Euroseas Ltd. Announces Rights Offering, Reverse 1:10 Stock Split and Containership Charters

Euroseas Ltd. ESEA, an owner and operator of drybulk and container carrier vessels and a provider of seaborne transportation for drybulk and containerized cargoes, announced today that it will hold a registered offering of subscription rights (the "Rights Offering") to the holders of its common shares as of a record date yet to be determined, to purchase common shares of the Company. The number of rights that will be issued, the exercise price of such rights, and the amount to be raised are yet to be determined, but the Company intends to use the proceeds to renew and expand its fleet by taking delivery of its drybulk vessels currently under construction and for general corporate purposes. Each subscription right will permit the holder of such right to purchase a certain number of shares of the Company's common shares (the "Basic Subscription Privilege"). Each holder of a subscription right that was a holder of such shares on the record date of the Rights Offering and that fully exercises the holder's Basic Subscription Privilege may also subscribe for a certain number of additional shares (the "Oversubscription Privilege"). The Company expects that the rights will be tradable. The Company also announced that its Board of Directors has determined that the Company will commence a 1-for-10 reverse stock split, with an effective date of July 31, 2015. The reverse stock split is undertaken with the objective of meeting the minimum $1.00 per share requirement for listing the Company's common stock on the Nasdaq Capital Market. The reverse stock split will become effective after the close of all trading on the effective date, and the Company's common shares will begin trading on a split-adjusted basis on August 3, 2015, which is the trading day next following the effective date, or such other date as determined by Nasdaq. No fractional shares will be issued in connection with the reverse stock split. Instead, the Company will issue one full share of the post-reverse stock split common shares to any shareholder who would otherwise be entitled to receive a fractional share as a result of the reverse stock split. Each common shareholder will hold the same percentage of the outstanding common shares immediately following the reverse stock split as that shareholder did immediately prior to the reverse stock split, except for minor adjustment due to the additional net share fraction that will need to be issued as a result of the treatment of fractional shares. The reverse stock split was authorized by the Company's shareholders on June 19, 2015. Furthermore, the Company announced that one of its smallest container vessels, m/v Ninos, a 1990-built 1,149 teu containership, was chartered for a period of one year for about $11,500 per day. This charter follows charters for m/v Evridiki and m/v Marinos for shorter periods at levels around $11,000 per day, indicating the recent strength of the containership market for vessels similar to those of the Company. Aristides Pittas, chairman and CEO of the Company commented: "We are executing our plan of growing the Company and making its stock more attractive for our shareholders and investors amidst a challenging market environment. In that respect, we have filed a registration statement with the SEC to pursue a registered rights offering, which we believe allows us to raise funds in the least dilutive way for our shareholders to ensure that we can comfortably complete our drybulk newbuilding program of 2 Ultramaxes and 2 Kamsarmax. We believe that continuing to invest in the drybulk sector at one of the lowest historical levels observed is a very attractive opportunity. At the same time we are encouraged by the recent strengthening of the containership market as evidenced by the recent charter renewals. We continue to believe that we are well positioned to benefit from recovery of the drybulk market over the next one to two years and the continuing strength of the containership market." The Company has filed a registration statement with the U.S. Securities and Exchange Commission (the "SEC") with respect to the Rights Offering. Subject to review of the registration statement by the SEC, the Company intends to commence the Rights Offering during the third quarter of 2015. The subscription rights will expire worthless twenty (20) business days after the commencement of the Rights Offering, unless the Company extends the Rights Offering period or the Rights Offering is terminated. A copy of the prospectus, the registration statement and additional materials related to the Rights Offering are expected to be mailed following the effectiveness of the registration statement to holders of the Company's common shares as of the record date for the Rights Offering. Before you invest, you should read the prospectus and the registration statement, including all of the documents incorporated by reference therein and other documents the Company has filed with the SEC for more complete information about the Company and this offering. You may obtain these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the Company will arrange to send you the registration statement, including the prospectus if you request it by calling the information agent for the offering or the contact persons listed at the bottom of this release. This press release shall not constitute an offer to sell or the solicitation of an offer to buy common shares nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.