Euroseas Results, Six-Months Quarter

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 and six month periods ended June 30, 2010.

Second Quarter 2010 Highlights:
• Net income of $0.5 million or $0.02 per share basic and diluted on total net revenues of $13.7 million. Excluding the effect of unrealized gain and realized loss on derivatives and unrealized loss on trading securities and amortization of the fair value of charters acquired, the net income for the period would have been $0.5 million, or $0.02 per share basic and diluted.

• Adjusted EBITDA was $5.0 million. Please refer to a subsequent section of the Press Release for a reconciliation of adjusted EBITDA to net income.

• An average of 15.11 vessels were owned and operated during the second quarter of 2010 earning an average time charter equivalent rate of $11,903 per day.

• Declared a quarterly dividend of $0.06 per share for the second quarter of 2010 payable on September 3, 2010 to shareholders of record on August 25, 2010. This is the twentieth consecutive quarterly dividend declared.

First Half 2010 Highlights:
• Net loss of $2.5 million or $0.08 loss per share basic and diluted on total net revenues of $27.5 million. Excluding the effect of unrealized gain and realized loss on derivatives and unrealized loss on trading securities and amortization of the fair value of charters acquired, the net income for the period would have been $0.9 million, or $0.03 per share basic and diluted

• Adjusted EBITDA was $10.0 million. Please refer to a subsequent section of the Press Release for a reconciliation of adjusted EBITDA to net income.

• An average of 15.06 vessels were owned and operated during the first half of 2010 earning an average time charter equivalent rate of $12,152 per day.

• Declared two quarterly dividends for a total of $0.11 per share during the first half of 2010.

Aristides Pittas, Chairman and CEO of Euroseas commented: "During the first half of 2010 we saw a significant recovery of the containership markets which has enabled us to re-activate one of our 2 laid-up container vessels and renew expiring charters at slightly higher rates. We expect that the re-activation of our remaining laid-up containership and the renewal of the rest of our containership contracts over the remaining of 2010 and 2011 will allow our entire containership fleet to start contributing again to our earnings in 2011. Our drybulk fleet is fully covered for 2010 either via physical charters or via FFA contracts and we have expected and seen little influence on our earnings from the developments in the market. For 2011 we have 60% secured cover at profitable rates.

“On the investment front, we have concluded as previously announced- our joint venture with two investment firms to jointly pursue investment opportunities in shipping. I am happy to report that with our partners, we have just purchased two 2000-built 2,500 teu containerships.

“In addition, as announced earlier, we have purchased on our own and took delivery in June of an additional containership, the 1998-built 2,008 teu, m/v Aggeliki P. We continue to evaluate investment opportunities both in the containership and drybulk markets and we look forward to continuing our investment program with accretive opportunities.

“We consider all these quite positive developments evidenced partly in a profitable second quarter. We are optimistic for the medium and long term profitability of our company although our third quarter earnings will be affected by a higher than usual number of vessels due for drydocking. Reflecting on these positive trends, our Board decided to increase our quarterly dividend to $0.06 per share � a 20% increase compared to last quarter - which represents an annual yield of about 6.8% on the basis of our stock price on August 2, 2010."

Tasos Aslidis, Chief Financial Officer of Euroseas commented: "The results of the second quarter of 2010 reflect the strengthening of the containership market compared to the first quarter of 2010 but also the lower level of the charter rates our fleet has earned compared to the same period a year ago. Our results were negatively influenced by realized losses in FFAs and interest rate swap contracts and positively affected by net unrealized gains on our overall derivative positions.

“Total daily vessel operating expenses, including management fees, general and administrative expenses but excluding drydocking costs, reflect a decrease of about 9.8% during the second quarter of 2010 compared to the same quarter of last year and a decrease of about 11.0% for the six month periods ended June 30, 2010 over the same period of 2009. As always, we want to emphasize that cost control remains a key component of our strategy.

