SOURCE: Euroseas

August 23, 2007 09:25 ET

Euroseas Ltd. Reports Results for the Second Quarter and Six Month Period Ended June 30, 2007

MAROUSSI, GREECE and ATHENS, GREECE--(Marketwire - August 23, 2007) - Euroseas Ltd. (NASDAQ: ESEA), an owner and operator of drybulk and container carrier vessels and provider of seaborne transportation for drybulk and containerized cargoes, announced today its results for the second quarter and six month period ended June 30, 2007.

Second Quarter 2007 Highlights:

--  Net income of $6.4 million or $0.35 per share calculated on 18,370,861
    weighted average number of shares outstanding on total net revenues of
    $15.6 million. Earnings per share for the second quarter of 2007 do not
    include $0.03 per share of revenues  attributable to amortization of the
    fair value of period charter contracts acquired that is usually included by
    security analysts in their published estimates of earnings per share.
    
--  Adjusted EBITDA was $11.4 million. Please refer to a subsequent
    section of the Press Release for a reconciliation of adjusted EBITDA to net
    income.
    
--  An average 10.08 vessels were operated during the second quarter 2007
    earning an average time charter equivalent rate of $18,776 per day.
    
--  Declared a quarterly dividend of $0.25 per share for the second
    quarter 2007 payable on August 24, 2007 to shareholders of record on August
    15, 2007.
    

Six Months 2007 Highlights:

--  Net income of $15.9 million or $0.92 per share calculated on
    17,258,629 weighted average number of shares outstanding on total net
    revenues of $29.1 million. Earnings per share for the six month period
    ended June 30, 2007 do not include $0.06 per share of revenues
    attributable to amortization of the fair value of period charter contracts
    acquired that is usually included by security analysts in their published
    estimates of earnings per share.
    
--  Adjusted EBITDA was $24.9 million. Please refer to a subsequent
    section of the Press Release for a reconciliation of adjusted EBITDA to net
    income.
    
--  An average 9.55 vessels were operated during the first six months of
    2007 earning an average time charter equivalent rate of $18,567 per day.
    
--  Declared quarterly dividends for the first and second quarters of
    2007, aggregating $0.49 per share.
    

Fleet Developments:

--  In August 2007, took delivery of the M/V Despina P (ex Beauty River)
    and the M/V Jonathan P (M/V ex Honor River), two handysize container ships
    the Company had previously agreed to acquire for $18.7 million each, in
    June 2007. Each vessel has a capacity of 33,667 dwt and 1,932 teu and are
    sister ships built in 1990, in South Korea. The vessels are employed on
    short term charters until October 2007, at a rate of about $17,000 per day.
    
--  In June 2007, took delivery of the M/V Clan Gladiator, a Handysize
    container ship the Company had previously agreed to acquire in May 2007,
    for $25.7 million. The vessel has a capacity of 30,007 dwt and 1,742 teu,
    built in 1992, in Germany, The vessel is employed under a period charter
    contract at a rate of $19,000 per day till April 2008.
    
--  Following these charter agreements, approximately 92% of Euroseas
    total fleet days in 2007 and approximately 33% in 2008 are fixed under
    period charters, already concluded spot charters, or, otherwise protected
    from market fluctuations.
    

Company Development:

--  In July 2007, the Company announced the simultaneous closing of its
    5,000,000 share follow-on public offering and the full exercise of the
    underwriters' over-allotment option to purchase an additional 750,000
    shares at a price of $13.50 per share. Net proceeds to Euroseas after
    underwriting discounts and estimated offering expenses were approximately
    $73 million.  The Company intends to use the net proceeds to acquire
    additional vessels in the drybulk and container sectors and for general
    corporate purposes.
    

Aristides Pittas, Chairman and CEO of Euroseas, commented: "The second quarter of 2007 has been one of significant progress in the development of Euroseas as a public company. During the second quarter of 2007, we deployed the remaining of the proceeds of our January 2007 follow-on offering increasing our revenue base and market capitalization. Equally significantly, in June 2007, we completed our second follow-on common stock offering raising net proceeds of about $73 million, funds that will enable us to continue our growth. We have already purchased two vessels the delivery of which earlier this month increased our fleet to 13 vessels. We intend to continue executing our plan to grow our fleet by focusing on age and size segments of the drybulk and containership sectors which we believe maximize our return on equity. The growth of our dividend from $0.36 per share for the first six months of 2006 to $0.49 per share for the first six months of 2007, a 36% increase, is the best evidence of the effectiveness of our investment and employment strategy, especially since it represents only a fraction of our net income even excluding any capital gains during those periods. We believe our strategy will enable us to continue providing consistent and significant dividends and overall returns to our shareholders."

