Oct 31, 2007

Capital Product Partners L.P. Announces Third Quarter Financial Results

ATHENS, Greece, Oct 31, 2007 (PrimeNewswire via COMTEX News Network) -- Capital Product Partners L.P. (Nasdaq:CPLP), an international owner of product tankers, today announced its financial results for the third quarter ended September 30, 2007.

Net income for the quarter was $8.4 million, or $0.37 per limited partnership unit. These results reflect the effect of the consolidation of the acquisition of M/T Attikos, which was completed on September 24, 2007, for the full quarter, as the transaction was between two entities under common control. If M/T Attikos had not been consolidated for the period that it was not owned by the Partnership, net income would have been $7.9 million, or $0.35 per limited partnership unit.

Capital Product Partners generated an operating surplus for the period of $9.6 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 quarter were $18.8 million, consisting of $18.1 million in base charter hire revenue and $0.7 million in profit sharing revenue. Total operating expenses were $4.0 million, including $3.7 million in fees for the commercial and technical management of the fleet paid to a subsidiary of Capital Maritime & Trading Corp. (Capital Maritime), the Partnership's sponsor. General and administrative expenses relating to the costs of running the Partnership were approximately $0.4 million. Net interest expense and finance cost for the quarter was $2.2 million.

Ioannis Lazaridis, Chief Executive Officer and Chief Financial Officer of Capital Product Partners' general partner, said, "During the third quarter we generated a substantial operating surplus and were able to increase our cash distribution due to the greater number of operating days of our fleet. We achieved these results despite the fact that spot market conditions were seasonally weak, which reduced our profit sharing revenue from second quarter levels. These results highlight the fundamental attractiveness of our business model, including the built-in growth from contracted acquisitions and the relative stability of our cash flows due to our medium- to long-term charter agreements and our fixed rate management agreement with a subsidiary of Capital Maritime."

Conditions in the product tanker market reflected the usual seasonal softness in the third quarter, which was accentuated by an increase in refinery capacity utilization rates in the U.S., in contrast to the persistently lower utilization rates seen throughout the first half of 2007. Importantly, the period market remained at historically high levels throughout the quarter, reflecting the continued strong demand from major charterers for quality tonnage. Product tanker asset prices were well underpinned, as prices for modern product tankers increased further by approximately 3.5 percent compared to the second quarter.

Mr. Lazaridis added, "We continued to execute successfully during the quarter against our longer-term strategic objectives. We took delivery ahead of schedule of three medium-range product tankers, and our 12 brand-new Ice Class 1A vessels now represent the largest such fleet in the world. It is worth highlighting that during the quarter we completed our first acquisition from our sponsor, Capital Maritime, that had not been contracted prior to the IPO. This acquisition represents our initial entry into the highly attractive small product tanker market segment."

The three new medium-range (MR) product tankers, M/T Akeraios, M/T Apostolos and M/T Anemos I, were delivered ahead of schedule on July 13, September 20 and September 28, 2007, respectively. All three product tankers are ice-strengthened vessels (Ice Class 1A), with carrying capacities of approximately 47,000 dwt, and all have been fixed under time charters with Morgan Stanley Capital Group Inc. for three years from delivery at a base rate subject to a 50/50 profit sharing arrangement.

M/T Attikos, a 12,000 dwt double-hull product tanker built in 2005, was acquired from Capital Maritime on September 24, 2007. The $23 million acquisition was financed with debt and $2.5 million in Partnership funds. The acquisition of M/T Attikos is expected to add approximately four cents per unit to the Partnership's annual operating surplus.

Capital Product Partners has also agreed to purchase three additional 51,000 dwt MR chemical/product tanker sister vessels from Capital Maritime, our sponsor. These vessels are scheduled for delivery in January, June and August 2008, and are already fixed under bareboat charters with Overseas Shipholding Group commencing at the time of delivery.

In addition, Capital Maritime currently is the owner of 27 modern tanker vessels of different sizes. The Partnership has a right of first refusal on six MR product tankers from Capital Maritime if medium- to long-term charters are arranged for them. Eighteen of Capital Maritime's vessels are small product tankers, of which 17 are currently under construction and expected to be delivered between 2008 and 2010.

The Board of Directors has declared a cash distribution for the third quarter of $0.385 per unit, representing a total cash distribution of $8.8 million. The cash distribution will be paid on November 15, 2007, to unitholders of record on November 7, 2007.

The Partnership's long-term debt as of September 30, 2007 was $274.5 million, compared with stockholders' equity of $169.9 million. The increase in debt during the quarter reflects the delivery of three new MR product tankers and the M/T Attikos acquisition. The remaining capacity under the revolving credit facility ($95.5 million) is expected to be sufficient to fund a substantial portion of the contracted 2008 deliveries.

