MAROUSSI, ATHENS, GREECE, May 21, 2009 (MARKETWIRE via COMTEX) ----Euroseas Ltd. (NASDAQ: ESEA), an owner and operator of drybulk and container carrier vessels and provider of seaborne transportation for drybulk and containerized cargoes, announced today its results for the three month period ended March 31, 2009.

First Quarter 2009 Highlights:

   --  Net income of $3.9 million or $0.13 per share basic and diluted on
   total net revenues of $15.3 million.  Excluding the effect of unrealized
   gain on derivatives, unrealized loss on trading securities, amortization of
   the fair value of charters acquired and loss on vessel sales the net income
   for the period would have been $2.0 million, or $0.07 per share.
   
   --  Adjusted EBITDA was $6.2 million. Please refer to a subsequent section
   of the Press Release for a reconciliation of adjusted EBITDA to net income.
   
   --  An average of 15.7 vessels were owned and operated during the first
   quarter of 2009 earning an average time charter equivalent rate of $12,684
   per day.
   
   --  Declared a quarterly dividend of $0.10 per share for the first quarter
   of 2009 payable on June 17, 2009 to shareholders of record on June 5, 2009.
   This is the fifteenth consecutive quarterly dividend declared.
   
   
   

Aristides Pittas, Chairman and CEO of Euroseas, commented: "The first quarter of 2009 continued to be challenging on the chartering front, especially for our containership vessels; however, it was also a period during which attractive opportunities for investment started emerging. As announced already, we have partly renewed our drybulk fleet by purchasing two drybulk vessels of approximately 11-12 years old and selling two of our 25-year old drybulk vessels. We continue pursuing further investment opportunities given our strong cash position at the end of the quarter. With a low overall leverage -- we have more cash than debt outstanding -- we have been able to secure conventional bank financing to partly finance our investment program.

"Despite the recent upturn in the drybulk market, we expect to face a volatile and generally depressed market environment over the next two years. We have covered practically 100% of our drybulk fleet for 2009 and 80% for 2010 via either time charter contracts or Freight Forward Agreement ('FFA') contracts. Our containerships are facing significant challenges in securing employment contracts after the expiration of their present charters and it has proven economical to temporarily lay-up three of our vessels rather than employ them at unprofitable low levels.

"In contrast to many other shipping companies, our Board confirmed its intention to continue paying healthy dividends to our shareholders throughout the market cycles in parallel with our expansion program, as far as practically possible. In that respect we have maintained our quarterly dividend at $0.10 per share which represents a yield of about 7.1% on the basis of our stock price on May 7, 2009."

Tasos Aslidis, Chief Financial Officer of Euroseas, commented: "The results of the first quarter of 2009 reflect the lower level of the charter markets. Our results were positively influenced by other non-cash gains on interest rate derivatives and FFAs.

"Total daily vessel operating expenses, including management fees and general and administration expenses, during the first quarter of 2009 reflect a decrease of about 6.0% on a per vessel per day basis compared to the first quarter of 2008, which partly reflects that two of our vessels were laid-up during the first quarter of 2009 (one for the entire quarter and another for part of March 2009) and, thus, incurred significantly lower daily costs. We believe that we continue to maintain one of the lowest operating cost structures amongst the public shipping companies which, we believe, is one of our competitive advantages. It is worth noting that during the first quarter of 2009, we continued achieving decreases in our daily operating costs for the third quarter in a row. Needless to say that we will continue to focus on controlling and reducing our costs while ensuring safe operations.

"As of March 31, 2009, our outstanding debt is about $62.8 million versus restricted and unrestricted cash of about $64.9 million. In April 2009, we drew an additional loan of $10 million to partly finance our latest acquisition, M/V Eleni P. Our scheduled debt repayments over the next 12 months -- including the new debt -- amount to about $13.0 million, a number low enough to provide us with operational cash flow comfort. We estimate that our cash flow breakeven for the next 12 months is between $9,500 and $10,000 per vessel per day excluding dividend payments but inclusive of debt repayments."

