FreeSeas Inc. Announces New Time Charter for Free Destiny

PIRAEUS, Greece, July 23, 2008 (PRIME NEWSWIRE) -- 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 60 to 90 day spot charter at a rate of $28,500 per day.

Mr. Ion Varouxakis, President and CEO of FreeSeas, commented "FreeSeas has managed once again to benefit from the sustained high freight rate environment. Despite her age, the Free Destiny, the oldest vessel in our fleet, continues to be a significant contributor to our bottom line."

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 two Handymax vessels. 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