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This paper presents an experimental investigation on the enhancement of the heat transfer rate of steam condensation on the external surfaces of a vertical tube with annular fins. A cylindrical condenser tube, which is 40 mm in outer diameter and 1000 mm in length, with annular disks of uniform cross-sectional area is fabricated in the manner of ensuring perfect contact between the base surface and fins. A total of 13 annular fins of 80 mm diameter were installed along the tube height in order to increase the effective heat transfer area by 85%. Through a series of condensation tests for the air-steam mixture under natural convection conditions, the heat transfer data was measured in the pressure range of between 2 and 5 bar, and the air mass fraction from 0.3 to 0.7. The rates of heat transfer of the finned tube are compared to those that are measured on a bare tube to demonstrate the enhanced performance by extended surfaces. In addition, based on the experimental results and the characteristics of steam condensation, the applicability of finned tubes to a large condenser system with a bundle layout is evaluated.