First Quarter 2012 Highlights

• Reported net income of $7.9 million for the three months ended March 31, 2012
• Generated a reportable gain of $3.8 million from transaction involving the sales of two International Flag Pure Car Truck Carriers
• The International Flag Pure Car Truck Carrier sales and a sale and leaseback of a United States Flag Pure Car Truck Carrier generated cash proceeds of $132.1 million enabling the company to pay down $90.6 million in debt
• Declared a first quarter dividend of $0.25 per share payable on June 1, 2012 to shareholders of record as of May 16, 2012

Net Income

The Company reported net income of $7.9 million for the three months ended March 31, 2012, which included a gain on the sale of two International Flag Pure Car Truck Carriers of $3.8 million.  For the comparable three months ended March 31, 2011, the Company reported net income of $24.1 million, which included a gain of $18.7 million on the Dry Bulk transaction.  Excluding the non-recurring transactions, net income for the first quarter of 2012 was $4.1 million as compared to $5.4 million for the comparable quarter in 2011.

Mr. Niels M. Johnsen, Chairman and Chief Executive Officer, stated: “During a time in which our fleet of diversified vessels continued to generate contract revenue, we enhanced our financial position by monetizing our investments in three Pure Car Truck Carriers.  Importantly, one of these monetization transactions was a sale leaseback with early buy-out options that enables the Company to maintain commercial control of the vessel.  Proceeds from these transactions provide us with significant capital to pay down debt and pursue accretive growth opportunities.”

“In addition, we continue to focus on providing attractive returns to our shareholders through a quarterly dividend.  Consistent with our policy, our Board of Directors declared a first quarter dividend of $0.25 per share, increasing the cumulative declared payment to $6.25 per share since reinstituting our dividend policy in the fourth quarter of 2008.”

 Operating Income

Operating income for the three months ended March 31, 2012, was $6.3 million.  Excluding the gains from the sale of assets, operating income was $2.5 million in this first quarter of 2012 as compared to $4.1 for the comparable period in 2011.  The Company’s gross voyage profit, which represents the operating results of its five reporting segments was $14.4 million compared to $15.3 million in the 2011 three month period. Gross profit for the U. S Flag Time Charter segment was lower due to the expiration of the three operating contracts with the Military Sealift Command (MSC) during the quarter and lower supplemental cargo volumes.  These were partially offset by the results of the multi-purpose ice strengthened vessel placed under contract to the MSC in late 2011.  The International Flag Time Charter segment reported improved results primarily from the operation of its Dry Bulk vessels.  The Contract of Affreightment segment reported a greater loss from lower tonnage carried in the quarter. The Rail Ferry segment results were negatively impacted by higher operating costs in the quarter.  These costs are expected to come in line with prior year operating cost levels over the remainder of the year.  The Company’s Other segment results, consisting mainly of chartering brokerage and agency services, were adversely impacted by work stoppage in Indonesia affecting a large chartering customer.  As these operations return to normal, charter levels are expected to return to 2011 levels for the remainder of 2012.

 Interest and Other

Interest expense for the three months ended March 31, 2012, increased from the comparable period in 2011.  This was a result of financing collateralized by the Handysize vessels acquired during the first quarter of 2011 and the Handymax vessel delivered in the first quarter of 2012.  During the three month period ended March 31, 2012, the Japanese Yen depreciated in relation to the U.S. Dollar from 76.92 to 82.82.  This produced the $3.6 million foreign exchange gain reported in the quarter.

 Unconsolidated Entities

The results from the Company’s investments in 50% or less owned ventures decreased in the three months ended March 31, 2012, when compared to the same period in 2011.  The 2011 results reflect the investment in Dry Bulk which was purchased late in the first quarter of 2011.

 Balance Sheet

The Company’s working capital at March 31, 2012, was approximately $24.4 million, an increase of $5.1 million from December 31, 2011.  Cash and cash equivalents was approximately $34.2 million with the Company’s $30 million Line of Credit undrawn.  During the quarter, the Company finalized its equity investment in the Handymax vessel with a payment of approximately $9 million.  Additionally, the Company repaid its temporary line of credit draw of $9.5 million.

