Ship Finance International offload FRONT BIRCH and FRONT MAPLE
1991-built single bottom tankers go in programme to modernise fleet...

Ship Finance International Limited today announced the agreement to sell its two remaining suezmax tankers with double sides but only single bottom.

Front Birch and Front Maple (both vessels built in 1991) are sold to unrelated third parties, and deliveries to the new owners are expected to take place in December and January. Net sales price is agreed to $80.0 million for the two vessels, and Ship Finance will receive a net amount of approximately $47.2 million, after compensation of approximately $32.8 million to Frontline for the termination of the current charters on the two vessels.

There are currently approximately $10.7 million in loans outstanding against the vessels, and the net cash effect to Ship Finance from the transactions is estimated to be approximately $36.5 million. The aggregate book profit is estimated to approximately $13.0 million, of which $6.6 million is expected to be recognized in 4Q 2007 and $6.4 million in 1Q 2008.

Following these sales, and excluding one vessel previously announced sold on hire/purchase terms, there will be only seven crude oil tankers without double hull remaining in our fleet. This is down from 18 vessels in 2006, and Frontline has secured profitable sub-charters for all the remaining non-double hull vessels.

The reduction of the number of vessels without double hull is in line with the Company's strategy to focus on modern assets in various shipping and offshore segments. The cash proceeds from the sales are intended to be re-invested as equity contribution in new projects.

Both vessels have been managed by V Ships, Glasgow