“As of June 30, 2010, our outstanding debt was $65.7 million versus restricted and unrestricted cash of about $33.3 million not including $4.9 million held as margin for our FFA contracts. As of the same date, our scheduled debt repayments over the next 12 months amounted to about $13.8 million a number low enough to provide us with significant operational cash flow comfort. All our debt covenants were satisfied as of June 30, 2010."

Second Quarter 2010 Results:
For the second quarter of 2010, the Company reported total net revenues of $13.7 million representing a 7.9% decrease over total net revenues of $14.8 million during the second quarter of 2009. The Company reported net income for the period of $0.5 million as compared to a loss of $5.4 million for the second quarter of 2009. The results for the second quarter of 2010 include a $3.3 million net unrealized gain on derivatives and trading securities and a $3.7 million net realized loss on derivatives as compared to $6.3 million net unrealized loss and $0.8 million realized loss on derivatives and trading securities for the same period of 2009.

Depreciation expenses for the second quarter of 2010 were $4.4 million compared to $4.8 million during the same period of 2009. On average, 15.11 vessels were owned and operated during the second quarter of 2010 earning an average time charter equivalent rate of $11,903 per day compared to 16 vessels in the same period of 2009 earning on average $13,062 per day. M/V Despina P, one of the company’s containerships, that was laid up since March 2009 was reactivated in July 2010 and has entered in a time charter contract that commenced in the first half of July 2010. A second containership of the Company, M/V Jonathan P was laid-up throughout the second quarter of 2010.

Adjusted EBITDA for the second quarter of 2010 was $5.0 million, a 26.7% decrease from $6.8 million achieved during the second quarter of 2009. Please see below for Adjusted EBITDA reconciliation to net income / loss and cash flow provided by operating activities.

Basic and diluted earnings per share for the second quarter of 2010 was $0.02, calculated on 30,849,711 basic and 30,940,288 diluted weighted average number of shares outstanding, compared to basic and diluted losses per share of $0.18 for the second quarter of 2009, calculated on 30,575,611 weighted average number of shares outstanding, respectively.

Excluding the effect on the earnings for the quarter of the unrealized gain on derivatives and the realized loss on derivatives, unrealized loss on trading securities and amortization of the fair value of time charter contracts acquired, the earnings per share for the quarter ended June 30, 2010 would have been $0.02 per share basic and diluted compared to earnings of $0.05 per share for the quarter ended June 30, 2009. Usually, security analysts do not include the above items in their published estimates of earnings per share.

First Half 2010 Results:
For the first half of 2010, the Company reported total net revenues of $27.5 million representing a 8.9% decrease over total net revenues of $30.2 million during the first half of 2009. The Company reported a net loss for the period of $2.5 million as compared to net loss of $1.5 million for the first half of 2009. The results for the first half of 2010 include a $4.0 million net unrealized gain on derivatives and trading securities and a $8.4 million net realized loss on derivatives as compared to $4.5 million net unrealized loss and $0.6 million net realized loss on derivatives and trading securities for the same period of 2009.

Depreciation expenses for the first half of 2010 were $8.8 million compared to $9.3 million during the same period of 2009. On average, 15.06 vessels were owned and operated during the first half of 2010 earning an average time charter equivalent rate of $12,152 per day compared to 15.85 vessels in the same period of 2009 earning on average $12,875 per day. Two of the Company's vessels were laid up during the entire first half of 2010, of which one was reactivated in July 2010.

Adjusted EBITDA for the first half of 2010 was $10.0 million, a 22.3% decrease from $12.8 million achieved during the first half of 2009. Please see below for Adjusted EBITDA reconciliation to net income/loss and cash flow provided by operating activities.

Basic and diluted loss per share for the first half of 2010 was $0.08, calculated on 30,849,711 weighted average number of shares outstanding, compared to basic and diluted loss per share of $0.05 basic and diluted per share for the first half of 2009, calculated on 30,575,611 weighted average number of shares outstanding basic and diluted.