 Dividend Declaration

The Company’s Board of Directors authorized the payment of a $0.25 dividend payable on June 1, 2012, for each share of common stock owned on the record date of May 16, 2012.  All future dividend declarations and amounts remain subject to the discretion of International Shipholding Corporation’s Board of Directors.

 Conference Call

In connection with this earnings release, management will host an earnings conference call on Thursday, April 26, 2012 at 10:00 AM ET. To participate in the conference call, please dial (888) 596-2569 (domestic) or (913) 312-0855 (international). Participants can reference the International Shipholding Corporation First Quarter 2012 Earnings Call or passcode 3269834. Please dial in approximately 5 minutes prior to the call.

 The conference call will also be available via a live listen-only webcast and can be accessed through the Investor Relations section of the Company’s website, www.intship.com. Please allow extra time prior to the call to visit the Company’s website and download any software that may be needed to listen to the webcast.

 A replay of the conference call will be available through May 3, 2012, at (877) 870-5176 (domestic) or (858) 384-5517 (international). The passcode for the replay is 3269834.

 About International Shipholding

International Shipholding Corporation, through its subsidiaries, operates a diversified fleet of U.S. and International flag vessels that provide worldwide and domestic maritime transportation services to commercial and governmental customers primarily under medium to long-term charters and contracts. www.intship.com

 Caution concerning forward-looking statements

This press release contains forward-looking statements within the meaning of the U.S. federal securities laws. These forward-looking statements are based on assumptions and opinions concerning a variety of known and unknown risks. Please refer to ISH’s Annual Report on form 10-K for the year ended December 31, 2011 as well as its future filings and reports filed with or furnished to the Securities and Exchange Commission for a description of the business environment in which ISH operates and the important factors, risks and uncertainties that may affect its business and financial results. If any assumptions or opinions prove materially incorrect, any forward-looking statements made on that basis may also prove to be materially incorrect. ISH is not under any obligation to (and expressly disclaims any such obligations to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise.

Contact:

The IGB Group

David Burke

(646) 673-9701

dburke@igbir.com

Leon Berman

(212) 477-8438

lberman@igbir.com

International Shipholding Corporation

Niels M. Johnsen, Chairman (212) 943-4141

Erik L. Johnsen, President (251) 243-9221

The conference call will feature members of the Company’s management team, including Niels M. Johnsen, Chairman and Chief Executive Officer, Erik L. Johnsen, President, and Manuel G. Estrada, Chief Financial Officer. To participate in the conference call, please dial (888) 596-2569 (domestic) or (913) 312-0855 (international). Participants can reference the International Shipholding Corporation First Quarter 2012 Earnings Call or passcode 3269834. Please dial in approximately 5 minutes prior to the call.

The conference call will also be available via a live listen-only webcast and can be accessed through the Investor Relations section of the Company’s website, www.intship.com. Please allow extra time prior to the call to visit the Company’s website and download any software that may be needed to listen to the webcast.

A replay of the conference call will be available through May 3, 2012, at (877) 870-5176 (domestic) or (858) 384-5517 (international). The passcode for the replay is 3269834.

About International Shipholding
International Shipholding Corporation, through its subsidiaries, operates a diversified fleet of U.S. and international flag vessels that provide worldwide and domestic maritime transportation services to commercial and governmental customers primarily under medium to long-term charters and contracts.

For more information about the company, please visit www.intship.com.

Contact:

The IGB Group
David Burke
(646) 673-9701
dburke@igbir.com

Leon Berman
(212) 477-8438
lberman@igbir.com

 Mr. Niels M. Johnsen, Chairman and Chief Executive Officer, stated, “We are pleased to realize a profit from this transaction. The sale of these two vessels provides us with liquidity to pay down debt as we seek further accretive opportunities to grow our operating fleet.” 

 About International Shipholding Corporation

International Shipholding Corporation, through its subsidiaries, operates a diversified fleet of U.S. and international flag vessels that provide worldwide and domestic maritime transportation services to commercial and governmental customers primarily under medium to long-term charters and contracts.

 For more information about the company, please visit www.intship.com.

