FreeSeas Inc. Announces New Time Charter for Free Destiny

PIRAEUS, Greece, June 2, 2008 - FreeSeas Inc. (Nasdaq:FREE) (Nasdaq:FREEW) (Nasdaq:FREEZ) ("FreeSeas" or "the Company"), a provider of seaborne transportation for drybulk cargoes, announced today that the Free Destiny, a 1982-built, 25,240 dwt Handysize vessel, has been delivered to her charterers for a spot charter of a duration of about 50 days at a rate of $37,000 per day.

"We have been able to repeatedly deliver this vessel successfully over the past year, each time taking advantage of improving market rates," said Mr. Ion Varouxakis, President and CEO of FreeSeas. "Since the beginning of the year the Free Destiny has been chartered at rates ranging from $23,000 to $37,000 per day, the highest level ever achieved by this vessel. This trend reflects the continued strength of the market and validates our decision to operate her in the spot market."

FreeSeas also announced that, upon completion of her current voyage, the Free Envoy would enter dry dock for her scheduled special survey. The Company expects the survey to last approximately 40 days.

About FreeSeas Inc.
FreeSeas Inc. is a Marshall Islands corporation with principal offices in Piraeus, Greece. FreeSeas is engaged in the transportation of dry bulk cargoes through the ownership and operation of dry bulk carriers. Currently, it has a fleet of six Handysize vessels and one Handymax vessel. FreeSeas' common stock and warrants trade on the NASDAQ Global Market under the symbols FREE, FREEW and FREEZ, respectively. Risks and uncertainties are described in reports filed by FreeSeas Inc. with the U.S. Securities and Exchange Commission, which can be obtained free of charge on the SEC's website at www.sec.gov. For more information about FreeSeas Inc., please go to our corporate website, www.freeseas.gr.

FreeSeas Inc. press release