MC Shipping Receives Settlement Proposal from Charterers

  
    
  
  
    
      MC Shipping Inc. (AMEX: MCX) (the “Company”) 
      today announced that it has received a settlement proposal from the 
      previous charterers of the Company’s vessel La 
      Forge (the “Charterers”) 
      for their claim in connection with the charter party originally entered 
      into in August 2001 (the “Charter Party”).
    
    
      Following the extended dry-docking of La Forge in 2006, the Charterers 
      lodged a claim against the Company for damages arising out of the 
      deprivation of use of the vessel and compensation was demanded for the 
      additional cost of hiring replacement vessels. The Company intended to 
      challenge this claim; however the Charterers agreed to substantially 
      reduce the quantum of their claim if a settlement could be reached out 
      of court and the Company considered the settlement proposal worth 
      accepting rather than incurring the costs of arbitration.
    
    
      This settlement will result in a charge of $905,292 above amounts 
      previously accrued for this incident that the Company will book in the 
      2006 accounts as an additional non-recurring expense.
    
    
      The Company and its legal advisors will seek recovery of this expense 
      from the technical managers responsible for the dry-docking and, in the 
      Company’s view, liable for failing to provide 
      services in a timely fashion. The accounting standards do not allow 
      offsetting of these two items.
    
    
      Tony Crawford, the Company’s CEO, commented 
      on the proposed settlement, “while we would 
      have liked to reach a simultaneous settlement with our Charterers and 
      technical managers responsible for planning and implementing the 
      dry-dock, this was not possible. However, with the help of our legal 
      advisors, we will continue to seek full recovery from the third party. 
      We are pleased to say that this is the last remaining liability on our 
      extended 2006 dockings”.
    
    
      The Company expects to file its Annual Report on Form 10-K for the year 
      ended December 31, 2006 that will include this settlement latest on 
      Monday, April 2, 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. 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.