 Contact:

The IGB Group
David Burke
(646) 673-9701
dburke@igbir.com
Leon Berman
(212) 477-8438
lberman@igbir.com

International Shipholding
Niels M. Johnsen, Chairman (212) 943-4141
Erik L. Johnsen, President (251) 243-9221

 Mr. Niels M. Johnsen, Chairman and Chief Executive Officer, stated, “This sale and leaseback has enabled us to monetize our investment in this 2007-built vessel and further strengthen our balance sheet.  We will maintain commercial control of Green Bay, and we will have early buy-out options to buy back the vessel at future dates. Sale and leaseback financing has always been a key part of our financial strategy and continues to be a strategy that enables us to grow our company for the benefit of our Shareholders.” 

 About International Shipholding Corporation

International Shipholding Corporation, through its subsidiaries, operates a diversified fleet of U.S. and international flag vessels that provide worldwide and domestic maritime transportation services to commercial and governmental customers primarily under medium to long-term charters and contracts.

 For more information about the company, please visit www.intship.com.

 Contact:

 The IGB Group
David Burke
(646) 673-9701
dburke@igbir.com
Leon Berman
(212) 477-8438
lberman@igbir.com

 International Shipholding
Niels M. Johnsen, Chairman (212) 943-4141
Erik L. Johnsen, President (251) 243-9221

 Fourth Quarter 2011 Highlights

• Generated net income of $1.8 million for the three months ended December 31, 2011
• Took delivery of a multi-purpose ice strengthened vessel to perform Military Sealift Command time charter contract
• Declares quarterly dividend of $0.375 per share payable on March 1, 2012 to shareholders of record as of February 15, 2012

 Net Income

The Company reported net income of $1.8 million for the three months ended December 31, 2011 as compared to $8.9 million for the three months ended December 31, 2010. The 2011 quarterly results included a loss of $967,000 on the sale of an investment in a warehouse previously used by the Rail Ferry Service, while the 2010 quarterly results included a one-time reversal of an income tax provision of $3.9 million. For the full year of 2011, net income was $31.5 million compared to $15.3 million for 2010. In addition to the non-recurring charges, full year 2011 results included a non-monetary gain of $18.8 million associated with the purchase of the remaining 50% interest in Drybulk Capeholding, Inc. (“Dry Bulk”), while 2010 results included an impairment charge of $25.4 million on the Rail Ferry Service.

 Mr. Niels M. Johnsen, Chairman and Chief Executive Officer, stated, “In 2011 we continued our strategy of operating a majority of our fleet on medium to long-term charters, enabling us to generate significant revenue during a challenging time for the shipping industry. During the year we acquired a 2000-built multi-purpose ice strengthened vessel to service a recently awarded MSC contract. We also completed transactions to increase the ownership interest of our fleet by acquiring 100% interests in two pure car truck carriers, one Capesize vessel and one newbuilding Handymax vessel. In addition, we strengthened our potential earnings power during the year with the delivery of three Handysize Bulk Carriers and five Mini Bulkers.

 Operating Income

The Company’s Gross Voyage Profit, which represents the operating results of its five reporting segments, was $10.3 million for the fourth quarter of 2011 compared to $10.4 million in the 2010 three month period. While total results were comparable, individual segment results varied. The U.S. Flag Time Charter Gross Voyage Profit was approximately $3.5 million lower in the 2011 fourth quarter in comparison to the 2010 fourth quarter results. This was primarily driven by reduced supplemental cargo volumes and higher operating cost on the Pure Car Truck Carriers (“PCTC”). The International Flag Time Charter segment reported improved results from Dry Bulk operations partially offset by a drop in the Indonesian contract rates. The Company’s Contract of Affreightment and Rail Ferry segments reported improved results due to increased tonnage carried during the quarter. The Other segment, which consists of supporting ancillary services, improved slightly in the fourth quarter of 2011 as compared to the fourth quarter of 2010.  Administrative and general expenses during the fourth quarter of 2011 were at comparable 2010 levels.  

 Interest and Other Expense

Interest expense for the three months ended December 31 2011, increased from the comparable period in 2010. This increase is primarily a result of the purchase of the two previously leased PCTC vessels and the additional debt associated with the purchase of the three Handysize Bulk Carriers which began operating in first quarter, 2011. In addition, the Company experienced a loss on the sale of its interest in a partnership which owned warehouse space previously used to support the Rail Ferry operations when that service operated in New Orleans. Due to the stabilization of the Japanese Yen, the Company reported a small foreign exchange gain in fourth quarter of 2011 as compared to the same period in 2010, which reported a loss of $1.7 million on the strengthening of Yen during that period.  

