FreeSeas Announces Higher Daily Rates on New Charters on Five of Its Vessels


PIRAEUS, Greece, Dec. 15, 2009 (GLOBE NEWSWIRE) -- FreeSeas Inc. (Nasdaq:FREE) (Nasdaq:FREEW) (Nasdaq:FREEZ) ("FreeSeas" or the "Company"), a transporter of dry-bulk cargoes through the ownership and operation of a fleet of eight Handysize vessels and two Handymax vessels, announced today new charters for five of its vessels.

Mr. Ion Varouxakis, Chief Executive Officer of FreeSeas, stated, "We are very pleased to report that we have taken advantage of the continued daily charter rate increases for our vessels and improvement in the Baltic Handysize Index, reflecting more favorable fundamentals for this segment. Our Company is benefiting from our strategic decision made earlier this year to operate our vessels on the spot market. The combined daily charter rate for these five charters represents an increase of more than $15,000 per day as compared to their prior combined daily charter rates. We believe that the Handysize dry bulk market will show continued strength going forward."

The new charters are detailed below:



 * The M/V Free Destiny, a 1982-built, 25,240 dwt Handysize vessel, 
   has entered into a contract for a time charter trip of 
   approximately 40-45 days at a daily rate of $14,000.

 * The M/V Free Knight, a 1998-built, 24,111 dwt Handysize vessel, 
   has entered into a contract for a time charter trip of
   approximately 60 days at a daily rate of $15,000.

 * The M/V Free Impala, a 1997-built, 24,111 dwt Handysize vessel,
   has entered into a contract for a time charter trip of 
   approximately 30-40 days at a daily rate of $13,500.

 * The M/V Free Maverick, a 1998-built, 23,994 dwt Handysize 
   vessel, has entered into a contract for a time charter trip 
   of approximately 30 days at a daily rate of $14,000.

 * The M/V Free Neptune, a 1996-built, 30,838 dwt Handysize vessel, 
   has entered into a contract for a time charter period of
   approximately 45-75 days at a daily rate of $16,000.


 Fleet Employment Data

 ---------------------------------------------------------------------
 Vessel                                                               
  Name       Type    Built   Dwt                Employment            
 -------------------------------------------------------------------- 
 
 M/V                                  40-45 day time charter trip at  
 Free                                    $14,000 per day through      
 Destiny  Handysize  1982  25,240              January 2010           
 -------------------------------------------------------------------- 
 M/V                                  55-60 day time charter trip at  
 Free                                    $7,200 per day through       
 Envoy    Handysize  1984  26,318              January 2010           
 -------------------------------------------------------------------- 
 M/V                               Balance of time charter at $10,500 
 Free                              per day through January/February   
 Goddess  Handysize  1995  22,051    2010 (plus 50% profit sharing    
                                        above $12,500 per day)        
 -------------------------------------------------------------------- 
 M/V                                    3-5 month time charter at     
 Free                                         $11,500 per day         
 Hero     Handysize  1995  24,318       through February/April 2010   
 -------------------------------------------------------------------- 
 M/V                                 30-40 day time charter trip at   
 Free                                        $13,500 per day          
 Impala   Handysize  1997  24,111          through January 2010       
 -------------------------------------------------------------------- 
 M/V                               Balance of time charter at $25,216 
 Free                               per day through February 2011 and 
 Jupiter  Handymax   2002  47,777   any day in excess at $28,000 per  
                                          day through May 2011        
 -------------------------------------------------------------------- 
 M/V                                    60 day time charter trip at   
 Free                                        $15,000 per day          
 Knight   Handysize  1998  24,111          through January 2010       
 -------------------------------------------------------------------- 
 M/V                                    Balance of time charter at    
 Free                                         $51,150 per day         
 Lady     Handymax   2003  50,246            through May 2010         
 -------------------------------------------------------------------- 
 M/V                                   30 day time charter trip at    
 Free                                        $14,000 per day          
 Maverick Handysize  1998  23,994         through January 2010        
 -------------------------------------------------------------------- 
 M/V                                45-75 day time charter period at  
 Free                                        $16,000 per day          
 Neptune  Handysize  1996  30,838    through January/ February 2010   
 -------------------------------------------------------------------- 
                                                                      
 *  The average net charter rates per vessel realized by the Company  
    will depend on actual repositioning time and bunkers consumed     
    between successive chartering employments, as well as potential   
    operational off-hires. The above table is provided for indicative 
    purposes only, and should not to be deemed to reflect actual      
    operating revenues received from employment of the vessels.

About FreeSeas Inc.

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

The FreeSeas Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=5981

Forward-Looking Statements

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. 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 be correct. These statements involve known and unknown risks and are based upon a number of assumptions and estimates which 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; 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 obligation 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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