FreeSeas Announces Higher Daily Rates on New Charters for Three of Its Vessels

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 three of its vessels.

Mr. Ion Varouxakis, Chief Executive Officer of FreeSeas, stated, "With an increase of more than $17,000 per day in the aggregate as compared to its prior combined fleet daily charter rate, our Company is starting to capitalize on its spot chartering strategy."

The new charters are detailed below:

The M/V Free Envoy, a 1984-built, 26,318 dwt Handysize vessel, has been chartered for a time charter trip of approximately 35 days at a daily rate of $22,500.

The M/V Free Goddess, a 1995-built, 22,051 dwt Handysize vessel, has been delivered in direct continuation to its existing charterers for an additional time charter trip of approximately 40 days at a daily rate of $15,000.

The M/V Free Neptune, a 1996-built, 30,838 dwt Handysize vessel, has been chartered for a time charter trip of approximately 60-100 days at a daily rate of $25,000.

Fleet Employment Data

Vessel Name

Type

Built

Dwt

Employment

M/V Free Destiny

Handysize

1982

25,240

60-65 day time charter trip at $8,250 per day through April 2010

M/V Free Envoy

Handysize

1984

26,318

35 day time charter trip at $22,500 per day through May 2010

M/V Free Goddess

Handysize

1995

22,051

40 day time charter trip at $15,000 per day through April 2010

M/V Free Hero

Handysize

1995

24,318

3-5 month time charter at $11,500 per day through April 2010

M/V Free Impala

Handysize

1997

24,111

70-80 day time charter trip at $10,700 per day through May 2010

M/V Free Jupiter

Handymax

2002

47,777

Balance of time charter at $25,216 per day through February 2011 and any day in excess at $28,000 per day through May 2011

M/V Free Knight

Handysize

1998

24,111

30-40 day time charter trip at $12,000 per day through April 2010

M/V Free Lady

Handymax

2003

50,246

Balance of time charter at $51,150 per day through June 2010

M/V Free Maverick

Handysize

1998

23,994

60-110 day time charter trip at $15,000 per day through May/June 2010

M/V Free Neptune

Handysize

1996

30,838

Time charter trip at $16,000 until beginning April 2010, then

60-100 day time charter trip at $25,000 per day through June/July 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 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. 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.

CONTACT: FreeSeas Inc.

Alexandros Mylonas, Chief Financial Officer

011-30-210-45-28-770

Fax: 011-30-210-429-10-10

info@freeseas.gr

www.freeseas.gr

89 Akti Miaouli Street

185 38 Piraeus, Greece

The Equity Group Inc.

Investor Relations

Adam Prior, Vice President

212-836-9606