 Federal Income Tax

The increase in the Company’s effective tax rate reflects the establishment of a valuation allowance against all of the deferred tax assets generated during the fourth quarter of 2011. The Company’s deferred tax liability balance is at levels that will continue to require a valuation reserve on all future deferred tax assets.

 Unconsolidated Entities

The results from the Company’s investment in 50% or less owned ventures decreased in the three months ended December 31, 2011, when compared to the same period in 2010. The 2010 results reflect a non-recurring income tax benefit of $3.9 million as well as the results of Dry Bulk which was purchased earlier in 2011. The 2011 fourth quarter results reflect the results of our investment in the Mini-Bulk Venture.

 Balance Sheet

The Company’s working capital at December 31, 2011, was approximately $19.3 million, an improvement of $ 7.5 million from September 30, 2011. This was primarily driven by a temporary draw from the Company’s line of credit of $9.5 million which was repaid during January of 2012. Cash, cash equivalents, and restricted cash was approximately $30.3 million at 2011 year end. The restricted cash balance of approximately $8.9 million was used to reduce the balance of the Yen-denominated loan during January, 2012. During the three month period ended December 31, 2011, the Company finalized its equity investment in the multi-purpose ice strengthened vessel placed on charter to the Military Sealift Command in January, 2012. The additional contribution in the quarter was approximately $3.5 million. The Company generated approximately $15.4 million in cash from its operating activities while paying debt principal of approximately $8.8 million over the quarter.

 Dividend Declaration

The Company’s Board of Directors authorized the payment of a $0.375 dividend for each share of common stock owned on the record date of February 15, 2012, payable on March 1, 2012.

 Mr. Johnsen noted, “Our fixed-rate contract coverage has enabled us to provide our shareholders with dividend payments despite the shipping industry’s difficult environment. For the quarter we announced a dividend of $0.375 per share and achieved our full year 2011 target of $1.50 per share. Based on our fixed rate contract business and several factors, including market conditions and potential growth opportunities, the Board of Directors has established a quarterly dividend target of $0.25 per share for the 2012 fiscal year. The 2012 dividend target provides our shareholders with a sustainable dividend while ensuring the company maintains an appropriate level of financial flexibility.”

 Conference Call

In connection with this earnings release, management will host an earnings conference call on Thursday, February 2, 2012 at 10:00 AM ET. To participate in the conference call, please dial (888) 427-9419 (domestic) or (719) 325-2172 (international). Participants can reference the International Shipholding Corporation Fourth Quarter 2011 Earnings Call or passcode 9261934. Please dial in approximately 5 minutes prior to the call.

 The conference call will also be available via a live listen-only webcast and can be accessed through the Investor Relations section of the Company’s website, www.intship.com. Please allow extra time prior to the call to visit the Company’s website and download any software that may be needed to listen to the webcast.

A replay of the conference call will be available through February 9, 2012, at (877) 870-5176 (domestic) or (858) 384-5517 (international). The passcode for the replay is 9261934.

 About International Shipholding Corporation

International Shipholding Corporation, through its subsidiaries, operates a diversified fleet of U. S. and foreign flag vessels that provide international and domestic maritime transportation services to commercial and governmental customers primarily under medium to long-term charters and contracts.

Caution concerning forward-looking statements

This press release contains forward-looking statements within the meaning of the U.S. federal securities laws. These forward-looking statements are based on assumptions and opinions concerning a variety of known and unknown risks. Please refer to ISH’s Annual Report on form 10-K for the year ended December 31, 2010, as well as its future filings and reports filed with or furnished to the Securities and Exchange Commission for a description of the business environment in which ISH operates and the important factors, risks and uncertainties that may affect its business and financial results. If any assumptions or opinions prove materially incorrect, any forward-looking statements made on that basis may also prove to be materially incorrect. ISH is not under any obligation to (and expressly disclaims any such obligations to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise.

