Second Quarter 2009 and Year-to-Date Highlights:

- Reported revenue of $69.8 million and $133.0 million, respectively, for the three and six months ended June 30, 2009 compared to $54.9 million and $109.1 million for the comparable prior year periods;

- Paid a first quarter dividend of $0.10 per share, representing an approximately 20 percent payout ratio. The first quarter dividend was paid on May 12, 2009 to all shareholders of record as of May 1, 2009;

- Reported decreased normalized net earnings(1) of $0.6 million, or 3.4%, to $18.7 million for the quarter from $19.3 million for the comparable quarter. The normalized net earnings include a $1.1 million expense that was accrued for in the quarter as a result of exercising the delivery deferral options. This amount is due at the deferred delivery date of each vessel and for financial reporting standards represents the cost of entering into the delivery deferral options and therefore accrued for in the period. The Company does not believe it is representative of its operating performance and if excluded, normalized net earnings for the quarter would have increased from the comparable quarter by $0.5 million, or 2.3%;

- Reported increased normalized net earnings by $0.4 million, or 1.2%, to $37.2 million for the six month period from $36.8 million for the comparable period last year. The normalized net earnings include a $1.1 million expense that was accrued for in the current quarter as a result of exercising the delivery deferral options. If excluded, normalized net earnings for the six months ended would have increased from the comparable period in the prior year by $1.5 million, or 4.2%;

- Reported normalized earnings per share(1) of $0.23, a decrease of $0.07 from $0.30, or 23.3% for the prior year's quarter, and reported decreased normalized earnings per share by $0.12 or 20.0% to $0.48 for the six month period from $0.60 for the comparable period last year. The overall decrease in normalized earnings per share over the comparable prior year periods is due to additional shares issued in our April 2008 equity offering, the non-cash dividend accrued to the preferred shareholders as part of the Series A Preferred Stock issuance in January 2009 and the $1.1 million expense for exercising the delivery deferral options. Excluding the impact of the $1.1 million, normalized earnings per share for the three and six months ended June 30, 2009, would be $0.25 and $0.50, respectively;

- Reported net earnings of $112.3 million for the quarter ended June 30, 2009 compared to $85.3 million for the comparable quarter last year. Net earnings includes unrealized gains of $89.3 million and $71.0 million from interest rate swaps for the current and comparable quarters respectively;

- Reported earnings per share of $1.62 for the quarter ended June 30, 2009 compared to $1.32 for the comparable quarter last year. Reported earnings per share includes change in fair value gains of $1.33 per share and $1.10 per share from interest rate swaps for the current and comparable quarters respectively;

- Reported net earnings of $136.5 million for the six months ended June 30, 2009 compared to $47.7 million for the comparable period last year. Net earnings includes unrealized gains of $92.5 million and $17.2 million from interest rate swaps for the current and comparable periods respectively;

- Reported earnings per share of $1.96 for the six months ended June 30, 2009 compared to $0.78 for the comparable period last year. Reported earnings per share includes change in fair value gains of $1.38 per share and $0.28 per share from interest rate swaps for the current and comparable periods respectively;

- Accepted delivery of four newbuild vessels: the CSCL Callao, CSAV Loncomilla, MOL Emerald and CSAV Lumaco;

- Diversified our customer base with the commencement of the time charters with Mitsui O.S.K. Lines, Ltd. and Compania Sud Americana De Vapores S.A.;

- Closed the first $100 million tranche of a $200 million aggregate issuance of the Company's Series A Preferred Stock in January 2009;

- Declared a second quarter dividend of $0.10 per share. The second quarter dividend is to be paid on August 20, 2009 to all shareholders of record as of August 11, 2009; and

- Added George Juetten to our board of directors on July 25, 2009. Mr. Juetten is an independent director appointed by the holders of the Company's Series A Preferred Stock.

