ATHENS, Greece, Aug. 7 /PRNewswire-FirstCall/ -- TOP Ships Inc. (Nasdaq: TOPS) announced today that it has entered into agreements to terminate its bareboat charters for four Suezmax tankers, the Priceless (DWT 154,970, built 1991), the Flawless (DWT 154,970, built 1991), the Stopless (DWT 154,970, built 1991) and the Timeless (DWT 154,970, built 1991) and one Handymax tanker, the Sovereign (DWT 47,071, built 1992), in connection with the sale of these vessels by their owners to third parties.

The Suezmax charters are expected to be terminated by the end of September of 2008 upon sale of the vessels from their owners to third parties. The Handymax lease is expected to be terminated by August 20, 2008 upon sale of the vessel from its owner to third parties.

The aggregate unamortized portion of the deferred gain from the original sales of approximately $13.3 million is expected to be recognized in the third quarter of 2008. Moreover, the Company will receive the amount of approximately $11.3 million in cash, which represents the partial redemption of the initial seller's credit agreement with the lessors of the four Suezmaxes.

About TOP Ships Inc.

TOP Ships Inc., formerly known as TOP Tankers Inc., is an international provider of worldwide seaborne crude oil and petroleum products and drybulk transportation services. Upon delivery of the remaining suezmaxes to their new owners, the Company will operate a combined tanker and drybulk fleet as follows:

-- A fleet of seven double-hull Handymax tankers, with a total carrying capacity of approximately 0.3 million dwt, of which 58% are sister ships. All of the Company's Handymaxes will be on time charter contracts with an average term of two years with all of the time charters including profit sharing agreements above their base rates.

-- Six newbuilding product tankers, which are expected to be delivered in the first half of 2009. All the expected newbuildings have fixed rate bareboat employment agreements for periods between seven and ten years.

-- a fleet of five drybulk vessels with a total carrying capacity of approximately 0.3 million dwt, of which 70% are sister ships. All of the Company's drybulk vessels have fixed rate employment contracts for an average period of 30 months.

Forward Looking Statement

Certain statements and information included in this release constitute 'forward-looking statements' within the meaning of the Federal Private Securities Litigation Reform Act of 1995. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business.