Aristides Pittas - Chief Executive Officer Anastasios Aslidis - Chief Financial Officer

Josh Canter - Deutsche Bank Nick (ph) - Wells Fargo Chris Snyder - Sidoti & Company:

Thank you for standing by ladies and gentlemen and welcome to the Euroseas conference call on the second quarter 2012 financial results. We have with us Mr. Aristides Pittas, Chief Executive Officer and Anastasios Aslidis, Chief Financial Officer of the company. At this time all participations are in a listen-only mode. (Operator Instructions). Please be reminded that the company (inaudible) their results after the market closed yesterday with a press release that has been publicly distributed. If you have not received the press release you may log on to Euroseas website at www.euroseas.gr and navigate to the Investor Relations page or you can call Capital Link at 212-661-7566 or the Chief Financial Officer of Euroseas, please request the press release details and we will be happy to send it to you. For those of you who want to follow the audio webcast please look on to your computer to the homepage of the Euroseas website as I mentioned, www.euroseas.gr. Once again the participants of the webcast can download the PDF from the website. Kindly not the slides are user controlled. Before passing the floor to Mr. Pettas, I would like to remind everyone that in today’s presentation and conference call Euroseas will be making forward-looking statements. These statements are within the meaning of the federal securities laws. The ones that are discussed, there may be forward-looking statements which are based on current management exceptions that involve risks and uncertainty that may results in such expectations not being realized. I kindly turn your attention to slide number two of the webcast presentation, which has the forward-looking statements and the same statement was also included in the press release. I kindly suggest that you take a minute to go through the whole statement and read it. Without taking any more of your time, I would now like to pass the floor to Mr. Aristides Pittas, Chairman and Chief Executive Officer of Euroseas. Please go ahead Mr. Pittas.

Good morning and thank you for joining Euroseas for our conference call. Together with me today is Anastasios Aslidis our CFO. The purpose of today’s call is to discuss the results for the three and six-month periods ended June 30, 2012. Let us turn to slide three for our 2012, second quarter and first half overview. For the second quarter of 2012 we reported total net revenues of $12.8 million. Net loss for the period was $1.4 million or $0.04 per sale basic and diluted. The results for the second quarter of 2012 includes a $1.3 million net unrealized gain in derivatives and a $0.4 million net realized loss on derivatives. Excluding the effect of the earnings for the quarter, the unrealized gains and derivatives and the realized loss on derivatives, the adjusted net loss for the period would have been $1.3 million or $0.04 per share loss, basic and diluted. Adjusted EBITDA for the second quarter 2012 was $3.4 million. We declared a quarterly dividend of $0.02 per share for the second quarter of 2012, payable on about 7 September 2012; the shareholders of record on August 31, 2012. This is the 28th consecutive quarterly dividend declared. Fro the first half of 2012 we reported total net revenues of $26.7 million. Net loss for the period was $10.4 million or $0.32 per share, basic and diluted. Excluding the effect of the losses for the first of 2012 of the realized loss on derivatives, realized gain on trading securities and loss on sale of a vessel, the adjusted net loss for the period would have been $1.4 million or $0.04 loss per share, basic and diluted. Adjusted EBITDA for the first half of 2012 was $8.3 million. We declared two quarterly dividends during the first half of 2012 for a…

Thank you very much Aristides. Good morning ladies and gentlemen from me as well. I will now provide you with a brief overview for our financial results for the three and six month periods ended June 30, 2012 in the (inaudible) as we did in previous presentations. Lets move to slide 22, which shows our second quarter and first half 2012 results in comparison to the same period of 2011. I will repeat here, some of the fugues Aristides gave you at the begging of the presentation. For the second quarter of 2012, we reported total net revenues of $12.8 million, representing an 18.1% decrease over total net revenues of $15.6 million during the second quarter of 2011. We reported net loss for the period of $1.4 million or $0.04 per share base diluted, as compared to net income of $0.00 million and $0.00 per share base diluted for the second quarter of last year. The results for the second quarter of 2012 include the $0.3 million net unrealized gain on derivatives and the $0.4 million net realized loss on derivatives and trading securities as compared to $0.6 million net unrealized loss on derivatives and trading securities and $0.2 million realized loss on derivatives for the same period of 2011. Excluding the effect on the earnings for the quarter of the unrealized gain on derivatives and the realized loss on derivatives too and trading securities, the adjusted loss per share for the quarter ended June 30, 2012 would have remained unchanged at $0.04 loss per share, basic and diluted, compared to net income of $0.00 per share basic and diluted for the quarter ended June 30, 2011. Our adjusted EBITDA for the second quarter of 2012 was $3.4 million, compared to $5.0 million achieved during the second quarter last year.…

Thank you, Anastasios. Let me now open up the floor for any questions.