First Quarter 2009 Results:

For the first quarter of 2009, the Company reported total net revenues of $15.3 million representing a 53.4% decrease over total net revenues of $32.8 million during the first quarter of 2008. The Company reported net income for the period of $3.9 million as compared to net income of $13.6 million for the first quarter of 2008 representing a 71.1% decline. The results for the first quarter of 2009 include a $1.7 million unrealized gain on derivatives and investments as compared to $0.02 million unrealized gain on investments for the same period of 2008. Depreciation expenses for the first quarter of 2009 were $4.5 million compared to $7.3 million during the same period of 2008. The decline was due to a change in estimates (see below) and the sale of M/V Nikolaos P and M/V Ioanna P, which contributed $2.0 million to the depreciation expenses in the first quarter of 2008, partly balanced by the depreciation of three vessels purchased since March 31, 2008. On average, 15.7 vessels were owned and operated during the first quarter of 2009 earning an average time charter equivalent rate of $12,684 per day compared to 15 vessels in the same period of 2008 earning on average $25,723 per day. Two of the Company's containerships were laid-up as of March 31, 2009 and a third one was laid-up in April 2009.

Adjusted EBITDA for the first quarter of 2009 was $6.2 million, a 67.1% decrease from $18.7 million achieved during the first quarter of 2008. Please see below for Adjusted EBITDA reconciliation to net income and cash flow provided by operating activities.

Basic and diluted earnings per share for the first quarter of 2009 was $0.13, calculated on 30,575,611 and 30,602,510 weighted average number of shares outstanding, respectively, compared to basic and diluted earnings per share of $0.45 for the first quarter of 2008, calculated on 30,321,553 and 30,379,994 weighted average number of shares outstanding, respectively.

Excluding the effect on the earnings for the quarter of the unrealized gain on derivatives, unrealized loss on investments, amortization of the fair value of time charter contracts acquired and loss from vessel sales, the earnings per share for the quarter ended March 31, 2009 would have been $0.07 per share basic and diluted, and, for the quarter ended March 31, 2008 would have been $0.38 per share basic and diluted. Usually, security analysts do not include the above items in their published estimates of earnings per share.

Change in accounting principle and change in estimates:

Beginning with the first quarter of 2009, the Company changed its accounting policy of drydocking costs from the deferral method, under which the Company amortized drydocking costs over the estimated period of benefit between dry-dockings, to the direct expense method, under which the Company expenses all drydocking costs as incurred. The Company believes that the direct expense method is preferable as it eliminates the significant amount of time and subjectivity involved in determining which costs and activities related to drydocking qualify for the deferral method. When the accounting principle was retrospectively applied, net income for the quarter ended March 31, 2008 decreased by $1.5 million.

The Company reflected this change as a change in accounting principle from an accepted accounting principle to a preferable accounting principle in accordance with Statement of Financial Accounting Standards No. 154, Accounting Changes and Error Corrections. The new accounting principle will be applied retrospectively to all periods presented in earnings releases and filings.

During the fourth quarter of 2008, the Company also changed its estimates of the scrap price and useful life of its containerships to better reflect the present market environment, industry practice and intended use. The effect of these changes increased net income for the period ended March 31, 2009 by $1.6 million.

