SOURCE: Capital Link, Inc. via FreeSeas

April 11, 2006 14:18 ET

FreeSeas Makes Its Debut in New York

NEW YORK, NY -- (MARKET WIRE) -- April 11, 2006 --FreeSeas (NASDAQ: FREE), a provider of sea borne transportation services for dry bulk commodities through the ownership and operation of dry bulk vessels, completed an action packed two-week period in New York City.

On Friday, March 17, 2006 the company held its Quarterly Board Meeting in New York City approving among other topics the fourth quarter and full year 2005 results and accounts. On the same day, the company's management rang the Closing Bell at NASDAQ, which was featured on the home page of NASDAQ's websites and broadcasted by major financial channels such as Bloomberg and CNBC thereby augmenting the company's visibility among the US investment community.

On the evening of the same day, FreeSeas held a dinner at the Thalassa Restaurant in Lower Manhattan in New York City to celebrate its successful transition into a public company and its listing on NASDAQ. Well over 100 people attended the dinner, which brought together prominent investment and commercial bankers, analysts, lawyers, shipbrokers, and senior members of the business and shipping communities in New York City.

On Tuesday, March 21, 2005 after the close of the market, FreeSeas released its fourth quarter and full year 2005 financial and operational results, the first such results as a public company. FreeSeas was listed on NASDAQ on December 16, 2005 after consummating its merger with Trinity Partners Acquisition Company.

The next day, on Wednesday March 22, 2005 at 10:00 am EST, the company's management held its first conference call presenting the results to the financial community and replying to the questions of several investors who attended the call. Investor questions focused on the company's differentiation from its peers, its strategy and prospects and how it plans to take advantage of its public entity status to capture growth opportunities that may arise in the shipping markets in 2006.

The management of FreeSeas was also active in investor relations meetings during this two-week period with shareholders, investors, analysts and bankers to update them on the company's developments and prospects.

On Wednesday, March 22, 2005, the management of FreeSeas took active part in the proceedings of the Annual Conference held by the Connecticut Maritime Association and was a sponsor of this year's event as well as hosting a table at the Annual Commodore Gala Dinner.

On January 31, 2006, George D. Gourdomichalis, Chairman and President of FreeSeas participated in a global conference call on the dry bulk sector along with the CEOs of DryShips, Excel Maritime and Quintana Maritime to discuss the developments, prospects and outlook of the dry bulk sector. The discussion was moderated by Charlotte Crosswell, the head of NASDAQ International and Isabella Schindrich, Director for Western Europe NASDAQ International. The event was hugely successful as it drew close to 600 investors from all over the world. Topics discussed during the forum included the importance of dry bulk shipping, market developments, supply and the demand side, including the current valuation of the industry.

FreeSeas: A Dynamic New Presence Among Listed Dry Bulk Companies

Freeseas, a Marshal Islands corporation, headquarted in Piraeus, Greece is engaged in the transportation of dry bulk cargoes. Through wholly owned subsidiaries, FreeSeas owns and operates three handy dry bulk carriers, the M/V "Free Destiny," the M/V "Free Envoy" and the M/V "Free Fighter" and is committed to modernize and expand its fleet through timely acquisitions while continuing its focus on the Handysize segment.

On December 15, 2005, FreeSeas announced the completion of its merger with Trinity Partners Acquisition Company. In accordance with the terms of the merger, FreeSeas was the surviving corporation. Trinity securities were delisted and converted into securities of FreeSeas and on December 16, 2005, FreeSeas commenced trading on the NASDAQ Capital Market under the trading symbols, FREE, FREEZ, and FREEEW respectively.

Ion G. Varouxakis, Chief Executive Officer and Secretary of FreeSeas commented: "The completion of our merger with Trinity and our becoming a publicly listed company has been a turning point for our company. Our objective is to maximize shareholder value by growing our company and taking full advantage of market opportunities. We believe that our timing of becoming a public company was excellent and positions us for further growth at the proper time."

