Exhibit 99.1

CAPITALIZATION

The following table sets forth our consolidated capitalization of FreeSeas Inc. as of December 31, 2010:

	Dollars in thousands
Debt:
Long-term debt, current portion	$	23,022
Long-term debt, net of current portion		97,437
Total debt (1)	$	120,459
Shareholders’ equity:
Preferred stock, $0.001 par value; 5,000,000 shares authorized, none issued		—
Common stock, $0.001 par value; 250,000,000 shares authorized, 6,487,852 shares issued and outstanding		6
Additional paid-in capital		127,634
Retained earnings		(4,450	)
Total shareholders’ equity		123,190
Total capitalization	$	243,649

(1) Total debt does not include the fair value of the derivative liabilities, which was $1.1 million as of December 31, 2010.