SOURCE: Euroseas

January 11, 2007 09:00 ET

Euroseas Ltd. Bulk Carrier M/V "Aristides NP" Enters Into a One-Year Time Charter Agreement at $29,000 per Day

MAROUSSI, ATHENS, GREECE -- (MARKET WIRE) -- January 11, 2007 -- Euroseas Ltd. (OTCBB: EUSEF), an owner and operator of drybulk carriers and container vessels and provider of seaborne transportation for dry bulk and containerized cargoes, announced today, that a subsidiary of the Company has entered into an one-year period time charter agreement with Sinochart (Beijing) for the M/V "Aristides NP," a 69,268 dwt, 1993 built Panamax bulk carrier, at a gross daily rate of $29,000. The charter commenced on January 10, 2007.

This employment is expected to generate approximately $10 million of gross revenues during the period of the charter. Following this charter and adjusting for the delivery of M/V Ariel to its buyer in the middle of February, 75% of Euroseas total fleet days for 2007 are secured under period charters, or already concluded spot charters, and are otherwise protected from market fluctuations.

Aristides Pittas, Chairman and CEO of Euroseas, commented: "We continue to take advantage of the strength of the drybulk market and we are pleased to announce that we have chartererd M/V 'Aristides NP' at a favorable rate which enables us to further enhance the predictability and strength of our revenues and cash flows, which supports attractive dividends for our shareholders. On the basis of this 75% contract coverage for 2007, we are confident that we will be able to deliver a quarterly dividend of at least $0.22 per share throughout 2007 as per the recent decision of our Board of Directors."

Fleet Profile:

The profile and deployment of Euroseas fleet is the following:

Name          Type       Dwt      TEU    Year   Employment TCE Rate
                                         Built             ($/day)
Dry Bulk
IRINI         Panamax    69,734          1988   Baumarine  $17,000 to
                                                Pool -     $20,000
                                                'til end
ARISTIDES     Panamax    69,268          1993   TC 'til    $29,000
N.P.                                            Jan-08
ARIEL (1)     Handysize  33,712          1977   Spot       
NIKOLAOS P.   Handysize  34,750          1984   Spot       
Total Dry                207,464                           
Bulk Vessels  4                          
Dry Cargo
TASMAN TRADER 1          22,568   950    1990   TC 'til    $8,850 'til
                                                Mar-12     Dec-08,
                                                           $9,950 'til
                                                           $9,000 'til
              Intermedi  29,693   2,098  1987   TC 'til    $19,000
ARTEMIS       ate                               Dec-08
YM XINGANG I  Handysize  23,596   1,599  1993   TC 'til    $26,650
YM QINGDAO I  Feeder     18,253   1,269  1990   TC 'til    $11,900
KUO HSIUNG    Feeder     18,154   1,269  1993   TC 'til    $12,000
Total         4          89,696   6,235                    
Fleet Grand   9          319,728  7,185                    
(1) M/V Ariel has been sold with expected delivery to the buyers on or about February 15, 2007.

About Euroseas Ltd.

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

Following the sale of the M/V "Ariel" (expected to be delivered to its buyers on or about February 15, 2007) the company will have a fleet of 8 vessels, including 2 Panamax drybulk carriers, 1 Handysize drybulk carriers, 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

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    Tasos Aslidis
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    Euroseas Ltd.
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    Tel. (908) 301-9091

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