Tasos Aslidis, Chief Financial Officer of Euroseas, commented: "The results of the first six months of 2007 reflect significantly higher revenues compared to the first six months of 2006 due to the higher average time charter equivalent rate our vessels have achieved and the higher number of vessels in our fleet. Specifically during the first six months of 2007, our fleet earned on average $18,567 per vessel per day compared to $13,434 per vessel per day during the same period in 2006. Daily vessel operating expenses including management fees during the first six months of 2007 reflect an increase of about 9% on a per vessel per day basis compared to the same period in 2006. This increase is mainly due to the increase in euro/dollar exchange rate and higher crew costs because of the increased competition in securing quality personnel.

"As of today, including the vessels we recently took delivery of, 92% of our ship capacity days in 2007 have been fixed (including the spot voyages already concluded for which the revenue is already known). In 2008, 33% of our capacity is under time charter contracts or protected from market fluctuations. We believe that our contract coverage gives us a solid revenue base for 2007 and 2008, more predictable cash flows and sufficient downside protection, while still allowing us to participate in the potential upside of the spot market during periods of rising market rates."

Second Quarter 2007 Results:

For the second quarter of 2007, the Company reported total net revenues of $15.6 million and net income of $6.4 million representing a 52.9% increase and 3.0% decrease, respectively, over total net revenues of $10.2 million and net income of $6.6 million during the second quarter of 2006. On average, 10.08 vessels were operated during the second quarter 2007 earning an average time charter equivalent rate of $18,776 per day compared to 8.38 vessels in the same period of 2006 earning on average $13,778 per day. Net income for the second quarter of 2006 includes a $2.2 million capital gain from the sale of M/V "Pantelis P" in May 2006. Excluding this capital gain, net income in the second quarter of 2007 represents an increase of 44.1% over the second quarter of 2006.

Adjusted EBITDA for the second quarter of 2007 was $11.4 million, a 31.6% increase or $8.6 million during the second quarter of 2006; exclusive of the capital gain in the second quarter of 2006. Adjusted EBITDA would have been $6.4 million an increase of 75.8%. Please see below for Adjusted EBITDA reconciliation to net income and cash flow provided by operating activities.

Basic earnings per share for the second quarter of 2007 were $0.35, calculated on 18,370,861 weighted average number of shares outstanding, compared to earnings per share of $0.52, inclusive of a $0.17 capital gain per share on the sale of M/V "Pantelis P," for the second quarter of 2006, calculated on 12,620,114 weighted average number of shares outstanding. Diluted earnings per share were $0.35 and $0.52, inclusive of capital gains of $0.17, for the second quarter of 2007 and 2006 respectively. The Company has recently declared a quarterly dividend of $0.25 per share, which represents its eighth consecutive quarterly dividend and a 39% increase over last year's second quarter dividend.

Earnings per share for the second quarter of 2007 and 2006 do not include $0.03 and ($0.01) respectively of cash flow attributable to amortization of the fair value of period charter contracts acquired that is usually included by security analysts in their published estimates of earnings per share.

Six Months Ended June 30, 2007 Results:

For the six months ended June 30, 2007, the company reported total net revenues of $29.1 million and net income of $15.9 million, representing a 49.2% and 59.0% increase, respectively over the same period of 2006. Adjusted EBITDA for the period was $24.9 million, a 74.6% increase over 2006 (please see below for Adjusted EBITDA reconciliation to net income and cash flow from operating activities). In the first six months ended June 30, 2006, net revenues were $19.5 million, net income was $10.0 million and EBITDA was $14.0 million. On average, 9.55 vessels were operated during the six month period of 2007 earning an average time charter equivalent rate of $18,567 per day compared to 8.19 vessels in the same period of 2006 earning a time charter equivalent rate of $13,434. Results for the six month period ended June 30, 2007 included a capital gain of $3.4 million from the sale of M/V "Ariel," while results for the six month period ended June 30, 2006 included a capital gain of $2.2 million from the sale of M/V "Pantelis P," two of the Company's handysize vessels. Excluding the capital gains, net income and Adjusted EBITDA for the six month period ended June 30, 2007 increased 58.6% and 81.7%, respectively, over the same period of 2006.

