FRO - Acquisition of vessels and time charter contracts

Ships Inc. at a purchase price of $240 million at Hamilton, Bermuda.

The vessels are built in the period 1992 to1996, and will be delivered in the period June 2008 to August 2008. Frontline also announced the agreement to take five double hull Suezmax tankers on time charter from Eigir Shipping for the balance period of existing charters, all with delivery June/August 2008 and redelivery November 2009/April 2010. The vessels are built in the period 1999 to 2006. The acquisitions and chartering-in of the vessels will contribute to further consolidation in the Suezmax market. This also confirms Frontline's regained position as the world's largest operator and owner of double hull Suezmax tonnage in addition to its position as the world's largest independent operator and owner of double hull VLCC tonnage.Frontline's commitment to acquire the five double hull Suezmax tankers and to charter-in further five, confirms the Board's firm belief in the future prospects in the tanker market.

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