Reports preliminary 2Q 2009 results and quarterly dividend of $0.30

per share

Hamilton, Bermuda, August 20, 2009. Ship Finance International Limited ("Ship Finance" or the "Company") today announced its preliminary financial results for the quarter ended June 30, 2009.

Highlights

 * Declared a quarterly dividend of $0.30 per share. * Reported net income for the quarter of $53.5 million, or $0.72 per   share, including accrued profit share of $8.0 million, or $0.11 per   share. * A non-recurring gain of $41.7 million was recognized in the second   quarter relating to our 8.5% Senior Notes previously controlled   under total return swap ("TRS") agreements. The Company also   recognized a $33.9 million non-cash write-down of assets,   predominantly linked to the remaining single-hull VLCCs. * 3.5 million new shares were issued in the quarter, as a combination   of stock dividends and shares sold in the market. Subsequent to   quarter end, an additional 1.0 million shares have been issued as   stock dividend. * Announced the appointment of Mr. Ole B. Hjertaker as the new Chief   Executive Officer ("CEO") of Ship Finance Management AS. * Announced the sale of the jack-up drilling rig West Ceres to   Seadrill Ltd. ("Seadrill") pursuant to a purchase option. Delivery   took place in July 2009, and the net cash effect to the Company in   the third quarter was $40 million after repayment of associated   bank debt. * Announced the sale of the single-hull VLCC Front Duchess to an   unrelated third party. Delivery to the new owner is expected in   September 2009, and the net cash effect to the Company is estimated   at approximately $2.5 million after repayment of associated bank   debt. 

Dividend

The Board of Directors has declared a quarterly dividend of $0.30 per share in cash, or, at the election of the shareholder, payable in newly issued common shares. The dividend will be paid on or about 16 October, 2009 to shareholders of record as of 31 August, 2009. The ex-dividend date will be 27 August, 2009.

Similar to the previous two quarters, shareholders may make an election to receive the dividend in newly issued common shares after reviewing a prospectus supplement relating to the dividend payment which will be filed with the U.S. Securities and Exchange Commission ("SEC"). The number of common shares to be issued as dividend will be set based on the volume-weighted average price of the shares on the New York Stock Exchange during the three trading days prior to the ex-dividend date, less a 5% discount.

The Company's largest shareholders, Farahead Investments Inc.