The Five Star Express News

Charlotte, N.C. --- Horizon Lines Inc. announced that it has signed a restructuring support agreement with more than 96 percent of its  note holders to further deleverage the Company's balance sheet in connection with, and contingent upon, a restructuring of the vessel charter obligations related to the Company's discontinued trans-Pacific service. "We greatly appreciate the support of our note holders to help facilitate this potential restructuring to reduce the company's indebtedness, and also thank our employees for their continued dedication and hard work," said Stephen H. Fraser, President and Chief Executive Officer. "Over the past year, Horizon Lines has taken a number of actions to restructure our business, reduce debt and improve liquidity.

Company Will Conduct Orderly Transition to Minimize Supply Chain Disruptions. Last Voyage of FSX Service from China Expected on November 2; Final Sailings to Guam on November 8 and 10. Horizon Lines, Inc. (OTCQB: HRZL), the nation's leading domestic ocean shipping company, today announced it will discontinue its Five Star Express (FSX) trans-Pacific container shipping service between the U.S. West Coast, Guam and China. Horizon is implementing an orderly transition plan, beginning October 31, 2011, and will work aggressively to mitigate any supply chain disruptions for its customers. Discontinuation of the FSX Guam and China services will have no impact on the company's domestic ocean services in Alaska, Hawaii, or Puerto Rico.

Horizon Lines, Inc. (NYSE: HRZ), the nation's leading domestic ocean shipping company, today announced that Alherd Kazura has been appointed to the new position of Vice President of International Services. Mr. Kazura will report to Brian Taylor, Executive Vice President, Chief Operating Officer and Chief Commercial Officer of Horizon Lines, Inc. Mr. Kazura was previously Vice President International Planning and Development at Horizon, where among other responsibilities he led the transition team that established the carrier's Five Star Express (FSX) trans-Pacific service in December 2010.

Horizon Lines (NYSE:HRZ) announced it has instituted a 15-day transit schedule for containerized cargo shipped from Shanghai to Kansas City with its new International service. The company launched the Five-Star Express (FSX) trans-Pacific ocean service between China and the United States in December, and selected Kansas City as a key hub for its express ocean-rail intermodal package. "Our goal is to offer the fastest weekly deliveries by using scheduled intermodal rail service from Los Angeles," said Brian Taylor, Senior Vice President, Chief Commercial Officer, for Horizon Lines. "We believe the 15-day Shanghai-to-Kansas City schedule is the best in our industry. The ocean carrier commenced the FSX service with a sailing from Ningbo, China, on December 14 and Shanghai on December 15.

Horizon Lines, Inc. (NYSE: HRZ), aleading U.S. domestic ocean shipping and integrated logistics company, announced it will launch express intermodal container service to key inland U.S. cities when it begins the new Five Star Express (FSX) trans-Pacific liner service in December. The maiden FSX voyage is scheduled to depart Ningbo, China, on December 14, 2010, Shanghai on December 15, and arrive in Los Angeles on December 26. Approximately 60% of the initial voyage is already subscribed, as the company continues to make steady progress toward its goal of 75% bookings for the first sailing. "As other carriers reduce service locations and slow service speeds, U.S.

Horizon Lines, Inc. (NYSE: HRZ) reported financial results for its fiscal third quarter ended September 19, 2010. On a GAAP basis, third-quarter net income was $7.7 million, or $0.25 per diluted share, compared with $8.4 million, or $0.27 per diluted share, for the third quarter of 2009. On an adjusted basis, third-quarter net income totaled $11.0 million, or $0.35 per diluted share, excluding charges of $3.3 million after tax, or $0.10 per diluted share, for antitrust-related legal expenses, an equipment impairment charge and union severance. This compares with 2009 adjusted net income of $11.4 million, or $0.37 per diluted share, after excluding antitrust-related legal expenses and a vessel impairment charge totaling $3.0 million after tax, or $0.10 per diluted share.

Horizon Lines, Inc. (NYSE: HRZ), domestic ocean shipping and integrated logistics company, announced it has secured two important agreements in the ongoing development of its new Asia liner service. Horizon Lines has appointed Hon Wing Lam as its Owner's Representative and Ben Line Agencies as its General Agent to support the company's ongoing sales and operations in Shanghai and Ningbo. As Horizon Lines Owner's Representative, Lam brings more than 30 years of ocean transportation experience and spent the past 13 years working in China. Prior to joining Horizon Lines, Lam worked for several leading ocean carriers where, among other things, he managed shipping and logistics in the China trade. Ben Line Agencies is Asia's leading privately-owned shipping services company.