Euroseas Ltd. Announces Signing Memorandum of Agreement to Purchase a Container Ship Extending Fleet to 16 Vessels and Announces Time Charter Agreement for one of its Containerships

Maroussi, Athens, Greece - June 7, 2010. 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 today, that it signed a memorandum of agreement to purchase the M/V Oder Trader, an intermediate containership of 30,360 dwt and 2008 twenty foot equivalent units (teu) built in 1998 in Poland, for approximately $15.85 million. The vessel is expected to be delivered to the Company`s fleet around the middle of June 2010. The vessel will be renamed Angeliki P upon its delivery.

Furthermore, the Company announced that M/V "Ninos" a 1,169 teu 1990 built feeder container ship, has entered in a time charter agreement for minimum nine to maximum eleven months at a gross daily rate of $6,800 representing a $2,600 per day increase over the daily rate of its current charter. The charter will commence between the 10th and 20th of July 2010.

Following this acquisition and the fixture of the M/V Ninos, 70% of Euroseas total containership fleet days in 2010 and about 33% for 2011, are fixed under period charters, already concluded spot charters, or, otherwise protected from market fluctuations.

Aristides Pittas, Chairman and CEO of Euroseas commented: "We are delighted to announce the acquisition of M/V Oder Trader, a 2008 teu geared 12-year old containership, as part of our fleet renewal and expansion program. This vessel replaces the 11 year older m/v Artemis that was sold during the previous quarter. Recent developments indicate that containerized trade growth is approaching pre-crisis levels and market charter rates have started increasing. In fact, rates on bigger vessels are well above their lows. In view of these trends and of the fact that historical price levels for a vessel like M/V Oder Trader are significantly higher, we believe that this investment will provide superior returns to our shareholders."

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 Select 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 15 vessels, including 4 Panamax drybulk carriers and 1 Handymax drybulk carrier, 2 Intermediate containership, 5 Handysize containerships, 2 Feeder containerships and a multipurpose dry cargo vessel. Euroseas` 5 drybulk carriers have a total cargo capacity of 331,808 dwt, its 9 containerships have a cargo capacity of 15,779 teu and its multipurpose vessel has a cargo capacity of 22,568 dwt or 950 teu.

Euroseas Ltd. Press Release