Eimskipafelag Islands hf Updates on Acquisition of New Vessel

Eimskipafelag Islands hf announced that in 2011 the Company 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 12,000 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, the Company has negotiated a reduction of the vessels’ purchase price by approximately 20% which equals a reduction of USD 10 million in total. The Company has paid USD 26 million which equals approximately 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 the Company 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.