SOURCE: Euroseas

August 14, 2007 08:30 ET

Euroseas Ltd. Takes Delivery of Two Container Ship Vessels - Completes Fleet of 13 Vessels

MAROUSSI, ATHENS, GREECE--(Marketwire - August 14, 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 that it took delivery of the M/V Beauty River to be re-named Despina P and the M/V Honor River to be re-named Jonathan P, two handysize container ships it had previously agreed to acquire, each with a capacity of 33,667 dwt and 1,932 teu. The vessels are sister ships built in 1990 in South Korea.

The M/V Jonathan P and the Despina P were each acquired for $18.7 million. Both vessels have been fixed on short term charters until October 2007 at a rate of about $17,000 per day. 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.

Aristides Pittas, Chairman and CEO of Euroseas, commented: "We are pleased to have taken delivery of these two container ship vessels well ahead of their initial schedule. The acquisition of these two vessels is within our strategy to further grow our fleet by investing in drybulk vessels and containerships while at the same time focusing on the age and size segments which we believe maximize our return on equity."

"Based on this strategy, we have been able to increase our dividends paid for each of the last three quarters enhancing the return to our shareholders. Our dividend yield continues to be the highest amongst our public peers while at the same time, we seek to aggressively repay our bank debt. Aiming at continued and prudent fleet expansion, we are actively looking for additional opportunities fitting our investment strategy and objectives."

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                1  22,568     950  1990   TC 'til  $9,500 'til
                                                        Mar-12      Dec-10,
                                                                $9,000 'til
                                                                     Mar-12
                   ------------ ------- ------ ----- ---------- -----------
Container Carriers
                   ------------ ------- ------ ----- ---------- -----------
                                                        TC 'til
ARTEMIS            Intermediate  29,693  2,098  1987     Dec-08 $    19,000
                   ------------ ------- ------ ----- ---------- -----------
DESPINA P (ex-                                          TC 'til
 BEAUTY RIVER)        Handysize  33,667  1,932  1990     Oct-07 $    17,000
                   ------------ ------- ------ ----- ---------- -----------
JONATHAN P (ex-                                         TC 'til
 HONOR RIVER)         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).

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.

Visit our website www.euroseas.gr

Contact Information

  • 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