   Fleet Profile:
   The Euroseas Ltd. fleet profile is as follows:
   Year
   Name             Type       Dwt     TEU   Built Employment TCE Rate ($/day)
   ------------ -------- ------ ----- ----------  ---------------
   Dry Bulk
   Vessels
   ------------ -------- ------ ----- ----------  ---------------
   TC 'til
   ELENI P         Panamax     72,119         1997   May-10        $15,350
   ------------ -------- ------ ----- ----------  ---------------
   Baumarine
   IRINI (*)       Panamax     69,734         1988    Pool
   ------------ -------- ------ ----- ----------  ---------------
   ARISTIDES                                         TC 'til
   N.P.           Panamax     69,268         1993   Jan-10        $12,350
   ------------ -------- ------ ----- ----------  ---------------
   Bulk-
   MONICA P                                         handling
   (**)          Handymax     46,667         1998   Pool
   ------------ -------- ------ ----- ----------  ---------------
   GREGOS         Handysize    38,691         1984    Spot
   ------------ -------- ------ ----- ----------  ---------------
   Total Dry
   Bulk
   Vessels           5       296,479
   ------------ -------- ------ ----- ----------  ---------------
   Multipurpose
   Dry Cargo
   Vessels
   ------------ -------- ------ ----- ----------  ---------------
   $9,500 'til
   Dec-10,
   TC 'til     $9,000 'til
   TASMAN TRADER      1        22,568    950  1990   Mar-12      Mar-12
   ------------ -------- ------ ----- ----------  ---------------
   Container
   Carriers
   ------------ -------- ------ ----- ----------  ---------------
   $16,800 'til
   Aug-11
   TC 'til      $18,735 'til
   Aug-11       Aug-12
   (3 annual    $19,240 'til
   options      Aug-13
   MAERSK                                           'til        $19,750 'til
   NOUMEA      Intermediate   34,677  2,556  2001  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
   Oct-09
   OEL                                               'til          $12,000
   TRANSWORLD                                       Oct-10        $10,000
   (ex-CLAN                                        (owner's      (owner's
   GLADIATOR)   Handy size    30,007  1,742  1992   option)       option)
   ------------ -------- ------ ----- ----------  ---------------
   TC 'til
   YM XINGANG I  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
   (option      Jun-09
   'til        $3,850 'til
   KUO HSIUNG      Feeder      18,154  1,169  1993   Jun-10)      Jun-10
   ------------ -------- ------ ----- ----------  ---------------
   Total
   Container
   Carriers         10       273,687 17,877
   ------------ -------- ------ ----- ----------  ---------------
   Fleet Grand
   Total            16       592,734 18,827
   ------------ -------- ------ ----- ----------  ---------------
   (*) "IRINI" is employed in the Baumarine spot pool that is managed by
   Klaveness, a major global charterer in the dry bulk area.
   (**) "Monica P" is employed in the Bulkhandling spot pool that is also
   managed by Klaveness.
   
   

Summary Fleet Data:

   3 months,  3 months,
   ended      ended
   March 31,  March 31,
   2008       2009
   ---------  ---------
   FLEET DATA
   Average number of vessels (1)                             15.00      15.70
   Calendar days for fleet (2)                              1365.0     1413.0
   Scheduled off-hire days incl. laid-up (3)                  63.0      106.0
   Available days for fleet (3)                             1302.0     1307.0
   Commercial off-hire days (4)                                7.7       84.2
   Operational off-hire days (5)                               1.5       13.1
   Voyage days for fleet (6)                                1292.8     1209.7
   Fleet utilization (7)                                      99.3%      92.6%
   Fleet utilization, commercial (8)                          99.4%      93.6%
   Fleet utilization, operational (9)                         99.9%      98.9%
   AVERAGE DAILY RESULTS
   Time charter equivalent rate (10)                        25,723     12,684
   Vessel operating expenses (11)                            5,584      5,198
   General and administrative expenses (12)                    763        773
   Total vessel operating expenses (13)                      6,347      5,971
   ---------  ---------
   
   

(1) Average number of vessels is the number of vessels that constituted our fleet for the relevant period, as measured by the sum of the number of calendar days each vessel was a part of our fleet during the period divided by the number of calendar days in that period.

(2) Calendar days. We define calendar days as the total number of days in a period during which each vessel in our fleet was in our possession including off-hire days associated with major repairs, drydockings or special or intermediate surveys or days of vessels in lay-up. Calendar days are an indicator of the size of our fleet over a period and affect both the amount of revenues and the amount of expenses that we record during that period.