Basic earnings per share for the six months ended June 30, 2007, were $0.92, calculated on 17,258,629 weighted average number of shares outstanding, compared to earnings per share of $0.80 for the same period of 2006 calculated on 12,449,194 weighted average number of shares outstanding. Diluted earnings per share were $0.92 and $0.80 for the first six months of 2007 and 2006, respectively.

Earnings per share for the six month period ended June 30, 2007 and 2006 do not include $0.06 and ($0.01) respectively of cash flow attributable to amortization of the fair value of period charter contracts acquired that is usually included by security analysts in their published estimates of earnings per share.

Fleet Profile:
The Euroseas Ltd. fleet profile is as follows:

                                               Year              TCE Rate
Name                   Type       Dwt    TEU   Built Employment   ($/day)
                   ------------ ------- ------ ----- ---------- -----------
Dry Bulk Vessels
                   ------------ ------- ------ ----- ---------- -----------
                                                      Baumarine
                                                      Pool-'til $ 17,000 to
IRINI (*)               Panamax  69,734         1988   end 2008    $ 20,000
                   ------------ ------- ------ ----- ---------- -----------
                                                        TC 'til
ARISTIDES N.P.          Panamax  69,268         1993     Jan-08 $    29,000
                   ------------ ------- ------ ----- ---------- -----------
                                                        TC 'til
NIKOLAOS P.           Handysize  34,750         1984     Aug-07 $    21,300
                   ------------ ------- ------ ----- ---------- -----------
GREGOS                Handysize  38,691         1984       Spot $    31,750
                   ------------ ------- ------ ----- ---------- -----------
Total Dry Bulk
 Vessels                     4  212,443
                   ------------ ------- ------ ----- ---------- -----------

                   ------------ ------- ------ ----- ---------- -----------
Multipurpose Dry
 Cargo Vessels
                   ------------ ------- ------ ----- ---------- -----------
                                                                $8,850 'til
                                                                    Dec-08,
TASMAN TRADER                                                   $9,500 'til
                                                                  Dec-10,
                                                      TC 'til   $9,000 'til
                              1  22,568    950  1990   Mar-12      Mar-12
                   ------------ ------- ------ ----- ---------- -----------
Container Carriers
                   ------------ ------- ------ ----- ---------- -----------
                                                        TC 'til
ARTEMIS            Intermediate  29,693  2,098  1987     Dec-08 $    19,000
                   ------------ ------- ------ ----- ---------- -----------
                                                        TC 'til
DESPINA P             Handysize  33,667  1,932  1990     Oct-07 $    17,000
                   ------------ ------- ------ ----- ---------- -----------
                                                        TC 'til
JONATHAN P            Handysize  33,667  1,932  1990     Oct-07 $    17,000
                   ------------ ------- ------ ----- ---------- -----------
                                                        TC 'til
CLAN GLADIATOR        Handysize  30,007  1,742  1992     Apr-08 $    19,000
                   ------------ ------- ------ ----- ---------- -----------
                                                        TC 'til
YM XINGANG I          Handysize  23,596  1,599  1993     Jul-09 $    26,650
                   ------------ ------- ------ ----- ---------- -----------
                                                        TC 'til
MANOLIS P             Handysize  20,346  1,452  1995     Mar-08 $    13,450
                   ------------ ------- ------ ----- ---------- -----------
NINOS                                                   TC 'til
 (ex-YM QINGDAO I)       Feeder  18,253  1,169  1990     Apr-08 $    12,800
                   ------------ ------- ------ ----- ---------- -----------
                                                        TC 'til
KUO HSIUNG               Feeder  18,154  1,169  1993     Nov-07 $    12,000
                   ------------ ------- ------ ----- ---------- -----------
Total Container
 Carriers                     8 207,383 13,093
                   ------------ ------- ------ ----- ---------- -----------
Fleet Grand Total            13 442,394 14,043
                   ------------ ------- ------ ----- ---------- -----------

(*) "IRINI," is employed in the Baumarine pool that is managed by
    Klaveness, a major global charterer in the dry bulk area, and also
    participates in two "short" funds (contracts to carry cargo at agreed
    rates), minimizing its exposure to the spot market (covered at 77% for
    2007 and 42% for 2008, approximately).


