New Contracts for M/V Free Envoy and M/V Free Destiny both at Rates Higher Than Previous Employment PIRAEUS, Greece, April 16 /PRNewswire-FirstCall/ -- FreeSeas Inc. (Nasdaq: FREE; FREEW; FREEZ), a provider of seaborne transportation for dry bulk cargoes, announced today that it had delivered the M/V "Free Envoy" to its new charterer. The 1984-built Handysize M/V "Free Envoy" has commenced a one-year time charter with a first-class European charterer at a rate of $17,000 per day. Additionally, the company reported that the 1982-built Handysize M/V "Free Destiny" is currently on a short-period time charter which should last until approximately the end of June 2007 at a rate of $16,500 per day. The Company expects to generate a minimum of $7.3 million in revenue from the new contracts. "The dry bulk market continues to exhibit a strong rate environment," said Mr. Ion Varouxakis, Chairman of the Board, President and Chief Executive Officer. "As we continue to execute on our previously announced management and company restructuring, and as we actively pursue second hand tonnage to increase the size of our fleet, we are pleased to secure new accretive employment for our vessels further enhancing our cash position, and creating increased shareholder value. By securing the future cash flows of the company we increase our ability to leverage our company and secure favorable bank financing for our future acquisitions." 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 vessels. Currently, it has a fleet of two Handysize vessels. FreeSeas' common stock and warrants trade on the NASDAQ Capital Market under the symbols FREE, FREEW and FREEZ, respectively. Risks and uncertainties are described in reports filed by FreeSeas Inc. with the US 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 go to our corporate website http://www.freeseas.gr/. 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. For further information please contact: Company Contact: Ion Varouxakis Chief Executive Officer FreeSeas Inc. 93 Akti Miaouli Street 185 38 Piraeus, Greece Tel: 011-30-210-45-28-770 Fax: 011-30-210-429-10-10 E-Mail: @freeseas.gr http://www.freeseas.gr/ Investor Relations / Financial Media: Thomas J. Rozycki, Jr. Sr. Vice President Cubitt Jacobs & Prosek Communications 350 Fifth Avenue - Suite 3901 New York, NY 10118, USA Tel: +1.212.279.3115 x208 Fax: +1.212.279-3117 E-Mail: http://www.cjpcom.com/ DATASOURCE: FreeSeas Inc. CONTACT: Ion Varouxakis, Chief Executive Officer of FreeSeas Inc., 011-30-210-45-28-770, fax, 011-30-210-429-10-10, @freeseas.gr; or Investor Relations and Financial Media, Thomas J. Rozycki, Jr., Sr. Vice President of Cubitt Jacobs & Prosek Communications, +1-212-279-3115 x208, fax, +1-212-279-3117, , for FreeSeas Inc. Web site: http://www.freeseas.gr/

Copyright