GlobeNewswire Inc | May 20, 2021 07:00AM EDT

May 20, 2021

ATHENS, Greece, May 20, 2021 (GLOBE NEWSWIRE) -- EuroDry Ltd. (NASDAQ: EDRY, the Company or EuroDry), an owner and operator of drybulk vessels and provider of seaborne transportation for drybulk cargoes, announced today its results for the three-month period ended March 31, 2021 and an agreement to acquire M/V Blessed Luck, a 76,704 dwt drybulk vessel built in Japan.

First Quarter 2021 Highlights:

-- Total net revenues of $8.6 million; net income of $0.9 million; net income attributable to common shareholders (after a $0.3 million dividend on Series B Preferred Shares and a $0.1 million preferred deemed dividend arising out of the net redemption of approximately $3 million of Series B Preferred Shares in the first quarter of 2021) of $0.4 million or $0.19 earnings per share basic and diluted. Adjusted net income attributable to common shareholders1 for the period was $1.3 million or $0.55 earnings per share basic and diluted.

-- Adjusted EBITDA1 was $4.0 million.

-- An average of 7.0 vessels were owned and operated during the first quarter of 2021 earning an average time charter equivalent rate of $14,924 per day.

-- The Company declared a dividend of $0.3 million on its Series B Preferred Shares. The dividend will be paid in cash.

1Adjusted EBITDA, Adjusted net income/(loss) and Adjusted earnings/(loss) per share are not recognized measurements under US GAAP (GAAP) and should not be used in isolation or as a substitute for EuroDrys financial results presented in accordance with GAAP. Refer to a subsequent section of the Press Release for the definitions and reconciliation of these measurements to the most directly comparable financial measures calculated and presented in accordance with GAAP.

M/V Blessed Luck Acquisition

The Company also announced that it has agreed to acquire M/V Blessed Luck, a 76,704 dwt drybulk vessel built in 2004 in Japan, for $12.12 million. The vessel is majority owned by a third party and has been managed by Eurobulk Ltd., also the manager of three of the Companys vessels. The vessel is expected to be delivered to the Company within May 2021. The acquisition will be financed partly by a short term sellers credit of $5 million and an one year bridge loan of $6 million provided by an entity affiliated with the Companys Chief Executive Officer with the remaining funds coming from the Company; both the sellers credit and short term loan carry an annual interest of 8%. In parallel, the Company is in the process of arranging a bank loan with the acquired vessel as collateral, expected to be finalized within approximately three months, which will provide sufficient funds to repay the sellers credit and, possibly, part of the bridge loan. At the same time, the Company entered into a charter agreement for the vessel for a period between a minimum of 11 months and a maximum of 13 months at a rate of $19,500/day which will commence upon delivery of the vessel and contribute about $4 million of EBITDA during the minimum period of the charter.

Aristides Pittas, Chairman and CEO of EuroDry commented In stark contrast to a year ago, it has been a very positive 2021 so far with drybulk rates rebounding significantly as a result of solid trade growth and limited supply growth. The latter, especially, is constrained by short and medium term factors: in the short term, by inefficiencies in the vessel-port transportation system that resulted from COVID-19 effects and required protocols and, in the medium term, by the lowest orderbook in the last 20+ years. We believe that the market is likely to remain strong for the next couple of years provided that demand for transportation of drybulk cargoes - which is generally linked to economic activity - will maintain at least a historically average growth rate; it is noteworthy that the IMF, amongst others, predicts that economic activity will rebound above historical average levels as the world recovers from the COVID-19 pandemic.

In such a positive environment, our main strategy is to try to expand our fleet in a risk efficient way despite our limited funds available for investment. Thus, we acquired M/V Blessed Luck, a 2004-built vessel, with a combination of seller and affiliate bridge loans to complement our cluster of medium age Japanese-built Panamax-size vessels alongside our cluster of own-built newbuildings. The acquisition of M/V Blessed Luck will increase our fleet to eight units and is expected to contribute to a proportional increase in our EBITDA. At the present market rate levels, we are to accumulate funds that will provide us with several investment or expansion options or shareholder reward models. We, further, believe that the strong drybulk markets enhance the value of our public listing as a consolidation platform and we continuously investigate opportunities to take advantage of it.

