International Shipholding Corporation Announces Closing of Public Offering of Its 9% Series B Cumulative Redeemable Perpetual

  International Shipholding Corporation Announces Closing of Public Offering
  of Its 9% Series B Cumulative Redeemable Perpetual Preferred Stock

Business Wire

MOBILE, Alabama -- August 1, 2013

International Shipholding Corporation (NYSE: ISH) today announced the closing
of its previously-announced sale of $27.5 million of its Series B Cumulative
Redeemable Perpetual Preferred Stock (the “Series B Preferred Shares”), and
the sale of an additional $4.125 million of Series B Preferred Shares pursuant
to the full exercise of the over-allotment option granted to the underwriters
for the offering. Dividends will be payable on the Series B Preferred Shares
at an initial rate of 9% per annum of the stated liquidation preference when,
as and if declared by ISH’s board of directors. The Company received net
proceeds from the offering of approximately $30.2 million, after deducting
underwriting discounts but excluding other related expenses.

ISH intends to use the net proceeds from the offering for working capital and
other general corporate purposes, including using a substantial portion of the
funds to repay certain indebtedness and to finance certain vessel investment
costs.

The Company has applied to list the Series B Preferred Shares on the New York
Stock Exchange under the symbol “ISH.PRB,” and the shares are expected to be
listed on or about Friday, August 2, 2013.

Incapital acted as the sole structuring agent for the offering. Incapital, DNB
Markets and Sterne Agee acted as joint book-running managers. Euro Pacific
Capital Inc. and Regions Securities LLC acted as co-managers.

This press release does not constitute an offer to sell or a solicitation of
an offer to buy the securities described herein, nor shall there be any sale
of these securities in any state or other jurisdiction in which such an offer,
solicitation or sale would be unlawful. Any offers of the Series B Preferred
Shares described in this press release will be made exclusively by means of
the Company’s prospectus supplement dated July 25, 2013, and accompanying base
prospectus, which relate to ISH’s effective shelf registration statement.

About International Shipholdinq 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.

Forward Looking Statements

Except for the historical and factual information contained herein, the
matters set forth in this release, including statements regarding the terms of
the offering, the anticipated use of the proceeds therefrom and other
statements identified by words such as "expects," "will," "intends," and
similar expressions are forward-looking statements within the meaning of the
"safe harbor" provisions of the Private Securities Litigation Reform Act of
1995. These forward-looking statements are subject to a number of risks and
uncertainties that may cause actual events and results to differ materially
from those anticipated, estimated, projected, expressed or implied if one or
more of these risks or uncertainties materialize, or if underlying assumptions
prove incorrect. Factors that could affect actual results include but are not
limited to: changes in our cash requirements, financial position, financing
plans or investment plans; unforeseen delays in the NYSE listing process;
changes in general market, economic, regulatory or industry conditions; and
other risks referenced from time to time in our filings with the Securities
and Exchange Commission. You should be aware that new factors may emerge from
time to time and it is not possible for us to identify all such factors, nor
can we predict the impact of each such factor on our plans, or the extent to
which any one or more factors may cause actual results to differ from those
reflected in any of our forward-looking statements. Accordingly, you are
cautioned not to place undue reliance upon any of our forward-looking
statements, which speak only as of the date made. We undertake no obligation
to update or revise for any reason any forward-looking statements made by us
or on our behalf, whether as a result of new information, future events or
developments, changed circumstances or otherwise.

Contact:

The IGB Group
Leon Berman, 212-477-8438
lberman@igbir.com
or
International Shipholding Corporation
Niels M. Johnsen, Chairman
212-943-4141
or
Erik L. Johnsen, President
251-243-9221