Eimskipafélag Íslands hf. - Company Announcement

Eimskip has cancelled the second vessel in China

In 2011, Eimskip and a shipyard in China made an agreement of building two
container vessels. The first vessel, Lagarfoss, was delivered in June last year
and has served the company well. The construction of the second vessel has not
proceeded according to schedule and it is evident that further delay is ahead.
The company has now decided to exercise its right under the abovementioned
agreement and cancel the second vessel. In accordance with the terms of the
agreement Eimskip will seek refund of USD 13,1 million (plus interest) which
the company has already paid in relation to the construction of the second
vessel. That refund sought plus interest is secured by a bank guarantee. 

Eimskip will now evaluate other opportunities regarding investments in a
comparable vessel. 



About Eimskip

Eimskip runs a network of 56 offices in 19 countries and operates 18 vessels.
The total number of employees is about 1,520. Approximately half of Eimskip's
operating revenue comes from operations outside Iceland. The company's vision
is to provide outstanding transportation services through a dependable
transport system in the North Atlantic, as well as offering an extensive
worldwide network of reefer logistics services.