(3) Available days. We define available days as the total number of days in a period during which each vessel in our fleet was in our possession net of scheduled off-hire days including days of vessels laid-up; the scheduled off-hire days including laid-up are days associated with scheduled repairs, drydockings or special or intermediate surveys or days of vessels in lay-up. The shipping industry uses available days to measure the number of days in a period during which vessels were available to generate revenues.

(4) Commercial off-hire days. We define commercial off-hire days as days waiting to find employment.

(5) Operational off-hire days. We define operational off-hire days as days associated with unscheduled repairs or other off-hire time related to the operation of the vessels,

(6) Voyage days. We define voyage days as the total number of days in a period during which each vessel in our fleet was in our possession net of commercial and operational off-hire days. The shipping industry uses voyage days to measure the number of days in a period during which vessels actually generate revenues.

(7) Fleet utilization. We calculate fleet utilization by dividing the number of our voyage days during a period by the number of our available days during that period. The shipping industry uses fleet utilization to measure a company's efficiency in finding suitable employment for its vessels and minimizing the amount of days that its vessels are off-hire for reasons such as unscheduled repairs or days waiting to find employment.

(8) Fleet utilization, commercial. We calculate commercial fleet utilization by dividing our available days net of commercial off-hire days during a period by our available days during that period.

(9) Fleet utilization, operational. We calculate operational fleet utilization by dividing our voyage days during a period by our available days net of commercial off-hire days during that period.

(10) Time charter equivalent, or TCE, is a measure of the average daily revenue performance of a vessel on a per voyage basis. Our method of calculating TCE is consistent with industry standards and is determined by dividing revenue generated from voyage charters net of voyage expenses by available days for the relevant time period. Voyage expenses primarily consist of port, canal and fuel costs that are unique to a particular voyage, which would otherwise be paid by the charterer under a time charter contract, as well as commissions. TCE is a standard shipping industry performance measure used primarily to compare period-to-period changes in a shipping company's performance despite changes in the mix of charter types (i.e., spot voyage charters, time charters and bareboat charters) under which the vessels may be employed between the periods.

(11) Daily vessel operating expenses, which includes crew costs, provisions, deck and engine stores, lubricating oil, insurance, maintenance and repairs and management fees are calculated by dividing vessel operating expenses by fleet calendar days for the relevant time period.

(12) Daily general and administrative expense is calculated by dividing general and administrative expense by fleet calendar days for the relevant time period.

(13) Total vessel operating expenses, or TVOE, is a measure of our total expenses associated with operating our vessels. TVOE is the sum of vessel operating expenses and general and administrative expenses. Daily TVOE is calculated by dividing TVOE by fleet calendar days for the relevant time period.

Conference Call and Webcast:

Tomorrow, Friday, May 22, 2009 at 11:00 a.m. EDT, the company's management will host a conference call to discuss the results.

Conference Call details:

Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1 866 819 7111 (from the US), 0800 953 0329 (from the UK) or +44 (0)1452 542 301 (international standard dial in). Please quote "Euroseas."

In case of any problems with the above numbers, please dial 1 866 223 0615 (from the US), 0800 694 1503 (from the UK) or +44 (0)1452 586 513 (international standard dial in). Quote "Euroseas."

A recording of the conference call will be available until May 29, 2009 by dialing 1 866 247 4222 (from the US), 0800 953 1533 (from the UK) or +44 (0)1452 550 000 (international standard dial in). Access Code: 6973591#

Audio webcast - Slides Presentation:

There will be a live and then archived audio webcast of the conference call, via the internet through the Euroseas website (www.euroseas.gr). Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast. A slide presentation on the First Quarter 2009 results in PDF format will also be available 30 minutes prior to the conference call and webcast accessible on the company's website (www.euroseas.gr) on the webcast page. Participants to the webcast can download the PDF presentation.