Tasos Aslidis, Chief Financial Officer of EuroDry commented: Our net revenues for the first quarter of 2021 were higher by 69.3% as compared to the first quarter of 2020. This was the result of higher average charter rates by 89.3% earned during the quarter as compared to the first quarter of 2020 and 38.7% higher when compared to the fourth quarter of 2020.

Total daily vessel operating expenses, including management fees, general and administrative expenses, but excluding drydocking costs, increased by approximately 8.5% during the first quarter of 2021 compared to the same quarter of last year. This increase is mainly due to increased crewing costs in 2021 compared to 2020, resulting from difficulties in crew rotation due to COVID-19 related restrictions.

Adjusted EBITDA during the first quarter of 2021 was $4.0 million compared to $0.6 million achieved for the first quarter of last year. As of March 31, 2021, our outstanding debt (excluding the unamortized loan fees) was $56.0 million versus restricted and unrestricted cash of approximately $6.2 million.

First Quarter 2021 Results:For the first quarter of 2021, the Company reported total net revenues of $8.6 million representing a 69.3% increase over total net revenues of $5.1 million during the first quarter of 2020, which was the result of the higher time charter rates our vessels earned during the first quarter of 2021. The Company reported net income for the period of $0.9 million and net income attributable to common shareholders of $0.4 million, as compared to a net loss and a net loss attributable to common shareholders of $2.3 million and $2.6 million, respectively, for the same period of 2020. For the first quarter of 2021, a gain on bunkers resulted in positive voyage expenses of $0.3 million for the period as compared to voyage expenses of $0.4 million in the same period of 2020. Depreciation expenses for the first quarter of 2021 were $1.7 million compared to $1.6 million for the same period of 2020. Vessel operating expenses were $3.1 million for the first quarter of 2021 compared to $2.8 million in the same period of 2020, mainly due to increased crewing costs in the first quarter of 2021 compared to the corresponding period in 2020, resulting from difficulties in crew rotation due to COVID-19 related restrictions. Management fees and general and administrative expenses remained unchanged at $0.5 million and $0.6 million, respectively, for the first quarter of 2021 as compared to the same period of last year.

Interest and other financing costs for the first quarter of 2021 amounted to $0.6 million, slightly decreased as compared to $0.7 million for the same period of 2020. Interest during the first quarter of 2021 was lower due to lower average debt during the period and the decreased Libor rates of our loans during the period as compared to the same period of last year. For the three months ended March 31, 2021, the Company recognized a $1.6 million loss on derivatives, comprised of $0.7 million realized loss and $1.1 million unrealized loss of forward freight agreements and $0.2 million gain on three interest rate swaps as compared to a loss on interest rate swaps of $0.3 million for the same period of 2020.

On average, 7.0 vessels were owned and operated during the first quarter of 2021 earning an average time charter equivalent rate of $14,924 per day compared to 7.0 vessels in the same period of 2020 earning on average $7,885 per day.

Adjusted EBITDA for the first quarter of 2021 was $4.0 million compared to $0.6 million achieved during the first quarter of 2020.

Basic and diluted earnings per share attributable to common shareholders for the first quarter of 2021 was $0.19 calculated on 2,291,471 basic and 2,320,577 diluted weighted average number of shares outstanding, compared to basic and diluted loss per share of $1.17 for the first quarter of 2020, calculated on 2,267,375 basic and diluted weighted average number of shares outstanding.

Excluding the effect on the earnings attributable to common shareholders for the quarter of the unrealized loss on derivatives, the adjusted earnings attributable to common shareholders for the quarter ended March 31, 2021 would have been $0.55 per share basic and diluted, compared to an adjusted loss of $0.91 per share basic and diluted for the quarter ended March 31, 2020, after excluding the effect of the unrealized loss on derivatives and the loss on write-down of inventory. Usually, security analysts do not include the above items in their published estimates of earnings per share.

