Euroseas Ltd. Announces Conclusion of FFA Contracts

10 Dec 2008, Maroussi, Athens, Greece - Euroseas Ltd., (NASDAQ:ESEA) an owner and operator of drybulk carriers and container vessels and provider of seaborne transportation for dry bulk and containerized cargoes, announced that the Company has sold contracts for a total of 480 calendar days on the Freight Forward Agreement ("FFA") market on the panamax index for Calendar 2009 with an average time charter equivalent rate of approximately $11,300 per day. The panamax index refers to a modern panamax dry bulk carrier.

Similarly, the Company announced that it has sold FFA contracts for Calendar 2010 for a total of 120 days on the panamax index at an average time charter equivalent rate of $13,900 per day. Taking into account the Company's previously sold contracts on the same index for Calendar 2010, the Company?s total coverage for Calendar 2010 now stands at 485 days at an average time charter equivalent rate of $11,400 per day.

Aristides Pittas, Chairman and CEO of Euroseas commented: "We are pleased to announce the conclusion of these FFA contracts which we believe enhance the visibility of our cash flows for 2009 and 2010 given the present challenging times in our industry. We use FFA's as a hedge to our physical market exposure. Thus for 2009 we have charter coverage for about 2,180 days and FFA coverage for 480 days out of 6,205 days of vessel capacity implying a total coverage of about 43%. For 2010 the corresponding charter coverage is 21% in parallel to securing profitable employment for our vessels, we continue our efforts to execute our investment program given the strength of our balance sheet."

Fleet Profile:
After the delivery on or about January 31, 2009 of the recently acquired M/V Solar Europe, the Euroseas Ltd. fleet profile will be as follows:


(*) "IRINI" is employed in the Baumarine spot pool that is managed by Klaveness, a major global charterer in the dry bulk area, and also participates in 'short' funds (contracts to carry cargo at agreed rates), reducing its exposure to the spot market.

About Euroseas Ltd.

Euroseas Ltd. was formed on May 5, 2005 under the laws of the Republic of the Marshall Islands to consolidate the ship owning interests of the Pittas family of Athens, Greece, which has been in the shipping business over the past 136 years. Euroseas trades on the NASDAQ Global Market under the ticker ESEA.

Euroseas operates in the dry cargo, drybulk and container shipping markets. Euroseas` operations are managed by Eurobulk Ltd., an ISO 9001:2000 certified affiliated ship management company, which is responsible for the day-to-day commercial and technical management and operations of the vessels. Euroseas employs its vessels on spot and period charters and through pool arrangements.

The Company has a fleet of 16 vessels, including 3 Panamax drybulk carriers, 2 Handysize drybulk carriers, 3 Intermediate container ship, 5 Handysize container ships, 2 Feeder container ships and a multipurpose dry cargo vessel. Euroseas` 5 drybulk carriers have a total cargo capacity of 277,316 dwt, its 10 container ships have a cargo capacity of 17,787 teu and its 1 multipurpose vessel has a cargo capacity of 22,568 dwt or 950 teu.

Euroseas Ltd. Press Release