Danaos Corporation Adds Two New 4,253 TEU Containerships to Its Fleet: Financial News

Danaos Corporation Adds Two New 4,253 TEU Containerships to Its Fleet
Tuesday September 23, 2008 9:00 am ET

ATHENS, GREECE--(MARKET WIRE)--Sep 23, 2008 -- Danaos Corporation (NYSE:DAC - News) announced that yesterday and on July 4, 2008, it took delivery of two containerships; the Zim Sao Paolo and the Zim Rio Grande, respectively. Each vessel has a carrying capacity of 4,253 TEU. Both vessels were built by Samsung Heavy Industries and they were delivered approximately a month earlier than scheduled. Each vessel has already commenced its 12 year time charter at fixed rates immediately upon delivery.

"We enthusiastically welcome the latest deliveries," said Dr. Coustas, Chief Executive Officer of Danaos. "We are pleased to have taken delivery, approximately a month earlier than scheduled, of our two latest containerships from Samsung Heavy Industries. Both vessels have already commenced their 12 year time charter with Zim Line, one of the largest containership liner companies in the world. The vessels are chartered at an accretive fixed charter rate which provides Danaos with an effective hedge against market charter rate fluctuations. We expect that this addition to our fleet, along with another 32 vessels currently on order will contribute substantially to our distributable cash flow and net earnings and will continue to support a solid base for our dividend policy while boosting shareholder value."

About Danaos Corporation

Danaos Corporation is an international owner of containerships, chartering its vessels to many of the world's largest liner companies. Our current fleet of 39 containerships aggregating 155,123 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 32 additional containerships aggregating 234,962 TEU with scheduled deliveries up to 2011. The company's shares trade on the New York Stock Exchange under the symbol "DAC."

Forward-Looking Statement

Matters discussed in this release may constitute forward-looking statements within the meaning of the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements reflect our current views with respect to future events and financial performance and may include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts. The forward-looking statements in this release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, management's examination of historical operating trends, data contained in our records and other data available from third parties. Although Danaos Corporation believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, Danaos Corporation cannot assure you that it will achieve or accomplish these expectations, beliefs or projections. Important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the strength of world economies and currencies, general market conditions, including changes in charter hire rates and vessel values, shipyard performance, changes in demand that may affect attitudes of time charterers to scheduled and unscheduled drydocking, changes in Danaos Corporation's operating expenses, including bunker prices, dry-docking and insurance costs, actions taken by regulatory authorities, potential liability from pending or future litigation, domestic and international political conditions, potential disruption of shipping routes due to accidents and political events or acts by terrorists.

Risks and uncertainties are further described in reports filed by Danaos Corporation with the U.S. Securities and Exchange Commission.

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