SOURCE: Danaos Corporation

December 10, 2007 16:05 ET

Danaos Corporation Orders With Hyundai Three 10,100 TEU Post Panamax Containerships and Agrees 12 Year Charters for All. Also Takes Delivery of One 4,253 TEU New Building Expanding Current Fleet to 37 Containerships

ATHENS, GREECE--(Marketwire - December 10, 2007) - Danaos Corporation (NYSE: DAC) today announced that it has ordered three 10,100 TEU containerships. All three Post Panamax containerships will be built by Hyundai Samho Heavy Industries and are expected to be delivered to Danaos in January, February and March of 2011.

Danaos has also arranged for a large international liner company to charter all these vessels for 12 years each, at accretive rates. This deal increases Danaos' contracted fleet of newbuildings to 34 vessels with a total carrying capacity of 243,468 TEU or 160% of its current fleet.

The total contract deal size for these three vessels is approximately $450 million and will be financed by own funds and debt. Upon delivery, this three vessel block addition to Danaos’ fleet of containerships is expected to contribute annually approximately $ 51 million of additional EBITDA. For the first full year of operation, this five vessel block addition to Danaos' fleet of containerships is expected to contribute approximately $51 million of EBITDA, annually upon delivery of all 3 vessels. For this purpose, EBITDA, a non-GAAP measure, shall mean net earnings before interest, un-drawn credit facility fees, taxes, depreciation and amortization of deferred dry-docking charges and financing fees.

Further, on November 26, 2007, in a high level festive ceremony held at the premises of Samsung Heavy Industries' shipbuilding facilities, Danaos took delivery of its 37th containership, the YM Vancouver which immediately commenced its 12 year charter with Yang Ming Lines.

"We have placed one more order for very large size containerships," said Dr. Coustas, Chief Executive Officer of Danaos. "In addition we have arranged 12 year charters at accretive rates with one of the largest liner companies in the world for all three of these vessels scheduled to be delivered to us in 2011. With this order Danaos is solidifying its position as one of the major players in the containership market worldwide. With this deal we have not only managed to increase our contracted fleet to 34 containerships, but also secure long term charters for all of our vessels currently comprising our contracted fleet. Our current contracted revenue has now reached $ 7.1 billion. Furthermore, the delivery of the YM Vancouver, a large containership from Samsung Heavy Industries, for which we had already arranged a 12 charter with Yang Ming Lines, increases our current fleet to 37 vesels and expands our revenue base and profitability.”

About Danaos Corporation

Danaos Corporation is an international owner of containerships, chartering its vessels to many of the world's largest liner companies. Its current fleet of 37 containerships aggregating 151,725 TEUs ranks Danaos among the largest containership charter owners in the world based on total TEU capacity. Danaos is the largest US listed containership company based on fleet size. Furthermore, the company has a contracted fleet of 34 additional containerships aggregating 243,468 TEU with scheduled deliveries up to 2011. The company's shares trade on the New York Stock Exchange under the symbol "DAC."

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Contact Information

  • For further information please contact:

    Dimitri Andritsoyiannis
    Vice President and Chief Financial Officer
    Danaos Corporation
    Athens, Greece
    Tel: +30 210 419 6481

    Iraklis Prokopakis
    Vice President and Chief Operating Officer
    Danaos Corporation
    Athens, Greece
    Tel: +30 210 419 6400

    Investor Relations and Financial Media:
    Nicolas Bornozis
    Capital Link, Inc.
    New York
    Tel: 212-661-7566