Contact:

The IGB Group

David Burke
(646) 673-9701
dburke@igbir.com
 

Leon Berman
(212) 477-8438
lberman@igbir.com
 

International Shipholding Corporation

Niels M. Johnsen, Chairman (212) 943-4141
Erik L. Johnsen, President (251) 243-9221

The conference call will feature members of the Company’s management team, including Niels M. Johnsen, Chairman and Chief Executive Officer, Erik L. Johnsen, President, and Manuel G. Estrada, Chief Financial Officer. To participate in the conference call, please dial (888) 427-9419 (domestic) or (719) 325-2172 (international). Participants can reference the International Shipholding Corporation Fourth Quarter 2011 Earnings Call or passcode 9261934. Please dial in approximately 5 minutes prior to the call.

The conference call will also be available via a live listen-only webcast and can be accessed through the Investor Relations section of the Company’s website, www.intship.com. Please allow extra time prior to the call to visit the Company’s website and download any software that may be needed to listen to the webcast.

 A replay of the conference call will be available through February 9, 2012, at (877) 870-5176 (domestic) or (858) 384-5517 (international). The passcode for the replay is 9261934.

 About International Shipholding

International Shipholding Corporation, through its subsidiaries, operates a diversified fleet of U.S. and foreign flag vessels that provide international and domestic maritime transportation services to commercial and governmental customers primarily under medium to long-term charters and contracts.

 For more information about the company, please visit www.intship.com.

 Contact:

The IGB Group

David Burke
(646) 673-9701
dburke@igbir.com

 Leon Berman
(212) 477-8438
lberman@igbir.com

Third Quarter 2011

• Generated net income of $2.9 million for the three months ended
  September 30, 2011
• Awarded time charter contract with the Military Sealift Command to
  transport supplies for one year with options for up to an additional three
  years and 11 months

Net Income

The Company reported Net Income of $2.9 million for the three months ended September 30, 2011. For the comparable three months ended September 30, 2010, the Company reported a loss of $13.8 million which included a $25.4 million non-cash impairment charge
relating to the rail ferry service.

Mr. Niels M. Johnsen, chairman and chief executive officer, stated, “In the third quarter we were awarded
a new time charter contract to transport supplies for the Military Sealift Command which increases our contracted revenue stream and demonstrates our ability to maintain long-standing customer relationships. This Military Sealift Command time charter contract will be performed by a newly acquired 2000-built multi-purpose ice strengthened vessel which is being reflagged to United States Flag.

“As we work to expand our fleet and develop new growth opportunities, we remain committed to providing our shareholders with a return through our dividend policy. Our Board declared a third quarter payment of $0.375 per share, this makes a total of $5.625
per share in dividends declared since reinstituting our dividend policy in the fourth quarter of 2008.”

Operating Income

In spite of continued challenges in world transportation markets, the Company’s Gross Voyage Profit,
representing the operating results of its five segments, excluding the $25.4 non-cash impairment charge, decreased from $19.6 million to $13.4 million year-over-year. The lower results are attributable to reduced supplemental cargo volumes, fewer
operating days on the U.S. Flag Coal Carrier, and lower results from the Rail Ferry service. The U.S. Flag Coal Carrier had a third party commercial voyage in the third quarter of 2010 in addition to her normal operations under her time charter. The Rail Ferry experienced an extraordinary, one-time increase in northbound cargo volumes in 2010 due to storm-related track outages.  During the 2011 third quarter the Rail Ferry segment operated at 76% of capacity, a level that is generating our expected results. The Company’s U.S. Flag Time Charter segment, excluding the supplemental cargoes and Coal Carrier, had slightly lower results owing to a
reduced number of full operating days of its vessels under contract to the Military Sealift Command. The International Time Charter segment results were higher compared to the prior year period as the three Handysize vessels and the  Capesize vessel generated satisfactory results. Results from the Company’s Contract of Affreightment segment as well as its Other segment were comparable
to the year ago period.  Administrative and General Expenses during the third quarter of 2011 were slightly below the 2010 third quarter levels.