   Euroseas Ltd.
   Consolidated Condensed Statements of Income
   (All amounts expressed in U.S. Dollars - except share amounts)
   Three        Three        Three
   Months       Months       Months
   Ended        Ended        Ended
   March 31,    March 31,    March 31,
   2008         2008         2009
   (as          (as
   originally     adjusted
   reported    under the
   under the     direct
   deferral     expense
   method)      method)
   -----------  -----------  -----------
   (unaudited)  (unaudited)  (unaudited)
   Revenues
   Voyage revenue   34,470,703   34,470,703   15,921,044
   Commissions   (1,648,768)  (1,648,768)    (611,878)
   Net revenues                          32,821,935   32,821,935   15,309,166
   Operating expenses
   Voyage expenses    1,215,291    1,215,291      577,341
   Vessel operating expenses    6,310,840    6,310,840    6,161,466
   Drydocking expenses            -    2,217,808            -
   Amortization and depreciation    7,969,697    7,275,364    4,501,150
   Management fees    1,311,180    1,311,180    1,182,756
   Other general and administrative
   expenses    1,041,249    1,041,249    1,092,133
   Charter termination fees            -            -     (103,577)
   Net loss from sale of vessels            -            -       86,533
   Total operating expenses              17,848,257   19,371,732   13,497,802
   Operating income                      14,973,678   13,450,203    1,811,364
   Other income/(expenses)
   Interest and finance cost   (1,022,994)  (1,022,994)    (323,724)
   Change in fair value of derivatives            -            -    2,063,884
   Unrealized gain (loss) on trading
   securities       17,042       17,042     (104,575)
   Foreign exchange (loss) gain      (21,826)     (21,826)      29,593
   Interest income    1,136,797    1,136,797      468,730
   Dividend income       90,151       90,151            -
   Other income/(expenses), net      199,170      199,170    2,133,908
   -----------  -----------  -----------
   Net income                            15,172,848   13,649,373    3,945,272
   -----------  -----------  -----------
   Earnings, per share, basic                  0.50         0.45         0.13
   Weighted average number of shares,
   basic                                30,321,553   30,321,553   30,575,611
   -----------  -----------  -----------
   Earnings, per share, diluted                0.50         0.45         0.13
   -----------  -----------  -----------
   Weighted average number of shares,
   diluted                              30,379,994   30,379,994   30,602,510
   -----------  -----------  -----------
   Euroseas Ltd.
   Consolidated Condensed Balance Sheets
   (All amounts expressed in U.S. Dollars - except share amounts)
   December    December    March 31,
   31, 2008    31, 2008      2009
   (as         (as
   originally   adjusted
   reported   under the
   under the     direct
   deferral     expense
   method)     method)
   ----------- ----------- -----------
   (unaudited) (unaudited) (unaudited)
   ASSETS
   Current Assets:
   Cash and cash equivalents              73,851,191  73,851,191  56,264,911
   Trade accounts receivable               1,233,895   1,233,895   1,342,160
   Other receivables, net                  1,439,628   1,439,628     954,955
   Due from related company                4,678,750   4,678,750   1,400,694
   Inventories                             2,011,973   2,011,973   2,128,570
   Restricted cash                         2,181,264   2,181,264   2,658,647
   Vessels held for sale                   6,067,020   6,067,020           -
   Trading securities                        771,727     771,727     667,152
   Derivatives                                61,670      61,670     877,483
   Prepaid expenses                          241,102     241,102     360,995
   Total current assets                     92,538,220  92,538,220  66,655,567
   Fixed assets:
   Vessels, net                          231,963,606 231,963,606 263,951,442
   Advances for vessel acquisition         1,821,798   1,821,798           -
   Long-term assets:
   Restricted cash                         4,800,000   4,800,000   5,974,250
   Deferred charges, net                   7,771,342     373,702     411,647
   Derivatives                                68,038      68,038     656,960
