SFL – Second Quarter 2008 Results

HAMILTON, BERMUDA–(EMWNews – August 21, 2008) –

Ship Finance International Limited (NYSE: SFL) – Earnings

Release

Reports second quarter 2008 results and increased quarterly

dividend

to $0.58 per share

Ship Finance International Limited (“Ship Finance” or the

“Company”)

announces the financial results for the quarter ended June 30,

2008.

Highlights

* Declared an increased quarterly cash dividend of $0.58 per

share.

This includes the previously announced $0.02 dividend increase

relating to the acquisition of an ultra-deepwater drillship. The

Company has now declared stable or increasing dividends for 18

consecutive quarters.

* Reported net income for the quarter of $71.3 million, or $0.98

per

share, including profit share of $33.1 million, or $0.46 per

share.

* The single-hull VLCC Front Sabang commenced its new

hire/purchase

arrangement in April and a $10.6 million gain on sales was

recognized in the second quarter.

* The first of two 17,000 dwt chemical tanker newbuildings was

delivered in April 2008 and commenced its 10-year bareboat

charter

to Bryggen Shipping & Trading AS (“Bryggen”).

* The ultra-deepwater drillship West Polaris was delivered in July

2008 and commenced its 15-year bareboat charter to Seadrill

Limited

(“Seadrill”).

* Announced the sale of two newbuilding Suezmax tankers for a

record

$111 million per vessel. The transaction is expected to generate

a

book profit of approximately $68 million, or $34 million per

vessel, to be recognized at delivery of the vessels in 2009.

Dividends and Results for the Quarter ended June 30, 2008

The Board of Directors has declared an increased quarterly

cash

dividend of $0.58 per share. The dividend will be paid on or

about

September 15, 2008 to shareholders of record as of September 2,

2008.

The ex-dividend date will be August 28, 2008.

The Company reported total operating revenues of $120.9 million,

or

$1.66 per share, in the second quarter. Net operating income for

the

quarter was $96.8 million, or $1.33 per share, and net income

was

$71.3 million, or $0.98 per share.

As the majority of the Company’s assets are accounted for as

finance

leases, a significant portion of the charter hire is classified

as

‘Repayment of investment in finance leases’ and is deducted from

the

revenues in the Company’s Income Statement. For the second

quarter,

this amounted to $71.1 million or $0.98 per share, including

an

extraordinary upfront payment of $21.6 mill. related to

the

hire/purchase arrangement for Front Sabang.

The profit share accumulated in the second quarter was $33.1

million,

or $0.46 per share, compared to $33.7 million, or $0.46 per share,

in

the first quarter. The substantial profit share accumulated in

the

quarter was due to a very strong spot charter market for crude

oil

tankers. The market continued to be strong into the third

quarter,

but has softened in August.

There was a $3.2 million, or $0.04 per share, positive adjustment

in

mark-to-market of swaps in the second quarter, compared to a

$2.2

million, or $0.03 per share, negative adjustment in the

previous

quarter.

August 21, 2008

The Board of Directors

Ship Finance International Limited

Hamilton, Bermuda

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