Sealift and Frontline Ink Heavy Lift Vessel Deal

Sealift has agreed with Frontline to acquire four heavy lift vessels where Frontline has the total responsibility for the conversion from suezmax vessels to heavy lift vessels. The price for each heavy lift vessel is $100 million after completed conversion. The first vessel, Front Sunda, is already undergoing conversion to a heavy lift vessel and estimated delivery of all the four units will be in the period April 2007 through January 2008. Three of the vessels will be chartered back to Frontline on bareboat rate of $15,000 per day per vessel for a period until the conversion takes place. Sealift will also acquire two further suezmax sister vessels from Frontline including option contracts with a yard to convert these to heavy lift vessels. Frontline has invested $60 million in the company and will thereby end up as a 33% shareholder.