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Euroseas Ltd. Announces Acquisition of a Vessel and the Sale of One of Its Vessels for Scrap

Jun 18 2013 12:00AM



MAROUSSI, ATHENS, GREECE -- (Marketwired) -- 06/18/13 -- Euroseas Ltd., (NASDAQ: ESEA) an owner and operator of drybulk carriers and containerships and provider of seaborne transportation for dry bulk and containerized cargoes, announced today that it sold for scrap one of the oldest container vessels in its fleet, the M/V Anking, a 950 teu multipurpose vessel built in 1990 for approximately $3.7 million. The vessel will be delivered to her new owners by the end of June 2013.

Furthermore, the Company announced that it signed a memorandum of agreement to purchase the M/V Wehr Flottbek, a geared containership of 22,301 dwt and 1,738 teu built in 1999 for approximately $5.9 million. The vessel, to be renamed "Joanna", is expected to be delivered to the Company by the end of June 2013.

Aristides Pittas, Chairman and CEO of Euroseas, commented: "With containership prices having again dropped near their all-time low levels, we believe, it is an opportunity to renew our fleet at minimal capital cost. In that respect, we have sold for scrap our vessel M/V Anking, a 1990 built multipurpose vessel, and invested the proceeds along with an incremental investment of less than $2.5 million in a vessel which is 9 years younger, almost twice as large and more flexible commercially."

After the sale of M/V Anking and the acquisition of M/V Wehr Flottbek, Euroseas Ltd. fleet profile will be as follows:

----------------------------------------------------------------------------Name Type Dwt TEU Year Employment TCE Rate Built ($/day)----------------------------------------------------------------------------Dry Bulk Vessels---------------------------------------------------------------------------- TC until' $11,200 Jan-14 + 1 +50/50PANTELIS Panamax 74,020 2000 Year Profit Charterer's Share, Option $14,200---------------------------------------------------------------------------- Spot EarningsELENI P Panamax 72,119 1997 Baumarine since Pool February 2013----------------------------------------------------------------------------IRINI Panamax 69,734 1988 Open----------------------------------------------------------------------------ARISTIDES N.P. Panamax 69,268 1993 TC 'til $7,500 Feb-14----------------------------------------------------------------------------MONICA P Handymax 46,667 1998 TC'Till $12,375 Sep-13----------------------------------------------------------------------------Total Dry Bulk Vessels 5 331,808----------------------------------------------------------------------------Container Carriers----------------------------------------------------------------------------EVRIDIKI G (ex- MAERSK NOUMEA) Intermediate 34,677 2,556 2001 TC 'til Apr $8,000 -14---------------------------------------------------------------------------- TC till Nov-13 + 12 Months $6,000TIGER BRIDGE Intermediate 31,627 2,228 1990 in Charterers $8,000 Option----------------------------------------------------------------------------AGGELIKI P Intermediate 30,360 2,008 1998 TC till $6,000 Feb-14----------------------------------------------------------------------------DESPINA P Handy size 33,667 1,932 1990 TC 'til $6,000 Aug-13---------------------------------------------------------------------------- TC tillCAPTAIN Mar-14 $6,500 COSTAS(ex-OEL 12 Months TRANSWORLD) Handy size 30,007 1,742 1992 in $11,500 Charterers Option---------------------------------------------------------------------------- (to be deliveredJOANNA Handy size 22,301 1,738 1999 by end of June-13)----------------------------------------------------------------------------MARINOS TC 'til $6,250 Handy size 23,596 1,599 1993 Aug-13----------------------------------------------------------------------------MANOLIS P TC 'til Handy size 20,346 1,452 1995 Oct-13 $6,750----------------------------------------------------------------------------NINOS TC 'til Feeder 18,253 1,169 1990 Dec-13 $7,690---------------------------------------------------------------------------- TC till Feb-14 $7,700KUO HSIUNG 12 months Feeder 18,154 1,169 1993 in $11,500 Charterers Option----------------------------------------------------------------------------Total Container Carriers 10 262,988 17,593----------------------------------------------------------------------------Fleet Grand Total 15 594,796 17,593----------------------------------------------------------------------------

Note: Charter duration indicates the earliest redelivery date.

About Euroseas Ltd.
Euroseas Ltd. was formed on May 5, 2005 under the laws of the Republic of the Marshall Islands to consolidate the ship owning interests of the Pittas family of Athens, Greece, which has been in the shipping business over the past 136 years. Euroseas trades on the NASDAQ Global Market under the ticker ESEA since January 31, 2007.

Euroseas operates in the dry cargo, drybulk and container shipping markets. Euroseas' operations are managed by Eurobulk Ltd., an ISO 9001:2008 certified affiliated ship management company, which is responsible for the day-to-day commercial and technical management and operations of the vessels. Euroseas employs its vessels on spot and period charters and through pool arrangements.

Following the sale of its multipurpose vessel and addition of a handy size containership, the Company will have a fleet of 15 vessels, including 4 Panamax drybulk carriers and 1 Handymax drybulk carrier, 3 Intermediate containership, 5 Handy size containerships and 2 Feeder containerships. Euroseas 5 drybulk carriers have a total cargo capacity of 331,808 dwt, its 10 containerships have a cargo capacity of 17,593 teu.

Forward-Looking Statement
This press release contains forward-looking statements (as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) concerning future events and the Company's growth strategy and measures to implement such strategy; including expected vessel acquisitions and entering into further time charters. Words such as "expects," "intends," "plans," "believes," "anticipates," "hopes," "estimates," and variations of such words and similar expressions are intended to identify forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. These statements involve known and unknown risks and are based upon a number of assumptions and estimates that are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of the Company. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to changes in the demand for dry bulk vessels and container ships, competitive factors in the market in which the Company operates; risks associated with operations outside the United States; and other factors listed from time to time in the Company's filings with the Securities and Exchange Commission. The Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.

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Company Contact

Tasos Aslidis
Chief Financial Officer
Euroseas Ltd.
11 Canterbury Lane
Watchung, NJ 07069
Tel. (908) 301-9091

Investor Relations / Financial Media

Nicolas Bornozis
Capital Link, Inc.
230 Park Avenue, Suite 1536
New York, NY 10169
Tel. (212) 661-7566

Source: Marketwire

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