FreeSeas Inc. Announces New Charter for Handysize Free Hero

PIRAEUS, Greece, Dec. 19, 2008 (GLOBE 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 Hero, a 1995-built, 24,318 dwt Handysize vessel, will be delivered to her new charterers in the coming weeks to commence an approximate 50-day charter at a rate of $5,700 per day.

"We are pleased to secure this short-term time charter for the Free Hero at a time when the rate environment has begun to improve," said Mr. Ion Varouxakis, President and CEO of FreeSeas. "We believe that should the rate environment continue to improve, there will be opportunities to fix longer term contracts for our vessels in the coming months."

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