ===========
   
   
   Weighted average
   shares outstanding:
   Basic               46,770,486   42,209,617   46,762,092   40,493,753
   Diluted             47,066,254   42,365,252   47,062,811   40,590,796
   
   Per share amounts:
   Basic net income        $ 0.50       $ 0.37       $ 1.12       $ 0.89
   Diluted net income      $ 0.49       $ 0.37       $ 1.11       $ 0.88
   Cash dividends
   declared and paid      $ 0.50       $ 0.47       $ 1.50       $ 1.48
   
   Fleet Operating Data
   --------------------
   Number of Vessels
   in Operating Fleet         21           18           21           18
   Ownership Days           1,866        1,656        5,160        4,510
   Available Days           1,862        1,607        5,117        4,440
   Operating Days           1,845        1,595        5,094        4,417
   Fleet Utilization         99.1%        99.3%        99.6%        99.5%
   
   
   
   CONSOLIDATED BALANCE SHEETS
   ---------------------------
   Sept 30, 2008   Dec 31, 2007
   --------------  --------------
   ASSETS:                                 (Unaudited)
   Current assets:
   Cash and cash equivalents          $   32,984,370  $  152,903,692
   Accounts receivable                     3,881,674       3,392,461
   Prepaid expenses                        3,567,676       1,158,113
   --------------  --------------
   Total current assets                 40,433,720     157,454,266
   --------------  --------------
   Noncurrent assets:
   Vessels and vessel improvements,
   at cost, net of accumulated
   depreciation of $74,550,222 and
   $52,733,604, respectively              785,983,783     605,244,861
   Advances for vessel construction         448,939,895     344,854,962
   Restricted cash                           10,776,056       9,124,616
   Deferred drydock costs, net of
   accumulated amortization of
   $4,355,533 and $2,453,253,
   respectively                              3,716,768       3,918,006
   Deferred financing costs                  13,811,706      14,479,024
   Fair value above contract value
   of time charters acquired                 4,531,115              --
   Other assets                               5,983,420         932,638
   --------------  --------------
   Total noncurrent assets              1,273,742,743     978,554,107
   --------------  --------------
   Total assets                           $1,314,176,463  $1,136,008,373
   ==============  ==============
   
   LIABILITIES & STOCKHOLDERS' EQUITY
   Current liabilities:
   Accounts payable                      $      332,710  $    3,621,559
   Accrued interest                           4,297,289         455,750
   Other accrued liabilities                  2,919,861       1,863,272
   Unearned charter hire revenue              8,293,669       4,322,024
   --------------  --------------
   Total current liabilities               15,843,529      10,262,605
   --------------  --------------
   Noncurrent liabilities:
   Long-term debt                           741,967,857     597,242,890
   Fair value below contract
   value of time charters acquired          32,603,867              --
   Other liabilities                         15,379,722      13,531,883
   --------------  --------------
   Total noncurrent liabilities           789,951,446     610,774,773
   --------------  --------------
   Total liabilities                        805,794,975     621,037,378
   --------------  --------------
   Commitment and contingencies
   Stockholders' equity:
   Preferred stock, $.01 par value,
   25,000,000 shares authorized, none
   issued                                           --              --
   Common shares, $.01 par value,
   100,000,000 shares authorized,
   46,770,486 and 46,727,153 shares
   issued and outstanding,
   respectively                                467,704         467,271
   Additional paid-in capital               610,932,876     602,929,530
   Retained earnings (net of dividends
   declared of $238,674,545 and
   $168,525,482, respectively)             (93,502,067)    (75,826,561)
   Accumulated other comprehensive loss      (9,517,025)    (12,599,245)
   --------------  --------------
   Total stockholders' equity            508,381,488     514,970,995
   --------------  --------------
   Total liabilities and
   stockholders' equity                 $1,314,176,463  $1,136,008,373
   ==============  ==============
   
