Matson

September 21, 2006

Subject: Matson Decreases Fuel Surcharge by 1.5 Percent

Dear Matson Customer,

As a result of recent declines in bunker fuel prices, Matson Navigation Company announced today that it is lowering its fuel surcharge in its Hawaii, Guam/CNMI and Micronesia services by 1.5 percent, from 21.25 percent to 19.75 percent, effective October 1, 2006.

"Matson is pleased to finally make a downward adjustment to our fuel surcharge, after a year of dramatic hikes in fuel prices," said Dave Hoppes, senior vice president, ocean services. "While fuel costs remain at historic highs, we have seen some relief in the past month, allowing us to make this reduction. We will continue to monitor fuel costs and adjust the fuel surcharge accordingly. Hopefully this current trend will continue."

If you have any questions, please contact your local sales representative or our Customer Support Center.

Thank you for shipping with Matson.