Jul 31, 2007

Capital Product Partners L.P. Announces Interim Financial Results

Released: 7/31/2007 7:30:14 AM ET

ATHENS, Greece, July 31, 2007 --

Capital Product Partners L.P. (Nasdaq:CPLP) today announced its financial results for the period from April 4, 2007, when the Partnership formally launched its shipping operations, through June 30, 2007. The reporting period consists of 88 days out of the 91 days in the calendar quarter. Capital Product Partners priced its initial public offering on March 29, 2007, netting $270.5 million in proceeds from the IPO, including $34.1 million following the exercise of the overallotment option.

Net income for the period from April 4, 2007 through June 30, 2007 was $4.9 million, or $0.22 per limited partnership unit. Adjusted for a one-off non-cash charge of $3.8 million related to the transfer of interest rate swap contracts from Capital Maritime & Trading Corp. to the Partnership, the net income was $8.7 million.

Ioannis Lazaridis, Chief Executive Officer and Chief Financial Officer of Capital GP LLC, said, "We are very pleased with these initial operating results. Revenues were stronger than expected, thanks to our profit sharing arrangements and the strength in product tanker market rates, while operating expenses were in line with our expectations and our agreement with Capital Ship Management Corp., which manages the commercial and technical operations of our fleet. As a result, cash generation for the period was above our projections at the time of our initial public offering in March."

The Partnership generated an operating surplus for the period of $10.2 million. Operating surplus is a non-GAAP financial measure used by certain investors to measure the financial performance of the Partnership and other master limited partnerships. Please see Appendix A for a reconciliation of this non-GAAP measure to net income.

Gross revenues for the period from April 4, 2007 through June 30, 2007 were $15.9 million, consisting of $14.0 million in base charter hire revenue and $1.9 million in profit sharing revenue, reflecting the robust spot hire rates in the product tanker market that allowed the Partnership to earn above the base rate.

Overall, conditions in the product tanker market reflected a strong spot market and an active period market throughout the second quarter of 2007. The low level of gasoline inventories and below average refinery utilization rates in the U.S. were the main reasons for the buoyant rates. During the second quarter and compared to the first quarter, period rates improved by about 3 percent for medium range (MR) product tankers as a number of charterers, including oil majors, traders and operators, entered the market seeking quality tonnage for long-term employment. Asset prices for modern MR tonnage appreciated close to 6 percent.

Total operating expenses for the period were $3.2 million, consisting of $2.8 million in vessel operating expenses paid to Capital Ship Management and of approximately $0.4 million in general administrative expenses related to the costs of running the Partnership.

Interest expense and finance cost of $4.9 million includes a one-off non-cash charge of $3.8 million related to the transfer of interest rate swap contracts from Capital Maritime & Trading Corp. to the Partnership. As part of the carve out of the historical financials, the Partnership recognized this one-off non-cash charge in the income statement. The Partnership has entered into eight interest rate swap agreements, which were transferred from Capital Maritime on April 4, 2007 (the Partnership launch date), in order to reduce its exposure to cash flow risks from fluctuating interest rates on $326 million of its $370 million revolving credit facility. These swap agreements fix the LIBOR portion of the interest rate charged on the facility at 5.1325 percent through June 29, 2012. The $3.8 million charge referenced above results from the valuation of the swap agreements' fair value as of April 4, 2007. Subsequent changes in the fair value of the interest rate swap agreements are being recognized in Other Comprehensive Income (a gain of $7.3 million as of June 30, 2007).

The board of directors has declared a cash distribution for the period of $0.3626 per unit (the pro rata portion of the Partnership's minimum quarterly distribution of $0.375 per unit), representing a total cash distribution of $8.3 million. The cash distribution will be paid on August 14, 2007, to unitholders of record on August 6, 2007.

Among the highlights of the period was the successful delivery, ahead of schedule, of the Partnership's ninth MR product tanker, M/T "Atrotos," on May 8, 2007. Early in the third quarter, on July 13, 2007, the Partnership took successful delivery, also ahead of schedule, of its tenth MR product tanker, M/T "Akeraios." Both product tankers are ice strengthened vessels (Ice Class 1A), with carrying capacities of 47,786 dwt and 47,781 dwt, respectively. Both have been fixed under time charters with Morgan Stanley Capital Group Inc. for three years at a base rate subject to a 50/50 profit sharing arrangement.

