KEX Kirby Corporation

HOUSTON, Sept. 1 /PRNewswire-FirstCall/ -- Kirby Corporation (NYSE:KEX) ("Kirby") announced today that Hurricane Katrina caused no noticeable damage to its inland tank barge fleet of 887 active tank barges, 241 inland towboats, four 35% owned offshore dry-cargo barge and tug units, and operating administrative facilities. Joe Pyne, Kirby's President and Chief Executive Officer, commented, "Refineries and petrochemical plants in the impacted area are currently closed or operating at reduced levels. It is unknown as to when many of these plants will be back in operation. With respect to navigation, all waterways in the affected areas normally navigated by Kirby vessels are open to barge traffic with the exception of certain portions of the Gulf Intracoastal Waterway between Houma, Louisiana and Florida. Movements along the Texas and southwestern Louisiana Gulf Intracoastal Waterway, Kirby's major area of marine transportation operation, are occurring on a normal basis, as well as movements from these areas to destinations on the Mississippi, Ohio and Illinois Rivers. The closed areas along the Gulf Intracoastal Waterway are currently being surveyed and we are hopeful they will be opened in the near future." Commenting on the crewing of Kirby's towboats, Mr. Pyne stated, "At the present time, all of our towboats are crewed. Some of our vessel personnel live in the impacted area and the needs of their families come first. We may experience some short-term crewing issues as we rotate crews to address personal issues." Mr. Pyne further commented, "We do not have enough information to fully evaluate the effect of Katrina on Kirby's business. The impact of the closure of the refineries and petrochemical plants, as well as the impact of these closures on the U.S. economy, is unknown at this time. Historically, this kind of disruption is short to medium-term positive due to disruptions in normal supply and distribution. However, with the significance of the devastation in the New Orleans area and along the Mississippi and Alabama Gulf Coast, it is too early to determine the impact of Katrina on Kirby's 2005 third quarter and year earnings. On a positive note, the Ohio River Valley received much needed rain as a result of Katrina, alleviating the low water areas on the Ohio and lower Mississippi Rivers. Kirby had been light loading tank barges for destinations on these rivers for several weeks." Kirby Corporation, based in Houston, Texas, operates inland tank barges and towing vessels, transporting petrochemicals, black oil products, refined petroleum products and agricultural chemicals throughout the United States inland waterway system. Through the diesel engine services segment, Kirby provides after-market service for large medium-speed and high-speed diesel engines and reduction gears used in marine, power generation and railroad applications. Statements contained in this press release with respect to the future are forward-looking statements. These statements reflect management's reasonable judgment with respect to future events. Forward-looking statements involve risks and uncertainties. Actual results could differ materially from those anticipated as a result of various factors, including cyclical or other downturns in demand, significant pricing competition, unanticipated additions to industry capacity, changes in the Jones Act or in U.S. maritime policy and practice, fuel costs, interest rates, weather conditions, and timing, magnitude and number of acquisitions made by Kirby. Forward-looking statements are based on currently available information and Kirby assumes no obligation to update any such statements. A list of additional risk factors can be found in Kirby's annual report on Form 10-K for the year ended December 31, 2004, filed with the Securities and Exchange Commission. DATASOURCE: Kirby Corporation CONTACT: Steve Holcomb of Kirby Corporation, +1-713-435-1135 Web site: http://www.kirbycorp.com/

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