FreeSeas Announces Receipt of NASDAQ Minimum Bid
Price Non-Compliance Letter

ATHENS, Greece, Dec 9, 2011 (GlobeNewswire via COMTEX)

FreeSeas Inc. (Nasdaq:FREE) ("FreeSeas" or the "Company"), a transporter of dry-bulk cargoes through the ownership and operation of a fleet of Handysize and Handymax vessels, today announced it has received a deficiency letter from NASDAQ stating that, because the Company's common stock has not maintained a minimum bid price of $1 per a share for the last 30 consecutive business days, the Company is no longer in compliance with NASDAQ Listing Rule Section 5450(a)(1).

In order to regain compliance, FreeSeas has until June 4, 2012 for the closing bid price of its common stock to meet or exceed $1 for a minimum of ten consecutive business days. If FreeSeas has not regained compliance by the expiration of the initial 180 calendar days, NASDAQ will then provide written notification to the Company that its common stock is subject to delisting. If at any time during this 180-day period the closing bid price is at least $1 for a minimum of 10 consecutive days, NASDAQ will provide written confirmation of compliance and matter will be closed.

If FreeSeas does not regain compliance with the Rule during this 180-day period, the Company may be eligible for an additional 180 calendar days to regain compliance if it meets all other initial listing standards, with the exception of the bid price. To qualify for the second compliance period, FreeSeas must apply to transfer its common stock to The NASDAQ Capital Market and provide written notice to NASDAQ of its intent to cure this deficiency during the second compliance period.

About FreeSeas Inc.
FreeSeas Inc. is a Marshall Islands corporation with principal offices in Athens, 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 trades on the NASDAQ Global Market under the symbol FREE. 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, www.freeseas.gr.

FreeSeas Inc. press release