MC Shipping Announces 2005 Year End Results and Dividend

MC Shipping Inc. (AMEX: MCX) reported net income of
$10,768,645 or $1.22 per share on gross revenue (excluding interest
income) of $35,396,519 for the year ended December 31, 2005, compared
to a net income of $1,112,379 or $0.13 per share on gross revenue
(excluding interest income) of $31,895,393 for the year ended December
31, 2004 (See Appendix 1 for 12 months financial summary).
   The Company's Earnings Before Interest, income Taxes, Depreciation
and Amortization (EBITDA) were approximately $23.7 million, more than
double its 2004 EBITDA of approximately $11.1 million. The ratio of
EBITDA to interest expense was approximately 5.9 for the year that
ended December 31, 2005, compared to approximately 3.2 in 2004.
   Vessel operating expenses were $13,983,069 for the year 2005
compared to $16,821,562 in 2004. Operating expenses were approximately
40% of revenues as compared to 53% in the prior year. The fleet
on-hire performance was 97.6% in 2005, down from 99.4% in 2004. The
decrease in on-hire performance was mainly due to the dry-docking of
four vessels in 2005.
   For the quarter ended December 31, 2005, net income was $2,938,272
or $0.33 per share, compared to a net loss of $(583,946) or $(0.07)
per share in the last quarter of 2004 (See Appendix 2). Revenues for
the quarter were $9,732,400, compared to $7,990,784 recorded in the
last quarter of 2004.
   In January 2006, the Company received appraisals for its wholly
owned fleet from leading independent shipbrokers. On this basis, the
appraised value of the Company's fully owned fleet as of December 31,
2005 was approximately $174.7 million and the appraised net value of
its share in ships where the Company does not have 100% ownership was
approximately $9.3 million against the total book value of the
Company's vessels and investments of approximately $128.5 million.
   "The results for 2005 show record profit and outstanding return on
equity as an outcome of the strategic plans that commenced in 2004,"
stated Tony Crawford, the Company's CEO. "The shareholders in MC
Shipping should gain further benefits from the new vessels and
investments made in 2005 as the full year effect of these works its
way through in 2006", continued Crawford.
   "With our improving balance sheet and stable cash flow we are much
stronger than we were a year ago and will continue our efforts to
build on these results with further investments to grow the Company.
Our strategy to focus on the expanding LPG industry was well timed and
this is demonstrated by the increase in our realizable asset value.
Absent any unanticipated event, we will continue our earnings growth
in 2006," concluded Crawford.
   Seeking to improve the stock liquidity, MC Shipping Inc. further
announces the distribution of a stock dividend of one share of common
stock for every twenty shares of common stock owned, rounded up to the
nearest multiple of twenty. The record date will be April 14, 2006.
The payment date will be April 28, 2006.
   In continuation of its policy to date, MC Shipping Inc. also
announces distribution of the following cash dividend on the below
listed stock of the Company in the first quarter of 2006:

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Title of Class of Stock    :    Common

Distribution per Share     :    6.25 cents for every share owned, 
                                rounded up to the nearest cent.

Dividend Payable to 
Shareholders of Record at 
the close of business on   :    April 14, 2006

Distribution Date          :    April 28, 2006
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   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.

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Appendix 1

12 months financial summary for the period ended December 31 (US$):

                                                2005          2004
                                           ------------  ------------
Charterhire and Other Income               $ 35,396,519  $ 31,895,393
Commission on Charterhire                      (532,281)     (759,673)
Vessel Operating Expenses                   (13,983,069)  (16,821,562)
Depreciation and dry-dock amortization       (8,922,393)   (6,573,789)
General and Administrative Expenses          (2,254,864)   (2,577,213)
Recognized deferred gain on sale of
 vessels                                      4,515,383             -
                                           ------------  ------------
Operating Income                             14,219,295     5,163,156
Interest Expense                             (4,018,670)   (3,463,491)
Interest Income                                 454,037       156,964
Loss on debt extinguishment                           -      (744,250)
Equity in income of associated companies        113,983             -
                                           ------------  ------------
Net Income                                 $ 10,768,645  $  1,112,379
                                           ------------  ------------

Net Income per share                       $       1.22  $       0.13

Average Number of shares outstanding          8,847,195     8,737,627
Shareholders equity                        $ 40,466,810  $ 30,836,555

Reconciliation of EBITDA to Net Income

Net Income                                 $ 10,768,645  $  1,112,379

Plus: interest expense                        4,018,670     3,463,491
Plus: depreciation and amortization           8,922,393     6,573,789
                                           ------------  ------------
EBITDA                                       23,709,708    11,149,659
                                           ------------  ------------
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Appendix 2

3 months financial summary for the period ended December 31 (US$):

                                                 2005         2004
                                           ------------  ------------
Charterhire and Other Income               $   9,732,400 $  7,990,784
Recognized deferred gain on sale of vessels    1,200,622
Loss on debt extinguishment                                (1,107,369)
Net Income / (Loss)                            2,938,272     (583,946)
Net Income / (Loss) per share              $        0.33 $      (0.07)
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