Danaos Corporation Reports First Quarter Results for the Period Ended March 31, 2008

Athens, Greece, April 21, 2008 – Danaos Corporation (“Danaos”) (NYSE: DAC), a leading international owner of containerships, today reported unaudited results for the period ended March 31, 2008.

Highlights for the First Quarter Ended March 31, 2008:

* Net earnings of $31.5 million or $0.58 per share for the first quarter ended March 31, 2008 compared to $23.9 million or $0.44 per share from continuing operations for the respective period of 2007.
* Operating Revenues from continuing operations of $69.9 million for the quarter ended March 31, 2008 compared to $62.0 million for the respective period of 2007.
* EBITDA of $52.0 million for the quarter ended March 31, 2008 compared to $39.3 million from continuing operations for the respective period of 2007.
* Paid dividends of $0.465 per share on February 14, 2008 for the fourth quarter of 2007.

Danaos’ CEO Dr. John Coustas commented: “We are very pleased with our first quarter 2008 achievements. During the first quarter we continued to successfully implement our growth strategy. We took delivery of three second-hand 2,200 TEU containerships, each of which has been chartered out for 10 years. Danaos’ contracted revenues have increased to approximately $7.3 billion, with charters extending as far as 2028.

We time-chartered the 30 year old Sederberg to CMA-CGM at a fixed one year accretive rate and we sold an other 30 year old containership, the Winterberg, to an undisclosed and unrelated third party. We also sold and delivered the APL Belgium to APL following the exercise of the purchase option APL had for this vessel. We incurred a gain on this sale of the above two vessels of $5.6 million. Further, we re-chartered the 30 year old Eagle Express to MSC for two years at accretive rates and we also chartered the Pacific Bridge to Senator lines, a subsidiary of Hanjin Shipping, for two years.

During the first quarter of 2008, the containership market marginally improved due to continued demand in the Far East-Europe and Middle East-India-Far East trades which counterbalanced a decline in the rate of growth in the Transpacific trades, although the increase was lower than the first quarter of 2007. The lack of available vessels for new charters, especially in the 3,000 TEU and above sizes, explains our success in re-chartering our older vessels. The weakness in the US housing market which contributed to slow growth in the Transatlantic and Transpacific trades is likely to persist throughout 2008. However, vessel demand keeps strong due to the slow steaming that is increasingly becoming a practice due to the sustainable high oil prices. In our industry asset backed borrowing and long charters have supported further extension of loans by the credit institutions despite the overall market turmoil. During the first quarter we secured a further $560 million in long term debt at very competitive terms and at an overall cost of 67bps over LIBOR to finance our growth.

Vessel prices during the first quarter of 2008 have further strengthened as a result of strong new building demand for large containerships, significant increases in commodity prices and further dollar weakness. The slow-down of the US economy will likely have a spill-over effect triggering some caution in the ordering of additional containerships.

Earlier in April, our board of directors declared a dividend of $0.465 per share for the first quarter, which will be paid on May 14, 2008. The dividend reflects our dedication to increase shareholder value through enhanced distributable cash flows, resulting from the successful implementation of our growth strategy.”

Three months ended March 31, 2008 compared to the three months ended March 31, 2007

During the quarter ended March 31, 2008, Danaos had an average of 36.3 containerships as opposed to 31.0 containerships for the same period of 2007. During the quarter, we acquired three vessels, the Hyundai Progress on February 11, 2008, the Hyundai Highway on March 18, 2008 and the Hyundai Bridge on March 20, 2008. In addition, we sold two vessels, the APL Belgium on January 15, 2008 and the Winterberg on January 25, 2008.

Given the sale of our entire dry bulk fleet in the beginning of 2007, management has determined that the dry bulk business constituted discontinued operations. The management and discussion analysis solely reflects results from continuing operations (containerships), unless otherwise noted.

Our net income was $31.5 million or $0.58 per share for the first quarter of 2008 compared to $23.9 million or $0.44 per share for the first quarter of 2007, an increase in net income of 31.8% or $7.6 million. Earnings per share, excluding the gain on sale of vessels of $5.6 million, was $0.48 for the first quarter of 2008. Distributable cash flow, defined as net income before depreciation & amortization, less payments for drydocking and special survey costs, was $41.7 million for the first quarter of 2008. Stockholders’ Equity decreased by $118.3 million mainly as a result of the decrease in Accumulated other comprehensive income, a non cash item, by $124.5 million due to the decrease in the fair value of interest rate swaps used to hedge our exposure to our floating interest rate debt. We declared a dividend of $25.4 million which represents 60.9% of our distributable cash flow for the first quarter of 2008.


Operating Revenue
Operating revenue increased 12.7%, or $7.9 million, to $69.9 million in the quarter ended March 31, 2008 from $62.0 million in the quarter ended March 31, 2007. The increase was primarily attributable to the addition to our fleet of 11 vessels, as follows:



These additions to our fleet contributed revenues of $15.6 million during the three months ended March 31, 2008. Moreover, a 4,300 TEU containership, the YM Colombo which was added to our fleet on March 12, 2007, contributed incremental revenues of $1.9 million during the three months ended March 31, 2008 compared to the same period in 2007. In addition, the Company sold five vessels as follows:



The vessel sales reduced operating revenue by $9.2 million during the three months ended March 31, 2008, in comparison to the same period in the previous year. The balance of $0.4 million is attributed to more scheduled off-hire days, partially offset by higher charter rates achieved due to the re-chartering of certain vessels. During the first quarter of 2008 our fleet utilization reached 95%, reflecting additional drydocking days for certain of our older vessels including those above 30 years of age, which we re-chartered during this quarter.

