Eimskipafélag Íslands hf. - Company Announcement

Eimskip offers to build and operate the new Westman Islands car and passenger ferry

Today, Eimskip submitted offer in Part B of the public state tender for
building and operating a new Westman Islands car and passenger ferry. According
to the tender the new ferry should be delivered in mid-year 2018 and the
company would then operate her until the year 2030. The total amount of Eimskip
offer, for building the ferry and operating her for 12 years, is in the range
of 8.1 to 9.4 billion ISK. 

The offer submitted has been prepared by our most capable experts, in
cooperation with foreign shipyards. 

Eimskip did not participate in Part A of the tender, which covers only building
a new ferry to sell to the state. At this moment in time it is uncertain
whether the state will accept offers from Part A or Part B of the tender.
Should an offer from Part A be chosen, and the state negotiates directly with a
shipyard, the state is expected to publicly tender the operation of the ferry
later. 

According to the terms and conditions of the offer, the state is now granted 18
weeks to evaluate all offers. Therefore it remains to be seen whether the offer
that Eimskip submitted will be accepted. 

Gylfi Sigfússon, President and CEO of Eimskip

“Eimskip has operated the ferry Herjólfur since 2006. The company’s experience
of this operation is very good, and we believe that we are well suited for
building a new ferry, in cooperation with foreign shipyards, and then operating
her in the coming years. This new building is intended to improve
transportation to and from Westman Islands, and therefore it would be a great
opportunity for Eimskip to continue with this project. I hope that this new
ferry will increase frequency of trips to and from Westman Islands, via port of
Landeyjar, since the ferry serves as the main road to the Islands.” 

About Eimskip

Eimskip was founded in 1914 and is a publicly traded company with its shares
listed on Nasdaq Iceland. The company runs a network of 57 offices in 19
countries, operates 20 vessels and has about 1,580 employees. 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.