   
   CONSOLIDATED STATEMENTS OF CASH FLOWS
   -------------------------------------        Nine Months Ended
   September 30,   September 30,
   --------------  --------------
   2008            2007
   --------------  --------------
   Cash flows from operating activities:
   Net income                            $   52,473,557  $   35,914,378
   Adjustments to reconcile net income to
   net cash provided by operating
   activities:
   Items included in net income not
   affecting cash flows:
   Depreciation                               21,816,618      18,008,485
   Amortization of deferred
   drydocking costs                           1,902,280       1,071,026
   Amortization of deferred
   financing costs                              185,508         180,070
   Amortization of fair value
   (below)/above contract value of time
   charter acquired                            (264,053)      3,240,000
   Non-cash compensation expense               7,766,452       3,504,193
   Gain on sale of vessel                             --        (872,568)
   Changes in operating assets
   and liabilities:
   Accounts receivable                          (489,213)     (1,417,655)
   Prepaid expenses                           (2,409,563)       (597,878)
   Accounts payable                           (3,288,849)      2,300,317
   Accrued interest                              573,342       2,192,455
   Accrued expenses                            1,056,589          79,210
   Drydocking expenditures                    (1,701,042)     (2,972,553)
   Unearned charter hire revenue               3,971,645       1,958,114
   --------------  --------------
   Net cash provided by
   operating activities                     81,593,271      62,587,594
   
   Cash Flows from investing activities:
   Purchase of vessels and vessel
   improvements                            (146,688,116)   (138,876,098)
   Advances for vessel construction         (127,078,734)   (265,089,166)
   Proceeds from sale of vessel                       --      12,011,482
   Purchase of leasehold improvements           (120,723)             --
   --------------  --------------
   Net cash used in investing activities   (273,887,573)   (391,953,782)
   
   Cash flows from financing activities:
   Issuance of common shares                          --     239,848,266
   Proceeds from exercise of stock options       237,327              --
   Equity issuance costs                              --      (5,701,127)
   Bank borrowings                           144,724,967     300,304,279
   Repayment of bank debt                             --     (12,440,000)
   Changes in restricted cash                 (1,651,440)       (800,000)
   Deferred financing costs                     (786,811)       (402,180)
   Cash dividends                            (70,149,063)    (58,771,405)
   --------------  --------------
   Net cash provided by
   financing activities                     72,374,980     462,037,833
   Net (decrease)/increase in cash         (119,919,322)    132,671,645
   Cash at beginning of period              152,903,692      22,275,491
   --------------  --------------
   Cash at end of period                 $   32,984,370  $  154,947,136
   ==============  ==============
   
   

Commercial and strategic management of the fleet is carried out by a wholly-owned subsidiary of the Company, Eagle Shipping International (USA) LLC, a Marshall Islands limited liability company with offices in New York City.

The following table represents certain information about the Company's revenue earning charters on its operating fleet as of September 30, 2008:

   
   
   ---------------------------------------------------------------------
   Daily
   Time
   Charter
   Year          Time Charter                     Hire
   Vessel          Built Dwt      Expiration (1)                  Rate
   ------          ----- ---     ---------------                 -------
   Cardinal        2004  55,408  May 2008 to August 2008         $28,000
   August 2008 to Jun/Sep 2009     $62,000
   Condor (2)      2001  50,296  May 2009 to August 2009         $20,500
   Falcon (3)      2001  50,296  April 2008 to July 2008         $20,950
   August 2008 to Apr/Jun 2010     $39,500
   Griffon         1995  46,635  March 2009 to June 2009         $20,075
   Harrier (4)     2001  50,296  June 2009 to September 2009     $24,000
   Hawk I          2001  50,296  April 2009 to June 2009         $22,000
   Heron (5)       2001  52,827  January 2011 to March 2011      $26,375
   Jaeger (6)      2004  52,248  July 2008 to August 2008        $27,500
   August 2008 to November 2008    $50,000
   Kestrel I (7)   2004  50,326  April 2008 to June 2008         $18,750
   June 2008 to April 2009         $20,000
   Kite            1997  47,195  September 2009 to January 2010  $21,000
   Merlin(8)       2001  50,296  December 2010 to March 2011     $25,000
   Osprey I (9)    2002  50,206  July 2008 to November 2008      $21,000
   November 2008 to December 2009  $25,000
   Peregrine       2001  50,913  December 2008 to February 2009  $20,500
   Sparrow (10)    2000  48,225  February 2010 to April 2010     $34,500
   Tern (11)       2003  50,200  February 2009 to April 2009     $20,500
   Shrike (12)     2003  53,343  April 2009 to June 2009         $24,600
   June 2009 to Aug 2010           $25,600
   Skua (13)       2003  53,350  May 2009 to August 2009         $24,200
   August 2009 to September 2010   $25,200
   Kittiwake (14)  2002  53,146  May 2008 to August 2008         $30,400
   August 2008 to July/Sep 2009    $56,250
   Goldeneye       2002  52,421  May 2009 to August 2009         $61,000
   
