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Ship Finance International Limited4Q 2012 Results

February 25, 2013

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FORWARD LOOKING STATEMENTS

This presentation contains forward looking statements. These statements are based upon various assumptions, many of which arebased, in turn, upon further assumptions, including Ship Finance management's examination of historical operating trends, data contained in the Company’s records and other data available from third parties. Although Ship Finance believes that these assumptions were reasonable when made, because assumptions are inherently subject to significant uncertainties and contingencieswhich are difficult or impossible to predict and are beyond its control, Ship Finance cannot give assurance that it will achieve or accomplish these expectations, beliefs or intentions.

Important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-lookingstatements include the strength of world economies, fluctuations in currencies and interest rates, general market conditions including fluctuations in charter hire rates and vessel values, changes in demand in the markets in which we operate, changes in demandresulting from changes in OPEC's petroleum production levels and world wide oil consumption and storage, developments regarding the technologies relating to oil exploration, changes in market demand in countries which import commodities and finished goods and changes in the amount and location of the production of those commodities and finished goods, increased inspection procedures and more restrictive import and export controls, changes in our operating expenses, including bunker prices, dry-docking and insurance costs, performance of our charterers and other counterparties with whom we deal, timely delivery of vessels under construction within the contracted price, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, potential disruption of shipping routes due to accidents or political events, and other important factors described from time to time in the reports filed by the Company with the Securities and Exchange Commission.

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LINERDRY BULKOFFSHORE TANKERS

4Q 2012 highlights

• Net income of $51.1 million ($ 0.60/share) for the quarter» Aggregate charter revenue of $168 million ($1.98/share)(1)

» EBITDA(2) of $134 million ($1.59/share)

• 2012 cash sweep on Frontline vessels: $52.2 million» Payable to SFL in March 2013» $12.1 million cash sweep recorded in 4Q-2012

• Fourth quarter dividend of $0.39 per share was prepaid in December 2012» Dividend yield(3) of approx. 9.6%

1) Charter revenues includes total charter hire from all vessels and rigs, including assets in 100% owned subsidiaries classified as ‘Investment in associates’ and accrued cash sweep income. 2) EBITDA is a non- GAAP measure and includes assets in 100% owned subsidiaries classified as 'Investment in associates'. For more details please see 4Q-12 press release Appendix 1: Reconciliation of Net Income

to EBITDA.3) Quarterly cash dividend, annualized / SFL share price $16.27 (February 22, 2013)

Charter revenue4Q-12

50% 29% 11% 10%

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Recent developments

• Acquired two modern car carriers in combination with 5-year charters» 6,500 ceu capacity, built 2005 and 2006 in Japan» 5-year time charter to Hyundai Glovis, an investment-grade logistics company

based in Korea» $85 million increase in charter backlog

• More than $1 billion raised in the capital markets since October 2012» Combination of equity, bonds, convertible notes and bank financing» A part of the new capital is earmarked for additional growth

• Renewal of fleet continues» Seven older vessels sold in 4Q 2012 and 1Q 2013(1)

» Aggregate book gains of approximately $39 million and net cash proceeds(2) of approximately $68 million over the two quarters

» Five newbuildings under construction, including a dry-bulk carrier and four container vessels with expected delivery between 1Q 2013 and 1Q 2014

1) Including a vessel due to be delivered to its new owner at the end of 1Q 20132) Net cash proceeds after debt prepayment and charter termination compensation

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Cash sweep and profit share

1) Average earnings for modern VLCC (Clarksons, Research Sercices, quarterly average)2) Average cash sweep range for 5 x VLCCs acquired in 20053) Average cash sweep range for 12x VLCCs and 5 x Suezmaxes acquired in 2004 (excluding vessels announced sold)4) $50 million of profit split was prepaid in 2011

• $52.2m cash sweep in 2012» 22 VLCCs, Suezmaxes and OBOs (acquired in 2004): $12.1m cash sweep in 4Q-12» 5 VLCCs at higher rates (acquired in 2005): No cash sweep in 2012

• Most of the Frontline vessels are now employed in the spot market» Very soft crude-oil tanker market currently = limited cash sweep expectations

VLCC earnings(1) and cash sweep range

Up to $0.15/share per

quarter

Up to $0.15/share per

quarter

25% profit split(4)

above old base rates

25% profit split(4)

above old base rates

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

$90,000

$100,000

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

17 x VLCC/Suezmax: Cash sweep range(3)

5 x VLCCs - Cash sweep range(2)

66

.

• Significant reduction in leverage last 4 years• From $1,250m to ~$470m(2) = 60%

reduction in loan amount• Loan amortization continues (>$70m/year)• Next refinancing: ~$220m in 2015

• 47 vessels initially in 2004• The fleet has been reduced to 22

vessels by selling the oldest tonnage• Only double-hull VLCCs and Suezmaxes

remaining

Vessels on charter to FRO

Frontline vessels and financial exposure

Financial leverage on FRO vessels

Number of vessels to FRO Financing relating to FRO vessels

1) Source: Clarkson Research Services2) Gross available amount per 4Q 2012, adjusted for subsequent prepayments due to vessels sales.

