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.