SFL – Share incentive program 2009 and correction relating to the 1Q09 dividend election

Press release from Ship Finance International Limited, July 13, 2009
Ship Finance International Limited (NYSE:SFL) (“Ship Finance” or “the Company”) today announced that there will be an adjustment to the share option awards to the Company’s management team.
A total of 505,000 new options will be awarded to employees while all of the 355,000 previously awarded options to employees will be cancelled. The new options will be issued pursuant to the Company’s Share Option Scheme and will have a five-year term with a three-year vesting period.  The initial strike price will be equal to the weighted average share price for the three trading days following the date of this announcement, and the first options will be exercisable in July 2010.
The Company also refers to its press release dated July 3, 2009, regarding elections concerning the first quarter 2009 stock dividend.  Due to a reporting error in the number of shareholders who elected to receive the stock dividend, this figure is higher than previously communicated. Fifty-two percent (52%) of our shareholders elected to receive shares in lieu of a cash dividend, and the correct number of new shares issued is approximately 1.0 million. Accordingly, the cash dividend paid was then reduced to approximately $10.7 million.
July 13, 2009
The Board of Directors
Ship Finance International Limited
Hamilton, Bermuda
Contact Persons:
Ole B. Hjertaker: Chief Executive Officer, Ship Finance Management AS
+47 23114011 / +47 90141243
Magnus T. Valeberg: Vice President, Ship Finance Management AS
+47 23114012 / +47 93440960
About Ship Finance
Ship Finance is a major ship owning company listed on the New York Stock Exchange (NYSE: SFL). Including newbuildings, the Company has a fleet of 67 vessels, including 33 crude oil tankers (VLCC and Suezmax), two chemical tankers, eight oil/bulk/ore vessels, one dry-bulk carrier, 13 container vessels, six offshore supply vessels, one jack-up drilling rigs and three ultra-deepwater drilling units. The fleet is one of the largest in the world and 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 statements are based upon various assumptions, many of which are based, in turn, upon further assumptions, including Ship Finance management’s examination of historical operating trends. Although Ship Finance believes that these assumptions were reasonable when made, because assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond its control, Ship Finance cannot give assurance that it will achieve or accomplish these expectations, beliefs or intentions.
Important factors that, in the Company’s view, could cause actual results to differ materially from those discussed in this presentation include the strength of world economies and currencies, general market conditions including fluctuations in charter hire rates and vessel values, changes in demand in the tanker market as a result of changes in OPEC’s petroleum production levels and world wide oil consumption and storage, changes in the Company’s operating expenses including bunker prices, dry-docking and insurance costs, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, potential disruption of shipping routes due to accidents or political events, and other important factors described from time to time in the reports filed by the Company with the United States Securities and Exchange Commission.