Summary Fleet Data:

                                    3 months  3 months  6 months  6 months
                                       ended     ended     ended     ended
                                    June 30,  June 30,  June 30,  June 30,
                                        2006      2007      2006      2007
                                    --------  --------  --------  --------
FLEET DATA
Average number of vessels (1)           8.38     10.08      8.19      9.55
Calendar days for fleet (2)            763.0     917.0   1,483.0   1,728.0
Available days for fleet (3)           750.9     862.0   1,459.9   1,629.0
Voyage days for fleet (4)              746.6     860.6   1,455.6   1,626.3
Fleet utilization (5)                  99.4%     99.8%     99.7%     99.8%

AVERAGE DAILY RESULTS
Time charter equivalent rate (6)      13,778    18,776    13,434    18,567
Vessel operating expenses (7)          3,999     4,587     4,159     4,515
General and administrative
 expenses (8)                            377       474       352       396
Total vessel operating expenses (9)    4,376     5,061     4,511     4,911

(1) Average number of vessels is the number of vessels that constituted our fleet for the relevant period, as measured by the sum of the number of calendar days each vessel was a part of our fleet during the period divided by the number of calendar days in that period.

(2) Calendar days. We define calendar days as the total number of days in a period during which each vessel in our fleet was in our possession including off-hire days associated with major repairs, drydockings or special or intermediate surveys. Calendar days are an indicator of the size of our fleet over a period and affect both the amount of revenues and the amount of expenses that we record during that period.

(3) Available days. We define available days as the total number of days in a period during which each vessel in our fleet was in our possession net of off-hire days associated with scheduled repairs, drydockings or special or intermediate surveys. The shipping industry uses available days to measure the number of days in a period during which vessels were available to generate revenues.

(4) Voyage days. We define voyage days as the total number of days in a period during which each vessel in our fleet was in our possession net of off-hire days associated with scheduled and unscheduled repairs, drydockings or special or intermediate surveys or days waiting to find employment or other offhire. The shipping industry uses voyage days to measure the number of days in a period during which vessels actually generate revenues.

(5) Fleet utilization. We calculate fleet utilization by dividing the number of our voyage days during a period by the number of our available days during that period. The shipping industry uses fleet utilization to measure a company's efficiency in finding suitable employment for its vessels and minimizing the amount of days that its vessels are off-hire for reasons such as unscheduled repairs or days waiting to find employment.

(6) Time charter equivalent, or TCE, is a measure of the average daily revenue performance of a vessel on a per voyage basis. Our method of calculating TCE is consistent with industry standards and is determined by dividing revenue generated from voyage charters net of voyage expenses by available days for the relevant time period. Voyage expenses primarily consist of port, canal and fuel costs that are unique to a particular voyage, which would otherwise be paid by the charterer under a time charter contract, as well as commissions. TCE is a standard shipping industry performance measure used primarily to compare period-to-period changes in a shipping company's performance despite changes in the mix of charter types (i.e., spot voyage charters, time charters and bareboat charters) under which the vessels may be employed between the periods.

(7) Daily vessel operating expenses, which includes crew costs, provisions, deck and engine stores, lubricating oil, insurance, maintenance and repairs are calculated by dividing vessel operating expenses by fleet calendar days for the relevant time period.

(8) Daily general and administrative expense is calculated by dividing general and administrative expense by fleet calendar days for the relevant time period.

(9) Total vessel operating expenses, or TVOE, is a measure of our total expenses associated with operating our vessels. TVOE is the sum of vessel operating expenses and general and administrative expenses. Daily TVOE is calculated by dividing TVOE by fleet calendar days for the relevant time period.

Conference Call and Webcast:

Later today, August 23, 2007 at 11:00 a.m. EDT, the company's management will host a conference call to discuss the results.

Conference Call details:

Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1 866 819 7111 (from the US), 0800 953 0329 (from the UK) or +44 (0)1452 542 301 (international standard dial in). Please quote "Euroseas."

In case of any problems with the above numbers, please dial 1 866 223 0615 (from the US), 0800 694 1503 (from the UK) or +44 (0)1452 586 513 (international standard dial in). Quote "Euroseas."

A recording of the conference call will be available until August 30, 2007, by dialing 1 866 247 4222 (from the US), 0800 953 1533 (from the UK) or +44 (0)1452 550 000 (international standard dial in). Access Code: 6973591#.