   Fair value of above market time
   charter acquired                       1,653,422   1,653,422     915,649
   Total long-term assets                  248,078,206 240,680,567 271,909,948
   ----------- ----------- -----------
   Total assets                            340,616,426 333,218,786 338,565,515
   ----------- ----------- -----------
   LIABILITIES AND SHAREHOLDERS' EQUITY
   Current liabilities:
   Long term debt, current portion        12,450,000  12,450,000  12,750,000
   Trade accounts payable                  2,283,488   2,283,488   2,545,245
   Accrued expenses                        1,206,466   1,206,466   1,250,421
   Accrued dividends                         116,750     116,750     140,250
   Deferred revenue                        4,533,601   4,533,601   3,038,277
   Derivatives                               827,210     827,210   1,067,188
   Total current liabilities                21,417,515  21,417,515  20,791,381
   Long-term liabilities:
   Long term debt, net of current
   portion                               43,565,000  43,565,000  50,065,000
   Derivatives                             2,700,028   2,700,028   2,015,242
   Fair value of below market time
   charter acquired                       8,704,811   8,704,811   7,729,172
   Total long-term liabilities              54,969,839  54,969,839  59,809,414
   Total liabilities                        76,387,354  76,387,354  80,600,795
   Shareholders' equity:
   Common stock (par value $0.03,
   100,000,000 shares authorized,
   30,575,611 and 30,575,611 issued and
   outstanding)
   917,269     917,269     917,269
   Preferred shares (par
   value $0.01, 20,000,000 shares
   authorized, no shares issued and
   outstanding)
   Additional paid-in capital            234,567,670 234,567,670 234,836,747
   Retained earnings                      28,744,133  21,346,492  22,210,704
   Total shareholders' equity              264,229,072 256,831,432 257,964,720
   ----------- ----------- -----------
   Total liabilities and shareholders'
   equity                                 340,616,426 333,218,786 338,565,515
   ----------- ----------- -----------
   Euroseas Ltd.
   Consolidated Condensed Statements of Cash Flows
   (All amounts expressed in U.S. Dollars)
   Three        Three        Three
   Months       Months       Months
   Ended March  Ended March  Ended March
   31,          31,          31,
   2008         2008         2009
   (as          (as
   originally     adjusted
   reported    under the
   under the     direct
   deferral     expense
   method)      method)
   -----------  -----------  -----------
   (unaudited)  (unaudited)  (unaudited)
   -----------  -----------  -----------
   Cash flows from operating
   activities:
   Net income                            15,172,848   13,649,373    3,945,272
   Adjustments to reconcile net income
   to net cash provided by operating
   activities:
   Depreciation of vessels                7,275,364    7,275,364    4,501,150
   Amortization of deferred charges         716,869       22,536       22,056
   Amortization of fair value of time
   charters                             (2,111,646)  (2,111,646)    (237,866)
   Loss on sale of vessels                        -            -       86,533
   Share-based compensation                 367,740      367,740      269,076
   Unrealized gain on derivatives                 -            -   (1,849,543)
   Purchase of trading securities          (265,182)    (265,182)           -
   Unrealized (gain) loss on trading
   securities                              (17,042)     (17,042)     104,575
   Changes in operating assets and
   liabilities                           1,615,602    3,833,410     (408,888)
   -----------  -----------  -----------
   Net cash provided by operating
   activities                           22,754,553   22,754,553    6,432,365
   -----------  -----------  -----------
   Cash flows from investing
   activities:
   Purchase of vessels including
   improvements                                  -            -  (34,667,188)
   Change in restricted cash               (854,029)    (854,029)     985,617
   Proceeds from sale of vessels                  -            -    5,980,487
   -----------  -----------  -----------
   Net cash (used in) investing
   activities                             (854,029)    (854,029) (27,701,084)