Fleet Profile:

The EuroDry Ltd. fleet profile is as follows:

Name Type Dwt Year Employment(*) TCERate ($/ Built day)Dry Bulk Vessels Hire 106% of theEKATERINI Kamsarmax 82,000 2018 TC until Average Baltic Mar-22 Kamsarmax P5TC (***) index Hire 105% ofXENIA Kamsarmax 82,000 2016 TC until the Aug-22 Average Baltic P5TC(***) index Guardian Pool revenueALEXANDROS P. Ultramax 63,500 2017 Navigation from GMax August 2018 LLC Pool TC until Hire 99%EIRINI P Panamax 76,466 2004 Jun-21 of Average BPI(**) 4TC TC until Hire 98.5%STARLIGHT Panamax 75,845 2004 Aug-21 of Average BPI(**) 4TCTASOS Panamax 75,100 2000 TC until $19,750 Jun-21PANTELIS Panamax 74,020 2000 TC until $10,450 May-21Total Dry Bulk Vessels 7 528,931 Vessel agreed to be acquiredBLESSED LUCK Panamax 76,704 2004 TC until $19,500 April-22Total on a fully 8 605,635 delivered basis

Note:(*)Represents the earliest redelivery date.(**) BPI stands for the Baltic Panamax Index; the average BPI 4TC is an index based on four time charter routes.(***) The average Kamsarmax Baltic P5TC Index is an index based on five Panamax time charter routes.



Summary Fleet Data:

Three months, Three months, ended ended March 31, March 31, 2020 2021FLEET DATA Average number of vessels (1) 7.0 7.0 Calendar days for fleet (2) 637.0 630.0 Scheduled off-hire days incl. laid-up (3) 9.9 0.0 Available days for fleet (4) = (2) - (3) 627.1 630.0 Commercial off-hire days (5) 0.0 0.0 Operational off-hire days (6) 0.0 0.0 Voyage days for fleet (7) = (4) - (5) - (6) 627.1 630.0 Fleet utilization (8) = (7) / (4) 100.0 % 100.0 %Fleet utilization, commercial (9) = ((4) - (5)) / 100.0 % 100.0 %(4)Fleet utilization, operational (10) = ((4) - (6)) / 100.0 % 100.0 %(4) AVERAGE DAILY RESULTS Time charter equivalent rate (11) 7,885 14,924 Vessel operating expenses excl. drydocking expenses 5,130 5,694 (12)General and administrative expenses (13) 925 877 Total vessel operating expenses (14) 6,055 6,571 Drydocking expenses (15) 342 13

(1) Average number of vessels is the number of vessels that constituted the Companys fleet for the relevant period, as measured by the sum of the number of calendar days each vessel was a part of the Companys fleet during the period divided by the number of calendar days in that period.

(2) Calendar days. We define calendar days as the total number of days in a period during which each vessel in our fleet was owned by us including off-hire days associated with major repairs, drydockings or special or intermediate surveys or days of vessels in lay-up. Calendar days are an indicator of the size of our fleet over a period and affect both the amount of revenues and the amount of expenses that we record during that period.

(3) The scheduled off-hire days including vessels laid-up are days associated with scheduled repairs, drydockings or special or intermediate surveys or days of vessels in lay-up.

(4) Available days. We define available days as the total number of Calendar days in a period net of scheduled off-hire days incl. laid up. We use available days to measure the number of days in a period during which vessels were available to generate revenues.

(5) Commercial off-hire days. We define commercial off-hire days as days a vessel is idle without employment.

(6) Operational off-hire days. We define operational off-hire days as days associated with unscheduled repairs or other off-hire time related to the operation of the vessels.

(7) Voyage days. We define voyage days as the total number of days in a period during which each vessel in our fleet was in our possession net of commercial and operational off-hire days. We use voyage days to measure the number of days in a period during which vessels actually generate revenues or are sailing for repositioning purposes.

(8) Fleet utilization. We calculate fleet utilization by dividing the number of our voyage days during a period by the number of our available days during that period. We use fleet utilization to measure a companys efficiency in finding suitable employment for its vessels and minimizing the amount of days that its vessels are off-hire for reasons such as unscheduled repairs or days waiting to find employment.

(9) Fleet utilization, commercial. We calculate commercial fleet utilization by dividing our available days net of commercial off-hire days during a period by our available days during that period.

(10) Fleet utilization, operational. We calculate operational fleet utilization by dividing our available days net of operational off-hire days during a period by our available days during that period.

