Euroseas Ltd. Announces Agreement to Sell Panamax Drybulk Vessel and Renegotiation and Extension of Two Container Vessel Charters

12/30/08 Maroussi, Athens, Greece - December 30, 2008. Euroseas Ltd. (NASDAQ: ESEA), an owner and operator of drybulk carriers, container ship and multipurpose vessels and provider of seaborne transportation for drybulk and containerized cargoes, announced today that it has signed a Memorandum of Agreement to sell M/V Ioanna P, a Panamax drybulk vessel of 64,873 dwt built in 1984 in Japan. The M/V Ioanna P was sold for approximately $3.85 million. The vessel will be delivered to her new owners within January 2009.

Furthermore the company has entered into an agreement to extend the charters of two of its containerships while adjusting their present charter rate. The charter of M/V OEL Transworld will be extended for an additional one year at Euroseas' option at a gross daily rate of $10,000 after the conclusion of the present charter while reducing her current charter from $18,500 to $12,000 starting on the 9th of November 2008. Additionally, the charter of M/V OEL Integrity will be extended for an additional six months at Euroseas' option at a gross daily rate of $7,000 while reducing her current charter from $16,500 to $11,000 starting on the 9th of November 2008.

Following the sale of the M/V Ioanna P, the previously acquired M/V Solar Europe and assuming Euroseas chooses to extend the above-mentioned charters, approximately 50% of Euroseas total fleet days of 2009 and approximately 27% in 2010 will be fixed under period charters, already concluded spot charters, FFA contracts, or, otherwise protected from market fluctuations.

Aristides Pittas, Chairman and CEO of Euroseas commented: "With the sale of M/V Ioanna P one of our eldest units we are continuing our fleet renewal and expansion program. We believe that the strength of our balance sheet will enable us to capitalize on opportunities to renew and grow our fleet in 2009. Our additional decision to renegotiate the two charters while securing optional extensions at our option trades off cash flow in early 2009 with additional flexibility and downside protection in the later part of 2009 and 2010 while maintaining any potential upside

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