FreeSeas Inc. Announces New Charter for Free Destiny

PIRAEUS, Greece, Nov 28, 2008 (GlobeNewswire 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 Destiny, a 1982-built, 25,240 dwt Handysize vessel, has been delivered to her charterers for a spot charter of approximately 35 days at a rate of $3,250 per day.

"In the midst of a virtual standstill in the freight market, we are pleased to have secured a new spot voyage for the Free Destiny, one of our oldest vessels," said Mr. Ion Varouxakis, President and CEO of FreeSeas. "This rate enables us to keep the vessel employed while the freight market stabilizes."

Mr. Varouxakis continued, "The Company has been able to continuously leverage its relationships with first-class charterers in order to secure employment for its vessels. Our other eight vessels, which are all employed on accretive charters, are still operating at their previously announced rates which effectively cover the company's obligations, including debt service. Going forward, we expect the freight rate environment to improve in the short term."

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 seven 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 visit the corporate website, www.freeseas.gr.

FreeSeas Inc. press release