MC Shipping Announces Second Quarter 2005 Results

MC Shipping Inc. (AMEX: MCX) reported net income of
$2,861,999 or $0.33 per share on revenues (excluding interest income)
of $9,628,735 for the quarter that ended on June 30, 2005, compared to
a net income of $536,445 or $0.06 per share on gross revenue of
$7,881,660 for the quarter ended June 30, 2004 (see Appendix 1 for the
three months financial summary).
   The Company's earnings before interest, taxes, depreciation,
amortization and provision for impairment loss (EBITDA) were
approximately $ 6.6 million and the ratio of EBITDA to interest
expense was approximately 5.4 for the quarter that ended on June 30,
2005. In the corresponding quarter of 2004, EBITDA was approximately $
3.1 million and the ratio of EBITDA to interest expense was
approximately 3.4.
   Vessel operating expenses (inclusive of dry-dock amortization)
were $3,922,463 in the second quarter 2005 compared to $4,221,253 in
the second quarter 2004. As a percentage of revenue, vessel operating
expenses plus amortization of dry-docking costs decreased from 53.6%
in the second quarter of 2004 to 40.7% in the second quarter of 2005.
   Tony Crawford, the CEO of the Company, commented on the second
quarter results, "Following the delivery of the new vessels, our
second quarter earnings have increased nicely and our policy of long
term growth with stability will allow steady quarterly increase of the
net income to continue, in line with our previous estimates".
   Mr. Crawford added, "At the Company's most recent annual meeting,
a number of Shareholders asked for half yearly valuations of the
Company's fleet by independent brokers. Such a valuation in June 2005
appraised the fleet at approximately $43 million over its net book
value. This equates to $4.8 per share that, together with current book
values and deferred gains on vessels sales, translates into net assets
value of comfortably more than $10 per share."
   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 m(3), 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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Appendix 1

Three months financial summary for the period ended June 30th,
2005 and 2004 (US$):


                                               3 months    3 months
                                               ended 30-   ended 30-
                                                Jun-2005    Jun-2004
                                             ____________ ____________
Charterhire and Other Income                  $9,628,735   $7,881,660
Commission on Charterhire                       (131,887)    (196,756)
Vessel Operating Expenses                     (3,756,246)  (3,866,093)
Depreciation and dry-dock amortization        (2,529,552)  (1,640,363)
General and Administrative Expenses             (550,664)    (734,925)
                                             ____________ ____________
Operating Income                               2,660,386    1,443,523

Interest Expense                              (1,217,768)    (913,270)
Interest Income                                   82,937       26,547
Recognized deferred gain on sale of vessels    1,187,572            -
Equity in income of associated companies         148,872            -
Loss on Repurchases of Notes                           -      (20,355)

                                           ---------------------------
Net Income                                    $2,861,999     $536,445
                                           ---------------------------

Net Income per share                               $0.33        $0.06

Average Number of shares outstanding           8,785,950    8,724,021
Shareholders equity                          $34,540,750  $30,884,694

Reconciliation of EBITDA to Net Income
Net Income                                    $2,861,999     $536,445
Plus: interest expense                         1,217,768      913,270
Plus: depreciation and amortization            2,529,552    1,640,363

                                           ---------------------------
EBITDA                                        $6,609,319   $3,090,078
                                           ---------------------------


Appendix 2

Six months financial summary for the period ended June 30th,
2005 and 2004 (US$):


                                               6 months    6 months
                                               ended 30-   ended 30-
                                                Jun-2005    Jun-2004
                                             ____________ ____________
Charterhire and Other Income                 $15,867,221  $15,777,436
Net Income                                    $4,908,754   $1,336,843
Net Income per share                               $0.56        $0.15
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