THE MID-SHIP GROUP

KINDER MORGAN BULK TERMINALS PURCHASES MINORITY INTEREST IN MID-SHIP MARINE

NEW YORK, [July 2, 2007] - MID-SHIP Marine, Inc. is pleased to announce that Kinder Morgan Bulk Terminals (KMBT) has purchased a minority interest in MID-SHIP Marine, which closed on June 21, 2007. MID-SHIP will continue to serve as manager of the new entity which will be known as the "MID-SHIP Group LLC". The new company will incorporate all of MID-SHIP's entities, which include the chartering, logistics and trucking divisions.

“By combining the core competencies of MID-SHIP and Kinder Morgan, we can offer our clients extensive services across the entire supply chain while simultaneously maintaining the independence of both companies,” said Matt DeLuca, Jr., Chairman and CEO MID-SHIP Marine, Inc.

“We are delighted to be working with the MID-SHIP Group,” said Jeff Armstrong, President of Kinder Morgan Bulk Terminals. “Our existing and potential customers will realize significant benefits from the combined services provided by both companies.”

MID-SHIP’s Board of Directors will now consist of MID-SHIP Partners Bob Diamond, Brian Malone, Steve Rzehak, George Kachmar and Matt DeLuca, Jr., and KMBT Vice President’s John Schlosser and Joe Pontoli. Matt DeLuca, Jr. will serve as Chairman and CEO.

Matt DeLuca, Jr. started MID-SHIP in March 1974 as chartering brokers and over the past 33 years has diversified with numerous offices in America, Brazil, Turkey and China. Strategic alliances are in place with Overseas Logistica, Brazil, Imperial Logistics, Germany and Ocean Services in Mexico.

Kinder Morgan Energy Partners L.P. (NYSE:KMP) is the largest independent terminal owner/operator in the U.S. with approximately 150 terminals with a liquids storage capacity of about 70 million barrels for petroleum products and chemicals. In addition, Kinder Morgan handles over 90 million tons annually of bulk materials such as coal, petcoke and steel.

HQ: 145 Main Street, Port Washington, New York 11050-3239 | phone 516/944-3500 | fax 516/944-3515 | contactus@midship.com

MID-SHIP is a client focused, world leader in the transportation of dry cargo. We offer the latest in computer and communications technology to save our clients valuable time and money across our full range of services.