MCX MC Shipping

MC Shipping Inc. (AMEX:MCX) announced today that it has agreed to acquire two liquefied petroleum gas (LPG) vessels from the Bernhard Schulte Group of Germany. The vessels, Hermann Schulte and Dorothea Schulte are semi-refrigerated and of 5,600 cbm capacity each. The acquisition is being funded out of current cash holdings and a bank loan facility from one of the Company's regular financiers. The vessels are expected to be delivered before March 31, 2006. Simultaneously with the purchase, they will be time-chartered back to the Schulte Group for a minimum period of 1 year. "We are pleased to continue our focus on the LPG sector," said CEO Tony Crawford. "The purchase of the ships is within our segment, will add to our 2006 profits, redeploys part of our cash holdings and the risk after the first year of charter is low," continued Crawford. Following the delivery of these two ships, MC Shipping Inc. will fully or partially own a fleet of 18 vessels, of which 12 are LPG tankers ranging from 3,000 to 77,000 cbm capacity. The Company retains an investment in four container carriers and ownership of two small coastal bulkers. MC Shipping Inc. further announced that it has renewed charters on its LPG tankers whose contracts expired in the last three months. The vessels have been employed on time charters to major oil and gas trading and transportation companies at rates which reflect the improved LPG market. The new contract rates are on average about 45% higher than on the previous charters and will have a corresponding positive effect on the pertinent vessels' revenues and the Company's net income. "We are satisfied to have secured employment of our vessels in the near term at rates reflecting present market," added Tony Crawford. "The new charters will result in improved returns for our shareholders. These are the first in a series of upcoming charter renewals and we maintain optimistic expectations about the LPG shipping market," concluded Crawford. The Company will also be releasing its fourth quarter and annual 2005 results by middle March. This news release contains forward-looking statements, within the meaning of Section 21E of the Securities Exchange Act of 1934, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. One can generally identify these forward-looking statements because they contain "expect", "believe", "anticipate", "estimate", "confident" and other words that convey a similar meaning. One can also identify these statements as statements that do not relate strictly to historical or current facts. One should understand that it is not possible to predict or identify all factors that could cause actual results to differ from the Company's forward-looking statements. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with respect thereto or any change in events, conditions or circumstances on which any such statement is based.