1065648--3/12/2007--TBS_INTERNATIONAL

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{interest, director, officer}

{debt, indebtedness, cash}

{gas, price, oil}

{tax, income, asset}

{cost, contract, operation}

{acquisition, growth, future}

{operation, natural, condition}

{operation, international, foreign}

{investment, property, distribution}

{provision, law, control}

{competitive, industry, competition}

{stock, price, operating}

{product, market, service}

{cost, regulation, environmental}

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{customer, product, revenue}

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Risk Factors Relating to the Shipping Industry Costs and revenues in the shipping industry are volatile. Our business depends to a significant degree on the stability and continued growth of the Asian economies High or volatile oil prices could adversely affect the global economy and our results of operations In the highly competitive international shipping market, we may not be able to compete with new entrants or established companies with greater resources Failure to comply with international safety regulations may subject us to increased liability, may adversely affect our insurance coverage and may result in a denial of access to, or detention in, certain ports. Compliance with environmental and other laws and regulations may adversely affect our business. The shipping industry has inherent operational risks, which may not be adequately covered by insurance. Risk associated with the shipping industry could affect our business and reputation, which could adversely affect our results of operations and stock price. Marine claimants could arrest our vessels, which could damage our on-time performance reputation and result in a loss of cash flow. Governments could requisition our vessels during a period of war or emergency, resulting in a loss of earnings. Governments could requisition our vessels during a period of war or emergency, resulting in a loss of earnings. Risks Factors Relating to Our Business Our competitive advantage in niche markets may be eliminated. We have a history of losses. We depend upon a limited number of customers for a large part of our revenue. As our fleet ages, the risks associated with older vessels could adversely affect our operations. Vessel drydockings could adversely affect our cash flow and results of operations. Our vessels may suffer damage and we may need to un-expectantly drydock a vessel, which could adversely affect our operations. There are few multipurpose tweendeckers available for purchase or hire at favorable rates. There are risks associated with the purchase and operation of secondhand vessels. The market value of vessels can and do fluctuate significantly. We may not be able to grow or to effectively manage our growth. We may have difficulty in recruiting qualified crew members for our vessels. We may have to pay tax on United States source income, which would reduce our earnings. The majority of our revenue is derived from operations outside the U.S. and may be adversely affected by actions taken by foreign governments or other forces or events over which we have no control. Risks Factors Relating to Our Corporate Structure International, the issuer of our common shares, is a holding company and depends on the ability of its subsidiaries to distribute funds to it in order to meet its financial and other obligations We have relied, and will continue to rely, to a significant degree upon an affiliated service company. TBS Commercial Group is a privately held company, and there is little or no publicly available information about it. The interests of our controlling shareholders could be adverse to your interests as a public shareholder. Agreements between us and our affiliated service company may be less favorable to us than agreements that we could obtain from unaffiliated third parties. Risk Factors Related to Our Financing Our credit facilities currently impose, and it is possible that any additional debt incurred could impose, significant operating and financial restrictions on us. Our credit facilities require us to maintain specified financial ratios and satisfy financial covenants. If we default under any of our loan agreements, we could forfeit our rights in our vessels. Risk Factors Related to Our Common Stock We are a Bermuda company, and it may be difficult for shareholders to enforce judgments against us or our directors and executive officers. Our bye-laws restrict shareholders from bringing legal action against our officers and directors. We have anti-takeover provisions in our bye-laws that may discourage a change of control.

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1065648--3/12/2007--TBS_INTERNATIONAL_LTD