FreeSeas announces entering into terms with the insurers of M/V Free Goddess and expected return to service of vessel

FreeSeas announces entering into terms with the insurers of M/V Free Goddess
and expected return to service of vessel

Athens, Greece,  Dec.  11, 2013  (GLOBE  NEWSWIRE)  -- December  11,  2013  -- 
FreeSeas Inc. (Nasdaq: FREE) ("FreeSeas"  or the "Company"), a transporter  of 
dry-bulk cargoes through the ownership and  operation of a fleet of  Handysize 
and Handymax vessels, announced today that it has entered into terms with  the 
insurers of M/V Free Goddess pursuant to  which the sum of USD 1,100,000  will 
be paid by the insurers to the Company. The amount of USD 700,000 has  already 
been disbursed in favor of the Company pursuant to the terms agreed.

The M/V Free Goddess had been hijacked  by pirates in February 2012 and  under 
repairs at her port of refuge since her release in October 2012.

As a result of the  repairs progress and the  funding received, the vessel  is 
now expected to shortly return to service.

About FreeSeas Inc.

FreeSeas Inc.  is a  Marshall Islands  corporation with  principal offices  in 
Athens, Greece. FreeSeas is engaged  in the transportation of drybulk  cargoes 
through the ownership and operation of  drybulk carriers. Currently, it has  a 
fleet of Handysize and Handymax vessels. FreeSeas' common stock trades on  the 
Nasdaq Capital  Market under  the  symbol FREE.  Risks and  uncertainties  are 
described in  reports  filed by  FreeSeas  Inc. with  the  SEC, which  can  be 
obtained free of charge on the  SEC's website at http://www.sec.gov. For  more 
information  about  FreeSeas  Inc.,   please  visit  the  corporate   website, 
www.freeseas.gr.

Forward-Looking Statements

This press release contains forward-looking statements (as defined in  Section 
27A of  the  Securities Act  of  1933, as  amended,  and Section  21E  of  the 
Securities Exchange Act of 1934, as amended) concerning future events and  the 
Company's growth strategy and measures to implement such strategy. Words  such 
as  ''expects,''   ''intends,''  ''plans,''   ''believes,''   ''anticipates,'' 
''hopes,'' ''estimates,'' and variations of such words and similar expressions
are intended  to identify  forward-looking  statements. Although  the  Company 
believes that the  expectations reflected in  such forward-looking  statements 
are reasonable, no assurance can be given that such expectations will prove to
be correct. These  statements involve known  and unknown risks  and are  based 
upon a number of  assumptions and estimates, which  are inherently subject  to 
significant uncertainties  and contingencies,  many of  which are  beyond  the 
control of  the  Company. Actual  results  may differ  materially  from  those 
expressed or implied  by such forward-looking  statements. Factors that  could 
cause actual results  to differ materially  include, but are  not limited  to, 
changes in the demand for dry bulk vessels; competitive factors in the  market 
in which the Company  operates; risks associated  with operations outside  the 
United States; and  other factors listed  from time to  time in the  Company's 
filings with the  Securities and  Exchange Commission.  The Company  expressly 
disclaims any obligation  or undertaking  to release publicly  any updates  or 
revisions to any  forward-looking statements contained  herein to reflect  any 
change in the  Company's expectations with  respect thereto or  any change  in 
events, conditions or circumstances on which any statement is based.

Contact Information:

At the Company

FreeSeas Inc.

Dimitris Papadopoulos, Chief Financial Officer

011-30-210-45-28-770

Fax: 011-30-210-429-10-10

dp@freeseas.gr

www.freeseas.gr