FreeSeas to Acquire Handysize Vessel; Increase Fleet to Nine Vessels

PIRAEUS, Greece, Aug. 12, 2008 - FreeSeas Inc. (Nasdaq:FREE), (Nasdaq:FREEW), (Nasdaq:FREEZ) ("FreeSeas" or "the Company"), a provider of seaborne transportation for drybulk cargoes, announced today that it has agreed to purchase one second-hand drybulk carrier from an unaffiliated third party for approximately US$39.6 million.

The vessel is a 1998-built, 23,994 dwt Handysize vessel built in Japan, and is scheduled for delivery to FreeSeas in late August or early September of 2008. The Free Maverick is currently employed on a time-charter through April/July 2009 at $32,000 per day, and will continue that employment once joining the FreeSeas fleet. The Company intends to finance the acquisition using cash on hand and financing from Hollandsche Bank-Unie NV.

"Even in the current volatile market environment, FreeSeas has been able to secure quality tonnage at a competitive price to enhance the profile of the fleet," said Mr. Ion Varouxakis, Chief Executive Officer of FreeSeas. "The addition of the Free Maverick is compelling for two extremely important reasons. First, she comes to FreeSeas with a charter through next year at a very competitive rate. Furthermore, she will be delivered within the next two to three weeks, and will be contributing revenue almost immediately."

Mr. Varouxakis concluded, "We are constantly seeking ways to expand our fleet and to increase our net income and free cash flow. The Free Maverick will bring our total number of vessels to nine, and we expect that there will be additional opportunities to grow even further before the end of the year. With 93% of our operating days fixed for 2008 and 49% already fixed for 2009, we remain confident that we can navigate the current market and further increase our earnings capacity."

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, with one Handysize vessel to be delivered. 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