Ship Finance International Ltd.: Ship Finance and SeaDrill in USD 210 Million Rig Transaction

HAMILTON, Bermuda, July 3, 2006 (PRIMEZONE) — Ship Finance International Limited (“Ship Finance”) is pleased to advise the purchase of the 2006 built jack up drilling rig SeaDrill 3 for a purchase price of USD 210 million.

The rig is chartered back to the seller SeaDrill III Limited for a period of 15 years. The parent company SeaDrill Limited has guaranteed the charter party. Ship Finance will receive a charter hire of USD 112,500 per day for the first 3 years, USD 51,500 for the years 4-7, USD 43,500 for the years 8 and 9 and USD 40,000 for the years 10-15. In addition to the fixed charter rate Ship Finance will receive a profit split element of 5% above certain threshold levels after year 3. During the charter party the charterer will have several options to buy back the rig. The first purchase option is after 3 years at USD 135.5 million and the last purchase option is after 15 years at USD 60 million.

The purchase of the rig is part financed by a USD 165 million term loan facility arranged by Nordea Bank Norge ASA and DnB NOR ASA.

 Ship Finance International Limited 
 July 3, 2006 
 Hamilton, Bermuda
CONTACT:  Ship Finance Management AS
          Lars Solbakken, Chief Executive Officer
          + 47 23 11 40 06