SFL - Sale of vessel and charter termination compensation from Frontline

Marketwired

HAMILTON, BERMUDA--(Marketwire - Dec 11, 2012) - Press release from Ship FinanceInternational Limited, December 11, 2012

Ship Finance International Limited (NYSE: SFL) ("Ship Finance" or the"Company"),today announced that it has agreed with a subsidiary of Frontline Ltd.("Frontline") to terminate the charter parties for the two remaining21-year oldcombination carriers Front Viewer and Front Guider.

Frontline will make a net settlement payment to Ship Finance ofapproximately$23.5 million as compensation for the early termination of the charters andtheestimated loss of future cash sweep relating to the two vessels. The twovesselswere previously employed on profitable sub-charters which have now beenterminated early by Frontline against a cash settlement.

The Company has agreed to sell Front Viewer to an unrelated third partywithexpected delivery to the new owner in late December 2012. Net proceeds fromthesale is estimated to be approximately $9.1 million. The last combinationcarrier, Front Guider, is expected to be sold in the first quarter of 2013,andwill remain on charter to Frontline until a sale is concluded.

The sale of older vessels and termination of charters to Frontline is apart ofthe Company's strategy to renew and diversify the fleet and the net cashproceeds after repayment of debt is expected to be reinvested in newassets.Following the sale of the two vessels, the number of vessels on charter toFrontline is reduced to 23 vessels, including 17 VLCCs and six Suezmaxcrude oilcarriers.



The Board of Directors
Ship Finance International Limited
Hamilton, Bermuda

About Ship Finance

Ship Finance is a major ship owning company listed on the New York StockExchange (NYSE: SFL). Including newbuildings, the Company has a fleet of 66vessels, including 25 crude oil tankers (VLCC and Suezmax), two chemicaltankers, 12 drybulk carriers including one newbuilding, 15 containervesselsincluding four newbuildings, six offshore supply vessels, one jack-updrillingrig, one ultra-deepwater drillship, two ultra-deepwater semi-submersibledrilling rigs and two car carriers. The fleet is one of the largest in theworldand most of the vessels are employed on long-term charters.

More information can be found on the Company's website: www.shipfinance.org

Cautionary Statement Regarding Forward Looking Statements

This press release may contain forward looking statements. These statementsarebased upon various assumptions, many of which are based, in turn, uponfurtherassumptions, including Ship Finance management's examination of historicaloperating trends. Although Ship Finance believes that these assumptionswerereasonable when made, because assumptions are inherently subject tosignificantuncertainties and contingencies which are difficult or impossible topredict andare beyond its control, Ship Finance cannot give assurance that it willachieveor accomplish these expectations, beliefs or intentions.

Important factors that, in the Company's view, could cause actual resultstodiffer materially from those discussed in this presentation include thestrengthof world economies and currencies, general market conditions includingfluctuations in charter hire rates and vessel values, changes in demand inthetanker market as a result of changes in OPEC's petroleum production levelsandworldwide oil consumption and storage, changes in the Company's operatingexpenses including bunker prices, dry-docking and insurance costs, changesingovernmental rules and regulations or actions taken by regulatoryauthorities,potential liability from pending or future litigation, general domestic andinternational political conditions, potential disruption of shipping routesdueto accidents or political events, and other important factors describedfromtime to time in the reports filed by the Company with the United StatesSecurities and Exchange Commission.

This announcement is distributed by Thomson Reuters on behalf ofThomson Reuters clients. The owner of this announcement warrants that:

(i) the releases contained herein are protected by copyright and other applicable laws; and

(ii) they are solely responsible for the content, accuracy and originality of the information contained therein.

Source: Ship Finance International Limited via Thomson Reuters ONE

[HUG#1664100]

Contact:
Investor and Analyst

Harald Gurvin
Chief Financial Officer
Ship Finance Management AS
+47 23114009

Magnus T. Valeberg
Senior Vice President
Ship Finance Management AS
+47 23114012

Media

Ole B. Hjertaker
Chief Executive Officer
Ship Finance Management AS
+47 23114011

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