In line with the strategy decided by the Board, Frontline Ltd. is currently in the process of establishing a separate entity to develop the company's heavy lift activity. Such a company will include up to six single hull Suezmax vessels. Five of these vessels are on long term leases from Ship Finance International Limited, and a deal is subject to reaching a mutually acceptable solution with Ship Finance International Limited for a purchase of these vessels. One vessel is currently being converted to a heavy lift vessel at Cosco shipyard in China and will be completed in April 2007. One further firm contract has been signed for a second vessel to be delivered in August 2007, and optional conversion contracts are in place with the yard for up to four more vessels.