SOURCE: Euroseas Ltd.

April 19, 2006 12:22 ET

Euroseas Ltd. Announces Agreement to Purchase a Multipurpose Vessel and to Sell Handysize Bulk Carrier

MAROUSSI, ATHENS -- (MARKET WIRE) -- April 19, 2006 -- Euroseas Ltd., (OTC BB: ESEAF) an owner and operator of drybulk and container carrier vessels and provider of seaborne transportation for drybulk and containerized cargoes, announced today that on April 10, 2006, a subsidiary of Euroseas Ltd. signed a Memorandum of Agreement to purchase M/V "Tasman Trader," a multipurpose dry cargo vessel of 22,568 dwt and 950 twenty-foot equivalent units (teu) built in 1990. The vessel can transport bulk commodities and/or containers.

The vessel is to be delivered to Euroseas Ltd. between April 25 and May 8, 2006 at the sellers' option. The M/V "Tasman Trader" comes with a period charter attached until November 2008 at a rate of USD $8,850 per day. Thereafter, Euroseas has arranged an extension with the same charterer for a further 24 months, ending November 2010, at USD 9,500. After that 24 month period, Euroseas has arranged for a further extension for 15 months, ending February 2012, at USD $9,000.

Furthermore, Euroseas Ltd., announced that on April 14, 2006, a subsidiary of Euroseas Ltd. signed a memorandum of agreement to sell M/V "Pantelis P," a handysize bulk carrier of 26,354 dwt built in 1981. The vessel is to be delivered to the buyers between May 15 and June 30, 2006 at Euroseas Ltd. option.

Following the acquisition of the M/V "Tasman Trader," the sale of the M/V "Pantelis P" and the earlier sale of M/V "John P," which will be delivered to the buyers in late June / early July 2006, the Company will ultimately have a fleet of 7 vessels, including 1 Panamax drybulk carrier, 2 Handysize drybulk carriers, 3 Handysize containerships and a Handysize multipurpose dry cargo vessel,. Euroseas 3 drybulk carrier vessels have a total cargo capacity of 138,196 deadweight tons (dwt), its 3 containerships have a cargo capacity of 66,100 dwt and 4,636 teu and its 1 multipurpose vessel has a cargo capacity of 22,568 dwt and 950 teu.

Aristides Pittas, Chairman and CEO of Euroseas commented: "Our strategy has been to take advantage of market opportunities and grow our company by focusing on age and size segments which we believe can maximize our return on equity. In this context, we are particularly pleased with the acquisition of the M/V 'Tasman Trader' and the sale of one of our older vessels the M/V 'Pantelis P.' Furthermore, consistent with our fleet deployment strategy of seeking profitable long term employment, the M/V 'Tasman Trader' comes with a time charter which expires in 2012, thereby enabling us to generate stable and predictable cash flows enhancing our earnings and shareholder return. We believe that the proceeds from the sale of the M/V 'Pantelis P,' the sale of M/V 'John P' and the cash available from the private placement we completed in August 2005, coupled with the use of standard leverage, place us in a strong position to continue taking advantage of market opportunities, as these may occur in 2006."

Fleet Profile:

The fleet profile of Euroseas is as follows:

Name              Type       Dwt    TEU  Year Built   Employment
Dry Bulk Vessels
IRINI (1)       Panamax    69,734          1988     Baumarine Pool -
                                                     'til end 2008
NIKOLAOS P.     Handysize  34,750          1984         Spot
ARIEL           Handysize  33,712          1977     TC 'til Sep-06
JOHN P. (*)     Handysize  26,354          1981         Spot
PANTELIS P.(**) Handysize  26,354          1981         Spot
Total Dry
 Bulk Vessels       5     190,904

Multipurpose Dry
 Cargo Vessels
Tasman Trader(***)  1      22,568   950    1990     TC 'til Nov-12

Container
 Carriers
ARTEMIS         Handymax   29,693  2,098   1987     TC 'til Dec-08
YM QINGDAO I    Handymax   18,253  1,269   1990     TC 'til Mar-07
KUO HSIUNG      Handymax   18,154  1,269   1993     TC 'til Nov-07
Total Container
 Carriers           3      66,100  4,636
Fleet Grand
 Total              9     279,572  5,586

(*)    Euroseas has signed a Memorandum of Agreement to sell the bulk
       carrier M/V "John P" to be delivered to the buyers in late
       June / early July 2006.

(**)   Euroseas has signed a Memorandum of Agreement to sell the bulk
       carrier M/V "Pantelis P" to be delivered to the buyers between
       May 15 and June 30, 2006 at Euroseas Ltd. option.

(***) The M/V "Tasman Trader," to be delivered to Euroseas between April 25
      and May 8, 2006, comes with a period charter attached until November
      2008. Thereafter, Euroseas has arranged an extension with the same
      charterer for a further 24 months, ending November 2010. After that
      24 month period, Euroseas has arranged for a further extension for 15
      months, ending February 2012.
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 125 years. Currently, Euroseas Ltd. owns and operates 8 vessels, including 4 Handysize bulk carriers, 1 Panamax drybulk carrier and 3 Handysize containerships. Euroseas will continue to operate in the dry cargo, drybulk and container, shipping markets, with operations 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' 5 drybulk carrier vessels have total cargo capacity of 190,904 deadweight tons (dwt), its 3 containerships have cargo capacity of 66,100 dwt and 4,636 twenty-foot equivalent units (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