Euroseas Ltd. Enters into Agreement to Sell Common Stock in a Private Placement Raising $14.4 Million in Net Proceeds

Maroussi, Athens, Greece - 11 March 2014

Euroseas Ltd. (NASDAQ:ESEA) (the "Company") announced today that it entered into an agreement to sell approximately 11.2 million shares of its common stock in a private placement at a price of $1.3435 per share to an institutional investor for expected net proceeds of approximately $14.4 million. The Company intends to use the proceeds for the acquisition of vessels and general corporate purposes. The transaction is expected to close by March 14, 2014. RMK Maritime acted as an advisor to the Company in the transaction.

Aristides Pittas, Chairman and CEO of Euroseas Ltd. commented: "We are very pleased to conclude the private placement of approximately 11.2 million shares of our stock, to an institutional investor, at recent average trading price levels and raising approximately $14.4 million in net proceeds. We believe that this investment is another vote of confidence in our strategy and in the prospects of Euroseas. We look forward to continue expanding and renewing our fleet, in keeping with our strategy of growing Euroseas by adding quality vessels to our fleet and also by broadening our shareholder base. The present transaction is a testament to the latter as is the recent sale of more than $29 million of net proceeds raised by selling convertible preferred stock. We plan to deploy these funds to partly fund our two newbuildings and recent panamax bulker acquisition and further pursue accretive acquisitions focusing on the drybulk sector and on selected opportunities in the containership sector."

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 since January 31, 2007.

Euroseas operates in the dry cargo, drybulk and container shipping markets. Euroseas' operations are managed by Eurobulk Ltd., an ISO 9001:2008 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.

Euroseas has a fleet of 14 vessels, including 3 Panamax drybulk carriers and 1 Handymax drybulk carrier, 3 Intermediate size containerships, 5 Handy size containerships and 2 Feeder containerships. Euroseas 4 drybulk carriers have a total cargo capacity of 262,074 dwt, and its 10 containerships have a cargo capacity of 17,587 teu. The Company has signed a memorandum of agreement to acquire a 76,466 dwt, Panamax drybulk vessel, that will be delivered to Euroseas by the end of May 2014. Euroseas has also entered into agreements for the construction of two 63,500 dwt Ultramax dry bulk vessels with expected deliveries during the fourth quarter of 2015 and the first quarter of 2016, respectively. Including the newly acquired Panamax vessel and two new-building Ultramax vessels, the total cargo capacity of the Company's drybulk vessels will be 465,540 dwt.



Euroseas Ltd. Press Release