GlobeNewswire Inc | Aug 23, 2021 09:00AM EDT

August 23, 2021

ATHENS, Greece , Aug. 23, 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 that it has agreed to acquire M/V Asia Ruby II, a 62,996 dwt drybulk vessel built in 2014, for $24.5 million. The vessel is expected to be delivered to the Company within late September / early October 2021 and will be renamed M/V Good Heart. The acquisition will be financed by own funds and a bank loan.

Aristides Pittas, Chairman and CEO of EuroDry commented We are pleased to announce the acquisition of M/V Asia Ruby II, an Ultramax, drybulk carrier built in 2014. This acquisition further expands our modern fleet cluster at a time when the market fundamentals are very supportive of charter rates. At current market rates, we expect that M/V Ruby II will make a significant contribution to our net income and EBITDA. As we stated recently, we believe that a number of factors constraining vessel supply in the near term combined with one of the lowest orderbook levels ever and a healthy demand growth are likely to result in strong rates for drybulk vessels well into 2022 and beyond. This acquisition allows us to better position ourselves to take advantage of such developments. Furthermore, the modernization and growth of our fleet furtherincreases our stature as a public company enhancing the value of our public listing.

Fleet Profile:

After the delivery of the M/V Ruby Asia II, the EuroDry Ltd. fleet profile will be as follows:

Name Type Dwt Year Employment(*) TCERate ($/ Built day)Dry Bulk Vessels Hire 106% of theEKATERINI Kamsarmax 82,000 2018 TC until Mar-22 Average Baltic Kamsarmax P5TC (***) index Hire 105% of theXENIA Kamsarmax 82,000 2016 TC until Aug-22 Average Baltic Kamsarmax P5TC (***) indexALEXANDROS P. Ultramax 63,500 2017 TC until Sep-21 $25,250GOOD HEART (****) Ultramax 62,996 2014 Open - Hire 99%EIRINI P Panamax 76,466 2004 TC until Apr-22 of Average BPI (**) 4TC Hire 98.5%STARLIGHT Panamax 75,845 2004 TC until Aug-21 of Average BPI (**) 4TCTASOS Panamax 75,100 2000 TC until Aug-21 $19,750PANTELIS Panamax 74,020 2000 TC until Sep-21 $23,000BLESSED LUCK Panamax 76,704 2004 TC until $19,500 April-22Total Dry Bulk 9 668,631 Vessels

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 Baltic Kamsarmax P5TC Index is an index based on five Panamax time charter routes.(****) To be delivered in late September / early October 2021.

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. EuroDry's 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 Good Heart, the Company will have a fleet of 9 vessels, including 5 Panamax drybulk carriers, 2 Ultramax drybulk carrier and 2 Kamsarmax drybulk carriers. EuroDrys 9 drybulk carriers have a total cargo capacity of 668,631 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 Company's 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 Company's 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 Company's 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