1. IFRS Transition Report

2. Transition to IFRS GREEN REEFERS ASA - CONSOLIDATED (unaudited) Contents Page 1. General information 3 2. Reconciliation of Balance Sheet 01.01.2004 5 - NGAAP - IFRS 3. Reconciliation of Profit and loss statement for 2004 6 - NGAAP - IFRS 4. Reconciliation of Balance Sheet 31.12.2004 7 - NGAAP - IFRS 5. Reconciliation of Equity NGAAP 31.12.2003 – IFRS 31.12.2004 8 6. Quarterly information 2004 9 7. Notes to the IFRS financial statements12

3. 3 Transition to IFRS 1. General information As from January 1. 2005, all public companies within the EU-area shall implement International Financial Reporting Standards (IFRS) for the consolidated accounts. This change will also apply to Norwegian public companies. According to the new regulations Green Reefers will prepare the accounts in accordance with IFRS as from January 1. 2005. As Green Reefers is required to present comparable figures in 2005, an opening balance according to IFRS as per January 1. 2004 has been prepared. This report on transition to IFRS also presents comparable figures for the Profit and loss statement 2004, and the ending balance according to IFRS as per December 31. 2004. IAS 32 and IAS 39, both relating to financial instruments, will be applied from January 1. 2005, and will therefore have no effect on comparative figures for 2004. There are still inherent uncertainties as to how the standards should be interpreted and implemented. Green Reefers has prepared this document based on the current understanding of IFRS. The change in accounting standards effects, among other things, the below items in Green Reefers’ accounts; Fixed assets/ periodical maintenance Fixed assets will be carried forward at depreciated historic cost. Periodical maintenance/ docking expenses will be capitalised and classified as ships. Periodical maintenance/docking expenses will be regarded as a separate part of the ship value, and will be depreciated over the remaining period on to the next ordinary docking. The cost will be reclassified from operating expenses to depreciation. Residual values will be established for the fixed assets, and dismantling expenses will be taken into account. The residual values will be based on market values for scrapped fixed assets at the reporting date. Both these changes will imply increased values on fixed assets, and increased Equity. Conversion from provision for periodical maintenance to capitalising and depreciation of cost for periodical maintenance, will reduce short term debt, and increase the Equity. Implementation of residual values will reduce future depreciation, while capitalising and depreciation of periodical maintenance will increase future depreciation.

4. 4 Transition to IFRS Pension liabilities All cumulative non-expensed actuarial changes in estimates for pension liabilities will be booked as an adjustment to Equity at the date of transition to IFRS. This will increase the net pension liabilities. According to IAS 19 the effect of changes in estimates as from 2004 will be amortised over the remaining service period. Long-term debt First year instalment of long-term debt is to be reclassified as short-term debt. Bergen, May 10. 2005

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12. 12 Transition to IFRS 7. Notes to the IFRS financial statements 1. Residual values fixed assets Residual values are established for the fixed assets, and any dismantling expenses are taken into account. The residual values are based on market values for scrapped fixed assets at the reporting date. Ship values and Equity have increased abt. NOK 14,6 mill. as per 1/1-2004, due to introduction of residual values. Implementation of residual values have reduced depreciation in 2004 by abt. NOK 4,0 mill. 2. Adjustment of cost vessels As a consequence of retrospective approach, a part of the historic cost price has been considered as docking element included in the cost price. The docking element has been classified as a separate part of the ship value, which are depreciated over the remaining period on to the next ordinary docking, not over the vessels’ lifetime. This implies a reduction of the vessels’ historic cost price by abt. NOK 9,6 mill. as per 1/1-2004. This change in historic cost price will also affect accumulated depreciation, which is reduced by abt. NOK 3,9 mill. as per 1/1-2004. Net effect on fixed assets and Equity is abt. NOK 5,7 mill. 3. Reversal periodical maintenance Provision for future periodical maintenance are reversed by abt. NOK 6,1 mill. as per 1/1-2004. Conversion from provision for periodical maintenance to capitalising and depreciation of cost for docking, reduces short term debt, and increases the Equity. 4. Docking expenses Docking expenses are capitalised and classified as ships by abt. NOK 9,2 mill. as per 1/1-2004. Docking expenses are regarded as a separate part of the ship value, and are depreciated over the remaining period on to the next ordinary docking. The cost of docking is reclassified from operating expenses to depreciation. This change implies increased values on fixed assets, and increased Equity. Capitalising and depreciation of docking expenses increases future depreciation. 5. Pension liabilities The calculation of pension obligations are based on a number of financial and actuarial assumptions. The principles on which these assumptions are based are in accordance with interpretation of IAS 19.

13. 13 Transition to IFRS All cumulative non-expensed actuarial changes in estimates for pension liabilities have been booked as an adjustment to Equity at the date of transition to IFRS. This has increased the net pension liabilities by abt. NOK 2,9 mill. as per 1/1-2004. According to IAS 19 the effect of changes in estimates as from 2004 may be amortised over the remaining service period. 6. Long-term debt First year instalment of long-term debt, abt. NOK 28,6 mill as per 1/1-2004, has been reclassified as short-term debt. 7. Deferred tax assets Deferred tax assets are calculated on tax reducing items the company can benefit from. Deferred tax assets in Green Reefers are thus calculated only on a part of the net temporary differences. The change in asset values due to the introduction of IFRS is not considered to affect the previous assessment of the amount of tax reducing items that the company can benefit from. Therefore, deferred tax assets have not been increased as a consequence of higher asset values.

14. Green Reefers ASA_Ulsmågveien 7_P.O. Box 94 Nesttun_NO-5852 Bergen_Norway Tel +47 55 36 25 00_www.greenreefers.no