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03/19/2009Press Releases


“Our fleet of six drybulk carriers enjoys secured time charter coverage until about September 2009 earning an average gross rate of $52,667 per day, a rate which is much higher than current market conditions. This time charter coverage coupled with the high quality of our charterer translates into a robust and highly visible cash flow. Looking forward into 2009, we have contractually secured net revenues up to September 2009 of
approximately $78 million.

Our secured time charters enable us to enhance our profitability and to continue building up our cash reserves, which at the end of December 2008 stood at $27.5 million and today exceed $44 million.

The initial phase of our operations took place within a period of unprecedented volatility and turmoil in the financial markets and the global economy. Despite that, we are pleased with the progress and results we have achieved in the short period since August 28, 2008, when we became an operating company.

Within a month after we received shareholder approval for the business combination and well ahead of the contractually agreed delivery dates, we completed the acquisition of our initial fleet of six drybulk carriers and we have since focused our attention on operating our modern and diversified fleet in an efficient and cost effective manner. Our fleet has an average age of approximately 11 years, well below the industry average, and our vessel operating expenses of $4,636 per ship per day are in line with other quality operators.

The non-cash impairment charge which we recorded reflects the current market conditions which caused a steep decline in asset values throughout our industry, but it does not affect our cash flow. Our fleet is young and provides us with a significant advantage as we expect our asset values to appreciate as the market recovers.

Our objective is to build Seanergy into an industry leader and create value for our shareholders for the long term. In this context, we believe that our Company is well positioned not only to weather the present storm but also to take advantage of accretive fleet expansion opportunities as these traditionally occur in periods of weak markets.

We believe shipping is and will remain a vital link to the global economy and we are in this business for the long term. Urbanization and industrialization, which have been the predominant characteristics of the developing economies particularly of China and India may temporarily slow down, but are irreversible. The concerted efforts of governments around the world to inject liquidity into the financial and credit markets
and to stimulate their economies with infrastructure development projects will gradually start restoring the balance in the world economy and shipping should benefit from it.”
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