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Maroussi, Athens, Greece - August 11, 2015 Euroseas Ltd. (NASDAQ: ESEA), an owner and operator of drybulk and container carrier vessels and provider of seaborne transportation for drybulk and containerized cargoes, announced today its results for the three and six month period ended June 30, 2015 as well as certain fleet updates. Second Quarter 2015 Highlights: • Total net revenues of $9.4 million. Net loss of $3.3 million; net loss attributable to common shareholders (after a $0.4 million of dividend on Series B Preferred Shares) of $3.7 million or $0.642 loss per share basic and diluted. Adjusted net loss attributable to common shareholders1 for the period was $0.652 per share basic and diluted. • Adjusted EBITDA1 was $(0.1) million. • An average of 15.0 vessels were owned and operated during the second quarter of 2015 earning an average time charter equivalent rate of $7,127 per day. • The Company declared its sixth dividend of $0.4 million on its Series B Preferred Shares; the dividend was paid in-kind by issuing additional Series B Preferred Shares. First Half 2015 Highlights: • Total net revenues of $17.6 million. Net loss of $8.7 million; net loss attributable to common shareholders (after a $0.8 million of dividend on Series B Preferred Shares) of $9.5 million or $1.642 loss per share basic and diluted. Adjusted net loss per share attributable to common shareholders1 for the period was $1.622. • Adjusted EBITDA1 was $(1.9) million. • An average of 15.0 vessels were owned and operated during the first half of 2015 earning an average time charter equivalent rate of $6,823 per day. Shareholders' Rights Offering The Company's board of directors has determined that the record date for the previously announced rights offering will be August 14, 2015. Subject to receiving timely approval of the registration statement that the Company has filed with the SEC in connection with the rights offering, the Company expects to begin the rights offering and mail the pertinent information to its shareholders on August 24, 2015. The rights offering will be made pursuant to a prospectus, which will contain all of the terms of the offering as well as instructions on the exercise process. (1) Adjusted EBITDA, Adjusted net loss, Adjusted net loss attributable to common shareholders and Adjusted loss per share attributable to common shareholders are not recognized measurements under GAAP. Refer to a subsequent section of the Press Release for the definitions and reconciliation of these measurements to the most directly comparable financial measures calculated and presented in accordance with U.S. GAAP. (2) On July 23, 2015, the Company completed a 1-for-10 reverse stock split, effective at the close of trading on July 22, 2015. As a result all the per-share computations for the current and previous period presented herein are all based on the new number of shares after the reverse stock split. Aristides Pittas, Chairman and CEO of Euroseas commented: "We were pleased to see a recovery of the containership market during the second quarter of this year, which allowed us to re-charter several of our containerships at levels that generate positive cash flows. Furthermore, late in the quarter and during the month of July, drybulk rates also improved. While the near term supply/demand balance is challenging, especially, for the drybulk market, these rate increases took place at periods with traditionally seasonally low rates and may be an indication of a better overall rate environment. We have adjusted our chartering strategy to take advantage of charter opportunities and charter a couple of our vessels for one year periods. At the same time we are pursuing our strategy to expand and renew our drybulk fleet by taking delivery of our four bulkers currently under construction. We have decided to proceed with a shareholders' rights offering to raise between $10-20m to ensure that we have access to sufficient equity and debt to finance the remaining portion of our newbuilding program, even under a poor market scenario. As always maintaining a strong balance sheet even at adverse periods remains our priority and the rights offering which provides our existing shareholders including our family the opportunity to participate in setting the foundations for the company's further growth was deemed as the best way to reward shareholder loyalty." Tasos Aslidis, Chief Financial Officer of Euroseas commented: "The results of the second quarter of 2015 reflect the still low but improved levels of the containership and drybulk markets compared to the same quarter of 2014. "Total daily vessel operating expenses, including management fees, general and administrative expenses but excluding drydocking costs, averaged $6,145 per vessel per day during the second quarter of 2015 as compared to $6,449 per vessel per day for the same quarter of last year, and $6,342 per vessel per day for the first half of 2015 as compared to $6,398 per vessel per day for the same period of 2014, reflecting a 4.7% and 0.9% decline, respectively. As always, we want to emphasize that cost control remains