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); reference number 7517400. Participants should dial in 10 minutes prior to the start of the call. The slide presentation accompanying the conference call will be available on the Partnership's website at http://www.capitalpplp.com. An audio webcast of the conference call will also be accessible on the website. The relevant links 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 product tankers. The Partnership owns 13 product tankers, including 12 Ice Class 1A medium-range tankers, and has an agreement to purchase three additional MR product tankers from Capital Maritime & Trading Corp. All 16 vessels are under medium- to long-term charters to BP Shipping Limited, Morgan Stanley, Overseas Shipholding Group and Trafigura Beheer B.V.

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.
 Statements of Income
 (In thousands of United States dollars, except number of units and
  earnings per unit)

                           For the Three Month      For the Nine Month
                             Periods Ended             Periods Ended
                              September 30,             September 30,
                           2007       2006         2007        2006
                                   Predecessor             Predecessor
 Time and bareboat
  charter revenues         $18,770     $ 6,190    $49,897      $10,561
 Total revenues             18,770       6,190     49,897       10,561


 Voyage expenses               151         137        603          237

 Vessel operating expenses
  - related party            3,723         283      7,154          519

 Vessel operating expenses     268       1,056      3,196        2,327

 General and administrative
  expenses                     449          --        877           --

 Depreciation and
  amortization               3,558       1,209      8,859        1,739
 Operating income           10,621       3,505     29,208        5,739
 Other income (expense), net:

 Interest expense and
  finance cost              (2,473)     (1,649)    (6,701)      (2,430)

 Loss on swap acquired from
  Capital Maritime
  as of April 4, 2007           --          --     (3,763)          --

 Interest income               259           3        421            8

 Foreign currency gain/(loss),
  net                           (7)         --        (22)         (33)
 Total other expense, net   (2,221)     (1,646)   (10,065)      (2,455)
 Net income                $ 8,400     $ 1,859    $19,143      $ 3,284
 Supplemental information
 General Partner's interest in
  net income for the three and
  nine month period ending
  September  30, 2007      $   168                $   383
 Limited Partner's interest
  in net income for the three
  and nine month period ending
  September 30, 2007       $ 8,232                $18,760
 Common                    $ 4,984                $11,358
 Subordinated              $ 3,248                $ 7,402
 Net income per limited
  partner unit, (basic
 and diluted).             $  0.37                $  0.84
 Number of limited partners'
  units outstanding,
  (basic and diluted) as
  of September 30, 2007 22,318,022             22,318,022

 Capital Product Partners L.P.
 Balance Sheets
 (In thousands of United States dollars, except number of shares)


                                 Consolidated              Combined
                                 Balance Sheet           Balance Sheet
                                    as of                    as of
                               September 30, 2007     December 31, 2006
 Current assets
 Cash and cash equivalents               $ 16,094            $   1,239
 Trade accounts receivable                  1,048                  771
 Insurance claims                              --                   69
 Due from related parties                      --                4,954
 Prepayments and other                         89                  172
 Inventories                                   --                  259
 Total current assets                      17,231                7,464
 Fixed assets
 Vessels under construction                    --               29,225
 Vessels, net                             433,354              178,803
 Total fixed assets                       433,354              208,028
 Other non-current assets
 Deferred finance charges, net                944                  632
 Restricted cash                            3,250                   --
 Total non-current assets                 437,548              208,660
 Total assets                            $454,779             $216,124

 Liabilities and Stockholders' / Partners' Equity
 Current liabilities
 Current portion of long-term debt             --             $  6,029
 Current portion of related party debt         --                8,042
 Trade accounts payable                   $   111                1,539
 Due to related parties                        74                1,899
 Accrued loan interest                        230                1,513
 Accrued other liabilities                    294                  478
 Deferred revenue                           3,106                  475
 Total current liabilities                  3,815               19,975
 Long-term liabilities
 Long-term debt                           274,500               59,254
 Long-term related party debt                  --               87,498
 Deferred revenue                             457                   --
 Financial instruments - fair value         6,079                   --
 Total long-term liabilities              281,036              146,752
 Total liabilities                        284,851              166,727
 Commitments and contingencies                 --                   --
 Partners' / Stockholders' Equity
 Common stock (par value $0; 3,500 shares
  issued and outstanding at
  December 31, 2006 restated)                  --                   --
 Additional paid in capital                    --               41,857
 Other comprehensive loss                  (2,316)                  --
 Retained earnings                             --                7,540
 General Partner                            3,445                   --
 Limited Partners
 -        Common                          102,141                   --
 -        Subordinated                     66,658                   --
 Total partners' / stockholders' equity   169,928               49,397
 Total liabilities and partners' /
  stockholders' equity                   $454,779             $216,124

