In addition to these important factors, other important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the strength of world economies and currencies, general market conditions, including fluctuations in charter rates and vessel values, failure of a seller to deliver one or more vessels or of a buyer to accept delivery of one or more vessels, inability to procure acquisition financing, default by one or more charterers of our ships, changes in the demand for crude oil and petroleum products, changes in demand for dry bulk shipping capacity, changes in our operating expenses, including bunker prices, drydocking and insurance costs, the market for our vessels, availability of financing and refinancing, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, potential disruption of shipping routes due to accidents or political events, vessels breakdowns and instances of off-hires and other factors. Please see our filings with the Securities and Exchange Commission for a more complete discussion of these and other risks and uncertainties.

TABLES FOLLOW
TOP SHIPS INC.
         
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(Expressed in thousands of U.S. Dollars - except for share and per share data)
         
  Three Months Ended  December 31, Year Ended  December 31,
  2009 2010 2009 2010
         
  (Unaudited) (Unaudited) (Unaudited) (Unaudited)
REVENUES:        
         
Revenues $24,397 $22,603 $107,979 $90,875
         
EXPENSES:        
         
Voyage expenses  420 1,116 3,372 2,468
Charter hire expense  --  480 10,827 480
Amortization of deferred gain on sale and leaseback of vessels and write-off of seller's credit   --   --  (7,799)  -- 
Lease termination expense  --   --  15,391  -- 
Vessel operating expenses  2,414 3,638 23,739 12,853
Dry-docking costs 18 1,243 4,602 4,103
Vessel depreciation  8,726 7,912 31,585 32,376
Management fees-third parties  68 9 419 159
Management fees-related parties   --  1,674  --  3,131
General and administrative expenses  7,851 5,485 23,416 18,142
Gain on sale of vessels  --  (5,101)  --  (5,101)
Impairment on vessels 36,638  --  36,638  -- 
         
 Operating (loss) income  (31,738) 6,147 (34,211) 22,264
         
OTHER (EXPENSES) INCOME:        
         
Interest and finance costs  (4,337) (4,473) (13,969) (14,776)
Gain (loss) on financial instruments 224 646 (2,081) (5,057)
Interest income 18 36 235 136
Other, net  (112) (21) (170) (54)
         
 Total other (expenses), net (4,207) (3,812) (15,985) (19,751)
         
Net (loss) income  $ (35,945)  $ 2,335  $ (50,196)  $ 2,513
         
Loss (earnings) per common share, basic and diluted   $ (1.20) $0.07  $ (1.78) $0.08
         
Weighted average common shares outstanding, basic  30,038,570 30,992,388 28,230,585 30,752,779
         
Weighted average common shares outstanding, diluted 30,038,570 31,063,971 28,230,585 30,777,413
 
TOP SHIPS INC.
     
CONSOLIDATED CONDENSED BALANCE SHEETS
(Expressed in thousands of U.S. Dollars - except for share and per share data)
     
  Year Ended December 31,
  2009 2010
     
ASSETS (Unaudited) (Unaudited)
     
CASH AND CASH EQUIVALENTS  $--  $ -- 
VESSELS, NET 642,953 595,736
RESTRICTED CASH 22,244 17,644
OTHER ASSETS 9,952 8,711
 Total assets $675,149 $622,091
     
LIABILITIES AND STOCKHOLDERS' EQUITY    
     
FINANCIAL INSTRUMENTS 13,803 12,938
DEBT 399,087 337,377
OTHER LIABILITIES 15,063 16,294
     
Total liabilities 427,953 366,609
     
COMMITMENTS AND CONTINGENCIES     
     
STOCKHOLDERS' EQUITY 247,196 255,482
     
 Total liabilities and stockholders' equity $675,149 $622,091
 
TOP SHIPS INC.
     
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(Expressed in thousands of U.S. Dollars)
     
     
  Year Ended December 31,
  2009 2010
     
  (Unaudited) (Unaudited)
Cash Flows provided by Operating Activities:    
     
Net (loss) income  $ (50,196) $2,513
Adjustments to reconcile net (loss) income to net cash provided by operating activities:    
Depreciation and amortization of deferred financing costs 35,005 35,810
Amortization of debt discount  --  1,464
Translation gain of foreign currency denominated loan  --  (159)
Stock-based compensation expense 3,467 2,024
Change in fair value of financial instruments (2,635) (865)
     
Amortization of deferred gain on sale and leaseback of vessels and write off of seller's credit (7,799)  -- 
Amortization of fair value below market time charter (3,911)  -- 
Loss on sale of other fixed assets 165 54
Gain on sale of vessels  --  (5,101)
Impairment on vessels 36,638  -- 
Change in operating assets and liabilities (4,158) (138)
     
Net Cash provided by Operating Activities 6,576 35,602
     
Cash Flows (used in) provided by Investing Activities:    
     
Vessel acquisitions  (136,678) 511
Insurance claims recoveries 2,656 1,310
Decrease in restricted cash 30,331 4,600
Net proceeds from sale of vessels  --  19,473
Net proceeds from sale of other fixed assets 156 254
Acquisition of other fixed assets (836) (416)
     
Net Cash (used in) provided by Investing Activities (104,371) 25,732
     
Cash Flows provided by (used in) Financing Activities:    
     
Proceeds from long-term debt 111,670 4,000
Payments of long-term debt (54,274) (64,624)
Financial instrument termination payments (5,000)  -- 
Payment of common stock issuance costs 2,569 (27)
Repurchase and cancellation of common stock  (732)  -- 
Payment of financing costs (2,680) (842)
     
Net Cash provided by (used in) Financing Activities 51,553 (61,493)
     
Effect of exchange rate changes on cash  --  159
     
Net (decrease) increase in cash and cash equivalents (46,242) (159)
     
Cash and cash equivalents at beginning of year 46,242  -- 
     
Cash and cash equivalents at end of year  $--   $-- 
CONTACT: Alexandros Tsirikos         Chief Financial Officer         TOP Ships Inc.         1, Vassilissis Sofias Str. & Meg.         Alexandrou Str.         151 24, Maroussi, Greece         Tel: +30 210 812 8180         Email: atsirikos@topships.org

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