Deep Sea Supply in Sale & Leaseback Deal with Ship Finance

Deep Sea Supply has completed the sale and leaseback transaction with Ship Finance International Limited for 4 of the mentioned 5 offshore supply vessels; Sea Cheetah, Sea Jaguar, Sea Trout and Sea Halibut, reference is made to the press release of 10 August 2007 and to the Memorandum of Agreement of 23 August 2007.

The vessels have been delivered to Ship Finance International Limited (or affiliates) on 6 September 2007. Furthermore and at the same date the vessels will go on the agreed bareboat charterparties.

The parties have entered into a 5 year interest-rate swap agreement, and compared to the press release August 10, the agreed bareboat charter rates have been reduced to the following yearly average amounts:

Years      2 x AHTS     2 x PSV 
1-2        $17,300       $9,625
3-5        $15,925       $8,850 

All other conditions mentioned in the press release of August 10, 2007 remain unchanged. The 5th vessel will be included in the sale and leaseback transaction in some weeks, and then a separate announcement will be made.