Excluding the effect on the earnings for the first half of 2010 of the unrealized gain on derivatives, realized loss on derivatives, unrealized loss on trading securities and amortization of the fair value of time charter contracts acquired, the earnings per share for the six-month period ended June 30, 2010 would have been $0.03 per share basic and diluted compared to earnings of $0.11 per share basic and diluted for the same period in 2009. Usually, security analysts do not include the above items in their published estimates of earnings per share.

5. Star Bulk Q2 & First Half 2010 Results
Star Bulk Carriers Corp. (Nasdaq: SBLK), a global shipping company focusing on the transportation of dry bulk cargoes, today announced that its Board of Directors declared a cash dividend of $0.05 per outstanding share of the Company's common stock for the three months ended June 30, 2010. The dividend is payable on or about August 30, 2010, to shareholders of record as of August 25, 2010. The Company also announced today its unaudited financial and operating results for the second quarter and first half of 2010.

Akis Tsirigakis, President and CEO of Star Bulk commented: "We are pleased to report strong second quarter 2010 financial results well above expectations. Our financial performance in the second quarter 2010 reflects the consistent implementation of our business strategy including operating cost reduction efforts and pursuing organic fleet expansion. At the same time we continue rewarding our shareholders with meaningful regular dividend of $0.05 cents per share implying an annualized yield of 7% at the current share price.

"Our vessel operating costs are lower by 42% compared to the same period last year mainly due to our cost efficient in-house fleet management which was fully implemented during the first quarter of 2010 and continues to produce tangible results while our fleet utilization rose to 99.5%. Furthermore, our interest expense was reduced by half due to the accelerated principal repayment nature of our loans. Also, our revenue visibility remains high with contacted operating days of 98% for the remainder of 2010 and 64% for 2011.

"We have also continued our organic growth during this quarter expanding our fleet by ordering our second capesize newbuilding in April 2010, without diluting our shareholders. So far in 2010, we have contracted to acquire three Capesize vessels, the 2000 built M/V Aurora and two newbuildings. These acquisitions will expand our fleet carrying capacity in DWT by about 57%."

George Syllantavos, Chief Financial Officer of Star Bulk commented: "As of today, our senior debt has been reduced to $201 million while our cash position stands at approximately $54 million, translating into a conservative net debt position of approximately 21% of our total assets. Through our front-loaded principal repayment schedule we have repaid $32 million during the first half 2010 and $46 million year-to-date. This front-loading produced tangible results by lowering our interest costs, while through our resistance to enter into interest rate hedge mechanisms we avoided interest rate swap costs that have burdened other companies.

"We are confident our strong balance sheet will enable us to meet our debt and capital expenditure commitments and continue rewarding our shareholders with a regular dividend."

Second Quarter 2010 and 2009 Results
For the second quarter 2010, total revenues amounted to $30.0 million compared to $32.4 million for the second quarter 2009. This decrease was mainly due to the decrease in the number of vessels that operated, from an average of 12 vessels during the second quarter of 2009 to 11 vessels for the second quarter of 2010. Operating income amounted to $7.3 million for the second quarter 2010 compared to an operating loss of $1.0 million for the second quarter 2009. Net income for the second quarter 2010 amounted to $6.0 million or $0.10 earnings per share calculated on 61,055,907 and 61,191,174 weighted average number of shares, basic and diluted, respectively. Net loss for the second quarter 2009 amounted to $3.4 million or $0.06 loss per basic and diluted shares calculated on 60,994,760 weighted average numbers of shares.

The second quarter 2010 net income figure includes the following non-cash items:
•    Net revenue of $0.3 million representing amortization of fair value of below market acquired time charters, attached to vessels acquired, over the remaining period of the time charter into revenue.
•    Expenses of $1.7 million, relating to the amortization of stock based compensation recognized in connection with the restricted shares issued to directors and employees.
•    An unrealized gain of $0.2 million associated with the mark-to-market valuation of the Company's derivatives.

Excluding these items net income for the second quarter of 2010 would amount to $7.2 million or $0.12 earnings per basic and diluted share.