Interest and Other Expense

Interest expense for the three months ended September 30, 2011, increased from the comparable period in 2010. This increase is a product of the purchase of its two previously leased PCTC vessels and the additional debt on the purchase of the three Handysize Bulk Carriers placed in service earlier in 2011. During the quarter the Japanese Yen continued to strengthen versus the U.S. dollar creating a
non-cash charge of $2.7 million.  The Yen was pegged at 77.04 to $1 USD as of the end of the third quarter.

Federal Income Tax Benefit

The Company’s third quarter income tax provision was $150,000 as compared to a benefit of $51,000 for 2010 third quarter. As the Company has no deferred tax liability balance, any losses from its on-going operations require valuation allowances which effectively eliminate the tax benefits generated in the quarter.

Balance Sheet

The Company’s working capital at September 30, 2011, was approximately $11.9 million, a reduction of approximately $20 million from June 30, 2011. Cash, Cash Equivalents and Marketable Securities were approximately $31 million at the end of the quarter.

The equity portion of the acquisition financing of the two car carriers previously leased caused the drop in working capital. The Company generated approximately $10.9 million in cash from its operating activities while paying debt service of approximately $8.4 million during the quarter.

Dividend Declaration

The Company’s Board of Directors authorized the payment of a $0.375 dividend for each share of common stock owned on the record date of November 16, 2011, payable on December 1, 2011. The Company intends to continue to declare quarterly dividends. All
future dividend declarations and amounts remain subject to the discretion of International Shipholding Corporation’s Board of Directors.

 Conference Call

In connection with this earnings release, management will host an earnings conference call on Thursday, October 27, 2011 at 10:00 AM ET. To participate in the conference call, please dial (888) 312-3046 (domestic) or (719) 325-2109 (international). Participants can reference the International Shipholding Corporation Third Quarter 2011 Earnings Call or passcode 5271974. Please dial in approximately 5 minutes prior to the call.

The conference call will also be available via a live listen-only webcast and can be accessed through the Investor Relations section of the Company’s website, www.intship.com. Please allow extra time prior to the call to visit the Company’s website and download any software that may be needed to listen to the webcast.

A replay of the conference call will be available through November 3, 2011, at (877) 870-5176 (domestic) or (858) 384-5517 international). The passcode for the replay is 5271974.

About International Shipholding Corporation

International Shipholding Corporation, through its subsidiaries, operates a diversified fleet of U. S. and foreign flag vessels that provide international and domestic maritime transportation services to commercial and governmental customers primarily under medium to long-term charters and contracts.

Caution concerning forward-looking statements

This press release contains forward-looking statements within the meaning of the U.S. federal securities laws. These forward-looking statements are based on assumptions and opinions concerning a variety of known and unknown risks. Please refer to ISH’s Annual Report on form 10-K for the year ended December 31, 2010 as well as its future filings and reports filed with or furnished to the Securities and Exchange Commission for a description of the business environment in which ISH operates and the important factors, risks and uncertainties that may affect its business and financial results. If any assumptions or opinions prove materially incorrect, any forward-looking statements made on that basis may also prove to be materially incorrect. ISH is not under any obligation to (and expressly disclaims any such obligations to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise.

Contact:

The IGB Group

David Burke

(646) 673-9701

dburke@igbir.com

Leon Berman

(212) 477-8438

lberman@igbir.com

International Shipholding Corporation

Niels M. Johnsen, Chairman (212) 943-4141

Erik L. Johnsen, President (251) 243-9221

The conference call will feature members of the Company’s management team, including Niels M. Johnsen, Chairman and Chief Executive Officer, Erik L. Johnsen, President, and Manuel G. Estrada, Chief Financial Officer. To participate in the conference call, please dial (888) 312-3046 (domestic) or (719) 325-2109 (international). Participants can reference the International Shipholding Corporation Third Quarter 2011 Earnings Call or passcode 5271974. Please dial in approximately 5 minutes prior to the call.

The conference call will also be available via a live listen-only webcast and can be accessed through the Investor Relations section of the Company’s website, www.intship.com. Please allow extra time prior to the call to visit the Company’s website and download any software that may be needed to listen to the webcast.

A replay of the conference call will be available through November 3, 2011, at (877) 870-5176 (domestic) or (858) 384-5517 (international). The passcode for the replay is 5271974.

