FreeSeas Inc. Announces New Charters for the Free Lady and Free Envoy

PIRAEUS, Greece, Jun 26, 2008 (PrimeNewswire via COMTEX News Network) -- 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 Lady, a 2003-built, 50,246 dwt Handymax vessel, has been fixed for a time charter of a duration of approximately two years at a rate of $51,150 per day. The Free Lady is expected to be delivered to FreeSeas during the second week of July, and immediately begin employment with her new charterer.

"With the delivery of the Free Lady, our fleet will comprise eight vessels," said Mr. Ion Varouxakis, President and CEO of FreeSeas. "The charter of the Free Lady that we announced today is expected to provide an income stream over the next two years equivalent to approximately half the purchase price of this five-year-old vessel. The income from the charter is expected to be immediately accretive to distributable free cash flow, and further enhance our bottom line. We continue to expect the rate environment to be strong and will leverage our fleet to achieve maximum benefits from this environment. We will also actively pursue opportunities in the sale and purchase market to identify acquisition targets and continuously renew our fleet."

FreeSeas also announced today that the Free Envoy, a 1984-built, 26,318 dwt Handysize vessel, has been fixed for a time charter of a duration of approximately one year at a rate of $32,000 per day, which is expected to commence upon completion of the vessel's scheduled dry-docking towards the end of June 2008.

Mr. Ion Varouxakis commented, "We have fixed this older vessel for a period of one year at the highest rate ever achieved by the Free Envoy, demonstrating the underlying strength of the dry-bulk market."

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