Capital Product Partners L.P. has agreed to purchase five additional MR product tankers from Capital Maritime & Trading Corp., including two more Ice Class 1A sister vessels scheduled for delivery in October 2007 and three MR product tanker sister vessels scheduled for delivery in 2008. All five vessels will be under time or bareboat charters commencing at the time of delivery.

Capital Maritime & Trading Corp., the 100 percent owner of our General Partner, is the owner of 22 additional modern tanker vessels. The Partnership has the right of first refusal to acquire six of these product tankers from Capital Maritime if long-term charters are arranged for them.

The Partnership's balance sheet was strong as of June 30, 2007, with long-term debt of $86.0 million, compared with stockholders' equity of $242.3 million. Following the delivery of M/T Akeraios in July, the Partnership has utilized an additional $56 million from its loan facility. The remaining capacity under the revolving credit facility ($228 million) will be sufficient to fund the remaining two contracted acquisitions for 2007 and a substantial portion of the 2008 deliveries.

Mr. Lazaridis concluded, "Following the delivery of our remaining contracted vessels over the next 12 months, our fleet will consist of 15 state-of-the-art product tankers, including the largest and one of the most modern fleets of Ice Class 1A vessels in the world. With our defined strategy for pursuing additional accretive 'drop-down' acquisitions, Capital Product Partners is well positioned to capitalize on the product tanker industry's strong growth dynamics. Our long-term goal is to deliver sustainable growth in cash distributions to our unitholders."

Capital Product Partners will host a conference call to discuss its results today at 10:00 a.m. Eastern Time. The public is invited to listen to the conference call by dialing 1-888-935-4577 (U.S. and Canada), or +1 718-354-1388 (international), 10 minutes prior to the start of the call. No access code is required. An audio webcast of the conference call will run simultaneously on the company's website at www.capitalpplp.com. The relevant link will be found in the Investor Relations section of the website.

About Capital Product Partners L.P.

Capital Product Partners L.P. (Nasdaq:CPLP), a Marshall Islands master limited partnership, is an international owner of medium-range product tankers. Following the delivery of the M/T Akeraios on July 13, 2007, Capital Product Partners L.P. now owns 10 MR Ice Class 1A product tankers and has an agreement to purchase five additional product tankers from Capital Maritime & Trading Corp. All 15 vessels are under medium- to long-term charters to BP Shipping Limited, Morgan Stanley, and Overseas Shipholding Group Inc.

Forward-Looking Statements

The statements in this press release that are not historical facts may be forward-looking statements (as such term is defined in Section 21E of the Securities Exchange Act of 1934, as amended). These forward-looking statements involve risks and uncertainties that could cause the outcome to be materially different. Capital Product Partners L.P. expressly disclaims any obligation to update or revise any of these forward-looking statements, whether because of future events, new information, a change in our views or expectations, or otherwise. We make no prediction or statement about the performance of our common units.

 Capital Product Partners L.P.
 Statement of Operations
 (In thousands of U.S. dollars, except number of units
  and earnings per unit)

               For the period    For the         For the six month
                 April 4, to   three month          period ended
                  June 30,     period ended           June 30,
                    2007       June 30, 2006     2007          2006
                                Predecessor                Predecessor
 Time and bareboat
  revenues(a)    $   15,943     $    1,973    $   28,974    $    1,973
 Total revenues      15,943          1,973        28,974         1,973
 Voyage expenses        145             40           322            40
 Vessel operating
  expenses -
  related party       2,783            119         3,296           119
 Vessel operating
  expenses               --            363         1,958           506
 General and
  expenses              428             --           428            --
 Depreciation of
  fixed assets        2,894            334         5,106           334
 Operating income     9,693          1,117        17,864           974
 Other income
  (expense), net:
 Interest expense
  and finance cost   (1,133)          (546)       (3,988)         (546)
 Loss on swap
  acquired from
  CMTC as of
  April 4, 2007      (3,763)            --        (3,763)           --
 Interest income        141              1           162             5
 Foreign currency
  net                    (1)           (23)          (10)          (24)
 Total other
  expense, net       (4,756)          (568)       (7,599)         (565)
 Net income      $    4,937     $      549    $   10,265    $      409
 General Partner's
  interest in net
  income for the
  period from
  April 4, through
  June 30, 2007  $       99                   $       99
 Limited Partner's
  interest in net
  income for the
  period from
  April 4, through
  June 30, 2007
 Common          $    2,928                   $    2,928
 Subordinated    $    1,910                   $    1,910
 Net income per
  limited partner
  unit, (basic
  and diluted)   $     0.22                   $     0.22
 Number of limited
  partners' units
  (basic and
  diluted) as
  of June 30,
  2007           22,318,022                   22,318,022