About International Shipholding

International Shipholding Corporation, through its subsidiaries, operates a diversified fleet of U.S. and foreign flag vessels that provide international and domestic maritime transportation services to commercial and governmental customers primarily under medium to long-term charters and contracts.

For more information about the company, please visit www.intship.com.

Contact:

The IGB Group

David Burke

(646) 673-9701

dburke@igbir.com

Leon Berman

(212) 477-8438

lberman@igbir.com

Mobile, Alabama, August 23, 2011 – International Shipholding Corporation (NYSE: ISH) announced today that Waterman Steamship Corporation, a wholly-owned subsidiary of International Shipholding Corporation, has been awarded a time charter contract with Military Sealift Command. The contract is for a firm one year period after which the Military Sealift Command will have three one-year options and one 11-month option to extend the contract. The time charter, which is scheduled to commence in mid-December, is expected to generate gross revenues of approximately $10 million for the firm initial one-year period and approximately $50 million if all the options are exercised.

International Shipholding Corporation also announced that it entered into an agreement to purchase a 2000-built multi-purpose ice strengthened vessel to be named GREEN WAVE which will be used to service the contract. The Company plans to fund the purchase with available cash and by arranging permanent financing.

Mr. Niels M. Johnsen, chairman and chief executive officer, commented, “We are pleased to have been awarded this contract and to continue our long-standing relationship with the Military Sealift Command. Consistent with our strategy, we have increased our contracted revenue stream and further diversified our fleet.  We remain committed to continue to seek growth opportunities to increase our Company’s long-term earning’s potential for the benefit of our shareholders.”

About International Shipholding Corporation

International Shipholding Corporation, through its subsidiaries, operates a diversified fleet of U.S. and foreign flag vessels that provide international and domestic maritime transportation services to commercial and governmental customers primarily under medium to long-term charters and contracts.

For more information about the company, please visit www.intship.com.

 Caution Concerning Forward-Looking Statements

 This press release contains forward-looking statements within the meaning of the U.S. federal securities laws. These forward-looking statements are based on assumptions and opinions concerning a variety of known and unknown risks. Please refer to ISH’s Annual Report on form 10-K for the year ended December 31, 2010 as well as its future filings and reports filed with or furnished to the Securities and Exchange Commission for a description of the business environment in which ISH operates and the important factors, risks and uncertainties that may affect its business and financial results. If any assumptions or opinions prove materially incorrect, any forward-looking statements made on that basis may also prove to be materially incorrect. ISH is not under any obligation to (and expressly disclaims any such obligations to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise.

 Contact:

 The IGB Group
David Burke
(646) 673-9701
dburke@igbir.com

Leon Berman
(212) 477-8438
lberman@igbir.com

International Shipholding

Niels M. Johnsen, Chairman (212) 943-4141
Erik L. Johnsen, President (251) 243-9221

 Second Quarter 2011 Highlights

• Generated net income of $2.8 million for the three months ended June 30, 2011
• Secured permanent financing for the early buy-out option of two car carriers
• Took delivery of two mini bulkers as part of our Oslo Bulk Joint Venture

Net Income

The Company reported net income of $2.8 million for the three months ended June 30, 2011.  For the comparable three months ended June 30, 2010, the Company reported net income of $9.6 million.

Mr. Niels M. Johnsen, chairman and chief executive officer, stated: “During a time when our fleet of diversified vessels performed as expected, our newly acquired vessels commenced their commercial operations. We secured permanent financing to acquire the two car carriers we agreed to purchase in the first quarter by exercising our early buy-out options with the lessors.  Additionally, we took delivery of two mini bulkers as part of our Oslo Bulk Joint Venture.  The tenth and final vessel of this joint venture was delivered on July 20^th, 2011.

 “Entering the second half of 2011, we continue to maintain a diversified portfolio of medium to long-term contracts which enables the Company to achieve predictable cash flows during a time when market conditions are volatile.  Volatile markets produce opportunities, and we continue to seek opportunities to both grow the Company and to create additional shareholder value.

“In continuing our dividend policy, our Company’s Board declared a second quarter dividend payment of $0.375 per share.”

