SFL - First Quarter 2016 Results

Reports preliminary 1Q 2016 results and quarterly dividend of $0.45 per share

Hamilton, Bermuda, May 31, 2016. Ship Finance International Limited ("Ship Finance" or the "Company") today announced its preliminary financial results for the quarter ended March 31, 2016.

Highlights

• Declaration of first quarter dividend of $0.45 per share, our 49^th consecutive dividend
   
• $24.7 million in profit share from Frontline in the quarter as a result of a strong tanker market
   
• Continuation of the Company's strategy of fleet renewal and diversification with sale of an older offshore support vessel in the first quarter and an older VLCC subsequent to quarter end
   
• Successful delivery of two large container vessels with long term charters to Maersk Line
   
• Cash redemption of the $125 million convertible notes due in February 2016 without diluting existing shareholders
   
• Selected key financial data:

Ole B. Hjertaker, CEO of Ship Finance Management AS, said in a comment: "Ship Finance delivers yet another strong quarter, and our fleet renewal and diversification program continues with the recent delivery of two newbuilding container vessels with long term charters to Maersk Line.

Our business model has been tested through all market cycles, and we are to our knowledge the only maritime company which has been consistently profitable and paid dividends every quarter the last twelve years. Our key focus remains on prudently managing our balance sheet and our existing asset portfolio whilst sourcing new accretive opportunities through our industry relationships and unique access to deal flow."

Dividends and Results for the Quarter Ended March 31, 2016

The Board of Directors has declared a quarterly cash dividend of $0.45 per share. The dividend will be paid on or around June 29 to shareholders on record as of June 14, and the ex-dividend date on the New York Stock Exchange will be June 10, 2016. This is the 49^th consecutive quarterly dividend declared by the Company.

The Company reported total U.S. GAAP operating revenues on a consolidated basis of $117.6 million, or $1.26 per share, in the first quarter of 2016. This number excludes $8.8 million of charter revenues classified as 'repayment of investments in finance lease' and $47.3 million of charter revenues earned by 100% owned assets classified as 'investment in associate.' Inclusive of those revenues, the total actual revenues were $1.86 per share.

The 50% profit share agreement with Frontline contributed $24.7 million, or $0.26 per share in the first quarter above the base contracted rates. There was also a $0.2 million profit share in the first quarter relating to some of our dry bulk carriers.

Reported net operating income pursuant to U.S. GAAP for the quarter was $57.2 million, or $0.61 per share, and reported net income was $46.8 million, or $0.50 per share. This is after approximately $10.0 million, or $0.11 per share in negative non-cash charges, which includes a negative mark-to-market of $7.1 million related to interest rate hedging instruments and amortization of deferred charges of $2.9 million in the first quarter.

The full report can be found in the link below.

Questions can be directed to Ship Finance Management AS:

Investor and Analyst Contact:

Harald Gurvin, Chief Financial Officer: +47 23114009

André Reppen, Senior Vice President: +47 23114055

Media Contact:

Ole B. Hjertaker, Chief Executive Officer: +47 23114011

About Ship Finance

Ship Finance International Limited (NYSE: SFL) has an unprecedented track record in the maritime industry, being consistently profitable and paying dividends every quarter since 2004. The Company's fleet of more than 70 vessels is split between tankers, bulkers, container vessels and offshore assets, and Ship Finance's long term distribution capacity is supported by a portfolio of long term charters and significant growth in the asset base over time. More information can be found on the Company's website: www.shipfinance.bm

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 worldwide 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.