FreeSeas to Acquire Handysize Vessel

FreeSeas to Acquire Handysize Vessel FreeSeas Inc., a provider of seaborne transportation for drybulk cargoes, agreed to purchase a 1995-built 22,051 DWT Handysize vessel, the M/V Free Goddess, from an unaffiliated party for approximately $25.2m. The vessel is expected to be delivered in September or October of 2007. It will operate under a $13,000 per day fixed-rate time charter until November 2007, at which time it will commence a new two-year time charter at $19,250 per day. The Company continues to believe that the current drybulk rate environment presents opportunities for advantageous chartering and the establishment of long-term relationships with high-quality charterers. The new vessel acquisition announced today should provide increased cash flow to finance future vessel acquisitions and expand the Company's fleet.