FreeSeas Reports Second Quarter And Six Month 2010 Financial Results

Second Quarter 2010 Financial Highlights

• Operating revenues of $16.5 million, an increase of 33% year-over-year
• Operating income of $3.2 million, an increase of 110% year-over-year
• Net income of $2.0 million, or $0.06 diluted earnings per share, an increase of 257% year-over-year
• Adjusted net income of $2.2 million, or $0.07 diluted earnings per share (see below in footnote (1) to this release for reconciliation), a ten-fold increase year-over-year
• Adjusted EBITDA of $7.7 million (see below in footnote (2) to this release for reconciliation), an increase of 30% year-over-year

First Half 2010 Financial Highlights

• Operating revenues of $32.1 million
• Operating income of $7.0 million
• Net income of $4.7 million, or $0.15 earnings per share
• Adjusted net income of $5.1 million or $0.16 diluted earnings per share (see below in footnote (1) to this release for reconciliation)
• Adjusted EBITDA of $15.9 million (see below in footnote (2) to this release for reconciliation)
• Cash from operations of $14.1 million for the period

PIRAEUS, Greece, Aug. 5, 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, announced today financial results for its second quarter and six-month period ended June 30, 2010.

Recent Event

On July 30, 2010, FreeSeas entered into an agreement to sell the M/V Free Destiny, a 1982-built, 25,240dwt Handysize dry bulk carrier, for a gross price of $3.2 million. The M/V Free Destiny is currently employed in the spot market. FreeSeas expects to realize a gain of approximately $1 million, which will be recognized in the third quarter of 2010. The vessel is expected to be delivered to the buyers in August 2010.