(11) Time charter equivalent rate, or TCE, is a measure of the average daily net revenue performance of our vessels. Our method of calculating TCE is determined by dividing time charter revenue and voyage charter revenue net of voyage expenses by voyage days for the relevant time period. Voyage expenses primarily consist of port, canal and fuel costs that are unique to a particular voyage, which would otherwise be paid by the charterer under a time charter contract or are related to repositioning the vessel for the next charter. TCE is a standard shipping industry performance measure used primarily to compare period-to-period changes in a shipping companys performance despite changes in the mix of charter types (i.e., spot voyage charters, time charters, pool agreements and bareboat charters) under which the vessels may be employed between the periods. Our definition of TCE may not be comparable to that used by other companies in the shipping industry.

(12) Daily vessel operating expenses, which include crew costs, provisions, deck and engine stores, lubricating oil, insurance, maintenance and repairs and management fees are calculated by dividing vessel operating expenses and management fees by fleet calendar days for the relevant time period. Drydocking expenses are reported separately.

(13) Daily general and administrative expense is calculated by dividing general and administrative expenses by fleet calendar days for the relevant time period.

(14) Total vessel operating expenses, or TVOE, is a measure of our total expenses associated with operating our vessels. TVOE is the sum of vessel operating expenses, management fees and general and administrative expenses; drydocking expenses are not included. Daily TVOE is calculated by dividing TVOE by fleet calendar days for the relevant time period.

(15) Drydocking expenses include expenses during drydockings that would have been capitalized and amortized under the deferral method divided by the fleet calendar days for the relevant period. Drydocking expenses could vary substantially from period to period depending on how many vessels underwent drydocking during the period. The Company expenses drydocking expenses as incurred.

Conference Call and Webcast:Today, May 20, 2021 at 09:30 a.m. Eastern Time, the Companys management will host a conference call and webcast to discuss the results.

Conference Call details:Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1 (877) 553-9962 (US Toll Free Dial In), 0(808) 238- 0669 (UK Toll Free Dial In) or +44 (0) 2071 928592 (Standard International Dial In). Please quote EuroDry to the operator.

A replay of the conference call will be available until Thursday, May 27, 2021. The United States replay number is 1(866) 331-1332; from the UK 0(808) 238-0667; the standard international replay number is (+44) (0) 3333 00 9785 and the access code required for the replay is: 2489743#.

Audio webcast - Slides Presentation:There will be a live and then archived audio webcast of the conference call, via the internet through the EuroDry website (www.eurodry.gr). Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast. A slide presentation on the First Quarter 2021 results in PDF format will also be available 10 minutes prior to the conference call and webcast accessible on the companys website (www.eurodry.gr) on the webcast page. Participants to the webcast can download the PDF presentation.

EuroDry Ltd. Unaudited Consolidated Condensed Statements of Operations(All amounts expressed in U.S. Dollars except number of shares)

Three Months Three Months Ended Ended March 31, March 31, 2020 2021 Revenues Time charter revenue 5,345,554 9,096,187 Commissions (280,046 ) (522,486 )

5,065,508 8,573,701 Net revenues Operating expenses Voyage expenses, net 400,637 (305,902 )Vessel operating expenses 2,778,543 3,061,055 Drydocking expenses 217,675 7,921 Vessel depreciation 1,626,258 1,651,870 Related party management fees 489,566 526,400 General and administrative expenses 589,534 552,523 Loss on write-down of inventory 255,200 - Total Operating expenses (6,357,413 ) (5,493,867 ) Operating (loss) / income (1,291,905 ) 3,079,834 Other income / (expenses) Interest and other financing costs (664,427 ) (595,817 )Loss on derivatives, net (340,976 ) (1,620,344 )Foreign exchange gain / (loss) 669 (2,472 )Interest income 3,544 3,325 Other expenses, net (1,001,190 ) (2,215,308 )Net (loss) / income (2,293,095 ) 864,526 Dividend Series B Preferred shares (354,826 ) (299,570 )Preferred deemed dividend - (120,000 )Net (loss) / income attributable to common (2,647,921 ) 444,956 shareholders(Loss) / earnings per share, basic & diluted (1.17 ) 0.19 Weighted average number of shares, basic 2,267,375 2,291,471 Weighted average number of shares, diluted 2,267,375 2,320,577

EuroDry Ltd.Unaudited Consolidated Condensed Balance Sheets(All amounts expressed in U.S. Dollars except number of shares)