   -----------  -----------  -----------
   Cash flows from financing
   activities:
   Issuance of share capital                  5,000        5,000            -
   Net proceeds from shares issued        1,795,004    1,795,004            -
   Dividends paid                        (9,128,334)  (9,128,334)  (3,057,561)
   Offering expenses paid                  (110,340)    (110,340)           -
   Loan arrangements fees paid                    -            -      (60,000)
   Proceeds from long-term debt                   -            -   10,000,000
   Repayment of long-term debts          (5,870,000)  (5,870,000)  (3,200,000)
   -----------  -----------  -----------
   Net cash provided by (used in)
   financing activities                (13,308,670) (13,308,670)   3,682,439
   -----------  -----------  -----------
   Net (decrease) increase in cash and
   cash equivalents                      8,591,854    8,591,854  (17,586,280)
   Cash and cash equivalents at
   beginning of period                 104,135,320  104,135,320   73,851,191
   -----------  -----------  -----------
   Cash and cash equivalents at end of
   period                              112,727,174  112,727,174   56,264,911
   -----------  -----------  -----------
   Euroseas Ltd.
   Reconciliation of Adjusted EBITDA to
   Net Income and Cash Flow Provided By Operating Activities
   (All amounts expressed in U.S. Dollars)
   Three Months  Three Months  Three Months
   Ended         Ended         Ended
   March 31,     March 31,     March 31,
   2008          2008           2009
   (as          (as
   originally     adjusted
   reported      under the
   under the     direct
   deferral      expense
   method)       method)
   ------------  ------------  ------------
   Net income                          15,172,848    13,649,373     3,945,272
   ------------  ------------  ------------
   Interest and finance costs, net
   (incl. interest income)              (113,803)     (113,803)     (145,006)
   ------------  ------------  ------------
   Depreciation and amortization        7,969,697     7,275,364     4,501,150
   ------------  ------------  ------------
   Gain on derivatives                          -             -    (1,902,172)
   ------------  ------------  ------------
   Amortization of deferred revenue
   of below market time charter
   acquired                           (2,849,419)   (2,849,419)     (975,639)
   ------------  ------------  ------------
   Amortization of deferred revenue
   of above market time charter
   acquired                              737,773       737,773       737,773
   ------------  ------------  ------------
   Adjusted EBITDA                     20,917,096    18,699,288     6,161,378
   ============  ============  ============
   Three Months  Three Months  Three Months
   Ended         Ended         Ended
   March 31,     March 31,     March 31,
   2008          2008          2009
   (as          (as
   originally     adjusted
   reported      under the
   under the     direct
   deferral      expense
   method)       method)
   ------------  ------------  ------------
   Net cash flow provided by
   operating activities               22,754,553    22,754,553     6,432,365
   ------------  ------------  ------------
   Changes in operating assets /
   liabilities                        (1,615,602)   (3,833,410)      408,888
   ------------  ------------  ------------
   Loss from sale of vessels                    -             -       (86,533)
   ------------  ------------  ------------
   Gain on derivatives (realized)               -             -       (52,628)
   ------------  ------------  ------------
   Gain (loss) on trading
   securities, net                        17,042        17,042      (104,575)
   ------------  ------------  ------------
   Investment in trading
   securities, net                       265,182       265,182             -
   ------------  ------------  ------------
   Share-based compensation              (367,740)     (367,740)     (269,076)
   ------------  ------------  ------------
   Interest, net                         (136,339)     (136,339)     (167,063)
   ------------  ------------  ------------
   Adjusted EBITDA                     20,917,096    18,699,288     6,161,378
   ============  ============  ============
   