Gerry Wang, Chief Executive Officer of Seaspan, stated, "During the second quarter, Seaspan once again achieved strong utilization for its modern, growing fleet. The Company also took delivery of 4 additional time-chartered vessels, advancing its strategy of securing a growing and stable revenue stream. Seaspan's fleet continues to perform as expected. With the delivery of an additional 29 vessels, Seaspan is expected to grow its contracted revenue stream to $7 billion."

Mr. Wang concluded, "During the first half of 2009, Seaspan has taken important steps to increase the company's financial strength. Because of these steps, including the reduction of our quarterly dividend, we have secured committed financing for substantially all of the capital needed to finance our significant contracted fleet growth."

Customer Developments

We currently have two 4250 TEU vessels on charter to CSAV, the CSAV Loncomilla and the CSAV Lumaco, with an additional two 4250 TEU vessels to be chartered to CSAV in the future. For the six months ended June 30, 2009, CSAV represents 2.2% of our reported $133 million revenue. Upon delivery of the two additional vessels, our revenue from CSAV will represent 3% of approximately $7 billion in total revenue expected from our fully delivered fleet of 68 vessels under their current time charters. During the first quarter of 2009, we became aware from media reports of the downgrade of CSAV's counter-party credit rating by major credit rating agencies and subsequent to the release of our first quarter earnings on April 28, 2009, we received requests from CSAV to participate in a restructuring plan and renegotiate the payment terms of our time charters with them. We declined to participate in the restructuring plan, however, we are aware that since that time, CSAV has proceeded with its plan. To date, CSAV has made payments in accordance with the time charter for the CSAV Loncomilla and the CSAV Lumaco.

We currently have nine 4250 TEU vessels on charter to Hapag-Lloyd, USA, a subsidiary of Hapag-Lloyd, AG. We are aware that shareholders of Hapag-Lloyd, AG have agreed in principle to capital and financing measures intended to support and safeguard the company over the long term. To date, Hapag-Lloyd, USA has made payments to us in accordance with the time charters for the nine vessels chartered to them. On July 30, 2009, we received a request from Hapag-Lloyd AG for suggestions on how we can continue our charter parties with them on amended terms and for a meeting to discuss the same. At this time, we do not intend to renegotiate the main terms of our charter parties with Hapag-Lloyd, USA.

If any of our charterers are unable to make charter payments to us in the future and are in default of their respective charter parties, we may not be able to recharter the relevant vessels at rates equal to the rates in our current charters or at all.

Vessel Delivery Deferral

Subsequent to June 30, 2009, we exercised options to defer the delivery date for 11 of the vessels that the Company has contracted to purchase. The deferrals are for periods ranging from two to 15 months from the dates agreed to under the original shipbuilding contracts. The shipbuilding contracts and time charters have been amended to provide for the new delivery dates.

We are also entering into amending agreements with a shipyard and charterer to delay the delivery date for two additional vessels that the Company has contracted to purchase. The deferrals are for a period of approximately nine months from the dates that were agreed to under the original shipbuilding contracts. The amendment agreements will be subject to certain conditions related to the refund guarantees being satisfied.

 Three and Six Months Ended June 30, 2009 Financial Summary (dollars in thousands):        Three Months Ended                  Six Months Ended               June 30,        Change            June 30,        Change          ---------------- --------------   ---------------- --------------              2009    2008       $      %       2009    2008       $      %          -------- ------- ------- ------   -------- ------- ------- ------ Reported  net  earn-  ings    $112,306 $85,327 $26,979   31.6%  $136,524 $47,663 $88,861  186.4% Normal-  ized  net  earnings (1)      $ 18,661 $19,310 $  (649)  (3.4)% $ 37,235  36,805 $   430    1.2% Earnings  per  share (basic)  $   1.62 $  1.32 $  0.30   22.7%  $   1.96 $  0.78 $  1.18  151.3% Earnings  per  share (diluted)$   1.41 $  1.32 $  0.09    6.8%  $   1.74 $  0.78 $  0.96  123.1% Normal-  ized  earnings  per  share (basic) (1)      $   0.23 $  0.30 $ (0.07) (23.3)% $   0.48 $  0.60 $ (0.12) (20.0)% Normal-  ized  earnings  per  share (diluted) (1)      $   0.23 $  0.30 $ (0.07) (23.3)% $   0.47 $  0.60 $ (0.13) (21.7)% 