December 31, March 31, 2020 2021 ASSETS Current Assets: Cash and cash equivalents 938,282 2,085,456 Trade accounts receivable, net 1,528,055 2,663,752 Other receivables 460,209 537,313 Inventories 1,385,280 487,280 Restricted cash 1,518,036 2,198,274 Prepaid expenses 226,033 173,037 Due from related companies - 387,393 Total current assets 6,055,895 8,532,505 Fixed assets: Vessels, net 99,305,990 97,678,758 Long-term assets: Restricted cash 2,150,000 1,900,000 Total assets 107,511,885 108,111,263 LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS? EQUITYCurrent liabilities: Long term bank loans, current portion 13,793,754 14,100,581 Trade accounts payable 1,074,518 907,155 Accrued expenses 704,508 719,363 Accrued preferred dividends - 299,570 Derivatives 456,133 1,543,641 Deferred revenue 246,125 665,504 Due to related companies 2,984,759 - Total current liabilities 19,259,797 18,235,814 Long-term liabilities: Long term bank loans, net of current portion 37,318,084 41,588,509 Derivatives 393,899 128,191 Total long-term liabilities 37,711,983 41,716,700 Total liabilities 56,971,780 59,952,514 Mezzanine equity: Series B Preferred shares (par value $0.01,20,000,000 preferred shares authorized, 16,606 and 15,940,713 13,060,713 13,606 shares issued and outstanding, respectively) Shareholders? equity: Common stock (par value $0.01, 200,000,000 sharesauthorized, 2,348,216 issued and outstanding, 23,482 23,482 respectively)Additional paid-in capital 53,048,060 53,101,748 Accumulated deficit (18,472,150 ) (18,027,194 )Total shareholders? equity 34,599,392 35,098,036 Total liabilities, mezzanine equity and 107,511,885 108,111,263 shareholders? equity

EuroDry Ltd.Unaudited Consolidated Condensed Statements of Cash Flows (All amounts expressed in U.S. Dollars)

Three Three Months Months Ended Ended March March 31, 31, 2020 2021 Cash flows from operating activities: Net (loss) / income (2,293,095 ) 864,526 Adjustments to reconcile net (loss) / income tonet cash provided by / (used in) operating activities:Vessel depreciation 1,626,258 1,651,870 Amortization and write off of deferred charges 35,176 169,251 Share-based compensation 62,106 53,688 Loss on write-down of inventory 255,200 - Unrealized loss on derivatives 329,047 821,801 Changes in operating assets and liabilities (206,623 ) (3,360,484 )Net cash (used in) / provided by operating (191,931 ) 200,562 activities Cash flows from investing activities: Cash paid for vessels capitalized expenses (189,950 ) (31,240 )Net cash used in investing activities (189,950 ) (31,240 ) Cash flows from financing activities: Redemption of preferred shares - (3,000,000 )Preferred dividends paid (358,726 ) - Loan arrangement fees paid - (250,000 )Proceeds from long-term debt - 31,700,000 Repayment of long-term debt (2,002,000 ) (27,042,000 )Net cash (used in) / provided by financing (2,360,726 ) 1,408,000 activities Net increase / (decrease) in cash, cash (2,742,607 ) 1,577,412 equivalents and restricted cashCash, cash equivalents and restricted cash at 9,129,442 4,606,318 beginning of periodCash, cash equivalents and restricted cash at end 6,386,835 6,183,730 of period

Cash breakdown

Cash and cash equivalents 3,284,024 2,085,456 Restricted cash, current 402,811 2,198,274 Restricted cash, long term 2,700,000 1,900,000 Total cash, cash equivalents and restricted cash 6,386,835 6,183,730 shown in the statement of cash flows

EuroDry Ltd.Reconciliation of Adjusted EBITDA to Net (loss) / income (All amounts expressed in U.S. Dollars)

Three Months Three Months Ended Ended March 31, March 31, 2020 2021Net (loss) / income (2,293,095 ) 864,526 Interest and other financing costs, net (incl. 660,883 592,492 interest income)Vessel depreciation 1,626,258 1,651,870 Unrealized loss on Forward Freight Agreement - 1,069,980 derivativesLoss / (gain) on interest rate swap derivatives 340,976 (174,513 )Loss on write-down of inventory 255,200 - 590,222 4,004,354 Adjusted EBITDA

