Kirby Corporation announced today it is entered into an agreement with K- Sea transportation partners LP. Operators of tank barges, and both involved in transport of refined petroleum via inland and coastal shipping, serving the the United States. They operate approximately 121 vessels between them with the transportation capacity approximately 3.8 million barrels. Customers include major oil companies and refiners.

Total value of this cash, stock and line of credit deal will be approximately 600,000,000. K-Sea partners will survive as a wholly owned subsidiary of Kirby. The transaction is expected to occur by July 2001, subject to certain conditions.

Prior to the closing there must be a consensus reached among the majority of k-Seas unitholders, who have the option of receiving 8.15 in cash per share, or 4.075 in cash and 0.0734 share of Kirby common stock. Expiration of the mandatory waiting period required by the Scott- Rudino act must transpire.