 Capital Product Partners
 Statements of Cash Flows
 (In thousands of United States dollars)
                            Cash Flows for                 For the
                           the Period from    For the     Nine Month
                            April 4, 2007    Nine Month  Period Ended
                           to September 30, Period Ended September 30,
                                 2007      September 30,     2006
                             (see note a)      2007       Predecessor
 Cash flows from operating
 Net income                     $   13,394    $   19,143    $    3,284
 Adjustments to reconcile net
   income to net cash provided
   by operating activities:
 Depreciation of fixed assets        6,457         8,767         1,739
 Amortization of deferred
   charges                             186           208            23
 Loss on swap acquired from
   Capital  Maritime as of
   April 4, 2007                     3,763         3,763            --
 Changes in operating assets
   and liabilities:
 Trade accounts receivable          (1,300)       (2,317)         (744)
 Insurance claims                       --            --          (644)
 Due from related parties            1,665        (2,644)       (2,437)
 Prepayments and other                (176)         (274)         (145)
 Inventories                             2           (69)         (147)
 Dry docking cost                     (921)         (921)           --
 Trade accounts payable                392           966         1,183
 Due to related parties              5,200         3,693           781
 Accrued interest                      230        (1,246)          122
 Accrued other liabilities             445           622           373
 Deferred revenue                    3,787         8,300           971
 Net cash provided by
   operating activities             33,124        37,991         4,359
 Cash flows from investing
 Vessel acquisitions              (166,067)     (243,621)     (112,608)
 Vessel advances - new buildings        --            --       (19,809)
 Increase of restricted cash        (3,250)       (3,250)           --
 Net cash used in investing
   activities                     (169,317)    (246,871)      (132,417)
 Cash flows from financing
 Proceeds from issuance of
   long-term debt                  274,500       344,361        47,587
 Proceeds from related party
   debt/financing                       --            --        78,756
 Payments of long-term debt         (7,000)      (16,841)      (11,226)
 Payments of related party
   debt/financing                       --            --          (491)
 Loan issuance costs                (1,022)       (1,022)         (285)
 Deemed dividend (see note b)      (80,933)      (80,933)           --
 Dividend                          (33,258)      (33,258)           --
 Cash balance as of April 3,
   2007 that was distributed
   to the previous owner                --        (2,251)           --
 Capital contributions                  --        13,679        13,719
 Net cash provided by financing
   activities                      152,287       223,735       128,060
 Net increase in cash and
   cash equivalents                 16,094        14,855             2
 Cash and cash equivalents at
   beginning of period                  --         1,239             7
 Cash and cash equivalents
   at end of period             $   16,094    $   16,094    $        9

 Supplemental Cash Flow
 Cash paid for interest expense $    2,988    $    6,177    $    2,274

 (a) Includes CPLP vessels and Attikos performance from April 4 to
     September 30, 2007.

 (b) On May 8, July 13, September 20, September 24, and September 28,
     2007, the Partnership  acquired from Capital Maritime the vessels
     M/T Atrotos, M/T Akeraios, M/T Apostolos, M/T Attikos, and
     M/T Anemos I, respectively, for a total purchase price of
     $247,000.  The vessels have been recorded on the Partnership's
     financial statements in the amount of $166,067 (as reflected in
     Capital  Maritime's consolidated financial statements), which
     differs from the acquisition price by $80,933. The difference
     between the purchase price and the amounts reflected in Capital
     Maritime's consolidated financial statements is presented as
     "Deemed dividend" in the statements of cash flows.

 (c) Income statements for the three month period and nine month
     period ending September 30, 2007 and 2006 include results of
     operations of M/T Attikos which was acquired from an entity under
     common  control on September 24, 2007 as though the transfer had
     occurred at the beginning of the period.  The balance sheet as
     of December 31, 2006 has been restated to include assets,
     liabilities and owners' equity related to M/T Attikos.

 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

 Operating Surplus represents net income adjusted for non cash items
 such 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 country-regionUnited 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 income.

                                                 For the period from
 Reconciliation of Non-GAAP Financial Measure -      July 1, to
  Operating Surplus                              September 30, 2007

 Net income                                                 $    8,400

 Adjustments to net income

 Depreciation and amortization                $    3,558
 Loan fees amortization                               84
 Deferred revenue                                    219
 Attikos net income from July 1, 2007 to
   September 23, 2007                               (450)
 Attikos adjustments to reconcile net
   income to net cash provided by operating
   activities                                       (206)        3,205
   ACTIVITIES                                                   11,605

 Replacement Capital Expenditures                               (1,974)
 OPERATING SURPLUS                                               9,631

 Recommended reserves                                             (863)
 AVAILABLE CASH                                             $    8,768

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

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