   

EBITDA Reconciliation:

Euroseas Ltd. considers Adjusted EBITDA to represent net earnings before interest, income taxes, depreciation, amortization, gain in derivatives and amortization of deferred revenues from above or below market time charters acquired. Adjusted EBITDA does not represent and should not be considered as an alternative to net income or cash flow from operations, as determined by United States generally accepted accounting principles, or U.S. GAAP, and our calculation of Adjusted EBITDA may not be comparable to that reported by other companies. Adjusted EBITDA is included herein because it is a basis upon which we assess our financial performance and liquidity position and because we believe that it presents useful information to investors regarding a company's ability to service and/or incur indebtedness. The Company's definition of Adjusted EBITDA may not be the same as that used by other companies in the shipping or other industries.

   Euroseas Ltd.
   Reconciliation of Net Income Excluding the Effect from Unrealized Gain on
   derivatives,
   Unrealized Gain or Loss on trading securities, Amortization of the
   Fair Value of Charters Acquired and Loss from Vessel Sale to Net Income
   (All amounts expressed in U.S. Dollars - except share data and per share
   amounts)
   Three Months   Three Months   Three Months
   Ended         Ended          Ended
   March 31,      March 31,      March 31,
   2008           2008           2009
   (as            (as
   originally     adjusted
   reported       under the
   under the        direct
   deferral        expense
   method)        method)
   -------------  -------------  -------------
   Net income                       15,172,848     13,649,373      3,945,272
   -------------  -------------  -------------
   Unrealized gain on
   derivatives                               -              -     (1,849,544)
   -------------  -------------  -------------
   Unrealized (gain) loss on
   investments                         (17,042)       (17,042)       104,575
   -------------  -------------  -------------
   Amortization of deferred
   revenue of below market time
   charter acquired                 (2,849,419)    (2,849,419)      (975,639)
   -------------  -------------  -------------
   Amortization of deferred
   revenue of above market time
   charter acquired                    737,773        737,773        737,773
   -------------  -------------  -------------
   Loss from sale of vessels                  -              -         86,533
   -------------  -------------  -------------
   Net Income excluding
   unrealized gain on
   derivatives, unrealized gain
   or loss on trading
   securities, amortization of
   the fair value of charters
   acquired and loss on vessel
   sale                             13,044,160     11,520,685      2,048,970
   -------------  -------------  -------------
   Net Income per share
   excluding  unrealized gain on
   derivatives, unrealized gain
   or (loss) on trading
   securities, amortization of
   the fair value of charters
   acquired and loss on vessel
   sale, basic                            0.43           0.38           0.07
   -------------  -------------  -------------
   Weighted average number of
   shares, basic                    30,321,553     30,321,553     30,575,611
   -------------  -------------  -------------
   Net Income per share
   excluding  unrealized gain on
   derivatives, unrealized gain
   or (loss) on trading
   securities, amortization of
   the fair value of charters
   acquired and loss on vessel
   sale, diluted                          0.43           0.38           0.07
   -------------  -------------  -------------
   Weighted average number of
   shares, diluted                  30,379,994     30,379,994     30,602,510
   =============  =============  =============
   
   

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 16 vessels, including 3 Panamax drybulk carriers, 1 Handymax and 1 Handysize drybulk carriers, 3 Intermediate container ship, 5 Handysize container ships, 2 Feeder container ships and a multipurpose dry cargo vessel. Euroseas` 5 drybulk carriers have a total cargo capacity of 296,479 dwt, its 10 container ships have a cargo capacity of 17,787 teu and its 1 multipurpose vessel has a cargo capacity of 22,568 dwt or 950 teu.

Forward-Looking Statement

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 and entering into further time charters. 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 have been correct. These statements involve known and unknown risks and are based upon a number of assumptions and estimates that 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 dry bulk vessels and container ships, 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 obligations 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.

Visit our website www.euroseas.gr

   Company Contact
   Tasos Aslidis
   Chief Financial Officer
   Euroseas Ltd.
   11 Canterbury Lane
   Watchung, NJ 07069
   Tel. (908) 301-9091
   E-mail: aha@euroseas.gr
   
   Investor Relations / Financial Media
   Nicolas Bornozis
   President
   Capital Link, Inc.
   230 Park Avenue, Suite 1536
   New York, NY 10169
   Tel. (212) 661-7566
   E-mail: euroseas@capitallink.com
   
   
   

SOURCE: Euroseas

mailto:aha@euroseas.gr
   mailto:euroseas@capitallink.com
   

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