Results for the Three and Six Months Ended June 30, 2009:

Revenue

Revenue increased by 27.1%, or $14.9 million, to $69.8 million for the quarter ended June 30, 2009, from $54.9 million for the comparable quarter last year. Revenue increased by 21.8%, or $23.8 million, to $133.0 million for the six months ended June 30, 2009, from $109.1 million for the comparable period last year. The increase was primarily due to the delivery of nine additional vessels between August 2008 and May 2009. These deliveries included the CSCL Sao Paulo, CSCL Montevideo, CSCL Lima, CSCL Santiago, CSCL San Jose, CSCL Callao, CSAV Loncomilla, MOL Emerald, and CSAV Lumaco. Expressed in vessel operating days, our primary revenue driver, these nine vessels contributed 715 of the 3,441 operating days in the quarter, or $13.6 million in additional revenue.

                Three Months Ended              Six Months Ended                      June 30,       Increase        June 30,      Increase                ------------------  ----------  ---------------- -----------                    2009      2008  Days     %      2009    2008  Days     %                --------     -----  ----  ----  --------   ----- -----  ---- Operating days    3,441     2,656   785  29.6%    6,590   5,268 1,322  25.1% Ownership days    3,445     2,687   758  28.2%    6,595   5,326 1,269  23.8% 

Operating days increased by 29.6%, or 785 days, to 3,441 days for the quarter ended June 30, 2009 from 2,656 operating days for the comparable quarter last year. Operating days increased by 25.1%, or 1,322 days, to 6,590 days for the six months ended June 30, 2009 from 5,268 operating days for the comparable period last year. This increase was primarily due to the delivery of nine additional vessels between August 2008 and May 2009. Expressed in operating days, these nine vessels contributed 1,163 of the 1,322 operating days for the six months ended June 30, 2009, or $21.2 million in additional revenue. Vessel utilization was 99.9% for both the three and six months ended June 30, 2009, compared to 98.8% and 98.9%, respectively, for the comparable periods in the prior year. Our vessel utilization since our initial public offering is 99.3%.

Ship Operating Expense

Ship operating expense increased by 52.2%, or $6.6 million, to $19.4 million for the quarter ended June 30, 2009, from $12.7 million for the comparable quarter last year. The increase was primarily due to the adjustment of technical services fees for the period commencing January 1, 2009 and the delivery of nine vessels to our fleet since August 2008. Approximately $3.1 million of the increase was due to the adjusted technical services fees for the 30 vessels in operation for the quarter ended June 30, 2008 and for the quarter ended June 30, 2009. The fees for these vessels increased by approximately 22% from initial technical services fees. Approximately $3.7 million of the increase was due to the addition of the nine vessels to our fleet since August 2008. Stated in ownership days, our primary driver for ship operating expense based on fixed daily operating rates, these nine deliveries account for an increase of 715 ownership days for the quarter ended June 30, 2009, as compared to the second quarter of 2008.

Ship operating expense increased by 46.3%, or $11.7 million, to $37.1 million for the six months ended June 30, 2009, from $25.3 million for the comparable period last year. Approximately $6.3 million of this increase was due to the adjustment of technical services fees for the period commencing January 1, 2009. The increase was also due to the addition of the nine vessels to our fleet between August 2008 and May 2009. Stated in ownership days, our primary driver for ship operating expense based on fixed daily operating rates, these nine deliveries account for an increase of 1,165 ownership days, or $5.8 million in ship operating expense, for the six months ended June 30, 2009, as compared to the six months ended June 30, 2008. For the six months ended June 30, 2009, we also incurred $0.4 million less in extraordinary costs and expenses not covered by the fixed fee, compared to the comparable period last year.

