10:04     PACIFIC BASIN<02343> - Announcement (1)                             

    The Stock Exchange of Hong Kong Limited takes no responsibility           
    for the contents of this announcement, makes no representation            
    as to its accuracy or completeness and expressly disclaims any            
    liability whatsoever for any loss howsoever arising from or in            
    reliance upon the whole or any part of the contents of this               
    announcement.                                                             
                                                                              
    Pacific Basin Shipping Limited                                            
    (incorporated in Bermuda with limited liability)                          
    Stock Code: 2343                                                          
    www.pacbasin.com                                                          
                                                                              
    PLACING OF EXISTING SHARES BY                                             
    CERTAIN MEMBERS OF THE CONTROLLING GROUP                                  
                                                                              
    This announcement is made pursuant to Rule 13.09 of the Listing           
    Rules.                                                                    
                                                                              
    The Company has been informed by each of IDB Carriers (BVI)               
    Limited and Dry Bulk Shipping (BVI) Limited, two members of the           
    Company's Controlling Group, that they have each entered into a           
    Placing Agreement with Goldman Sachs (Asia) L.L.C. (as Placing            
    Agent) pursuant to which the Placing Agent will purchase or               
    procure purchasers to acquire, and IDB and DBS will sell,                 
    145,549,437 Shares and 174,658,997 Shares, respectively, to               
    investors at a price of HK$3.215 per Placing Share. The Placing           
    Shares sold by IDB and DBS represent approximately 11.5% and 13.8%,       
    respectively, of the issued share capital of the Company.                 
                                                                              
    Immediately before the placing, the Company's Controlling Group           
    in aggregate holds approximately 768 million Shares,                      
    representing 60.7% of the existing issued share capital of the            
    Company. Immediately following the placing, the Company's                 
    Controlling Group will in aggregate holds approximately 448               
    million Shares, representing 35% of the existing issued share             
    capital of the Company.                                                   
                                                                              
    This announcement is made pursuant to Rule 13.09 of the Listing           
    Rules.                                                                    
                                                                              
    PLACING                                                                   
                                                                              
    The Company has been informed by each of IDB Carriers (BVI)               
    Limited and Dry Bulk Shipping (BVI) Limited, two members of the           
    Company's Controlling Group (as such term is defined and used in          
    the Company's Prospectus), that they have each entered into a             
    Placing Agreement dated 26 January 2005 with the Placing Agent            
    on the terms summarised below. Save for the number of Shares              
    placed, the terms of each of the Placing Agreements are identical.        
                                                                              
    The placing is not underwritten by the Placing Agent or any other         
    party and the Placing Agent has informed the Company that the             
    placing will not result in the introduction of a new substantial          
    shareholder (as such term is defined in the Listing Rules) of the         
    Company.                                                                  
                                                                              
    PARTIES                                                                   
                                                                              
    (1)   IDB and Goldman Sachs (Asia) L.L.C; and                             
                                                                              
    (2)   DBS and Goldman Sachs (Asia) L.L.C.                                 
                                                                              
    IDB and DBS are two members of the Company's Controlling Group            
    and hold 241,195,194 Shares and 289,433,689 Shares, respectively,         
    representing approximately 19.0% and 22.8%, respectively of the           
    existing issued share capital of the Company. The other members           
    of the Company's Controlling Group hold approximately 238 million         
    Shares, representing 18.8% of the existing issued share capital           
    of the Company and as far as the Directors are aware, other than          
    the partial exercise of the Over-allotment Option (as defined in          
    the Prospectus), there has been no change in shareholdings of the         
    Company's Controlling Group in the six month period from the              
    Company's listing date on 14 July 2004  to 14 January 2005.               
                                                                              
    NUMBER OF PLACING SHARES                                                  
                                                                              
    IDB:   145,549,437 Shares (representing approximately 11.5% of            
    the existing issued share capital of the Company);                        
                                                                              
    DBS:   174,658,997 Shares (representing approximately 13.8% of            
    the existing issued share capital of the Company),                        
                                                                              
    together in aggregate, representing approximately 25.3% of the            
    issued share capital of the Company (the ``Placing Shares'').