Thank you sir. (Operator Instructions). And our first question comes from the line of Justin Yagerman from Deutsche Bank. Please go ahead.

Hi good afternoon. This is Josh Canter in for Justin.

Hi Josh.

I just kind of wanted to start off with the container ships and rechartering expectations. I know you mentioned potentially lower rates, but this is a seasonally week time of the year. Can we see rates go down below operating expense levels?

We can see rates, yes we can see rates going down to operate cost levels. Its very difficult to call the market, but definitely our thoughts right now are that its going to be a tough period till the end of this year, beginning of next one, till the next, lets say Chinese New Year. So we don’t expect any significantly recovery. If it comes it will be a bonanza that we are not expecting.

Got it, and so does that mean we should be expecting to read I guess another around of three month or six month charters.

Yes, of course. I mean, we do not intend to fix into longer terms, of course because obviously these are rates that we are not making money off; we just covering operating expenses. So at some point the markets will turn and we want to ready to capitalize from that.

Of course it’s the low markets, not always your choice, the length of the charter you have to contact. So we will try to keep it short to have the options opened, but we might not be able to.

No, I think we probably will. Even the charters don’t feel comfortable today about doing too long charters.

Got it. Interesting color. As far as acquisitions go, so far you’ve been, I guess timing the market pretty well, holding off any sort of acquisitions for the past maybe a year or so at USDs and I guess I saw a continued pessimism in both sectors. I guess you have any sense on timing, before maybe asset prices start to look more attractive. Are we going to need to see a turnaround in the market or just kind of wait out the current dry bulk cycle a little bit further?

I think that because prices are already at very low levels, one has to be careful not to wait too much, because as soon as we see the market turning and there is light in the tunnel we will see prices increase I think quite dramatically, especially for the younger ships. So one might loose some opportunities. On the other hand, as we said we think things will be relatively bleak during the remainder of this year. So we are not loosing an opportunity by waiting for a few months more. This is something that we constantly evaluate and as I said, although our models show that they need investments that we were to do today, would give us an immediate term, very profitable returns for the specific project, but in the short term, there would be change. So think we can wait a little bit more before we invest.

With regard to the dividend, it’s not at $0.02. Cash flow generations been a bit strange with some of the week grades. I guess how should we think about the current dividend at $0.02 and I guess the company will be comfortable paying, I guess drawing down some of its cash balances, but can we see this cut down to a penny if it still remains week.

Well, this is something that the Board discusses, at every Board meeting and based on the environment and the expectations at the time, so its difficult to tell you ahead of time what the dividend will be next quarter. But the company has clearly achieved over the last seven years to its goal of smoothing the cycles, lets say for the investors and paying out dividends, which are relatively helping in terms of yield at any point in time. So the yields have always doing this last seven year, between 5% and 12% and I hope that this is something that will continue.

Well, a part of the reduction of the dividends are typical to the prior number of sales. Shareholders got an opportunity to buy an extra share for the fraction of its price or they get extra cost from the extra sale.

Okay understood. All right, well I appreciate your time guys.

Thanks Josh.

Thank you. Your next question comes from the line of Michael Webber from Wells Fargo. Please go ahead. Nick (ph) – Wells Fargo: Hi, this is Nick in for Mike. How are you guys?

Fine Nick. Nick (ph) – Wells Fargo: Good. First I wanted to ask you about potentially expanding the euro mark JV and when that potentially could happen.

We are talking to our partners and there is a sincere interest from them to do more as well. But as we still have these $44 million, we are waiting to invest that money or the bigger portion of that money, because we have also there keeping some of it to cover the potentially low market that we will be seeing within the next 12 months or so. So we are not going to be spending it all, unless we see the market turning a little bit. But we want to complete those two or three investments that we will be able to do with the remaining money we have available and I’m pretty sure that by that time we’ll be ready to pour more money into that joint venture or something very similar. Nick (ph) – Wells Fargo: Sure. Any guidance on how much additional money you’d be willing to put into that joint venture.

