Danaos Corporation Announces
Cancellation of Three Newbuildings

Athens, Greece, May 26, 2010 - Danaos Corporation (NYSE: DAC), a leading international owner of containerships, announced that it has entered into an agreement with Hanjin Heavy Industries & Construction Co. Ltd. to cancel three 6,500 TEU newbuilding containerships, initially expected to be delivered in the first half of 2012. The agreement has been reached with the consent of Yang Ming Line who was the charterer of these vessels. Danaos is building another 6 large containerships with Hanjin Heavy Industries and Construction Co. Ltd. all of which are fully funded by already committed loan facilities from various commercial banks. The cancellation forms part of an overall plan to address the total capex funding needs.

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 44 containerships aggregating 190,229 TEUs ranks Danaos among the largest containership charter owners in the world based on total TEU capacity. Danaos is one of the largest US listed containership companies based on fleet size. Furthermore, the company has a contracted fleet of 21 additional containerships aggregating 172,450 TEU with scheduled deliveries up to 2012. The company's shares trade on the New York Stock Exchange under the symbol "DAC".

Danaos Corporation