TOP SHIPS Inc. Announces Preliminary Agreement with DVB Bank

ATHENS, GREECE – August 24, 2010 – TOP Ships Inc. (NasdaqGS: TOPS), an international provider of worldwide seaborne crude oil, petroleum products, and drybulk transportation services, announced today that it has entered into a preliminary agreement with DVB Bank pursuant to which the Company will obtain waivers for covenant breaches until the end of the year 2010 and will restructure the loan relating to the acquisition of the product tankers the M/T Ionian Wave and M/T Hongbo part of which (the DVB Bridge Loan) was due to be repaid on July 30, 2010.

Following this preliminary agreement, the Company has made a partial repayment of $7.7 million out of which $3.7 million was funded by cash on hand and $4.0 million by two unsecured bridge loan financing facilities with unrelated third parties.

The preliminary agreement and restructuring of the DVB loans is subject to definitive documentation which is expected to provide, among other things, for repayment of the remaining amount of the DVB Bridge Loan in quarterly installments through June 2015 and termination of the pledge to DVB of 12,512,400 shares of the Company’s common stock.

Each of the two unsecured bridge loan financing facilities is in the principal amount of $2.0 million, has a term of twelve months and is repayable in cash or in the form of common shares of the Company (or a combination thereof) at a conversion rate of $0.40 per share, in each case at the option of the lender.

Evangelos Pistiolis, Chief Executive Officer of TOP Ships, commented, “I am happy to report that we have concluded an agreement with DVB Bank as a result of which we have extended the repayment terms for the bridge loan, thereby providing a relief on our cash flow.”

About TOP Ships Inc.

TOP Ships Inc., formerly known as TOP Tankers Inc., is an international provider of worldwide seaborne crude oil and petroleum products and drybulk transportation services. The Company operates a combined tanker and drybulk fleet as follows:

• A fleet of eight double-hull Handymax tankers and an average age of 3.4 years with a total carrying capacity of approximately 0.4 million dwt, of which 76%, in terms of dwt, are sister ships. Two of the Company's Handymaxes are on time charter contracts with an average term of 11 months with both of the time charters including profit sharing agreements above their base rates. Six of the Company’s Handymax tankers are fixed on a bareboat charter basis with an average term of 7.7 years.

• A fleet of five drybulk vessels with a total carrying capacity of approximately 0.3 million dwt and an average age of 9.3 years, of which 47%, in terms of dwt, are sister ships. All of the Company's drybulk vessels have fixed rate employment contracts for an average period of 24 months.

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