Costamare Inc. announced yesterday that it has agreed to sell two 1984-built vessels for demolition. At the same time, the Company has agreed to purchase two 1998-built vessels, which will replace the vessels sold in their respective charters.

In particular, the Company has agreed the following:

- To purchase the 1998-built, 3,842 TEU container vessel Bunga Raya Dua (to be renamed Koroni)

- To purchase the 1998-built, 3,842 TEU container vessel Bunga Raya Satu (to be renamed Kyparissia)

- To sell the 1984-built, 2,922 TEU container vessel Gifted

- To sell the 1984-built, 2,922 TEU container vessel Genius I

The total acquisition cost for the two vessels is approximately US $24.9 million and will be partly funded with debt drawn from a currently committed and undrawn credit facility. The total sale price for the Gifted and Genius I is approximately US $12.3 million.

The newly acquired vessels are expected to be delivered within May 2012 and will replace the Gifted and Genius I in their respective charter party agreements. At the same time, the Company has agreed to extend these two charters for period of approximately 18 months, starting from November 2012, at an average daily rate of approximately US $11,150.

Gregory Zikos, Chief Financial Officer of the Company, said: “We continue to deliver on our fleet renewal program by taking advantage of attractive steel prices and second-hand, charter-free ship values.

“With an incremental cost of only approximately US $6.3 million per vessel, we are extending the useful life of older assets by substituting them for vessels that are 14 years younger, larger and with better specifications. The transaction enhances our earnings potential and re-chartering upside. We expect to realize book gains of approximately US $4.4 million in aggregate from the above disposals.”