Euroseas Announces Spin Off

Drybulk Fleet Spin-off
The Company announced that it filed a registration statement on Form F-1 with the Securities
and Exchange Commission to spin-off the Company’s drybulk fleet into a separate company,
EuroDry Ltd., which has applied for listing on the NASDAQ Capital Market.

Aristides Pittas, Chairman and CEO of Euroseas commented: “Although our revenues
continued to increase in Q1 following the continued improvement in both drybulk and
container markets we registered a loss during the first quarter of 2018, mainly due to the
disproportionate number of drydocks we had to pass during the quarter. We expect both
sectors to continue to register positive results in the future if the markets maintain their current
levels and the company to revert to profitability for the remainder of the year.
“However, from our perspective, the most significant development during the quarter was our
decision to spin-off our drybulk fleet into a separate publicly listed company, EuroDry Ltd. We
believe that separate drybulk and containership investment options will give our shareholders
the flexibility to adjust their holdings, if they so wish, between the two sectors. We also
anticipate that the creation of sector-focused companies will allow the capital markets to
appreciate the value that our public platforms can create as consolidators in their respective
fields: EuroDry Ltd., a middle range drybulk owner that owns six vessels, three of which are
newbuildings, one ultramax and two kamsarmaxes, built according to our specifications in the
last two years and three high-quality Panamax vessels Japanese-built post-2000; and
Euroseas Ltd., the only feeder containership public company, with a fleet of eleven vessels
that are proven workhorses of the sector. We also expect that both EuroDry and Euroseas will
trade much closer to their net asset value, like their peers, than the combined company does
“We plan to take advantage of growth opportunities in each of the two sectors to increase the
size of each respective company as we believe that they are both well positioned to do so
both in terms of their capital structure and their contract mix. Each of them being a public
company with a cost-effective operating structure could be attractive to other small or large
private fleets looking for opportunities to engage in transactions with acquirors. We plan to
discuss in more detail the spin-off and the opportunities it may generate in a separate
conference call on Monday, May 14, 2018 at 10 am EDT.”