CSL and Upper Lakes Group Sign Letter of Intent

Sam Hayes, President of The CSL Group Inc. (CSL) and Jack Leitch, Chairman of Upper Lakes Group Inc. (ULS) have announced the signing of a Letter of Intent concerning the purchase by CSL of ULS' 50 percent share of Marbulk Canada Inc. (MCI). MCI is owned jointly by ULS and Algoma Central Corporation (Algoma). Marbulk Shipping Inc. of Salem, Mass., a subsidiary of MCI, operates a fleet of eight self-unloading bulk carriers in international trades on the east coast of North America and in South America, Europe and Asia. The transaction is subject to Board of Directors and regulatory approvals. CSL International Inc. (CSLI), a subsidiary of CSL, operates a fleet of self-unloading bulk carriers in international trades on the east and west coasts of North America, in South America and in the Caribbean. Most of its self-unloaders are in a shipping pool with those of the German shipowner, Egon Oldendorff (EO). It is intended the Marbulk commercial operation will be combined with the CSL/EO pool and will be managed from CSLI's offices in Beverly, Mass. Rod Jones, president of CSLI, said: "We are big believers in the pooling concept. When you operate a fleet of specialized ships in industrial trades, the most important success factor is meeting our customers' needs at competitive rates. We have to be able to offer flexible scheduling and quick response to changing requirements. To do this efficiently, we need a certain critical mass of ships. The proposed addition of the Marbulk ships to the pool will enable us to improve our service while at the same time improving the productivity of our assets." Peter Cresswell, president and CEO of Algoma, said: "We are aware, as a result of Algoma¹s pooling arrangements on the Great Lakes, of the improved service and scheduling flexibility that can be achieved through this type of relationship. We are confident these same benefits can be achieved with the proposed addition of the Marbulk fleet to the CSL/EO pool." CSL was founded in 1845 and is based in Montreal. In addition to its interest in CSLI, it owns and operates a Canadian flag fleet of 11 self-unloaders and one bulker. Algoma, based in Sault Ste. Marie and St. Catharines, Canada, is a publicly listed company involved in shipping and real estate. The company was founded in 1899 and now operates a fleet of 14 self-unloaders, nine dry bulk vessels and eight product tankers trading on the Great Lakes, the St. Lawrence Seaway and in Eastern Canada. Upper Lakes Group (ULG) was founded in 1932 and is based in Toronto. ULG is involved in a wide array of shipping-related businesses, including a fleet of 21 vessels composed of eight self-unloaders and 13 dry bulk carriers.