Eimskipafélag Íslands hf. - Company Announcement

Eimskip reduces purchase price of a new vessel building project

Expected delivery in the first half of year 2014

In 2011 Eimskip and the shipyard Rongcheng Shenfei in China made an agreement
of building two container vessels. Each vessel's size is 875 TEU, thereof each
containing plugs for 230 reefer containers. Deadweight of each vessel is
approximately 12 thousand tons. The vessels are 140.7 meters long and 23.2
meters wide. 

Originally the vessels were expected to be delivered in 2013. An amendment
agreement with the shipyard expects delivery of the vessels in the first half
of 2014. Besides negotiating the delay, Eimskip has negotiated a reduction of
the vessels' purchase price by about 20% which equals a reduction of USD 10
million in total. 

Eimskip has already paid USD 26 million which equals about 70% of the altered
purchase price of the vessels. The investment is financed with equity and with
a bridge loan for the building period from an Icelandic bank and with long term
financing from a foreign bank. 

In March 2013 Eimskip introduced material changes in its sailing schedule. The
delay of the vessels' delivery time will neither affect these changes nor
service to the company's customers. The delay will however extend chartering of
vessels longer than earlier expected. 



Gylfi Sigfússon, CEO

“It is pleasant to have achieved a reduction of the vessels' purchase price, in
connection with a delay in their delivery, by USD 10 million. It will be
delightful to receive the new vessels on Eimskip's 100 years anniversary in
2014. The delay will not affect the company's new sailing schedule or services
to our customers. It is also good to experience the trust which Eimskip has
earned among international finance organizations in relation to the financing
of the project, whereas the company has ensured long-term financing of the new
building.” 



About Eimskip

Eimskip runs a network of 51 offices in 18 countries and operates 16 vessels.
Total number of employees is around 1,330. 

The company's vision is to provide outstanding transportation services through
a dependable transport system in the North Atlantic, as well as offering
extensive worldwide network of reefer logistics services.