Matson

October 17, 2006

Subject: Matson Decreases Fuel Surcharge by One Percentage Point

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 one percentage point, from 19.75 percent to 18.75 percent, effective November 5, 2006.

"Bunker fuel prices continue to decrease, allowing us to make this second consecutive reduction to our fuel surcharge," said Dave Hoppes, senior vice president, ocean services. "Following a year of rapidly escalating fuel costs, we're pleased to finally experience this downward trend. We will continue to monitor fuel costs and adjust the fuel surcharge accordingly. While fuel prices remain volatile, we are hopeful 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.