   
   
   Wren (15)  2008  53,100       Feb 2012                        $24,750
   Feb 2012 to Dec 2018/Apr 2019   $18,000
   (with
   profit
   share)
   Redwing         2007  53,395  September 2008 to
   August/October 2009             $50,000
   ---------------------------------------------------------------------
   (1)  The date range provided represents the earliest and latest
   date on which the charterer may redeliver the vessel to the
   Company upon the termination of the charter. The time charter
   hire rates presented are gross daily charter rates before
   brokerage commissions, ranging from 2.25% to 6.25%, to third
   party ship brokers.
   
   (2)  The charterer of the CONDOR has exercised its option to extend
   the charter period by 11 to 13 months at a time charter rate of
   $22,000 per day.
   
   (3)  Upon the conclusion of the current charter in July 2008, the
   FALCON commenced a new time charter with a rate of $39,500 per
   day for 21 to 23 months. The charterer has an option to extend
   the charter period by 11 to 13 months at a daily time charter
   rate of $41,000.
   
   (4)  The daily rate for the HARRIER is $27,000 for the first year and
   $21,000 for the second year. Revenue recognition is based on an
   average daily rate of $24,000.
   
   (5)  The previous time charter on the HERON at a daily rate of $24,000
   ended in January 2008. The vessel commenced a new time charter
   with a rate of $26,375 per day for 36 to 39 months. The charterer
   has an option for a further 11 to 13 months at a time charter
   rate of $27,375 per day. The charterer has a second option for a
   further 11 to 13 months at a time charter rate of $28,375
   per day.
   
   (6)  The JAEGER commenced a new time charter in August 2008 with a
   daily rate of $50,000 for a period of 3 to 5 months. The vessel
   was previously employed on a one year time charter at a daily
   rate which was based on the average time charter rate for the
   Baltic Supramax Index, but in no case be greater than $27,500 per
   day or less than $22,500 per day. The vessel earned the maximum
   $27,500 per day during the currency of that charter.
   
   (7)  The charterer of the KESTREL I has exercised its option to extend
   the charter period by 11 to 13 months at a daily time charter
   rate of $20,000 per day.
   
   (8)  The daily rate for the MERLIN is $27,000 for the first year,
   $25,000 for the second year and $23,000 for the third year.
   Revenue recognition is based on an average daily rate of $25,000.
   
   (9)  The charterer of the OSPREY I has exercised its option to extend
   the charter period by up to 11 to 13 months at a time charter
   rate of $25,000 per day. The charterer has an additional option
   to extend for a further 11 to 13 months at a time charter rate
   of $25,000 per day.
   
   (10) The SPARROW was previously on a time charter at a base rate of
   $24,000 per day for 11 to 13 months with a profit share of 30% of
   up to the first $3,000 per day over the base rate. This charter
   ended in February 2008.
   
   (11) The TERN previously was on a time charter at a daily rate of
   $19,000. This charter ended in March 2008 and the charterer has
   exercised its option to extend the charter period by 11 to
   13 months at a time charter rate of $20,500 per day.
   
   (12) The charterer of the SHRIKE has exercised their option to extend
   the charter period by 12 to 14 months at a daily time charter
   rate of $25,600.
   
   (13) The charterer of the SKUA has exercised an option to extend the
   charter period by 11 to 13 months at a daily time charter rate
   of $25,200.
   
   (14) The KITTIWAKE commenced a new time charter in August 2008 with a
   daily rate of $56,250 for 11 to 13 months. The KITTIWAKE was
   previously employed on a time charter for 11 to 13 months at a
   charter rate which was based on the average time charter rate for
   the Baltic Supramax Index, but in no case be greater than $30,400
   per day or less than $24,400 per day. The vessel earned the
   maximum $30,400 per day during the currency of that charter.
   
