FreeSeas Announces Extension and Reduction of Exercise Price of Class Z Warrants

PIRAEUS, Greece, Jun 9, 2011 (GlobeNewswire via COMTEX)

FreeSeas Inc. (Nasdaq:FREE) (Nasdaq:FREEZ) ("FreeSeas" or the "Company"), a transporter of dry-bulk cargoes through the ownership and operation of a fleet of Handysize and Handymax vessels, announced today that it is extending the expiration date and reducing the exercise price of its Class Z warrants, currently listed under the ticker FREEZ. The expiration date of the Class Z warrants is being extended to August 12, 2011, from July 26, 2011. The exercise price for each Class Z warrant is being reduced to $0.36 per one-fifth (1/5) of a share of common stock, or $1.80 per whole share of common stock, from $5.00 per one-fifth (1/5) of a share, or $25.00 per whole share. Assuming all outstanding Class Z warrants are exercised, the number of FreeSeas' common stock will increase by 331,002.

Each Class Z warrant entitles the holder to purchase one-fifth (1/5) of a share of FreeSeas' common stock and the Class Z warrants are only exercisable for whole shares. All other terms of the Class Z warrants remain unchanged.

About FreeSeas Inc.
FreeSeas Inc. is a Marshall Islands corporation with principal offices in Piraeus, Greece. FreeSeas is engaged in the transportation of drybulk cargoes through the ownership and operation of drybulk carriers. Currently, it has a fleet of Handysize and Handymax vessels. FreeSeas' common stock and Class Z warrants trade on the NASDAQ Global Market under the symbols FREE 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