The second quarter 2009 net loss figure includes the following non-cash items:
•    A net reduction of revenue of $1.0 million, representing amortization of fair value of below/above market acquired time charters, attached to vessels acquired, over the remaining period of the time charter into revenue.
•    Expenses of $0.2 million, relating to the amortization of stock based compensation recognized in connection with the restricted shares issued to directors and employees.
•    An unrealized gain of $0.6 million associated with the mark-to-market valuation of the Company's derivatives.

Excluding these items net loss for the second quarter of 2009 would amount to $2.8 million or $0.05 loss per basic and diluted share.

Adjusted EBITDA for the second quarter 2010 and 2009 was $20.0 million and $15.5 million, respectively. A reconciliation of EBITDA and adjusted EBITDA to net cash provided by cash flows from operating activities is set forth below.

An average of 11.0 and 12.0 vessels were owned and operated during the second quarter 2010 and 2009, respectively, earning an average Time Charter Equivalent, ('TCE") rate of $28,640 per day and $30,019 per day, respectively. We refer you to the information under the heading "Summary of Selected Data" later in this earnings release for further information regarding our calculation of TCE rates.

Vessel operating expenses decreased approximately 42% to $5.3 million for the second quarter 2010 compared to $9.1 million for the same period last year. The decrease is mainly due to a more cost efficient in-house management of the vessels which was fully implemented during the first quarter of 2010 and due to the decrease in the number of vessels that operated during the second quarter of 2009 compared to the second quarter of 2010.

Voyage expenses decrease by $1.2 million in the second quarter of 2010 as compared to the same period of 2009 mainly due to the fact that during the second quarter of 2009 one of our vessels was under a COA.

Depreciation expense decreased to $11.5 million for the second quarter 2010 from $15.8 million for the second quarter 2009. The decrease in depreciation expense was due to the fact that our fleet was reduced from an average of 12 vessels during the second quarter 2009, to an average of 11 during the second quarter 2010. Furthermore, depreciation expense was further reduced due to the reclassification of the vessel Star Beta during the first quarter of 2010 as an asset held for sale. The vessel Star Beta was delivered to her buyers in July 2010.

General and administrative expenses increased to $3.2 million for the second quarter 2010 from $1.7 million for the second quarter 2009, respectively. This increase is mainly due to a higher stock-based compensation expense.

First Half 2010 and 2009 Results
For the first half 2010, total revenues amounted to $59.3 million compared to $77.5 million for the first half 2009. This decrease is mainly due to higher charter rates earned for most of our vessels during 2009 and the lower amortization of fair value of below/above market acquired time charters of $0.7 million for the first half 2010 compared to $5.4 million for the first half 2009. Operating loss amounted to $24.2 million for the first half 2010 compared to operating income of $24.2 million for the first half 2009. Net loss for the first half 2010 amounted to $27.0 million representing $0.44 loss per basic and diluted share calculated on 61,052,850 weighted average number of basic and diluted shares. Net income for the first half 2009 amounted to $19.0 million representing $0.31 earnings per share calculated on 60,694,160 weighted average number of shares, basic and diluted.

The first half 2010 net loss figure includes the following non-cash items:
•    Impairment loss of $33.0 million in connection with the sale of the vessel Star Beta.
•    An increase of revenue of $0.7 million representing amortization of fair value of below market acquired time charters, attached to vessels acquired, over the remaining period of the time charter into revenue.
•    Expenses of $2.5 million, relating to the amortization of stock based compensation recognized in connection with the restricted shares issued to directors and employees.
•    An unrealized loss of $0.2 million associated with the mark-to-market valuation of the Company's derivatives.

Excluding these items a net income for the first half of 2010 would amount to $8.0 million or $0.13 earnings per basic and diluted share.

