Ship Finance International Limited -- Interim Report July -- September 2004 HAMILTON, Bermuda, Nov. 15 /PRNewswire-FirstCall/ -- Highlights * Ship Finance reports net income of $52.8 million and earnings per share of $0.70 for the third quarter of 2004. * Ship Finance announces a cash dividend of $0.45 per share. * Ship Finance issued 1.6 million common shares in a private placement which took place on July 14, 2004. * A further 13.2 percentage points of Frontline Ltd.'s (NYSE:FRO) holding of common shares of Ship Finance will be distributed to Frontline's shareholders on December 15, 2004. Third quarter and nine months results Ship Finance reports total operating revenues of $121.1 million, operating income of $87.7 million and net income of $52.8 million for the third quarter of 2004. Operating revenues include finance lease interest income and finance lease service revenues from charters with Frontline and charter revenues from third parties for the period prior to the vessels commencing trading under the charters to Frontline. Operating revenues also include charter revenues for vessels trading under long-term charters to third parties during the period and $36.7 million of profit share due from Frontline under the long-term charter arrangements. The Company has, as stated above, a 20 percent profit share in any earnings Frontline makes above the fixed charter rate. This profit share is determined on an annual basis. So far this year approximately $61.9 million has been accumulated of which $36.7 million has been accounted for in the quarter ($42.4 million year to date) in accordance with US generally accepted accounting principles. The unrecognised income of $19.5 million will be recognised in the fourth quarter provided Ship Finance's vessels continue to earn in excess of the fixed charter rates received from Frontline. The average daily time charter equivalents ("TCEs") earned by Frontline in the third quarter in the spot and time charter period market from the Company's VLCCs, Suezmax tankers, and Suezmax OBO carriers were $63,100, $46,700 and $27,300, respectively. Ship operating expenses of $23.6 million for the third quarter primarily consist of the management fee payable to Frontline. In the first quarter of 2004 the Company entered into interest rates swaps with a total notional principal amount of $500 million and an average interest rate of 3.4 percent. In the third quarter other financial items include a charge of $10.5 million of which $11.1 million is attributable to the mark to market valuations of these interest rate swaps. Ship Finance reports net income of $159.1 million for the nine months ended September 30, 2004. For this nine month period the average daily time charter equivalents ("TCEs") earned by Frontline in the spot and time charter period market from the Company's VLCCs, Suezmax tankers, and Suezmax OBO carriers were $64,900, $47,000 and $26,800, respectively. As at September 30, 2004, the Company had total cash and cash equivalents of $69.2 million, of which $5.8 million is restricted. Cash provided by operating activities in the quarter was $47.4 million, net cash generated by investing activities was $65.3 million and net cash used in financing activities was $81.5 million. Net cash generated by investing activities includes repayment of an amount of $55.3 million due from Frontline. The Company's cash position as of November 15, 2004 is approximately $113.0 million. Total book equity at quarter end was $608.9 million. The complete report is available on the following link: http://hugin.info/134876/R/969172/141585.pdf Questions should be directed to: Contact: Tor Olav Troim: Chief Executive Officer +47 23 11 40 00 Tom Jebsen, Chief Financial Officer +47 23 11 40 21 Oscar Spieler, Chief Executice Officer, Frontline Management AS +47 23 11 40 79 DATASOURCE: Ship Finance International Ltd. CONTACT: Tor Olav Troim, Chief Executive Officer, +47-23-11-40-00, or Tom Jebsen, Chief Financial Officer, +47-23-11-40-21, or Oscar Spieler, Chief Executice Officer, Frontline Management AS, +47-23-11-40-79, all for Ship Finance International Ltd. Web site: http://www.shipfinance.org/ http://hugin.info/134876/R/969172/141585.pdf

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