How much Euroseas would be willing to put into that joint venture, right? Nick (ph) – Wells Fargo: Yes, correct.

That really depends on the opportunity that we might decide to do on our own. As Anastasios said, we have about $25 million to $35 million that we think at some point we will be able to invest and if we do it through a euro market, a euro mark two or on our own, its still very much open. Nick (ph) – Wells Fargo: Okay, got it and also just wanted to get some guidance on the types of vessels you are do looking to acquire, with the cash from the rights offering and also Euromar more towards dry bulk or in containerships.

I think, while it should not be taken for granted, because opportunities arise all the time, the current thinking is that if you were to do something on containerships, it probably would be done through Euromar and if we were to do something in dry bulk it would done through Euroseas. Nick (ph) – Wells Fargo: Okay, thank you. I think that covers it from me. I’ll turn it back over.

Thanks Nick. Nick (ph) – Wells Fargo: Thank you.

Thank you. Your next question comes from the line of Chris Snyder from Sidoti & Company. Please go ahead. Chris Snyder - Sidoti & Company: Good morning gentlemen.

Good morning.

Hi. Chris Snyder - Sidoti & Company: So slippage in the dry bulk market has been pretty steady the past couple of years. They were around 35%. I was wondering if guys saw any reason to think that this will change over the next year or two.

I think that 2012 will probably be at similar levels. These are the inductions that we’ve seen for the first half of this year and we think that the second half will follow that path. In 2013 slippage will probably be less I think than what it is today, because the yards all have the capacity to do the ships and of course there is the difficulty in financing for many owners. But as we’ve seen recently, the shipyards tend to get position of the ships and sell them into the market on their own in some cases. So this could be something that happens more in 2013 and therefore the actual slippage will be perhaps less in 2013 than what it will be this year. That’s our current thought right, on this subject to many things that can change.

But clearly, its an element that we are watching very closely, I mean observing what is happening to be able to understand the tends. Chris Snyder - Sidoti & Company: Yes, another question on the container side. Is there any sort of like specific catalyst in that market that you guys are kind of looking for and waiting to say that maybe if it were to happen then you guys would maybe try to extent some of these charters for a longer time or any like catalyst you can go and try to break them.

I think the thing to follow is the number of laid out ships. When you see that figure diminishing, of course it creates some hope that the market is beginning to balance itself and you can expect higher charter rates. But right now its pretty steady at around 2.7%, 2.8% of the fleet and we need to wait and see the direction that this takes. Chris Snyder - Sidoti & Company: Yes, is there anything on demand side that you guys – I mean you guys, obviously you know about the GDP, but is there anything like you guys are looking at typically on the demand side.

On the demand side, the important thing is what happens in Europe and it actually is negative GDP growth that we expect in Europe for this year, actually comes around next year and becomes positive. That would be a positive if that was to happen. That would quickly I think push demand back for the main freight and that always flows down to the other sectors.

A big part of the shipping demand is due to Euro, because the call is long for this Europe and the amount of demand is high. So if Europe is not doing well, I think its inevitable that the condensed market will stumble. Chris Snyder - Sidoti & Company: Do you guys have a number on what percent of the container ship trade ends up in Europe, is delivered to Europe.

We don’t have these numbers handy, but we will be happy to provide with...

Yes, I don’t have the number off hand and I don’t want to say a number, but we can send that to you. Chris Snyder - Sidoti & Company: Okay, thank you. That’s if from me. I really appreciate you taking the time to answer my call. Thanks a lot guys, it helps a lot.

Thank you. Bye.

Thank you. (Operator Instructions). Since we have no further questions gentleman, I would like to pass the floor back to Mr. Pittas and Mr. Aslidis for any closing remarks. Thank you.

Thank you all for listening into this conference call. We will be with you on your next scheduled call in three months time. Good-bye.

Good-bye everybody.

Thank you ladies and gentlemen. That does conclude our conference for today. Thank you all for participating and you may now disconnect.