(1)

$0m$200m$400m$600m$800m

$1000m$1200m$1400m

2004 2005 2006 2007 2008 2009 2010 2011 2012

Scrap @ $420/ldt Loan

-

10

20

30

40

50

2004 2005 2006 2007 2008 2009 2010 2011 2012Single Hull/OBO Suezmax VLCC

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$5.2 billion charter backlog(1)

1) Fixed charter backlog as of December 31, 2012, adjusted for subsequent acquisitions and sales, excluding future cash sweep/profit share, net of any seller’s credit and assuming certain call options are not exercised

Charterers by Mkt. Cap Remaining Charter Term(1)

5–10 yrs33%

> 10 yrs64%

0–5 yrs3%

> $5bn44%

< $5bn39%

Private17%

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1) Source: Clarkson Research Services2) Source: RS Platou markets

• Downward pressure on asset values in most shipping segments last 18 months» Banks increasing pressure on weaker owners to sell assets» Significant deliveries impacting supply/demand ratio» Shipyards need to fill up production capacity» Many ship owners have limited access to capital

• Increased focus on efficient vessel designs» Significant fuel savings compared to older tonnage» ‘Value gap’ between newbuildings and secondhand vessels

Tanker (1) Container (1)

Historically attractive asset prices

Orders and yard capacity(2)

0

20

40

60

80

100

120

140

160

98 99 00 01 02 03 04 05 06 07 08 09 10 11 12NB VLCC 5yr VLCC

0

10

20

30

40

50

60

70

98 99 00 01 02 03 04 05 06 07 08 09 10 11 12NB 3,500teu 5yr 3,600teu

0

10

20

30

40

50

60

70

80

94 96 98 00 02 04 06 08 10 12

mill. cgt

est. new orders est. build capacity

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Contributions from projects last 12 months(1)

1) Not as accounted per US GAAP – used as an internal guideline to assess the Company’s core business.2) Fixed charter revenues and return on financial investments 3) Ordinary installments relating to the Company’s projects. Excluding prepayments when vessels are sold

• Large performing fleet with significant cash flow» $585m EBITDA-equivalent last twelve months» $136m net cash-flow from projects after interest and debt amortization

(3)(2)

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SFL operational performance

• Pro-forma illustration of cash flow (1)

» Not as accounted for under US GAAP» Used as an internal guideline to assess the Company's performance» Excluding extraordinary and non-cash items and profit share

4Q 2012 3Q 2012$ mill. $/share $ mill. $/share

Fixed charter hireVLCC 30.4 0.36 30.4 0.38Suezmax 10.2 0.12 10.2 0.13Chemical Tankers 1.5 0.02 1.5 0.02Liner (Container and Car Carriers) 18.0 0.21 14.6 0.18Dry bulk incl. OBOs 14.0 0.17 15.6 0.20Offshore 81.9 0.97 93.9 1.19Sum fixed charter hire 155.9 1.84 166.2 2.10

Vessel operation expenses and G&A (35.9) (0.42) (35.9) (0.45)Financial investments 2.3 0.03 1.9 0.02Accumulated cash sweep/profit share(2) 12.1 0.14 13.0 0.16

EBITDA including accumulated cash sweep 134.4 1.59 145.2 1.83

1) Including cash flow in subsidiaries accounted for as ‘investment in associate’2) The numbers include cash sweep accrual in Frontline Shipping Limited only, as there was no accrued cash sweep in Frontline Shipping II Limited for the nine and 12 months ended September 30, 2012 and

December 31, 2012, respectively.

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INCOME STATEMENT(in thousands of $ Dec, 31 Sept, 30 Dec, 31 Dec, 31except per share data) 2012 2012 2012 2011

Charter revenues - operating lease 34,104 31,476 137,035 120,024Charter revenues - finance lease 46,026 47,263 190,198 380,518Revenues classified as Repayment of investment in finance leases (14,573) (14,612) (59,717) (205,910)Profit share income - - - 482Cash sweep income 12,097 10,162 52,176 -Total operating revenues 77,654 74,289 319,692 295,114Gain on sale of assets and termination of charters 21,537 1,923 47,386 8,468

Vessel operating expenses (24,744) (25,364) (94,914) (81,063)Administrative expenses (2,341) (2,133) (8,942) (9,885)Depreciation (14,225) (13,583) (55,602) (49,929)

Total operating expenses (41,310) (41,080) (159,458) (140,877)

Operating income 57,881 35,132 207,620 162,705

Results in associate 10,163 10,669 43,492 50,902Interest income from associates and long term investments 5,668 5,661 22,633 21,851Interest income, other 1,586 1,198 4,541 1,550Interest expense (22,354) (22,067) (88,985) (96,247)Amortization of deferred charges (1,529) (1,500) (5,866) (7,131)Gain on sale of associate - - - 4,064Other financial items (730) (710) (2,026) (2,111)Impairment adjustment to investments - - (3,353) -Mark to Market of Derivatives 414 6,176 7,780 (4,408)Taxes - - - -Net income 51,099 34,559 185,836 131,175