Depreciation

Depreciation expense increased by 23.4%, or $3.3 million, to $17.2 million for the quarter ended June 30, 2009, from $13.9 million for the comparable quarter last year. Depreciation expense increased by 19.1%, or $5.3 million, to $33.0 million for the six months ended June 30, 2009, from $27.7 million for the comparable period last year. The increase was due to the increase in number of ownership days from the nine deliveries between August 2008 and May 2009.

General and Administrative Expenses

General and administrative expenses decreased by 6.3%, or $0.1 million, to $2.0 million for the quarter ended June 30, 2009, from $2.1 million for the comparable quarter last year. General and administrative expenses increased by 3.0%, or $0.1 million, to $4.1 million for the six months ended June 30, 2009, from $4.0 million for the comparable period last year. Overall the general and administrative expenses are consistent with the comparable periods in the prior year.

Interest Expense

Interest expense decreased by 44.7%, or $4.5 million, to $5.6 million for the quarter ended June 30, 2009, from $10.1 million for the comparable quarter last year. Interest expense decreased by 42.7%, or $8.0 million, to $10.7 million for the six months ended June 30, 2009, from $18.7 million for the comparable period last year. Interest expense is composed of interest at the variable rate plus margin incurred on debt for operating vessels and a non-cash reclassification of amounts from accumulated other comprehensive income related to previously designated hedging relationships. Although the average operating debt balance was higher for the quarter ended June 30, 2009 compared to the same quarter in the prior year, interest expense decreased due to a decrease in LIBOR. The average LIBOR for the three and six months ended June 30, 2009 was 0.4% and 0.6%, respectively, compared to 2.6% and 3.0%, respectively, for the comparable periods in the prior year. Although we enter into fixed interest rate swaps, the difference between the variable interest rate and the swapped fixed rate on operating debt is recorded in our change in fair value of financial instruments caption as required by financial reporting standards. The interest incurred on our long-term debt for our vessels under construction is capitalized to the respective vessels under construction.

Change in Fair Value of Financial Instruments

The change in fair value of financial instruments resulted in a gain of $89.3 million for the quarter ended June 30, 2009 compared to a gain of $71.0 million for the comparable quarter last year. The change in fair value of financial instruments resulted in a gain of $92.5 million for the six months ended June 30, 2009 compared to a gain of $17.2 million for the comparable period last year. The change in fair value gain of $89.3 million for the quarter ended June 30, 2009 is due to increases in the forward LIBOR curve and overall market changes in credit risk since March 31, 2009. On September 30, 2008, due to the compliance and expense burden associated with applying hedge accounting, we elected to prospectively de-designate all interest rate swaps for which we were applying hedge accounting treatment. As a result, from October 1, 2008, all of our interest rate swap agreements and the swaption agreement are marked to market with all changes in the fair value of these instruments recorded in "Change in fair value of financial instruments" in the Statement of Operations. Prior to de-designation on September 30, 2008, approximately 30% of the change in fair value was recorded in "Accumulated other comprehensive loss" in the equity section of our balance sheet for our designated swaps with the change in fair value of our non-designated swaps recorded in "Change in fair value of financial instruments" in the statement of operations.

Change in fair value of derivative financial instruments is a required accounting adjustment under financial reporting standards. At the end of each reporting period, we must record a mark-to-market adjustment for our interest rate swap agreements and swaption as though the instruments were realized as of the reporting date.

The accounting adjustments appear in the following locations in the financial statements:

1) Other Comprehensive Income - For interest rate swaps that the Company had designated as hedges under the technical accounting requirements for hedge accounting, an amount was included in "Other comprehensive income" that approximated the adjustment in fair value. Since we have elected to prospectively de-designate the interest rate swaps for which we applied hedge accounting, no further fair value changes are recorded to "Other comprehensive income".