MCX MC Shipping

MC Shipping Inc. (AMEX: MCX) (the �Company�), an international liquefied petroleum gas (LPG) maritime carrier, today reported its financial and operating results for the second quarter and the first six months of 2007. Second Quarter Results For the quarter ended June 30, 2007, gross revenues (excluding interest income) were $16.4 million, compared to $9.9 million for the quarter ended June 30, 2006. The Company's earnings before interest, taxes, depreciation and amortization (EBITDA) were approximately $11.6 million in the second quarter 2007 ($6.5 million in the second quarter 2006), and the ratio of EBITDA to interest expense was approximately 3.7 for the quarter ended June 30, 2007 compared to 5 for the same period in 2006. Net income for the first quarter 2007 was $2.4 million or $0.26 per share, compared to net income of $2 million or $0.21 per share or the same period in 2006 (see Appendix 1 for the three months financial summary). Vessel operating expenses (including dry-dock amortization) were $6 million in the second quarter 2007 compared to $5.2 million in the second quarter 2006. As a percentage of revenue, vessel operating expenses plus amortization of dry-docking costs decreased from 52.3% in the second quarter 2006 to 36.4% in the second quarter 2007. Tony Crawford, the Company�s President and CEO commented on the second quarter results, �We are pleased to note a substantial increase in revenues reflecting the larger fleet and higher charter rates.� �We expect a continued revenue and EBITDA growth in the third quarter 2007 as we take delivery of three new LPG vessels acquired from the Komaya Group, as previously announced. We also expect a positive contribution from the Kew Bridge once she returns to service in August and improved earnings on the La Forge as the freight market for VLGC tankers improves�, concluded Crawford. Acquisition of LPG Vessel The Company also announced that it has agreed to acquire another LPG vessel from a subsidiary of Vitol SA, a major international oil and gas trading company. The vessel, Kendal is a sister ship to the m/v Keswick that the Company contracted to acquire a month ago. The Kendal is also built in 2003 and has a capacity of 11,000 cbm. The vessel is expected to be delivered at the end of 2008. Simultaneously with the purchase, she will be time-chartered back to Vitol SA for a minimum period of three years. The Company expects to finance the acquisition with a combination of bank debt and internal cash resources. The Company will not be paying any of the purchase price until third quarter 2008. �Maintaining our strategic focus on the LPG shipping, we are pleased to invest in this second modern vessel that will further improve our fleet�s age profile as we continue expanding our presence in the mid-size LPG sector. Similarly to the Keswick, this vessel is expected to generate approximately $4.6 million in additional revenues and $3.3 million in EBITDA per year�, commented CEO Tony Crawford. 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 offices in London and Singapore. MC Shipping fully or partially owns and operates a fleet of 19 vessels and has contracted to purchase five additional vessels that serve the world�s major oil, gas, shipping and trading companies. On July 30, 2007, MC Shipping Inc. and Bear Stearns Merchant Banking (�BSMB�) announced the signing of a merger agreement providing for the Company to be acquired by a newly-formed entity controlled by BSMB, as detailed in the Company�s Form 8-K filed on July 31, 2007. 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. For example, (i) MC Shipping Inc. may be unable to obtain the shareholder approval required for the merger and (ii) conditions to the closing may not be satisfied. In addition, additional factors that could affect MC Shipping�s results, levels of activity, performance or achievements and cause them to materially differ from those contained in the forward looking statements can be found in MC Shipping�s filings with the U.S. Securities and Exchange Commission, including MC Shipping�s annual report on Form 10-K, current reports on Form 8-K and quarterly reports on Form 10-Q. 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. ADDITIONAL INFORMATION AND WHERE TO FIND IT In connection with the proposed merger, MC Shipping Inc. will make a proxy statement available to all shareholders. INVESTORS ARE URGED TO READ THE PROXY STATEMENT CAREFULLY WHEN IT BECOMES AVAILABLE BECAUSE IT WILL CONTAIN IMPORTANT INFORMATION ABOUT MC SHIPPING AND THE PROPOSED MERGER. Investors will be able to obtain free copies of the proxy statement and white proxy card (when available) at the MC Shipping Web site at www.mcshipping.com. Appendix 1 � Three months financial summary for the period ended June 30th (US$): � 2007 � 2006 � Charterhire and Other Income $16,395,174 $9,940,984 Commission on Charterhire (184,109 ) (131,694 ) Vessel Operating Expenses (5,439,900 ) (4,721,267 ) Depreciation and dry-dock amortization (6,059,372 ) (3,174,671 ) General and Administrative Expenses (880,623 ) (673,185 ) Income From Vessel Operations 3,831,170 1,240,167 � Profit on sale of vessels - 1,028,693 Recognized deferred gain on sale of vessels 1,187,572 1,187,572 Equity in income / (losses) of associated companies 386,537 � (247,741 ) Operating Income 5,405,279 3,208,691 � Interest Expense (3,113,800 ) (1,301,278 ) Interest Income 133,979 � 115,452 � Net Income $2,425,458 � $2,022,865 � � Net Income per share (basic) $0.26 $0.21 � Average Number of shares outstanding 9,510,017 9,499,086 Shareholders equity $52,935,832 $47,684,169 � Reconciliation of EBITDA to Net Income Net Income $2,425,458 � $2,022,865 � Plus: interest expense 3,113,800 1,301,278 Plus: depreciation and amortization 6,059,372 � 3,174,671 � EBITDA $11,598,630 � $6,498,814 � Appendix 2 � Six months financial highlights for the period ended June 30th (US$): � 2007 2006 Charterhire and Other Income $31,899,340 $20,048,239 � Operating Income 11,060,186 7,897,677 � Net Income $5,121,528 $5,734,764 � Net Income per share (basic) $0.54 $0.61