January 22, 2003

Lighthouse files for Chapter 11
Lighthouse Fast Ferry Inc. today announced the filing by its subsidiaries, Fast Ferry I Corp. ("FFI"), Fast Ferry II Corp. ("FFII") and New York Fast Ferry Services, Inc. ("NYFF"), of a voluntary petition for reorganization under Chapter 11 of the U.S. Bankruptcy Code.

The petition was filed with the United States Bankruptcy Court for the District of New Jersey and covers the subsidiaries operating Lighthouse's Highlands, New Jersey to Manhattan commuter ferry service.

Lighthouse says it "elected to avail itself of the protections afforded by Chapter 11 of the Bankruptcy Code to prevent the disruption of its commuter ferry service, which could have occurred in the event the holder of the mortgages on its vessels attempts to foreclose and take possession of the vessels." It says the filings will enable it to continue to conduct business as usual while it develops a reorganization plan.

Lighthouse previously announced a short-term charter agreement with New York Waterway for Lighthouse's two vessels, which currently operate from Highlands, New Jersey to Manhattan. During the charter period, which has been extended, Lighthouse agreed to negotiate exclusively with New York Waterway for the sale of the two vessels and the rights to operate from Highlands.

Lighthouse says it has been "negotiating with New York Waterway for the sale of high-speed ferry vessels, and certain operating assets of Lighthouse but has been unable to reach agreement with the holder of the mortgage on the vessels. Lighthouse will be required to obtain the approval of the mortgage holder or otherwise discharge the primary mortgages on the vessels to consummate the sale of the assets."

New York Waterway has committed to continue the time charter arrangement during the Chapter 11 reorganization process to permit Lighthouse to maintain its Monmouth County - New York City commuter ferry service.

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