Adjusted EBITDA Reconciliation:EuroDry Ltd. considers Adjusted EBITDA to represent net income / (loss) before interest, income taxes, depreciation, unrealized (gain) / loss on Forward Freight Agreements (FFAs), (gain) / loss on interest rate swaps and loss on write-down of inventory. Adjusted EBITDA does not represent and should not be considered as an alternative to net income / (loss), as determined by United States generally accepted accounting principles, or GAAP. Adjusted EBITDA is included herein because it is a basis upon which the Company assesses its financial performance because the Company believes that this non-GAAP financial measure assists our management and investors by increasing the comparability of our performance from period to period by excluding the potentially disparate effects between periods of, financial costs, unrealized (gain) / loss on FFAs, (gain) / loss on interest rate swaps, loss on write-down of inventory, and depreciation. The Companys definition of Adjusted EBITDA may not be the same as that used by other companies in the shipping or other industries.

EuroDry Ltd.Reconciliation of Net (loss) / income to Adjusted net (loss) / income(All amounts expressed in U.S. Dollars except share data and number of shares)

Three Months Three Ended Months March 31, Ended 2020 March 31, 2021Net (loss) / income (2,293,095 ) 864,526 Unrealized loss on derivatives 329,047 821,801 Loss on write-down of inventory 255,200 - Adjusted net (loss) / income (1,708,848 ) 1,686,327 Preferred dividends (354,826 ) (299,570 )Preferred deemed dividend - (120,000)

Adjusted net (loss) / income attributable to (2,063,674 ) 1,266,757 common shareholdersAdjusted (loss) / earnings per share, basic & (0.91 ) 0.55 dilutedWeighted average number of shares, basic 2,267,375 2,291,471 Weighted average number of shares, diluted 2,267,375 2,320,577

Adjusted net income / (loss) and Adjusted income / (loss) per share Reconciliation:

EuroDry Ltd. considers Adjusted net income / (loss) to represent net income / (loss) before unrealized (gain) / loss on derivatives and loss on write-down of inventory. Adjusted net income / (loss) and Adjusted earnings / (loss) per share is included herein because we believe it assists our management and investors by increasing the comparability of the Companys fundamental performance from period to period by excluding the potentially disparate effects between periods of unrealized (gain) / loss on derivatives and loss on write-down of inventory, which may significantly affect results of operations between periods. Adjusted net income / (loss) and Adjusted earnings / (loss) per share do not represent and should not be considered as an alternative to net income / (loss) or earnings / (loss) per share, as determined by GAAP. The Companys definition of Adjusted net income / (loss) and Adjusted earnings / (loss) per share may not be the same as that used by other companies in the shipping or other industries.

About EuroDry Ltd.EuroDry Ltd. was formed on January 8, 2018 under the laws of the Republic of the Marshall Islands to consolidate the drybulk fleet of Euroseas Ltd into a separate listed public company. EuroDry was spun-off from Euroseas Ltd on May 30, 2018; it trades on the NASDAQ Capital Market under the ticker EDRY.

EuroDry operates in the dry cargo, drybulk shipping market. EuroDrys operations are managed by Eurobulk Ltd., an ISO 9001:2008 and ISO 14001:2004 certified affiliated ship management company and Eurobulk (Far East) Ltd. Inc., which are responsible for the day-to-day commercial and technical management and operations of the vessels. EuroDry employs its vessels on spot and period charters and under pool agreements.

After the delivery of M/V Blessed Luck, the Company will have a fleet of 8 vessels, including 5 Panamax drybulk carriers, 1 Ultramax drybulk carrier and 2 Kamsarmax drybulk carriers. EuroDrys 8 drybulk carriers have a total cargo capacity of 605,635 dwt.

Forward Looking StatementThis 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 Companys growth strategy and measures to implement such strategy; including expected vessel acquisitions and entering into further time charters. 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 have been correct. These statements involve known and unknown risks and are based upon a number of assumptions and estimates that 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 Companys filings with the Securities and Exchange Commission. The Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Companys expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.

Visit our website www.eurodry.gr

Company Contact Investor Relations / Financial MediaTasos Aslidis Nicolas BornozisChief Financial Officer PresidentEuroDry Ltd. Capital Link, Inc.11 Canterbury Lane, 230 Park Avenue, Suite 1536Watchung, NJ07069 New York, NY10169Tel. (908) 301-9091 Tel. (212) 661-7566E-mail: aha@eurodry.gr E-mail: nbornozis@capitallink.com