MC Shipping Announces First Quarter 2006 Results

MC Shipping Inc. (AMEX: MCX) reported net income of
$3,711,899 or $0.40 per share on gross revenues (excluding interest
income) of $10,107,255 for the quarter ended on March 31, 2006,
compared to net income of $2,046,755 or $0.22 per share on gross
revenues (excluding interest income) of $6,238,486 for the quarter
ended March 31, 2005 (see Appendix 1 for the three months financial
summary).
   The Company's earnings before interest, taxes, depreciation and
amortization (EBITDA) were approximately $ 7.2 million and the ratio
of EBITDA to interest expense was approximately 6.2 for the quarter
ended on March 31, 2005. In the corresponding quarter of 2005, EBITDA
was approximately $ 3.8 million and the ratio of EBITDA to interest
expense was approximately 10.7.
   Vessel operating expenses (inclusive of dry-dock amortization)
were $4,137,899 in the first quarter of 2006 compared to $2,944,535 in
the first quarter 2005. As a percentage of revenue, vessel operating
expenses plus amortization of dry-docking costs decreased from 47.2%
in the first quarter of 2005 to 40.9% in the first quarter of 2006.
   Reviewing the first quarter results, Tony Crawford, the Company's
CEO, commented, "The quarter represents another record result, almost
double the corresponding result for the same period in 2005.
   "At the end of the quarter we purchased two additional LPG
vessels, which increases our fleet to 18 vessels and will positively
contribute to earnings going forward.
   "In the second quarter, three large vessels and one small vessel
will undergo scheduled periodic surveys, which will result in off hire
time and a reduction in our second quarter results. While it is
unusual to have four dockings occur in one quarter, this work has been
long planned and will ensure the ships are able to trade to high
standards for the next five years without additional shipyard work."
   "In the second quarter, we also expect to enter into discussions
for charter renewals which will reflect recent market improvements,
and this, coupled with our latest investments, bodes well for the
third quarter and beyond."

   MC Shipping Inc. fully or partially owns and operates a fleet of
18 vessels that includes 12 liquefied petroleum gas (LPG) carriers
from 3,000 to 78,000 cbm, 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.

   Appendix 1
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Three months financial summary for the period ended March 31st, 2006
and 2005 (US$):
                                      3 months ended   3 months ended
                                        31-Mar-2006      31-Mar-2005
                                     ----------------- ---------------

Charterhire and Other  Income             $10,107,255      $6,238,486
Commission on Charterhire                    (133,121)       (153,856)
Vessel Operating Expenses                  (3,899,134)     (2,723,867)
Depreciation and dry-dock
 amortization                              (2,338,531)     (1,398,944)
General and  Administrative Expenses         (513,987)       (536,402)
Recognized deferred gain on sale of
 vessels                                    1,174,522         926,567
Equity in income of associated
 companies                                    291,982         (84,451)
                                     ----------------- ---------------

Operating Income                            4,688,986       2,267,533

Interest Expense                           (1,150,649)       (354,349)
Interest Income                               173,562         133,571

                                     ---------------------------------
Net Income                                 $3,711,899      $2,046,755
                                     ---------------------------------

Net Income per share                            $0.40           $0.22

Average Number of shares outstanding        9,372,582       9,226,270
Shareholders equity                       $44,847,318     $40,466,810

Reconciliation of EBITDA to Net
 Income
Net Income                                 $3,711,899       2,046,755
Plus: interest expense                      1,150,649         354,349
Plus: depreciation and amortization         2,338,531       1,398,944

                                     ---------------------------------
EBITDA                                     $7,201,079      $3,800,048
                                     ---------------------------------
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