Audio webcast -- Slides Presentation:

There will be a live and then archived audio webcast of the conference call, via the internet through the Euroseas website (www.euroseas.gr). Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.

A slides presentation on the second quarter and six month period ended June 30, 2007 results in PDF format will also be available 30 minutes prior to the conference call and webcast accessible on the company's website (www.euroseas.gr) on the webcast page. Participants to the webcast can download the PDF presentation.

                             Euroseas Ltd.
               Consolidated Condensed Statement of Income
      (All amounts expressed in U.S. Dollars – except share amounts)


                            Three        Three        Six          Six
                           Months       Months       Months       Months
                            Ended        Ended        Ended        Ended
                          June 30,     June 30,     June 30,     June 30,
                            2006         2007         2006         2007
                        -----------  -----------  -----------  -----------
                         (unaudited)  (unaudited)  (unaudited)  (unaudited)
Revenues
        Voyage revenue   10,612,199   16,341,028   20,421,220   30,524,348
           Commissions     (416,385)    (784,430)    (895,968)  (1,421,101)
Net revenues             10,195,814   15,556,598   19,525,252   29,103,247

Operating expenses
       Voyage expenses      325,176      182,008      866,365      328,623
      Vessel operating
              expenses    2,449,653    3,423,148    5,055,753    6,350,159
      Amortization and
          depreciation    1,638,585    3,472,104    3,195,074    6,163,131
       Management fees      601,266      783,171    1,112,850    1,451,378
     Other general and
        administrative
              expenses      287,515      434,280      521,940      683,916
Total operating
 expenses                 5,302,195    8,294,711   10,751,982   14,977,207

Net gain from sale of
 vessel                   2,165,799            -    2,165,799    3,411,397
Operating income          7,059,418    7,261,887   10,939,069   17,537,437
Other income/(expenses)
          Interest and
          finance cost     (713,581)  (1,165,008)  (1,391,947)  (2,358,105)
       Interest income      250,909      303,725      470,341      695,981
      Foreign exchange
           (loss)/gain         (172)        (538)      (2,007)          60
Other expenses, net        (462,844)    (861,821)    (923,613)  (1,662,064)

                        -----------  -----------  -----------  -----------

Net income                6,596,574    6,400,066   10,015,456   15,875,373
                        -----------  -----------  -----------  -----------
Earnings, per share,
 basic                         0.52         0.35         0.80         0.92
Weighted average number
 of shares, basic        12,620,114   18,370,861   12,449,194   17,258,629
                        -----------  -----------  -----------  -----------
Earnings, per share,
 diluted                       0.52         0.35         0.80         0.92
                        -----------  -----------  -----------  -----------
Weighted average number
 of shares, diluted      12,620,114   18,447,922   12,449,194   17,258,629
                        -----------  -----------  -----------  -----------

                              Euroseas Ltd.
                   Consolidated Condensed Balance Sheet
                  (All amounts expressed in U.S. Dollars)

                                                  December 31,   June 30,
                                                      2006         2007
                                                  ------------ ------------
ASSETS                                             (unaudited)  (unaudited)
Current Assets:
    Cash and cash equivalents                        2,791,107    7,227,275
    Trade accounts receivables                         378,216      184,872
    Other receivables                                  268,864      345,413
    Due from related company                         2,649,259      878,889
    Inventories                                        716,131    1,141,260
    Restricted cash                                  1,146,621    1,279,980
    Vessel held for sale                             1,782,840            -
    Prepaid expenses                                   242,558      259,559
Total current assets                                 9,975,596   11,317,248

Long-term assets:
    Vessels, net                                    95,494,342  148,009,983
    Restricted cash                                  2,700,000    3,300,000
    Deferred charges, net                            1,291,844    3,292,320
    Deferred offering expenses                         500,000      340,053
    Fair value of above market time charter
     acquired                                        7,543,477    6,080,060
Total long-term assets                             107,529,663  161,022,416
Total assets                                       117,505,259  172,339,664

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
    Long term debt, current portion                 18,040,000   19,780,000
    Trade accounts payable                           1,034,713    1,859,229
    Accrued expenses                                 1,233,185    1,557,489
    Deferred revenue                                 1,357,501    2,608,297
Total current liabilities                           21,665,399   25,805,015

