INTERNATIONAL SHIPHOLDING TO DISPOSE OF LASH SERVICES, BULK SHIP

INTERNATIONAL SHIPHOLDING TO DISPOSE OF LASH SERVICES, BULK SHIP

   International Shipholding Corp., amidst reporting second-quarter and first-half 2001 losses Thursday, said it plans to dispose of its LASH services, its Cape-size bulk carrier and special purpose barges.

   “Assets held for disposal” by the company are:

   * Waterman Steamship Corp., the U.S.-flag LASH (lighter aboard ship) service between the U.S. Gulf and Atlantic coasts and the Mideast, East Africa, the Indian Subcontinent and Southeast Asia.

   * Forest Lines, a transatlantic LASH service, and ancillary assets.

   * The Cape-size bulk carrier and purpose-built barges no longer required for current operations.

   Waterman and Forest Line will continue to operate as separate units under the current management while International Shipholding decides how to dispose of the units. During the first half of 2001, the LASH operations accounted for half of total revenue while accounting for a $9.4-million loss against voyage profits, and account for about half of the company's administrative and general expenses.

   International Shipholding reported a net second-quarter loss of $57.4 million after a $51.3-million non-cash charge to write down the assets marked for disposal to their estimated market value. Revenues fell to $72.7 million, from $87.3 million during the quarter, which ended June 30.

   The second-quarter results were also negatively impacted by scheduling disruptions caused by two of Waterman's LASH vessels undergoing unplanned shipyard work. The service's schedules are expected to be restored to normal in the second half of 2001.

   In early July, International Shipholding refinanced two of its recently acquired car/truck carriers by means of sales and leaseback to the company. The transactions reduced bank debt by about $68 million and increased liquidity by about $30 million.

   For the first half of 2001, the company reported a net loss of $62.8 million, compared to a loss of $357,000 for the year-earlier period. Revenue fell to $149.8 million, from $170.6 million.