Euroseas Ltd. Announces Time Charter Agreement for its Panamax Bulk Carrier M/V Aristides N P.

News Release Euroseas Ltd. January 14, 2011

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<DIV>01/12/11 Maroussi, Athens,
Greece, January 12, 2011 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 a subsidiary of the
Company has entered into time charter agreement for the following vessel: M/V Aristides N P, a 69,268 dwt, 1993 built Panamax bulk
carrier, has been chartered until May 2012 at a gross daily rate of $14,950. The
charter will commence upon completion of its present charter within the next few
days and might be terminated [a month or extended by a month at the option of
the charterer. This employment is expected to generate approximately $7.2
million of gross revenues during the period of the charter. Following the above mentioned charter, approximately 66% of Euroseas
total fleet days for 2011 and approximately 18% in 2012 are secured under period
charters or Forward Freight Agreements (FFAs)**. Thus all drybulk vessels are
fully covered for 2011 and 50% covered for 2012. Aristides Pittas, Chairman and CEO of Euroseas, commented: "We are
pleased to announce that we have secured time charter Agreement for M/V
Aristides NP in this challenging environment at levels which are accretive to
our earnings. We believe that this fixture will provide us with substantial
additional secured cash for the next year and a half, allowing us more
flexibility in pursuing further growth opportunities." As of January 12, 2011, Euroseas Ltd. fleet profile is as follows: <IMG
src="http://www.capitallink.com/companies/greece/ppressimg/54354744/esea011211.gif">
 TC denotes time charter. All dates listed are the earliest
redelivery dates under each TC. (*) "Monica P" is
employed in the Bulkhandling spot pool that is managed by Klaveness, a major
global charterer in the drybulk area. (**) The
company has concluded a Forward Freight Agreement(FFA) option contract on the
panamax index for calendar 2011 for a modern panamax. Such a contract serves as
an approximate hedge to one of our panamax vessels for 2011 effectively locking
in a rate between $16,500 and $23,500. 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 Market
under the ticker ESEA since January 31, 2007. 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 16 vessels,
including 4 Panamax drybulk carriers and 1 Handymax drybulk carrier, 3
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 10 containerships have a cargo capacity of
17,787 teu and its multipurpose vessel has a cargo capacity of 22,568 dwt or 950
teu. </DIV></BODY></HTML>