Basic earnings per share ($) 0.60 0.44 2.31 1.66

Weighted average number of shares 84,768,478 79,225,000 80,594,399 79,125,000Common shares outstanding 85,225,000 79,225,000 85,225,000 79,125,000

Three months ended Twelve months ended

Profit & loss

Gain on sale of four older vessels

Accumulated cash sweep from Frontline

SFL issued 6 million new shares

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BALANCE SHEET Dec, 31 Sept, 30 Dec 31, 2011(in thousands of $) 2012 2012 (audited)ASSETSShort termCash and cash equivalents 60,542 66,818 94,915Available for sale securities 55,661 40,359 23,324Amount due from related parties 54,203 41,195 9,775Other current assets 72,226 72,988 64,749

Long termNewbuildings and vessel deposits 69,175 73,780 123,750Vessels and equipment, net 1,041,126 960,400 896,830Investment in finance leases 1,086,989 1,116,191 1,159,900Investment in associate 232,891 219,907 169,838Amount due from related parties - Long term 221,884 235,163 274,184Deferred charges 23,740 22,943 25,723Other long-term assets 54,652 52,259 53,140

Total assets 2,973,089 2,902,003 2,896,128

LIABILITIES AND STOCKHOLDERS’ EQUITYShort termShort term and current portion of long term interest bearing debt 157,689 220,051 150,342Other current liabilities 30,602 20,622 19,385Amount due to related parties 9,227 7,495 4,421

Long termLong term interest bearing debt 1,673,511 1,630,480 1,760,122Other long term liabilities 107,292 113,975 104,767

Stockholders’ equity 994,768 909,380 857,091Total liabilities and stockholders’ equity 2,973,089 2,902,003 2,896,128

Balance sheet

Excludes $57 million available under revolving credit facilities

Includes $52 million in accumulated cash sweep from Frontline

Equity ratio of 37%, includingdeferred equity of $151 million

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Liquidity and financing

• $118 million in total available liquidity » $61 million cash and cash equivalents» $57 million available under revolving credit lines

• $56 million in available for sale securities» Mainly senior secured bonds

• Debt overview» $1.8 billion consolidated interest bearing debt at quarter

end, including $0.6 billion of senior unsecured notes» $1.2 billion bank loans in subsidiaries account for as

‘Investment in associate’

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Raised more than $1billion since Oct 2012

• $89m equity offering (Oct 2012)» 6 million new shares issued» Proceeds partly used to acquire two car carriers

• $105m senior unsecured notes (Oct 2012)» NOK 600m due 2017 – priced at NIBOR + 5.00% (all payments

swapped to USD at a fixed interest rate of 6.06%)» Net proceeds used refinance other indebtedness

• $53m senior secured bank financing (Nov 2012)» Five-year tenor with a $31m payment at maturity» Financing of two car carriers

• $420m senior secured bank financing (Dec 2012/Jan 2013)» Refinancing of the ultra-deepwater drillship West Polaris» Five-year tenor with a $240m payment at maturity

• $350m convertible notes due 2018 (Jan 2013)» 3.25% coupon and initial strike price of $21.945» Partly used to refinance remaining $248m senior notes due 2013

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Remaining newbuilding program less than 5% of Enterprise Value(1)

1) Enterprise Value defined as sum of market capitalization at February 22, 2013 and net interest-bearing debt at December 31, 2012, including all 100% owned subsidiaries

• Five newbuildings and $191 million remaining gross investments• Committed undrawn bank debt of $165 million = $26m net capex• All newbuildings have medium- to long-term charters attached

EnterpriseValue(1):$4.4bn

Fully financed newbuilding program

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Covenant compliance

1) Including $57.5 million in available undrawn credit lines.2) Excluding short-term portion of long-term debt3) Including $151.5 million of deferred equity

Free cash(1) > $25m $118m

Working capital(2) > 0 $203m

Book equity ratio(3) > 20% 37%

Minimum Value Clauses (where applicable) In compliance

Ship Finance has never experienced any violations of bank covenants,despite the volatility in the shipping and offshore markets

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Summary

1) EBITDA is a non- GAAP measure and includes assets in 100% owned subsidiaries classified as 'Investment in associates'. For more details please see 4Q-12 press release Appendix 1: Reconciliation of Net Income to EBITDA.

2) Quarterly cash dividend, annualized / SFL share price $16.27 (February 22, 2012)

• Reported net income of $51.1 million ($0.60/share) in the fourth quarter» $52.2 million total cash sweep in 2012

• EBITDA(1) equivalent cash flow of $134 million ($1.59/share) including associated companies

• Fourth quarter dividend of $0.39 per share was prepaid in December 2012» 10% dividend yield(2)

• More than $1 billion raised in the capital markets since October 2012» Combination of equity, bonds, convertible notes and bank financing

• Investment opportunities in several segments