Euroseas Ltd. Announces Signing Memorandum of Agreement to Purchase a Container Ship Extending Fleet to 16 Vessels and Announces Time Charter Agreement for one of its Containerships

News Release Euroseas Ltd. June 7, 2010

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<DIV>06/7/10 Maroussi, Athens,
Greece - June 7, 2010. Euroseas Ltd., (NASDAQ:ESEA) an owner and operator of
drybulk carriers and container vessels and provider of seaborne transportation
for dry bulk and containerized cargoes, announced today, that it signed a
memorandum of agreement to purchase the M/V Oder Trader, an intermediate
containership of 30,360 dwt and 2008 twenty foot equivalent units (teu) built in
1998 in Poland, for approximately $15.85 million. The vessel is expected to be
delivered to the Company`s fleet around the middle of June 2010. The vessel will
be renamed Angeliki P upon its delivery. Furthermore, the Company announced that M/V "Ninos" a 1,169 teu 1990
built feeder container ship, has entered in a time charter agreement for minimum
nine to maximum eleven months at a gross daily rate of $6,800 representing a
$2,600 per day increase over the daily rate of its current charter. The charter
will commence between the 10th and 20th of July 2010. Following this acquisition and the fixture of the M/V Ninos, 70% of
Euroseas total containership fleet days in 2010 and about 33% for 2011, are
fixed under period charters, 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 M/V Oder Trader, a 2008 teu geared 12-year old containership,
as part of our fleet renewal and expansion program. This vessel replaces the 11
year older m/v Artemis that was sold during the previous quarter. Recent
developments indicate that containerized trade growth is approaching pre-crisis
levels and market charter rates have started increasing. In fact, rates on
bigger vessels are well above their lows. In view of these trends and of the
fact that historical price levels for a vessel like M/V Oder Trader are
significantly higher, we believe that this investment will provide superior
returns to our shareholders." Our Fleet As of June 2, 2010, the profile and deployment of our
fleet is the following: <IMG
src="http://www.capitallink.com/companies/greece/ppressimg/54354744/euroseas060710.gif">
 (*) "Irini" is employed in the Baumarine spot pool
that is managed by Klaveness, a major global charterer in the drybulk area. (**) "Monica P" is employed in the Bulkhandling spot pool that is
managed by Klaveness, a major global charterer in the drybulk area. (***) CONTEX is a charter market index for 1,700 teu containership
vessels 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 Select Market under the ticker
ESEA. Euroseas operates in the dry cargo, drybulk
and container shipping markets. Euroseas' operations are managed by Eurobulk
Ltd., an ISO 9001:2000 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. The Company
has a fleet of 15 vessels, including 4 Panamax drybulk carriers and 1 Handymax
drybulk carrier, 2 Intermediate containership, 5 Handysize containerships, 2
Feeder containerships and a multipurpose dry cargo vessel. Euroseas` 5 drybulk
carriers have a total cargo capacity of 331,808 dwt, its 9 containerships have a
cargo capacity of 15,779 teu and its multipurpose vessel has a cargo capacity of
22,568 dwt or 950 teu. </DIV></BODY></HTML>