FreeSeas Concludes Sale of Vessel and
Long-term Bareboat Charter

Athens, Greece, September 16, 2014 (Globe Newswire)

FreeSeas Inc. FREE, -13.92% ("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 has sold to unrelated third parties the M/V 'Free Jupiter' for USD 12,250,000 and subsequently entered into a long term bareboat charter with the vessel's new Owners.

The vessel has been chartered by the Company for seven years at a rate of USD 5,325 per day on bareboat charter terms typical for this type of transaction which grant the Company the full commercial utilization of the vessel against payment of the charter rate to her Owners. In addition, the terms of the charter afford a number of purchase options during its course. An amount of USD 3,750,000 was deposited by the Company as security for the fulfillment of the terms of the charter.


M/V 'Free Jupiter'

Mr. Ion Varouxakis, the Company's Chairman, President and CEO made the following statement: "We are pleased to announce today's transaction which releases significant liquidity and evidences the Company's ability to leverage its balance sheet at an opportune time without diluting its shareholders. The additional liquidity will provide invaluable balance sheet flexibility as part of our growth strategy moving forward, which follows the recently announced debt extinguishment and forgiveness which significantly reduced the Company's bank debt to USD 23 million from USD 90 million within the space of a few months." Mr. Varouxakis added: "The bareboat charter rate allows for significant upside from future operating earnings, especially as the market improves, while the purchase options allow participation in potential future asset appreciation. The vessel will be deployed in the spot market, which has shown recent signs of improvement."

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 Capital 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