SOURCE: Euroseas Ltd.

January 04, 2007 16:10 ET

Euroseas Ltd. Announces Agreement to Sell Handysize Drybulk Carrier

MAROUSSI, GREECE and ATHENS, GREECE -- (MARKET WIRE) -- January 4, 2007 -- Euroseas Ltd. (OTCBB: EUSEF) formerly (OTCBB: ESEAF), a provider of seaborne transportation for dry bulk and containerized cargoes, announced today that a subsidiary of Euroseas Ltd. has signed a memorandum of agreement to sell the M/V "Ariel," a handysize drybulk carrier of 33,712 dwt built in 1977.

The M/V "Ariel" will be sold for $5.35 million resulting in a capital gain of approximately $3.4 million. The vessel is to be delivered to the buyers by the middle of February 2007 at the option of Euroseas Ltd.

Aristides Pittas, Chairman and CEO of Euroseas, commented: "Our strategy of reducing the average age of our fleet continues with the sale of our oldest vessel, the M/V "Ariel." Following the sale of the M/V "Ariel" our average fleet age will be reduced to approximately 17 years. As we move into 2007, we will remain committed to expanding our fleet by taking advantage of market opportunities and grow our company by focusing on age and size segments which we believe maximize our return on equity."

Fleet Profile:

The Euroseas fleet profile and deployment following the sale of the M/V "Ariel" will be as follows:


                                               Year             TCE Rate
Name                    Type       Dwt   TEU   Built Employment  ($/day)
                    ------------ ------- ----- ----- ---------- ----------

Dry Bulk Vessels
                    ------------ ------- ----- ----- ---------- ----------
                                                     Baumarine
                                                     Pool -     $  17,000
                                                      'til          to
IRINI                    Panamax  69,734        1988  end 2008  $  20,000
                    ------------ ------- ----- ----- ---------- ----------
ARISTIDES N.P.           Panamax  69,268        1993       Spot
                    ------------ ------- ----- ----- ---------- ----------

NIKOLAOS P.            Handysize  34,750        1984       Spot
                    ------------ ------- ----- ----- ---------- ----------
Total Dry Bulk
 Vessels                      3  173,752
                    ------------ ------- ----- ----- ---------- ----------

                    ------------ ------- ----- ----- ---------- ----------
Multipurpose Dry
 Cargo Vessels
                    ------------ ------- ----- ----- ---------- ----------
TASMAN TRADER                  1  22,568   950  1990    TC 'til $    8,850
                                                         Mar-12       'til
                                                                   Dec-08,
                                                                $    9,950
                                                                      'til
                                                                   Dec-10,
                                                                $    9,000
                                                                      'til
                                                                    Mar-12
                    ------------ ------- ----- ----- ---------- ----------

Container Carriers
                    ------------ ------- ----- ----- ---------- ----------
                                                        TC 'til
ARTEMIS             Intermediate  29,693 2,098  1987     Dec-08 $   19,000
                    ------------ ------- ----- ----- ---------- ----------
                                                        TC 'til
YM XINGANG I           Handysize  23,596 1,599  1993     Jul-09 $   26,650
                    ------------ ------- ----- ----- ---------- ----------
                                                        TC 'til
YM QINGDAO I              Feeder  18,253 1,269  1990     Mar-07 $   11,900
                    ------------ ------- ----- ----- ---------- ----------
KUO HSIUNG                Feeder  18,154 1,269  1993    TC 'til $   12,000
                                                         Nov-07
                    ------------ ------- ----- ----- ---------- ----------
Total Container
 Carriers                      4  89,696 6,235
                    ------------ ------- ----- ----- ---------- ----------
Fleet Grand Total              8 286,016 7,185
                    ------------ ------- ----- ----- ---------- ----------
About Euroseas Ltd.

Euroseas Ltd. was formed in May 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 135 years. Euroseas trades on the OTCBB under the ticker (OTCBB: EUSEF); until October 5, 2006 it traded under the previous ticker symbol (OTCBB: ESEAF).

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.

Following the sale of the M/V "Ariel" the company will have a fleet of 8 vessels, including 2 Panamax drybulk carriers, 1 Handysize drybulk carrier, 1 Intermediate container ship, 1 Handysize container ship, 2 Feeder container ships and a multipurpose dry cargo vessel. Euroseas' 3 drybulk carriers will have a total cargo capacity of 173,752 dwt, its 4 container ships have a cargo capacity of 6,235 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