FreeSeas Announces New Charters for Four of its Handysize Vessels; Updates Impact of Off Hire Incidents; Announces Extension of Covenant Waivers

PIRAEUS, Greece, Jul 17, 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 new charters for four of its vessels, the Free Impala, the Free Envoy, the Free Knight and the Free Maverick.

The M/V Free Impala, a 1997-built, 24,111 dwt Handysize vessel, has completed its scheduled dry-docking and has been fixed at a daily rate of $7,500 for a spot time charter trip. The trip is expected to be completed by the end of July 2009.

The M/V Free Envoy, a 1984-built, 26,318 dwt Handysize vessel, has been fixed at a daily rate of $8,300 for a spot time charter trip after completion of its period charter. The new charter is expected to be completed by the beginning of August 2009.

The M/V Free Knight, a 1998-built, 24,111 dwt Handysize vessel, has been fixed at a daily rate of $7,600 for a spot time charter trip of between 45 to 60 days.

The M/V Free Maverick, a 1998-built, 23,998 dwt Handysize vessel, has been fixed at a daily rate of $8,650 for a spot time charter trip of approximately 45 days.

In addition, the Company announced that it expects off-hire days relating to technical and operational occurrences during the second quarter of 2009 to reduce the Company's income from operations for the quarter by approximately $1 million to $1.5 million in the aggregate. The Company intends to seek to recover a portion of this amount, although there can be no assurances that it will be successful in recovering all or any portion of it.

The Company also announced that it has received an extension of its loan covenant waivers received from First Business Bank S.A. FBB has agreed, subject to execution of appropriate amendments to the loan documents, to extend the previously provided waivers of the vessel value to debt ratio covenant and the parent company leverage ratio covenant from January 1, 2010 to July 1, 2010.

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