a key component of our strategy. "As of June 30, 2015, our outstanding debt was $49.8 million versus restricted and unrestricted cash of about $21.2 million. As of the same date, our scheduled debt repayments over the next 12 months amount to about $18.6 million, inclusive of about $8.8 million of balloon repayments which may be refinanced. All our debt covenants are satisfied." Second Quarter 2015 Results: For the second quarter of 2015, the Company reported total net revenues of $9.4 million representing a 2.8% decrease over total net revenues of $9.6 million during the second quarter of 2014. The Company reported net loss for the period of $3.3 million and a net loss attributable to common shareholders of $3.7 million, as compared to net loss of $5.0 million and $5.4 million respectively, for the second quarter of 2014. The results for the second quarter of 2015 include a $0.1 million unrealized gain on derivatives, a $0.1 million realized loss on derivatives, as compared to $0.2 million unrealized gain on derivatives, a $0.2 million realized loss on derivatives for the same period of 2014. Drydocking expenses amounted to $0.4 million during the second quarter of the year 2015 as three vessels underwent in-water surveys (in lieu of drydock) compared to three vessels that underwent drydocking during the second quarter of 2014 for a total amount of $1.3 million. Depreciation expenses for the second quarter of 2015 were $2.9 million compared to $3.0 million during the same period of 2014. On average, 15.0 vessels were owned and operated during the second quarter of 2015 earning an average time charter equivalent rate of $7,127 per day compared to 14.4 vessels in the same period of 2014 earning on average $7,373 per day. Adjusted EBITDA for the second quarter of 2015 was $(0.1) million compared to $(1.6) million achieved during the second quarter of 2014. Please see below for Adjusted EBITDA reconciliation to net loss and cash flow provided by operating activities. Basic and diluted loss per share attributable to common shareholders for the second quarter of 2015 was $0.642 calculated on 5,784,0252 basic and diluted weighted average number of shares outstanding, compared to basic and diluted loss per share of $0.952 for the second quarter of 2014, calculated on 5,688,8122 basic and diluted weighted average number of shares outstanding. Excluding the effect, on the loss attributable to common shareholders, for the quarter of the unrealized gain on derivatives and the realized loss on derivatives, the adjusted net loss per share attributable to common shareholders for the quarter ended June 30, 2015 would have been $0.652 per share basic and diluted compared to net loss of $0.942 per share basic and diluted for the quarter ended June 30, 2014. Usually, security analysts do not include the above items in their published estimates of earnings per share. First Half 2015 Results: For the first half of 2015, the Company reported total net revenues of $17.6 million representing a 8.3% decrease over total net revenues of $19.1 million during the first half of 2014. The Company reported a net loss for the period of $8.7 million and a net loss attributable to common shareholders of $9.5, as compared to net loss of $7.2 million and $7.9 million respectively, for the first half of 2014. The results for the first half of 2015 include a $0.04 unrealized loss on derivatives, a $0.1 million realized loss on derivatives as compared to $0.3 million unrealized gain on derivatives, a $0.4 million realized loss on derivatives for the same period of 2014. Depreciation expenses for the first half of 2015 were $5.8 million compared to $5.8 million during the same period of 2014. On average, 15.0 vessels were owned and operated during the first half of 2015 earning an average time charter equivalent rate of $6,823 per day compared to 14.2 vessels in the same period of 2014 earning on average $7,585 per day. Adjusted EBITDA for the first half of 2015 was $(1.9) million compared to $(0.6) million achieved during the first half of 2014. Please see below for Adjusted EBITDA reconciliation to net loss and cash flow provided by operating activities. Basic and diluted loss per share attributable to common shareholders for the first half of 2015 was $1.642 respectively, calculated on 5,784,0252 basic and diluted weighted average number of shares outstanding compared to basic and diluted loss per share of $1.52 for the first half of 2014, calculated on 5,244,6852 basic and diluted weighted average number of shares outstanding. Excluding the effect, on the loss attributable to common shareholders, for the first half of 2015 of the unrealized loss on derivatives, realized loss on derivatives, the adjusted net loss per share attributable to common shareholders for the six-month period ended June 30, 2015 would have been $1.622 compared to loss of $1.482 per share basic and diluted for the same period in 2014. Usually, security analysts do not include the above items in their published estimates of earnings per share. Full report at: www.euroseas.gr Euroseas Ltd. Press Release 
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