Ship Finance International Ltd. Announces Sale and Acquisition

Ship Finance International Ltd. Announces Sale and Acquisition



HAMILTON, Bermuda, Jan. 24  /PRNewswire/ -- In its third quarter results 2004
press release, Ship Finance International Limited (the "Company") informed that
it had entered into discussions with Frontline Ltd ("FRO") to buy three VLCCs
from FRO and subsequently lease the vessels back to FRO. The Board today
announces that the Company has agreed to buy the first two vessels, the Front
Century and Front Champion, for $196 million en bloc. Delivery is expected to
take place this week. The vessels were valued by independent appraisals as of
31 December 2004 to $207.3 million.

The vessels will be chartered back to FRO for 199 and 204 months respectively,
basically following the structure in place for the other vessels chartered to
FRO. This includes a 20% profit split element in excess of the base charter
rates mentioned below.

The Board also announces the sale of the Suezmax Front Fighter for $68.25
million. The charter of the Front Fighter to FRO will be cancelled as a result
of this sale.

The new time charter rate for Front Century and Front Champion will be $31,368
per day declining to $28,492 per day in 2019 (360 day basis).  The charter rate
consists of two components -- the first part will be the same rate that was in
the Front Fighter rate applied on the two vessels, and the second part will be
based on the incremental investment made by SFL of $127.75 million.

FRO is also working on acquiring a third VLCC, Golden Victory, from another
German KG. It is too early to tell if this will end up involving the Company in
the same way as for the two above mentioned vessels. The Board expects to
revert with news on this in the near future.

The Board has earlier stated it will focus on growth which can support strong
and increasing dividend yield over time. The above transaction is the first
transaction confirming such a strategy. It secures a 6.3 % increase in cash
flow before any profit sharing.

Chairman Tor Olav Troim says in a comment: The new transaction is accretive to
Ship Finance on a net asset value basis as well as on an earnings basis. Ship
Finance is well positioned for further growth. The Company will subsequent to
the transaction including financing of the two vessels, and after completion of
the refinancing of the $1,058 million bank facility announced in the third
quarter report and payment of the 20% profit-sharing from Frontline for 2004
have a liquidity position of more than $280 million. The Strong liquidity gives
the Company an excellent position to look for new growth opportunities which
can secure a further increase in the dividend to shareholders.

   January 24, 2005
   The Board of Directors
   Ship Finance International Limited
   Hamilton, Bermuda

   Questions should be directed to:

   Tor Olav Troim: Chief Executive Officer
   [phone]

   Oscar Spieler: Chief Executive Officer, Frontline Management AS
   [phone]

   Tom Jebsen, Chief Financial Officer
   [phone]


DATASOURCE: Ship Finance International Ltd.



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

Spieler, Chief Executive Officer, Frontline Management AS, [phone], or

Tom Jebsen, Chief Financial Officer, [phone] 



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

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