Euroseas Ltd. Announces Signing of Memorandum of Agreement to Purchase Panamax Drybulk Carrier Expanding Its Fleet to 17 Vessels

Market Wire, June, 2009

Euroseas Ltd. (NASDAQ: ESEA), owner and operator of drybulk carriers and container vessels and provider of seaborne transportation for drybulk and containerized cargoes, announced today that it signed a memorandum of agreement to purchase a Panamax drybulk carrier of 74,020 dwt, built in 2000 in Japan, for approximately $27.5 million. The vessel comes with a time charter back to the seller until January 2010 at a gross daily rate of $25,200 per day and is expected to be delivered to the Company between July 1, 2009 and August 5, 2009.

Following the delivery of the vessel, approximately 74% of Euroseas' total fleet days remaining in 2009 and approximately 40% in 2010 will be fixed under time charters, FFA contracts, already concluded spot charters, or otherwise protected from market fluctuations.

Aristides Pittas, Chairman and CEO of Euroseas, commented: "We are delighted to announce the acquisition of a 9-year-old Japanese built Panamax drybulk carrier as part of our fleet expansion program. The accompanying time charter until January 2010 to a solid counterparty improves and provides further visibility to our 2009 earnings.

"During 2008, we avoided investing in the drybulk market, acquiring only one containership with a 3-year charter. However, the drop in vessel prices at the end of last year has made fleet renewal and expansion economically attractive again. The current purchase marks our third dry bulk acquisition during this year for approximately the same total cost as it would have cost us to buy just one such vessel before September 2008. As with the previous two acquisitions, we believe that we will be able to finance about 50% of the acquisition price with bank debt.

"While we maintain our cautious short term outlook for both the drybulk and container markets due to the high vessel orderbooks and the uncertain global economy, we are evaluating signs of a possible market recovery in both sectors which have been demonstrated by improved drybulk earnings and a reduction in the number of containerships laid-up. We are confident that the strength of our balance sheet and the low cost structure of our operations will enable us to navigate through this challenging period and grow the fleet further at attractive low prices."

Fleet Profile:

Euroseas Ltd. fleet profile after taking delivery of the newly acquired panamax dry bulk carrier will be as follows:

                                          Year                  TCE Rate
Name             Type       Dwt     TEU   Built  Employment     ($/day)
------------ ------------ -------- ------ ------ ----------  --------------

 Dry Bulk
  Vessels
------------ ------------ -------- ------ ------ ----------  --------------
Panamax
 Bulker (to                                       TC 'til
 be renamed)    Panamax    74,020          2000    Jan-10        $25,200
------------ ------------ -------- ------ ------ ----------  --------------
                                                  TC 'til
ELENI P         Panamax    72,119          1997    May-10        $15,350
------------ ------------ -------- ------ ------ ----------  --------------
                                                 Baumarine
IRINI (*)       Panamax    69,734          1988     Pool
------------ ------------ -------- ------ ------ ----------  --------------
                                                  TC 'til
ARISTIDES N.P.  Panamax    69,268          1993    Jan-10        $12,350
------------ ------------ -------- ------ ------ ----------  --------------
                                                Bulkhandling
MONICA P (**)  Handymax    46,667          1998    Pool
------------ ------------ -------- ------ ------ ----------  --------------

GREGOS         Handysize   38,691          1984    Spot
------------ ------------ -------- ------ ------ ----------  --------------
Total Dry
 Bulk Vessels      6       370,499
------------ ------------ -------- ------ ------ ----------  --------------

------------ ------------ -------- ------ ------ ----------  --------------
Multipurpose
 Dry Cargo
 Vessels
------------ ------------ -------- ------ ------ ----------  --------------
                                                              $9,500 'til
TASMAN                                            TC 'til      Dec-10,
 TRADER            1       22,568    950   1990    Mar-12     $9,000 'til
                                                               Mar-12
------------ ------------ -------- ------ ------ ----------  --------------

Container
 Carriers
------------ ------------ -------- ------ ------ ----------  --------------
                                                              $16,800 'til
                                                               Aug 11
                                                  TC 'til     $18,735 'til
MAERSK       Intermediate  34,677   2,556  2001    Aug-11      Aug 12
 NOUMEA                                          (3 annual    $19,240 'til
                                                  options      Aug 13
                                                   'til       $19,750 'til
                                                  Aug-14)      Aug 14
------------ ------------ -------- ------ ------ ----------  --------------
TIGER                                             TC 'til
 BRIDGE      Intermediate  31,627   2,228  1990    Mar-10        $7,500
------------ ------------ -------- ------ ------ ----------  --------------
ARTEMIS      Intermediate  29,693   2,098  1987    Laid-up
------------ ------------ -------- ------ ------ ----------  --------------
DESPINA P     Handy size   33,667   1,932  1990    Laid-up
------------ ------------ -------- ------ ------ ----------  --------------
JONATHAN P
 (ex-OEL
 INTEGRITY)   Handy size   33,667   1,932  1990    Laid-up
------------ ------------ -------- ------ ------ ----------  --------------
                                                  TC 'til
OEL                                                Oct-09       $12,000
 TRANSWORLD                                     'til Oct-10     $10,000
 (ex-CLAN     Handy size   30,007   1,742  1992   (owner's     (owner's
 GLADIATOR)                                        option)      option)
------------ ------------ -------- ------ ------ ----------  --------------
YM XINGANG I                                      TC 'til
              Handy size   23,596   1,599  1993    Jul-09       $26,650
------------ ------------ -------- ------ ------ ----------  --------------
                                                  TC 'til
MANOLIS P     Handy size   20,346   1,452  1995    Oct-09       $15,800
------------ ------------ -------- ------ ------ ----------  --------------
NINOS (ex-YM                                      TC 'til
 QINGDAO I)    Feeder      18,253   1,169  1990    Apr-10        $8,060
------------ ------------ -------- ------ ------ ----------  --------------
                                                  TC 'til
                                                   Dec-09      $4,100 'til
KUO HSIUNG     Feeder      18,154   1,169  1993  (6-month       Jun-09
                                                  option       $3,850 'til
                                                   'til         Dec-09
                                                  Jun-10)
------------ ------------ -------- ------ ------ ----------  --------------
Total
 Container        10       273,687 17,877
 Carriers
------------ ------------ -------- ------ ------ ----------  --------------
Fleet Grand
 Total            17       666,754 18,827
------------ ------------ -------- ------ ------ ----------  --------------