FreeSeas Announces Modifications and Extensions of Charters for Two Vessels; Agreements in Place for Approximately 53% of Its Available Days in 2009

PIRAEUS, Greece, Mar 23, 2009 (GlobeNewswire via COMTEX) -- FreeSeas Inc. (Nasdaq:FREE) (Nasdaq:FREEW) (Nasdaq:FREEZ) (FreeSeas or the "Company"), a transporter of dry-bulk cargoes through the ownership and operation of a fleet of seven Handysize vessels and two Handymax vessels, announced today that it has successfully negotiated to extend and modify time-charter agreements for two of its vessels, the Free Envoy and the Free Goddess.

In order to secure cash flow for a longer period, the Company has agreed to extend the charters on two of its vessels, which had been scheduled to expire over the next few months. All of FreeSeas' charters are with high quality counterparties who continue to perform without disruption. With the signing of these extensions, FreeSeas has agreements for approximately 53% of its available days in 2009, which represents approximately $45 million in revenue.

Details of Extended and Modified Charter Agreements

The charter on the Free Envoy was extended until July/August 2009 and the rate was reduced to $20,000 per day until the new expiration date.

The charter on the Free Goddess was extended until January/February 2010 on the following terms:

• A lump-sum amount of $500,000 has been paid by the charterer as an upfront non-refundable performance guarantee;
• Charter rate of $8,000 per day to September 15, 2009, with an additional 50% profit sharing for any amounts earned by the Company's charterers in excess of $10,000 per day; and
• Charter rate of $10,500 per day starting September 15, 2009 (until January/February 2010), with an additional 50% profit sharing for amounts earned by the Company's charterers in excess of $12,500 per day.

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 http://www.sec.gov. For more information about FreeSeas Inc., please visit the corporate website, http://www.freeseas.gr.

FreeSeas Inc. press release