Ship Finance International Limited -- Purchase of Vessels

Ship Finance International Limited -- Purchase of Vessels 


HAMILTON, Bermuda, May 12  /PRNewswire-FirstCall/ -- Ship Finance International
Limited (the "Company" or "Ship Finance") is pleased to advise that the Company
has acquired two new building 1,700 teu Containerships, which will be delivered
from Wenchong Shipyard in China in May and November this year. The purchase
price for each ship is USD 49.25 million. The first ship has already been
chartered out to the Korean containership operator Heung A for a period of four
years from delivery at a rate of approximately USD 28,000 per day. Ship Finance
also intends to charter out the second vessel on a medium term charter. Several
interesting offers have been received and are under consideration.

The purchase price includes 1.50 % commission payable to Seatankers, an
affiliate of the Company's main shareholder Hemen Holding Ltd. This commission
relates to arranging the vessel acquisitions and the charter.

Ship Finance's Chairman, Tor Olav Troim, says in a comment: "This transaction
is an important milestone for Ship Finance in its strategy to become a leading
global ship financier. It will be the first vessel owned by Ship Finance, which
will be on charter to a non-Frontline affiliated party. It will also be Ship
Finance's first investment outside the tanker segment. The container market
offers great opportunities for our Company. It is a market with strong growth
where medium to long-term charters are in high demand by major operators. The
initial four-year charter period will write down a 20 - 25 year life span asset
to approximately 50 % of cost. This limits the financial risk for Ship
Finance."

The transaction, which will be funded by a combination of bank loans and
internal liquidity, will increase cash flow as well as earnings per share and
is expected to build significant value for our shareholders.

   Hamilton, Bermuda
   May 12, 2005

  Questions should be directed to:

  Tor Olav Troim: Chief Executive Officer [phone]

  Tom Jebsen, Chief Financial Officer [phone]


DATASOURCE: Ship Finance International Ltd.



CONTACT:  Tor Olav Troim, Chief Executive Officer, [phone], or

Tom Jebsen, Chief Financial Officer, [phone], both of Ship Finance

International Ltd.



Web site: http://www.shipfinance.org/ 

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