 (a) Revenues include $480 of income from our profit sharing arrangement
     with BP, which are earned but not yet received.

 Capital Product Partners L.P.
 Balance Sheet
 (In thousands of U.S. dollars, except number of shares)

                                Consolidated      Predecessor Combined
                                Balance Sheet        Balance Sheet
                                    as of                as of
                                June 30, 2007       December 31, 2006
 Current assets
 Cash and cash equivalents(b)     $ 14,523             $  1,239
 Trade accounts receivable           1,740                  534
 Insurance claims                       --                   68
 Due from related parties               --                3,255
 Prepayments and other                 108                  130
 Inventories                            --                  192
 Financial instruments -
  fair value                         3,540                   --
 Total current assets               19,911                5,418
 Fixed assets
 Vessels under construction             --               29,225
 Vessels, net                      308,165              168,981
 Total fixed assets                308,165              198,206
 Other non current assets
 Deferred finance charges, net       1,010                  614
 Total non current assets          309,175              198,820
 Total assets                     $329,086             $204,238
 Liabilities and Stockholders' /
  Partners' Equity
 Current liabilities
 Current portion of long-term
  debt                            $     --             $  4,979
 Current portion of related
  party debt                            --                8,042
 Trade accounts payable                128                1,282
 Due to related parties                117                1,880
 Accrued loan interest                 200                1,369
 Accrued other liabilities             119                  371
 Deferred revenue                      223                  278
 Total current liabilities             787               18,201
 Long-term liabilities
 Long-term debt                     86,000               52,554
 Long-term related party debt           --               87,498
 Total long-term liabilities        86,000              140,052
 Total liabilities                  86,787              158,253
 Commitments and contingencies          --                   --
 Stockholders / Partners'
 Common stock (par value $0;
  3,200 shares issued and
  outstanding                           --                   --
 Additional paid in capital             --               41,394
 Other Comprehensive Income          7,303                   --
 (Accumulated deficit)/
  retained earnings                     --                4,591
 General Partner                     4,700                   --
 Limited Partners
   Common                          139,353                   --
   Subordinated                     90,943                   --
 Total stockholders' /
  Partners' equity                 242,299               45,985
 Total liabilities and
  stockholders' / Partners'
  equity                          $329,086             $204,238
 (b) The loan agreement contains customary ship finance covenants,
     including minimum cash requirement of $500 per vessel of which
     50% may be constituted by undrawn commitments under the revolving

 Capital Product Partners L.P.
 Statement of Cash Flows
 (In thousands of U.S. dollars)

                              For the period
                                from April   For the six   For the six
                                4, 2007 to   month period  month period
                                  June 30,    ended June    ended June
                                   2007        30, 2007      30, 2006

