International Shipholding Corporation to Respond to Offer

International Shipholding Corporation received a letter dated September 2, 2008, in which Projection LLC, a wholly owned subsidiary of Liberty Shipping Group LLC, submitted a proposal to the Board of Director of the company to acquire all of the outstanding shares of the company's common stock for $25.75 per share, in cash. The proposal will be reviewed by the Management and Board of Directors of the Company, and they will respond in due course.