   (15) The WREN has entered into a long-term charter. The charter rate
   until February 2012 is $24,750 per day. Subsequently, the charter
   until redelivery in December 2018 to April 2019 will be profit
   share based. The base charter rate will be $18,000 with a 50%
   profit share for earned rates over $22,000 per day. Revenue
   recognition for the base rate from commencement of the charter
   is based on an average daily base rate of $20,306.
   
   

The Company had entered into a 35 vessel construction program. The first of these vessels, the Wren, was constructed in China and delivered to the Company in June 2008. As of September 30, 2008, the Company has contracts for 34 vessels to be constructed in China and Japan. The following table represents certain information about the Company's newbuilding vessels and their employment upon delivery:

   
   
   ---------------------------------------------------------------------
   Daily
   Year Built     Time     Time
   Expected -   Charter   Charter
   Delivery   Expiration   Hire
   Vessel         Dwt      (1)         (2)     Rate (3)   Profit Share
   ------         ---    --------  ----------- -------    ------------
   Woodstar (4)   53,100 Oct 2008  Jan 2014    $18,300         --
   Jan 2014 to
   Dec 2018/
   Apr 2019   $18,000  50% over $22,000
   Crowned Eagle  56,000 Nov 2008  Nov 2008 to
   Oct 2009   $16,000         --
   Crested Eagle  56,000 Feb 2009  Charter
   Free          --           --
   Stellar Eagle  56,000 Apr 2009  Charter
   Free          --           --
   Thrush         53,100 Sep 2009  Charter
   Free          --           --
   Bittern        58,000 Sep 2009  Dec 2014    $18,850         --
   Dec 2014 to
   Dec 2018/
   Apr 2019   $18,000  50% over $22,000
   Canary         58,000 Oct 2009  Jan 2015    $18,850         --
   Jan 2015 to
   Dec 2018/
   Apr 2019   $18,000  50% over $22,000
   Thrasher       53,100 Nov 2009  Feb 2016    $18,400         --
   Feb 2016 to
   Dec 2018/
   Apr 2019   $18,000  50% over $22,000
   Crane          58,000 Nov 2009  Feb 2015    $18,850         --
   Feb 2015 to
   Dec 2018/
   Apr 2019   $18,000  50% over $22,000
   Avocet         53,100 Dec 2009  Mar 2016    $18,400         --
   Mar 2016 to
   Dec 2018/
   Apr 2019   $18,000  50% over $22,000
   Egret (5)      58,000 Dec 2009  Sep 2012 to
   Jan 2013   $17,650  50% over $20,000
   Golden Eagle   56,000 Jan 2010  Charter
   Free          --           --
   Gannet (5)     58,000 Jan 2010  Oct 2012 to
   Feb 2013   $17,650  50% over $20,000
   Imperial Eagle 56,000 Feb 2010  Charter
   Free          --           --
   Grebe(5)       58,000 Feb 2010  Nov 2012 to
   Mar 2013   $17,650  50% over $20,000
   Ibis (5)       58,000 Mar 2010  Dec 2012 to
   Apr 2013   $17,650  50% over $20,000
   Jay            58,000 Apr 2010  Sep 2015    $18,500  50% over $21,500
   Sep 2015 to
   Dec 2018/
   Apr 2019   $18,000  50% over $22,000
   Kingfisher     58,000 May 2010  Oct 2015    $18,500  50% over $21,500
   Oct 2015 to
   Dec 2018/
   Apr 2019   $18,000  50% over $22,000
   Martin         58,000 Jun 2010  Dec 2016 to
   Dec 2017   $18,400         --
   Besra (6)      58,000 Oct 2010  Charter
   Free          --           --
   Cernicalo (6)  58,000 Jan 2011  Charter
   Free          --           --
   Nighthawk      58,000 Mar 2011  Sep 2017 to
   Sep 2018   $18,400         --
   Oriole         58,000 Jul 2011  Jan 2018 to
   Jan 2019   $18,400         --
   Fulmar (6)     58,000 Jul 2011  Charter
   Free          --           --
   Owl            58,000 Aug 2011  Feb 2018 to
   Feb 2019   $18,400         --
   Petrel (5)     58,000 Sep 2011  Jun 2014 to
   Oct 2014   $17,650  50% over $20,000
   Goshawk (6)    58,000 Sep 2011  Charter
   Free          --           --
   Puffin (5)     58,000 Oct 2011  Jul 2014 to
   Nov 2014   $17,650  50% over $20,000
   Roadrunner (5) 58,000 Nov 2011  Aug 2014 to
   Dec 2014   $17,650  50% over $20,000
   Sandpiper (5)  58,000 Dec 2011  Sep 2014 to
   Jan 2015   $17,650  50% over $20,000
   Snipe(6)       58,000 Jan 2012  Charter
   Free          --           --
   Swift (6)      58,000 Feb 2012  Charter
   Free         --           --
   Raptor (6)     58,000 Mar 2012  Charter
   Free          --           --
   Saker (6)      58,000 Apr 2012  Charter
   Free          --           --
   ---------------------------------------------------------------------
   (1)  Vessel build and delivery dates are estimates based on guidance
   received from shipyard.
   