Operating Income

The Company’s Gross Voyage Profit, representing the operating results of its five segments, decreased from $18.6 million to $12 million. The lower results are directly attributable to reduced supplemental cargo volumes. While supplemental cargoes in the second quarter of 2010 were above historical levels, they have returned to normal levels in 2011, as expected.  Excluding the impact of the supplemental cargoes, results of the Company’s U.S. Flag Time Charter segment for the second quarter of 2011 were comparable to the 2010 second quarter.  The International Flag Time Charter segment results were slightly lower compared to the prior year period.  The three Handysize vessels, which operated in the second quarter of 2011, generated satisfactory results; however, these results were offset by the loss of the Company’s International Flag container vessel, which was scrapped in the third quarter of 2010.  The results in the second quarter of 2011 of the Contract of Affreightment segment were slightly lower than the 2010 second quarter due to a drop in tonnage moved.  The Company’s Rail Ferry segment reported higher results for the quarter as compared to the second quarter of 2010, as northbound cargo volumes in 2011 continue to outpace the 2010 period.  The Company’s Other segment, reflecting an increase in chartering brokerage income, had improved results in the 2011 second quarter as compared to the 2010 second quarter.  Administrative and general expenses during the second quarter of 2011 were comparable to the 2010 second quarter expenditure levels.

Interest and Other Expense

Interest expense for the three months ended June 30, 2011, decreased from the comparable period in 2010.  While the Company incurred additional debt on the purchase of the three Handysize Bulk Carriers, the lower swapped interest rate on other loans offset higher interest expense.  The foreign exchange non cash loss of $1.9 million is the result of a weaker U. S. dollar versus the Japanese Yen and its impact on the Company’s Yen-denominated facility over the three month period ended June 30, 2011.  The Yen was pegged at 80.57 as of the end of the second quarter.

Federal Income Tax Benefit

The Company’s second quarter income tax provision was $204,000 as compared to a benefit of $30,000 for the 2010 second quarter.  As the Company has no deferred tax liability balance, any losses from its on-going operations require valuation allowances which effectively eliminate the tax benefits generated in the quarter.

Balance Sheet

The Company’s working capital at June 30, 2011, was approximately $32 million, a reduction of approximately $5 million from March 31, 2011.  Cash, Cash equivalents and marketable securities were approximately $49 million at June 30, 2011.  The primary reason for the drop in the Company’s liquidity was obtaining permanent financing on the Company’s Handymax vessel scheduled for delivery in the first quarter of 2012.  This facility required additional equity during the vessel’s construction period.  We have also arranged permanent financing for the acquisition of the two car carriers which the Company had previously exercised early buy-out options from the lessors.  Both of the vessels will be acquired in July 2011 and we expect to fund equity positions of approximately $19 million.

Dividend Declaration

The Company’s Board of Directors authorized the payment of a $0.375 dividend for each share of common stock owned on the record date of August 16, 2011, payable on September 1, 2011. The Company intends to continue to declare quarterly dividends. All future dividend declarations and amounts remain subject to the discretion of International Shipholding Corporation’s Board of Directors.

About International Shipholding

International Shipholding Corporation, through its subsidiaries, operates a diversified fleet of U.S. and foreign flag vessels that provide international and domestic maritime transportation services to commercial and governmental customers primarily under medium to long-term charters and contracts.

Caution concerning forward-looking statements

This press release contains forward-looking statements within the meaning of the U.S. federal securities laws. These forward-looking statements are based on assumptions and opinions concerning a variety of known and unknown risks. Please refer to ISH’s Annual Report on form 10-K for the year ended December 31, 2010 as well as its future filings and reports filed with or furnished to the Securities and Exchange Commission for a description of the business environment in which ISH operates and the important factors, risks and uncertainties that may affect its business and financial results. If any assumptions or opinions prove materially incorrect, any forward-looking statements made on that basis may also prove to be materially incorrect. ISH is not under any obligation to (and expressly disclaims any such obligations to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise.

Contact:

The IGB Group

David Burke
(646) 673-9701
dburke@igbir.com

Leon Berman
(212) 477-8438
lberman@igbir.com

International Shipholding Corporation

Niels M. Johnsen, Chairman (212) 943-4141

Erik L. Johnsen, President (251) 243-9221