Euroseas Ltd. Announces Agreement to Purchase Two Container Ships

Euroseas Ltd. (NASDAQ: ESEA), an owner and operator of drybulk carriers, container ship and multipurpose vessels and provider of seaborne transportation for drybulk and containerized cargoes, announced today that it has entered into memoranda of agreement to purchase the M/V Honor River and the M/V Beauty River, two Handysize container ships, each with a capacity of 33,667 dwt and 1,932 teu. The vessels are sister ships built in 1990 in South Korea and are similar in terms of capacity to the M/V Artemis. The M/V Honor River and the M/V Beauty River will each be acquired for $18.7 million and are expected to be delivered to Euroseas in August and September 2007, respectively.