   (2)  The date range represents the earliest and latest date on which
   the charterer may redeliver the vessel to the Company upon the
   termination of the charter.
   
   (3)  The time charter hire rates presented are gross daily charter
   rates before brokerage commissions, ranging from 2.25% to 6.25%,
   to third party ship brokers. Revenue recognition for the long
   term charters with base rates will be based on an average daily
   base rate over the life of the charter from commencement of
   the charter.
   
   (4)  The WOODSTAR was constructed and delivered into the Company fleet
   in October 2008. The vessel immediately commenced its
   scheduled charter.
   
   (5)  The charterer has an option to extend the charter by two periods
   of 11 to 13 months each.
   
   (6)  Options for construction exercised on December 27, 2007.
   
   

Glossary of Terms:

Ownership days: The Company defines ownership days as the aggregate number of days in a period during which each vessel in its fleet has been owned. Ownership days are an indicator of the size of the fleet over a period and affect both the amount of revenues and the amount of expenses that is recorded during a period.

Available days: The Company defines available days as the number of ownership days less the aggregate number of days that its vessels are off-hire due to vessel familiarization upon acquisition, scheduled repairs or repairs under guarantee, vessel upgrades or special surveys and the aggregate amount of time that we spend positioning our vessels. The shipping industry uses available days to measure the number of days in a period during which vessels should be capable of generating revenues.

Operating days: The Company defines operating days as the number of its available days in a period less the aggregate number of days that the vessels are off-hire due to any reason, including unforeseen circumstances. The shipping industry uses operating days to measure the aggregate number of days in a period during which vessels actually generate revenues.

Conference Call Information

As previously announced, members of Eagle Bulk's senior management team will host a teleconference and webcast at 8:30 a.m. ET on Thursday, November 6, 2008, to discuss these results.

To participate in the teleconference, investors and analysts are invited to call 866-356-3095 in the U.S., or 617-597-5391 outside of the U.S., and reference participant code 43660093. A simultaneous webcast of the call, including a slide presentation for interested investors and others, may be accessed by visiting http://www.eagleships.com.

A replay will be available following the call until 11:59 PM ET on November 20th, 2008. To access the replay, call 888-286-8010 in the U.S., or 617-801-6888 outside of the U.S., and reference passcode 28959528.

About Eagle Bulk Shipping Inc.

Eagle Bulk Shipping Inc. is a Marshall Islands corporation headquartered in New York. The Company is a leading global owner of Supramax dry bulk vessels that range in size from 50,000 to 60,000 deadweight tons and transport a broad range of major and minor bulk cargoes, including iron ore, coal, grain, cement and fertilizer, along worldwide shipping routes.

Forward-Looking Statements

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 Eagle Bulk Shipping 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, Eagle Bulk Shipping 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 charter hire rates and vessel values, changes in demand that may affect attitudes of time charterers to scheduled and unscheduled drydocking, changes in our vessel operating expenses, including dry-docking and insurance costs, or actions taken by regulatory authorities, potential liability from 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 Eagle Bulk Shipping Inc. with the U.S. Securities and Exchange Commission.

Visit our website at www.eagleships.com

This news release was distributed by GlobeNewswire, www.globenewswire.com

SOURCE: Eagle Bulk Shipping Inc.

Eagle Bulk Shipping Inc.
   Alan Ginsberg, Chief Financial Officer
   +1 212-785-2500
   
   Perry Street Communications, New York
   Investor Relations / Media:
   Jon Morgan
   +1 212-741-0014
   

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