MC Shipping Announces Acquisition of An LPG Vessel, Disposal of Interest in a Container Vessel, and Dividend

  
    
  
  
    
      MC Shipping Inc. (AMEX: MCX) announced today that it has agreed to 
      acquire a liquefied petroleum gas (LPG) vessel from a subsidiary of 
      Vitol SA, a major international oil and gas trading company. The vessel, 
      Keswick, is built in 2003 and has a capacity of 11,000 cbm. The vessel 
      is expected to be delivered at the end of June 2008. Simultaneously with 
      the purchase, she will be time-chartered back to Vitol SA for a minimum 
      period of three years. The Company expects to finance the acquisition 
      with a combination of bank debt and internal cash resources. The Company 
      will not be paying any of the purchase price until 2008.
    
    
      “Staying committed to the LPG shipping, we are 
      satisfied to realize this value-creating investment in the vessel that 
      will help to improve our fleet’s age profile, 
      expand our presence in the buoyant mid-size LPG sector and provide 
      attractive returns to the shareholders, generating approximately $4.6 
      million in additional revenues and $3.3 million in EBITDA per year,” 
      commented CEO Tony Crawford.
    
    
      Disposal of Interest in a Container Vessel
    
    
      The Company further announced that its associate, MUNIA 
      Mobiliengesellschaft mBH & Co. KG (“MUNIA”), 
      in which the Company retains a 25.8% interest, has agreed to sell its 
      container vessel, Maersk Belawan to a third party for a gross 
      consideration of $13.15 million. The proceeds will be used to prepay the 
      loan balance on the vessel and pay the costs and duties incurred in 
      connection with the sale. Remaining net proceeds are expected to be 
      distributed to the shareholders of MUNIA, including the Company, which 
      will receive $1 million plus 40% of any amount in excess of $4.9 
      million. The delivery of the Maersk Belawan vessel to the buyers is 
      expected before the end of February 2008.
    
    
      “We are pleased to benefit from participating 
      in yet another significant release of value on the assets that we 
      strategically placed in the special-purpose KG vehicle back in January 
      2005, thus maximizing returns to our shareholders,” 
      stated Crawford.
    
    
      “This transaction also signifies another step 
      to focus on the LPG business that we believe offers the most attractive 
      long-term prospects for growth and profitability. Further disposals of 
      these investments will be made when we can release similar value," 
      concluded Crawford.
    
    
      Dividend
    
    
      The Company also announced today that its Board of Directors has 
      declared a quarterly cash dividend of $0.0625 per share of common stock 
      payable on July 30, 2007 to shareholders of record as of July 16, 2007.
    
    
      ABOUT MC SHIPPING INC.
    
    
      MC Shipping Inc. is an international shipping company focused on 
      maritime transportation of liquefied petroleum gas (LPG), with 
      headquarters in Monaco and an office in London. Presently, MC Shipping 
      fully or partially owns and operates a fleet of 19 vessels that serve 
      the world’s major oil, gas, shipping and 
      trading companies.
    
    
      FORWARD-LOOKING STATEMENTS
    
    
      Except for the historical information contained herein, the matters 
      discussed in this press release could contain “forward-looking 
      statements” that are based on current 
      expectations and assumptions that involve risks and uncertainties, which 
      could cause actual results to differ materially from those predicted. MC 
      Shipping Inc. undertakes no obligation to update any forward-looking 
      statement to conform to actual results or changes in the Company’s 
      expectations, whether as a result of new information, future events, or 
      otherwise.