MC Shipping Announces New Vessels Acquisition and Time Charter Renewals

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.