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08/09/2010Press Releases


“The second quarter of 2010 was another milestone in the developmeent of our Company. Without, in our opinion, saacrificing the strength of our balance sheet, we concludeed another transformational transaction with the acquisition of a controlling interest in Maritime Capittal Shipping Limited (“MCS”). We expanded ou r controlled fleet to a total of 20 dry bulk vessels and deccreased its average age from 14.5 years to 12 .8 years. In addition, we enhanced our fleet’s operationaal versatility, as we increased our presence inn all dry bulk vessel classes. Furthermore, as a result of the acquisition of MCS, our fleet now has a moore balanced charter portfolio which we believe will ennable us to benefit both from secured cashh flows from period employment and from the market upside with some of our vessels opening forr re-chartering. MCS EBITDA contribution to the Compa ny in the second quarter of 2010 was $4.6 mmillion. The projected MCS EBITDA contribution to the Co ompany for the remainder of 2010 and 2011 is eestimated to be $22.2 million and $32.5 million.

“Our results during the second quartter of 2010 reflected the volatile market environmment. Our TCE rates were 67% lower compared to the same period of last year and we incurred hhigher finance costs resulting from our expanded fleet, aas well as from losses related to interest rate sswap agreements. At the same time, we achieved fleet uttilization excluding scheduled drydocking off-hi re days of 99.5% for the second quarter of 2010.

“The Baltic Dry Index has shown siigns of life after a historic 35 consecutive day drop which was the result of a combination of new fleett deliveries and China importing less iron ore. We also believe the slowdown was seasonal as less deemand for coal and iron ore is normal during tthe summer months.

“The upcoming harvest season in the northern hemisphere coupled with Russia cancelling all grain export is expected to help rates improve from current levels. Additionally, as stock piles of iron ore decrease in China, we expect demand for the commodity to increase, as the country continues its pace of robust growth.  Coal, the other major commodity in the dry bulk sector, should also see its demand grow as we enter winter months.

“In the short period of just two years as an operating company we have more than tripled our controlled fleet from six to 20 vessels and quadrupled our cargo-carrying capacity. We will continue to work to build Seanergy into a leading player in the global shipping industry with what we feel are prudent, well-timed and accretive acquisitions.  As a first step, we expect to explore ways to acquire the minority shares of MCS and BET, thereby bringing the full impact of their revenue and profit generation capacity to Seanergy. We believe Seanergy is one of the most undervalued companies amongst our peers and we will continue to make every effort to increase Seanergy’s shareholder value.”
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