 Cash flows from operating
 Net income                      $   4,937     $  10,265     $     409
 Adjustments to reconcile net
  income/(loss) to net cash
  provided by operating activities:
 Depreciation of fixed assets        2,894         5,106           334
 Amortization of deferred finance
  charges                               10            30             9
 Loss on swap acquired from CMTC
  as of April 4, 2007                3,763         3,763            --
 Changes in operating assets and
 Trade accounts receivables         (1,740)       (3,128)           --
 Insurance claims                       --            (1)           --
 Due from related parties               --        (4,343)       (1,903)
 Prepayments and other                (108)         (220)          (70)
 Inventories                            --           (82)          (40)
 Trade accounts payable                128           590           850
 Due to related parties                117        (1,399)          475
 Accrued interest                      200        (1,169)          342
 Accrued other liabilities             119           318           177
 Deferred revenue                      223         4,930           375
 Net cash provided by operating
  activities                        10,543        14,660           958
 Cash flows from investing
 Vessel acquisitions               (56,000)     (133,554)      (55,899)
 Vessel advances - new buildings        --            --       (23,822)
 Net cash used in investing
  activities                       (56,000)     (133,554)      (79,721)
 Cash flows from financing
 Proceeds from issuance of
  long-term debt                    86,000       155,861        16,377
 Payment of long term debt              --        (9,091)           --
 Loan issuance costs                (1,020)       (1,020)          (38)
 Proceeds from related party debt/
  funding                               --            --        56,368
 Dividend                          (25,000)      (25,000)           --
 Cash balance as of April 3, 2007
  that was distributed to the
  previous owner                        --        (2,251)           --
 Capital contributions                  --        13,679         6,062
 Net cash provided by financing
  activities                        59,980       132,178        78,769
 Net increase in cash and cash
  equivalents                       14,523        13,284             6
 Cash and cash equivalents at
  beginning of period                   --         1,239             7
 Cash and cash equivalents at end
  of period                      $  14,523     $  14,523     $      13
 Supplemental Cash Flow
 Cash paid for interest expense  $     929     $   3,944     $     194

 Deemed dividend(c)              $  18,489     $  18,489            --

 (c) On May, 8 2007 the Partnership acquired from CMTC M/T Atrotos
     (the first out of seven Committed vessels) for a total price of
     $56,000. The vessel has been recorded in the Partnership's
     financial statements at the amount reflected in CMTC's
     consolidated financial statements, which differ from the
     acquisition price by $18,489. The difference between the purchase
     price and the amounts reflected in CMTC's consolidated financial
     statements is included in the Stockholders' / Partners' Equity.

 Capital Product Partners
 Appendix A - Reconciliation of Non-GAAP Financial Measure
 (In thousands of U.S. dollars)

 Description of Non-GAAP Financial Measure - Operating Surplus

 The Operating Surplus represents net income adjusted for non cash items
 as depreciation and amortization expense, unearned revenue and unrealized
 gain and losses. Replacement capital expenditures represent those capital
 expenditures required to maintain over the long term the operating
 capacity of, or the revenue generated by the Partnership's, capital
 assets. Operating Surplus is a quantitative standard used in the
 publicly-traded partnership investment community to assist in evaluating
 a partnership's ability to make quarterly cash distributions.
 Operating Surplus is not required by accounting principles generally
 accepted in the United States and should not be considered as an
 alternative to net income or any other indicator of the Partnership's
 performance required by accounting principles generally accepted in the
 United States. The table below reconciles Operating Surplus to net

  Reconciliation of Non-GAAP
  Financial Measure -                       For the period from
  Operating Surplus                              April 4, to
                                                June 30, 2007

 Net income                                             $  4,937

 Adjustments to reconcile net income to net
  cash provided by operating activities
 Depreciation                               $  2,894
 Loan fees amortization                           10
 Deferred revenue                                210
 Unrealized losses on swap valuations          3,763       6,877
 NET CASH BY OPERATING ACTIVITIES                         11,814

 Replacement Capital Expenditures                         (1,624)
 OPERATING SURPLUS                                        10,190

 Recommended reserves                                     (1,932)
 AVAILABLE CASH                                         $  8,258

This news release was distributed by PrimeNewswire, www.primenewswire.com

SOURCE: Capital Product Partners L.P.

Capital GP L.L.C.
          Ioannis Lazaridis, Chief Executive Officer and
           Chief Financial Officer
          +30 (210) 4584 950

          Capital Maritime & Trading Corp.
          Jerry Kalogiratos, Commercial Officer
          +30 (210) 4584 950

          RF Binder Partners Inc.
          Robert Ferris
            +1 (212) 994-7505
          Tom Pratt
            +1 (212) 994-7563