The first half of the year 2009 net income figure includes the following non-cash items:
•    A net increase of revenue of $5.4 million representing amortization of fair value of below/above market acquired time charters, over the remaining period of the time charter into revenue.
•    A gain of $10.9 million associated with the gain on the time charter agreement termination which mainly relates to the unamortized fair value of below market acquired time charter on a vessel early redelivery date.
•    Expenses of $1.7 million relating to the amortization of stock based compensation recognized in connection with the restricted shares issued to directors and employees.
•    An unrealized loss of $2.2 million associated with the mark-to-market valuation of the Company's derivatives.

Excluding these items net income for the first half of 2009 would amount to $6.6 million or $0.11 earnings per basic and diluted share.

Adjusted EBITDA for six months ended June 30, 2010 and 2009 was $34.6 million and $43.3 million respectively. A reconciliation of EBITDA and adjusted EBITDA to net cash provided by cash flows from operating activities is set forth below.

An average of 11.0 and 12.0 vessels were owned and operated during the six months ended June 30, 2010 and 2009, respectively, earning an average TCE rate of $27,291 and $32,591 per day, respectively. We refer you to the information under the heading "Summary of Selected Data" later in this earnings release for further information regarding our calculation of TCE rates.

Total expenses, amounted to $48.5 million for the six months ended June 30, 2010 compared to $64.5 million for the six months ended June 30, 2009. Vessel operating expenses were $10.9 million for the first half 2010 compared to $15.8 million for the same period last year. The decrease are mainly due to a more cost efficient in-house management which was fully implemented during the first half of 2010 and the decrease in the number of vessels that operated compare to the first half of 2010.

Depreciation expense decreased to $23.0 million for the first half 2010 from $31.5 million for the first half 2009. The decrease in depreciation expense was due to the fact that our fleet was reduced from an average of 12 vessels during the first half of 2009, to an average of 11 during the first half of 2010. Furthermore, depreciation expense was further reduced due to the reclassification of the vessel Star Beta during the first quarter of 2010 as an asset held for sale.

General and administrative expenses increased to $5.7 million for first half 2010 from $4.6 million the first half 2009, respectively. This increase was mainly due to a higher stock based compensation expense.

Liquidity and Capital Resources
Cash Flows
Net cash provided by operating activities for the six months ended June 30, 2010 and 2009, was $33.3million and $42.1 million, respectively. Net cash provided by operating activities for the six month period ended June 30, 2010 was primarily a result of recorded net loss of $27.0 million, adjusted for depreciation of $23.0 million, and an impairment loss of $34.8 million resulting from the sale of vessel Star Beta which has been classified as asset held for sale and recorded at fair value less costs to sell. Net cash provided by operating activities for the six month period ended June 30, 2009 was primarily a result of recorded net income of $19.0 million, adjusted for depreciation of $31.5 million and stock based compensation and fair value of derivatives of $3.9 million, offset by amortization of fair value of below/above market acquired time charter agreements of $5.4 million and non-cash gain on time charter agreement termination of $10.9 million.

Net cash used in investing activities for the six months ended June 30, 2010 and 2009 was $27.3 million and $25.5 million, respectively. Net cash used in investing activities for the six month ended June 30, 2010, was primarily due to the 20% advance given for the vessel Star Aurora that is to be acquired during the fourth quarter of 2010, amounting to $8.5 million plus 20% installments related to each of our two newbuildings amounting to $21.5 million in aggregate and offset by a decrease in restricted cash amounting to $2.6 million. For the six month period ended June 30, 2009, there was no cash used in investing activities due to the lack of acquisitions and/or sales of vessels during the period, however, there was an increase in restricted cash of $25.4 million related to the waivers obtained for the existing loan agreements.

Net cash used in financing activities for the six months ended June 30, 2010 and 2009 was $38.6 million and $22.6 million respectively. For the six month ended June 30, 2010, net cash used in financing activities consisted of loan installment payments amounting to $32.2 million, cash dividend payments of $6.2 million and financing fees amounting $0.2 million. For the six months ended June 30, 2009, net cash used in financing activities consisted of the payments of loan installments amounting to $24.5 million offset by cash provided from our Director's dividend reinvestment of $1.9 million.