KEX Kirby Corporation

HOUSTON, Sept. 26 /PRNewswire-FirstCall/ -- Kirby Corporation (NYSE:KEX) ("Kirby") announced today that Hurricane Rita caused only minor damage to several of its inland tank barges. Kirby's fleet consists of 887 active tank barges, 241 inland towboats and four 35% owned offshore dry-cargo barge and tug units. Joe Pyne, Kirby's President and Chief Executive Officer, commented, "Over several days Hurricane Rita forecasters changed their anticipated landfall locations, ranging from Corpus Christi, Texas to Lake Charles, Louisiana. As a result, Kirby, as well as petrochemical and refinery facilities in the forecasted path of Rita, curtailed operations in advance of the anticipated landfall. This was very disruptive to Kirby and its petrochemical and refinery customers. Hurricane Rita made landfall on the Texas-Louisiana border on Saturday morning, September 24th." Commenting on navigation and customer facility closures, Mr. Pyne stated, "At the present time, the Gulf Intracoastal Waterway between Houma, Louisiana and Beaumont, Texas is closed due to flooding conditions. The Gulf Intracoastal Waterway from Beaumont to Freeport, Texas, including the Houston Ship Channel, is open for daylight movements only. The Mississippi River and the Gulf Intracoastal Waterway east of New Orleans are open. There are a number of petrochemical and refinery facilities in the Port Arthur, Texas and Lake Charles, Louisiana area currently closed due to the impact of the hurricane and we do not know when the facilities will be back in operation." Mr. Pyne further commented, "We are working to determine the estimated impact of Rita on Kirby's earnings and will comment on Rita's near term impact in a later press release. Because of the multiple changes in Rita's forecasted path, we believe that Rita's impact will affect Kirby's earnings more than Katrina. The impact will also depend on how long the petrochemical and refinery facilities in the impacted area remain closed and how quickly the Gulf Intracoastal Waterway from Houma to Beaumont is opened." 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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