MC Shipping Announces First Quarter 2005 Results

MC Shipping Inc. (AMEX: MCX) reported net income of
$2,046,755 or $0.23 per share on revenues (excluding interest income)
of $6,238,486 for the quarter that ended on March 31, 2005, compared
to a net income of $800,398 or $0.09 per share on the gross revenue of
$7,895,776 for the quarter ended March 31, 2004 (see three months
financial summary attached below).
   The Company's earnings before interest, taxes, depreciation and
amortization (EBITDA) were approximately $3.8 million and the ratio of
EBITDA to interest expense was approximately 10.7 for the quarter that
ended on March 31, 2005. In the corresponding quarter of 2004, EBITDA
was approximately $ 3.45 million and the ratio of EBITDA to interest
expense was approximately 3.4. EBITDA is defined by the Company as Net
Income before income taxes, interest, depreciation and amortization
and provision for impairment loss.
   Vessel operating expenses (inclusive of dry-dock amortization)
were $2,944,535 in the first quarter 2005 compared to $4,741,061 in
the first quarter 2004. As a percentage of revenue, vessel operating
expenses plus amortization of dry-docking costs decreased from 60.0%
in the first quarter of 2004 to 47.2% in the first quarter of 2005.
   Tony Crawford, the CEO of the Company, stated, "The sale of the
four containerships this January had the principal impact on the
results of the first quarter 2005, and will provide a stable profit
line within our income statement for the next four years, although we
have already collected and reinvested a good part of this cash."
   Mr. Crawford added, "Given the delivery of 'Berge Flanders',
'Berge Kobe' and 'Isomeria' (renamed 'Galileo') we expect these ships
to have a positive effect on the second quarter results. We anticipate
those results to exceed the results of the first quarter with earnings
building over the year such that the annual net income will exceed
$1.35 per share."
   "Our Company's fleet earnings are being built on the back of long
term charters with industrial players," Mr. Crawford went on to say.
"The recent transformation has been tough, but we have a clear vision
for 2005 and 2006 and our aim is for long term quarterly growth in
both earnings and dividends. We are not spot market players but
building the business so that investors can be relaxed about our
results. We still have value to release within the Company and will do
so as soon as we can."
   Presently, MC Shipping Inc. fully or partially owns and operates a
fleet of 16 vessels that includes 10 liquefied petroleum gas (LPG)
carriers from 3,000 to 78,000 m3, 4 container vessels of 2,300 TEU
capacity and 2 small multipurpose/general cargo ships.

   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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3 months financial summary for the period ended March 31st 2005
and 2004 (US$):

                                               3 months     3 months
                                               ended 31-    ended 31-
                                               Mar-2005     Mar-2004
                                            ------------ -------------
Charterhire and Other Income                $ 6,238,486  $ 7,895,776
Commission on Charterhire                      (153,856)    (190,374)
Vessel Operating Expenses                    (2,723,867)  (4,385,901)
Depreciation and dry-dock amortization       (1,398,944)  (1,640,747)
General and Administrative Expenses            (536,402)    (332,228)
                                            ------------ -------------
Operating Income                              1,425,417    1,346,526
Interest Expense                               (354,349)  (1,005,221)
Interest Income                                 133,571       35,498
Recognized deferred gain on sale of vessels     926,567            -
Equity in losses of associated companies        (84,451)           -
Gains on Repurchases of Notes                         -      423,595
                                            ------------ -------------
Net Income                                  $ 2,046,755  $   800,398
                                            ============ =============

Net Income per share                        $      0.23  $      0.09

Average Number of shares outstanding          8,772,857    8,724,021
Shareholders equity                         $33,280,027  $30,836,555

Reconciliation of EBITDA to Net Income
Net Income                                  $ 2,046,755  $   800,398
Plus: interest expense                          354,349    1,005,221
Plus: depreciation and amortization           1,398,944    1,640,747

                                            ------------ -------------
EBITDA                                      $ 3,800,048  $ 3,446,366
                                            ------------ -------------
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