SOURCE: Euroseas

March 22, 2007 09:00 ET

Euroseas Ltd. Announces Agreement to Purchase Containership Expanding Fleet to 10 Vessels

MAROUSSI, GREECE and ATHENS, GREECE -- (MARKET WIRE) -- March 22, 2007 -- Euroseas Ltd. (NASDAQ: ESEA), an owner and operator of drybulk carriers, container ship and multipurpose vessels and provider of seaborne transportation for dry bulk and containerized cargoes, announced today that it has signed a Memorandum of Agreement to purchase the M/V Bitre Ritscher, a 1,452 teu containership built in 1995 in Germany for $19.5 million. The vessel is scheduled to be delivered to Euroseas during the period of April 10-13, 2007, at the sellers' option. It will be financed partly by bank debt. The vessel has been secured with recently concluded one-year period charter for USD 13,450 per day.

Aristides Pittas, Chairman and CEO of Euroseas, commented: "We are pleased to announce the acquisition of the M/V Biter Ritscher. Since we completed our public follow-on offering in February 2007, we have acquired two vessels in line with our investment strategy of purchasing second hand dry cargo vessels in the drybulk, container and multipurpose sectors. We look forward to continuing our fleet expansion by purchasing additional vessels that we believe maximize the returns on our capital invested."

Fleet Profile:

The Euroseas Ltd. fleet profile after the delivery to its fleet the m/v Bitre Ritscher is as follows:

Name           Type      Dwt     TEU   Year    Employment        TCE Rate
                                       Built                     ($/day)
------------ ---------  ------  -----  ----- --------------  --------------
Dry Bulk
 Vessels
IRINI         Panamax   69,734         1988     Baumarine       $17,000 to
                                               Pool - 'til        $20,000
                                                end 2008
ARISTIDES
 N.P.         Panamax   69,268         1993  TC 'til Jan-08       $29,000
NIKOLAOS P.  Handysize  34,750         1984       Spot            $17,000
GREGOS       Handysize  38,434         1984       Spot            $18,880
Total Dry
 Bulk
 Vessels         4     212,186

Multipurpose
 Dry Cargo
 Vessels
TASMAN TRADER    1      22,568    950  1990    TC 'til Mar-12   $8,850 'til
                                                                  Dec-08,
                                                                $9,950 'til
                                                                  Dec-10,
                                                                $9,000 'til
                                                                  Mar-12
Container
 Carriers
ARTEMIS    Intermediate 29,693  2,098  1987    TC 'til Dec-08     $19,000
YM XINGANG
 I           Handysize  23,596  1,599  1993    TC 'til Jul-09     $26,650
BITRE
 RITSCHER    Handysize  20,346  1,452  1995    TC 'til Mar-08     $13,450
YM QINGDAO I   Feeder   18,253  1,169  1990    TC 'til Mar-07     $11,900
KUO HSIUNG     Feeder   18,154  1,169  1993    TC 'til Nov-07     $12,000
Total Container
 Carriers        4     110,042  7,487
Fleet Grand
 Total          10     344,796  8,437
About Euroseas Ltd.

Euroseas Ltd. was formed on May 5, 2005 under the laws of the Republic of the Marshall Islands to consolidate the ship owning interests of the Pittas family of Athens, Greece, which has been in the shipping business over the past 136 years. As of January 31, 2007, Euroseas trades on the NASDAQ Global Market under the ticker ESEA (previously it traded on the Over The Counter Bulletin Board under the ticker symbol EUSEF.OB).

Euroseas operates in the dry cargo, drybulk and container shipping markets. Euroseas' operations are managed by Eurobulk Ltd., an ISO 9001:2000 certified affiliated ship management company, which is responsible for the day-to-day commercial and technical management and operations of the vessels. Euroseas employs its vessels on spot and period charters and through pool arrangements.

The Company has a fleet of 10 vessels, including 2 Panamax drybulk carriers, 2 Handysize drybulk carriers, 1 Intermediate container ship, 2 Handysize container ships, 2 Feeder container ships and a multipurpose dry cargo vessel. Euroseas' 4 drybulk carriers have a total cargo capacity of 212,186 dwt, its 4 container ships have a cargo capacity of 7,487 teu and its 1 multipurpose vessel has a cargo capacity of 22,568 dwt or 950 teu.

Forward-Looking Statement

This press release contains forward-looking statements (as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) concerning future events and the Company's growth strategy and measures to implement such strategy; including expected vessel acquisitions and entering into further time charters. Words such as "expects," "intends," "plans," "believes," "anticipates," "hopes," "estimates," and variations of such words and similar expressions are intended to identify forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. These statements involve known and unknown risks and are based upon a number of assumptions and estimates that are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of the Company. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to changes in the demand for dry bulk vessels, competitive factors in the market in which the Company operates; risks associated with operations outside the United States; and other factors listed from time to time in the Company's filings with the Securities and Exchange Commission. The Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.

Contact Information

  • Contact:

    Visit our website www.euroseas.gr

    Company Contact
    Tasos Aslidis
    Chief Financial Officer
    Euroseas Ltd.
    2693 Fair View Drive
    Mountainside, NJ 07092
    Tel. (908) 301-9091
    E-mail: aha@euroseas.gr

    Investor Relations / Financial Media
    Nicolas Bornozis
    President
    Capital Link, Inc.
    230 Park Avenue, Suite 1536
    New York, NY 10169
    Tel. (212) 661-7566
    E-mail: nbornozis@capitallink.com