Long-term liabilities:
    Long term debt, net of current portion          56,910,000   55,800,000
    Fair value of below market time charter
     acquired                                          918,200      686,409
Total long-term liabilities                         57,828,200   56,486,409
Total liabilities                                   79,493,599   82,291,424

Shareholders' equity:
    Common stock (par value $0.03, 100,000,000 shares
     authorized, 12,620,150 and 18,372,172 issued and
     outstanding) Preferred shares (par value $0.01,
     20,000,000 shares authorized, no shares issued
     and outstanding)                                  378,605      551,165
    Additional paid-in capital                      18,283,767   61,448,264
    Common stock to be issued on warrants
     exercised                                               -        9,904
    Retained earnings                               19,349,288   28,038,907
    Total shareholders' equity                      38,011,660   90,048,240
    Total liabilities and shareholders' equity     117,505,259  172,339,664
                                                  ------------ ------------

                             Euroseas Ltd.
                  Reconciliation of Adjusted EBITDA to
        Net Income and Cash Flow Provided By Operating Activities
                 (All amounts expressed in U.S. Dollars)


                               Three       Three       Six         Six
                              Months      Months      Months      Months
                              Ended       Ended       Ended       Ended
                             June 30,    June 30,    June 30,    June 30,
                               2006        2007        2006        2007
                            ----------  ----------  ----------  ----------

Net income                   6,596,574   6,400,066  10,015,456  15,875,373
                            ----------  ----------  ----------  ----------

Interest and finance costs,
 net (includes interest
 income)                       462,672     861,283     921,606   1,662,124
                            ----------  ----------  ----------  ----------

Depreciation and
 amortization                1,638,585   3,472,104   3,195,074   6,163,131
                            ----------  ----------  ----------  ----------

Amortization of deferred
 revenue of below market
 time charter acquired         (83,240)   (116,536)    (83,240)   (231,791)
                            ----------  ----------  ----------  ----------

Amortization of deferred
 revenue of above market
 time charter acquired               -     735,751           -   1,463,417
                            ----------  ----------  ----------  ----------

Adjusted EBITDA              8,614,591  11,352,668  14,048,896  24,932,254
                            ==========  ==========  ==========  ==========


                               Three       Three       Six         Six
                              Months      Months      Months      Months
                               Ended       Ended       Ended       Ended
                             June 30,    June 30,    June 30,    June 30,
                               2006        2007        2006        2007
                            ----------  ----------  ----------  ----------

Net cash flow provided by
 operating activities        4,202,387  12,478,230  11,508,281  21,323,088
                            ----------  ----------  ----------  ----------

Changes in operating
 assets / liabilities        1,819,860  (1,971,114)   (510,663) (1,426,504)
                            ----------  ----------  ----------  ----------

Gain from vessel sale        2,165,799           -   2,165,799   3,411,397
                            ----------  ----------  ----------  ----------

Interest, net                  426,545     845,552     885,479   1,624,274
                            ----------  ----------  ----------  ----------

Adjusted EBITDA              8,614,591  11,352,668  14,048,896  24,932,254
                            ==========  ==========  ==========  ==========

EBITDA Reconciliation:

Euroseas Ltd. considers Adjusted EBITDA to represent net earnings before interest, taxes, depreciation, amortization and amortization of deferred revenues from above or below market time charters acquired. Adjusted EBITDA does not represent and should not be considered as an alternative to net income or cash flow from operations, as determined by United States generally accepted accounting principles, or U.S. GAAP, and our calculation of Adjusted EBITDA may not be comparable to that reported by other companies. Adjusted EBITDA is included herein because it is a basis upon which we assess our liquidity position and because we believe that it presents useful information to investors regarding a company's ability to service and/or incur indebtedness. The Company's definition of Adjusted EBITDA may not be the same as that used by other companies in the shipping or other industries.

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. Euroseas trades on the NASDAQ Global Market under the ticker ESEA since January 31, 2006 (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 13 vessels, including 2 Panamax drybulk carriers, 2 Handysize drybulk carriers, 1 Intermediate container ship, 5 Handysize container ships, 2 Feeder container ships and a multipurpose dry cargo vessel. Euroseas' 4 drybulk carriers have a total cargo capacity of 212,443 dwt, its 8 container ships will have a cargo capacity of 13,093 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 and container ships, 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.
    11 Canterbury Lane,
    Watchung, NJ 07069
    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