Stathis D. Gourdomicalis, Chief Financial Officer and Treasurer, added, "Two thirds of the world's goods are transported by sea and close to forty percent of these goods are dry bulk commodities. Strong demand for raw materials from developing nations such as China and India create sustainable demand for shipping. We believe that our status as a public company will enhance our ability to grow further. We are happy to be joining other shipping companies on NASDAQ and we are committed to high standards of corporate governance, financial disclosure and investor relations."

FreeSeas Strategy

"Focus, stability and growth" are the cornerstones of our strategy, comments George D. Gourdomichalis, Chairman and President. "We believe that our strategy of focusing on the Handysize segment, by expanding and renewing our fleet, will result in strengthening our balance sheet, solidifying our earnings and serving as the locomotive of our growth. As this is year evolves, we see opportunities to acquire competitively priced vessels with solid earnings potential." He continues, "The smaller size of the current fleet and the timing of our listing are two significant advantages. Compared to the larger companies, FreeSeas can achieve a much higher growth rate through fleet expansion. Furthermore, given the current market status, we believe we will have the opportunity to acquire second hand vessels at lower prices, thereby further enhancing the return potential."

FreeSeas intends to grow its fleet through timely and selective acquisitions of second hand drybulk carriers. The company intends to maintain its focus on the Handysize segment of the dry bulk sector, as it believes that it presents the best possible risk reward return compared to other segments such as Handymax, Supramax, Panamax and Capesize.

The management of FreeSeas believes the Handysize segment has several advantages such as reduced volatility in charter rates, a smaller new building order book (the order book represents approximately 6% of the existing fleet as compared to 21% for the Handymax/Supramax sector, 21% for the Panamax sector and 27% for the Capesize sector), an over aged fleet (approximately 27% of the existing Handysize fleet is over 25 years of age, in contrast to 1.3% for the Capesize, 3.9% for the Panamax and 5% for the Handymax), increased operating flexibility due to the self loading and self discharging capabilities of the Handysize vessels, the ability to access more ports, to carry a more diverse range of cargoes and a broader customer base.

As FreeSeas expands its fleet, it will actively and strategically seek to employ its fleet between spot charters and fixed time charters, thereby enhancing the stability and predictability of earnings. A spot charter is for a particular vessel to transport cargo between specific loading ports and discharging ports in the immediate future. In a time charter the owner leases their vessel and crew to the charterer for repeated voyages over a longer period, which could exceed one year.

Financial Results

For the full year ended December 31, 2005, FreeSeas reported Operating Revenues of $10.3 million and net income of $0.1 million, or $ 0.01 per share based on 6,282,600 shares outstanding at the end of the period. Adjusted EBITDA for the full year ended December 31, 2005 was $5.3 million.

An average of 2.5 vessels were owned and operated during the full year 2005. The M/V Free Destiny was employed on period charter for the first three quarters and the M/V Free Envoy, was employed on period charters for the full year. The M/V Free Fighter, which was acquired by FreeSeas on June 15, 2005, was employed in the spot market from its delivery to the Company onwards.

The results of 2005 were affected by the increased start-up operating costs of the newly acquired M/V Free Fighter, the dry docking and special survey costs and related off-hire time of M/V Free Destiny and the costs of taking the company public.

Experienced and Respected Management Team

George D. Gourdomichalis, Chairman and President, Ion G. Varouxakis, Chief Executive Officer and Secretary and Stathis D. Gourdomichalis, Chief Financial Officer and Treasurer have spent their entire careers in the shipping industry and have extensive experience in all aspects of the industry, including the acquisition, sale, operation, maintenance and management of vessels. Over the past 15 years, they have purchased and sold over 20 vessels. They also come from established shipping families with long shipping traditions -- spanning over a number of generations -- and impeccable business credentials.

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Capital Link, Inc. is an Investor Relations and Financial Communications company, which services several listed companies, including FreeSeas.

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