Polaris Holding Company Ltd. Releases 2012 Results

Hamilton, Bermuda – 30 October, 2012 – In a filing with the Bermuda Stock Exchange (“BSX”), Polaris Holding Company Ltd. (Ticker: POLAR.BH) today released the audited financial results for the year ended 31 March, 2012. Mr. Raymond Medeiros, Chairman of the Board, addressed shareholders in a letter that stated:

“Dear Shareholder,

We are pleased to present the financial results for the financial for the year ended 31st March, 2012. These results are reflective of the continued contraction in the local economy in these challenging economic times with cargo volumes continuing to decline.

The comparative figures for the previous years are noted below. Shareholders are reminded that the 2010 income figures are after a one time charge of $2.8M in employee benefits for the winding-up of the Defined Benefit Pension Plan.

                                    31 Mar 11       31 Mar 10       31 Mar 09

Container Moves        37,078             39,951             43,642

Stevedoring Rev.        $10,114,756    $10,359,247    $10,302,207

Operating Expenses   $9,579,413      $11,267,581    $9,982,051

Net Income                 $582,381         ($840,430)       $399,578

Shareholder’s Equity   $8,948,463      $8,237,415      $8,970,631

Earnings Per Share    $0.47               ($0.68)             $0.32

Container volumes have decreased by approximately 8% over the preceding year and down 9% over 2008/2009. Combined with the decrease in general cargo it is estimated that the total decrease in cargo volume over the past two years is approximately 10% per year or 20% in total.

Considering the declining economy the Polaris group of companies is continuing to weather the storm fairly well as we position ourselves to diversify and take advantage of strategic opportunities. Despite these challenges the Company continues to persevere and managed to declare dividends in all respective quarters.

Operationally, Stevedoring Services Ltd. has seen many significant challenges and changes throughout 2011/2012. Perhaps the biggest challenge has been the preparation and construction for the new HM Custom’s freight scanner and ancillary services which has literally changed the landscape of the port.

The project started in March 2010 with the removal of the #7 Cargo Shed and should be completed with the relocation of the reefer facility in late 2012. The relocation of the container delivery gate back to the new #7 Gate was completed in late summer and the configuration which includes the scanner operation, was a joint design between SSL and the C of H and is working very efficiently.

Carrying out the business of the port in the midst of a construction project without comprising safety or roductivity has been an extreme challenge and I must congratulate and thank our employees for successfully working through these conditions with comprising either standard.

The highlight of the year for both SSL and Equipment Sales and Rentals Ltd. has to be the successful delivery of our new Gottwald Mobile Harbour Crane. Our brand new HMK170 was delivered on April 15th 2012 fully assembled by a Russian heavy lift ship and was in service within two weeks of delivery.

Its delivery was the culmination of a very thorough selection process and was combined with specialized training for both the crane operators and mechanics. The Gottwald HMK170 replaced one of the aging Terex cranes which has subsequently been sold.

In late 2011 we began testing the receipt of electronic Customs releases, also known as CAPs releases and their integration with our Tideworks operating software. This signified the start of our “Paperless Port Project”, an ambitious project that would finally allow us to further leverage the power of the Tideworks system.

Historically importers would physically bring their paper Delivery Orders with their BCD to the dock and we manually inspected each piece of paper and then process the transaction.

With the successful integration of Tideworks and the electronic receipt of the Customs release, this paper intensive process has been fully automated. This process can now be initiated by the customer right from their electronic desktop saving both time and paper. We estimate that this process will save in excess of 50,000 pieces of paper per annum. To date we have processed over 10,000 electronic entries.

The success of this system became the corner stone of the “Paperless Port 2012” initiative which was launched in January 2012 to further reduce paperwork and increase efficiencies.

The second phase of the Paperless Port Project was to create a “Self Service” container delivery system on the dock whereby drivers could place their own “gate in” and “gate out” requests electronically from a kiosk on the dock. At the same time, truck dispatch companies were given REMOTE electronic access over the internet to perform the same task supported by CCTV cameras on the dock.

Both systems are watched over and carefully monitored by our Terminal Operations staff using the CCTV and remote monitoring systems designed for this purpose.

The net effect of the Paperless Port is that the amount of time that it takes for a truck to transit the dock has been reduced by 5-10 minutes depending on the type of transaction.

Mills Reach Holdings Ltd. continues to be a sleeping giant with regards to the almost acre size property at Mills Reach Lane. Despite falling real estate values, under the new IFRS regulations we were able to recognize the fair value of the property which has only strengthened the balance sheet. Future plans for the property are being discussed with a view to further capitalize on the strengths of the property and location in order to leverage a greater return.

On your behalf I should like to thank the Board members for their diligence and interest during the year. I should also like to thank on your behalf and on the behalf of the Board, the management team and staff who continue to work diligently during these trying times.”

Raymond C. Medeiros, F.C.A., J.P.

Chairman