Vessel Operating Expenses
Vessel operating expenses increased 29.4% or $4.5 million, to $19.8 million in the quarter ended March 31, 2008, from $15.3 million in the quarter ended March 31, 2007. The increase was mainly due to the increase in the average number of our vessels in our fleet and a general increase in costs experienced by the overall industry during the quarter ended March 31, 2008 compared to the quarter ended March 31, 2007.

Depreciation & Amortization
Depreciation & Amortization includes Depreciation and Amortization of Deferred Dry-docking and Special Survey Costs.

Depreciation
Depreciation expense increased 20.4%, or $2.0 million, to $11.8 million in the quarter ended March 31, 2008, from $9.8 million in the quarter ended March 31, 2007. The increase in depreciation expense was due to the increased average number of vessels in our fleet during the quarter ended March 31, 2008, compared to the same period of 2007.

Amortization of Deferred Dry-docking and Special Survey Costs
Amortization of deferred dry-docking and special survey costs expense increased 14.3%, or $0.2 million, to $1.6 million in the quarter ended March 31, 2008, from $1.4 million in the quarter ended March 31, 2007. The increase reflects higher drydocking costs over the course of the last twelve months, which were subject to amortization during the three months ended March 31, 2008 as compared to the same period of 2007.

General and Administrative Expenses
General and administrative expenses increased 27.3%, or $0.6 million, to $2.8 million in the quarter ended March 31, 2008, from $2.2 million in the same quarter of 2007. The increase was mainly a result of increased fees of $0.3 million paid to our Manager in the first quarter 2008 compared to the same period of 2007 based on an increase in the average number of our vessels in our fleet. Moreover, public company related costs were higher in the quarter ended March 31, 2008 compared with the quarter ended March 31, 2007 by $0.3 million.

Gain / (loss) on sale of vessels
The gain on sale of vessels for the period ended March 31, 2008, reflects the sale of the APL Belgium and the Winterberg for $44.5 million and $11.2 million respectively, resulting in a gain of $5.6 million over the depreciated book value of these vessels at the time of their sale.

Other Operating Expenses
Other Operating Expenses include Voyage Expenses

Voyage Expenses
Voyage expenses decreased 11.1% or $0.2 million, to $1.6 million in the quarter ended March 31, 2008, from $1.8 million for the quarter ended March 31, 2007.

Interest Expense and Interest Income
Interest expense increased 49.1%, or $2.7 million, to $8.2 million in the quarter ended March 31, 2008, from $5.5 million in the quarter ended March 31, 2007. The change in interest expense was primarily due to the increase in our average indebtedness by 114.3%. This resulted in an increase in interest of approximately $10.1 million, partially offset by the financing of our extensive new-building program which resulted in interest capitalization of $10.2 million for the quarter ended March 31, 2008 as opposed to $2.8 million of capitalized interest for the quarter ended March 31, 2007. Interest income decreased by $0.2 million, to $1.1 million in the quarter ended March 31, 2008, from $1.3 million in the quarter ended March 31, 2007. The decrease in interest income is mainly attributable to lower interest rates, partially offset by higher average bank deposits during the three months ended March 31, 2008 as opposed to the three months ended March 31, 2007.

Other income/(expenses), net
Other income (expenses) increased by $2.5 million, to $(0.3) million for the quarter ended March 31, 2008, from $(2.8) million in the quarter ended March 31, 2007. The increase was mainly due to a non recurring loss of $2.6 million for the first quarter of 2007 attributable to an adjustment on the fair value of our debt in JPY currency.

EBITDA
EBITDA from continuing operations increased by $12.7 million, or 32.3%, to $52.0 million in the quarter ended March 31, 2008, from $39.3 million in the quarter ended March 31, 2007. A table reconciling EBITDA to net income can be found at the end of this earnings release.

Dividend Payment
On January 23, 2008, we declared a dividend of $0.465 per common share for the fourth quarter of 2007 for all shareholders of record as of January 30, 2008, which was paid on February 14, 2008. On April 18, 2008 the Board of Directors declared a dividend of $0.465 per common share for the first quarter of 2008 payable on May 14, 2008 to all shareholders of record as of April 30, 2008.

Recent News
During the first months of 2008 Danaos Corporation has entered into three credit agreements for term loan facilities in the total amount of $560 million to finance part of its new-building program. The facilities have been fully underwritten by Credit Swiss, Deutsche Bank and Emporiki Bank, a subsidiary of Credit Agricole at a weighted average rate of 0.67% over LIBOR.

Conference Call and Webcast
Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1 866 819 7111 (US Toll Free Dial In), 0800 953 0329 (UK Toll Free Dial In) or +44 (0)1452 542 301 (Standard International Dial In). Please quote “Danaos”

In case of any problems with the above numbers, please dial 1 866 223 0615 (US Toll Free Dial In). 0800 694 1503 (UK Toll Free Dial In) or +44 (0)1452 586 513 (Standard International Dial In). Please quote “Danaos”

A telephonic replay of the conference call will be available until April 29, 2008 by dialing 1 866 247 4222 (US Toll Free Dial In), 0800 953 1533 (UK Toll Free Dial In) or +44 (0)1452 550 000 (Standard International Dial In). Access Code: 1186615#

Audio webcast:
There will also be a live and then archived webcast of the conference call through the Danaos website (www.danaos.com). Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.

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 38 containerships aggregating 149,718 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".

Danaos Corporation