August 19, 2010 at 08:30 AM EDT
FreeSeas Announces Meeting Date for its 2010 Annual Meeting of Shareholders and Proposal to Approve Reverse Split

PIRAEUS, Greece, Aug. 19, 2010 (GLOBE NEWSWIRE) -- FreeSeas Inc. (Nasdaq:FREE) (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, today announced that its 2010 Annual Meeting of Shareholders will be held on September 30, 2010. In addition to the election of two directors and the ratification of the appointment of the Company's independent auditors, the Company is proposing that its shareholders approve a 1-for-5 reverse split of its common stock. Upon approval of the proposal, the Company's outstanding Class Z warrants will be proportionately adjusted in accordance with the terms of the warrants.

Mr. Ion Varouxakis, Chairman and CEO, noted, "We propose to undertake this reverse split on our own accord, at a time we believe our stock is undervalued and the outlook for our Company is positive. We believe that raising our stock price above $5.00 will appeal to a broader universe of institutional investors, while also enabling our retail investor base to trade on margin."

Shareholders of record as of the close of business on August 23, 2010 will be entitled to vote at the Company's Annual Meeting. The details are as follows:

Details of Annual Meeting

Location: 89 Akti Miaouli & 4 Mavrokordatou Str. 
Piraeus, 185 38, Greece
Phone: +30 210 4528770
Fax: +30 210 4291010
Time: 15:00 Greek time, 08:00am EST time

About FreeSeas Inc.

FreeSeas Inc. is a Marshall Islands corporation with principal offices in Piraeus, Greece. FreeSeas is engaged in the transportation of drybulk cargoes through the ownership and operation of drybulk 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 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, 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 drybulk 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

          The Equity Group
          Investor Relations 
          Adam Prior, Vice President
          212-836-9606
          aprior@equityny.com
          www.theequitygroup.com

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