For the three months ended March 31, 2009, the Company reported net income of $1,370,000, or $0.05 per share basic and diluted compared with net loss of $18,841,000, or $0.93 per share, for the first quarter of 2008. The weighted average numbers of common shares used in the computations were 27,522,092 and 20,295,240 for the first quarter of 2009 and 2008, respectively. For the three months ended March 31, 2009, operating income was $2,357,000, compared with operating loss of $2,434,000 for the first quarter of 2008. Revenues for the first quarter of 2009 were $29,793,000, compared to $72,637,000 recorded in the first quarter of 2008.

Evangelos J. Pistiolis, President and Chief Executive Officer of TOP Ships Inc., commented:

We are happy to report one more profitable quarter in a very challenging economic environment. Some of the most important developments that have taken place until today are the following:

   --  As of March 31, 2009, we were not in compliance with certain loan       covenants under our loan agreements. We have received or agreed to       receive waivers on covenant breaches until 31 March 2010 from four out       of five banks, representing approximately 85% of our total       indebtedness.   --  Specifically, we have received waivers from HSH Nordbank and Alpha       Bank on certain covenant breaches until 31 March 2010, representing       approximately 54.6% of our total indebtedness.   --  We have agreed to receive waivers, subject to completion of legal       documentation, from DVB and Emporiki Bank on covenant breaches until       31 March 2010, representing 30.6% of our total indebtedness.   --  We are currently in discussions with RBS regarding waivers until 31       March 2010.   --  We took delivery of five out of six of our newbuilding product       tankers. Our final newbuilding is scheduled to be delivered during the       second quarter of 2009.   --  In April 2009, we agreed with the owners of the M/T Relentless to       terminate the bareboat charter. Under this agreement, during the 3rd       quarter of 2009 we will redeliver the M/T Relentless to its owners and       pay a termination fee of $2.5m. The bareboat charter would have       expired in 2012.    --  Finally we are continuing our efforts to unwind the remaining bareboat       charter-in contracts in order to further reduce our leasing       expenditure."    

The following key indicators serve to highlight changes in the financial performance of the Company's vessels during the first quarters of 2008 and 2009:

                                                      Tanker Fleet                                         Three Months Ended March 31,   (In U.S. Dollars unless              ----------------------------    otherwise stated)                          2008       2009       Change                                               ----       ----       ------   Total available ship days                  1,698        727        -57.2%   Total operating days                       1,345        636        -52.7%   Utilization of vessels operating    SPOT or under TCs                          79.2%      85.6%         8.0%   TCE per ship per day under spot    voyage charter                           47,462          -            -   TCE per ship per day under time    charter                                  25,746     17,204        -33.2%   Average revenues per day under    Bareboat charters                             -     13.990            -                                                       Drybulk Fleet                                         Three Months Ended March 31,   (In U.S. Dollars unless              ----------------------------    otherwise stated)                          2008       2009       Change                                               ----       ----       ------   Total available ship days                    390        450         15.4%   Total operating days                         385        434         12.7%   Utilization of vessels operating    SPOT or under TCs                          98.5%      95.6%        -3.0%   TCE per ship per day under spot    Voyage charters                               -          -            -   TCE per ship per day under time charter   51,074     40,590        -20.5%   Average revenues per day under bareboat    charters                                 51,567     49,489         -4.0%     Fleet Report:   

As of March 31, 2009, the Company's fleet consisted of sixteen vessels, or 0.9 million dwt (including eleven owned and five vessels sold and leased back for a period of five to seven years) as compared to twenty three vessels, or 2.1 million dwt on March 31, 2008 (including twelve owned, one under capital lease and ten vessels sold and leased back for a period of five to seven years).

On February, 2009, the Company took delivery of the vessels Miss Marilena and Lichtenstein from SPP Plant & Shipbuilding Co., Ltd of the Republic of Korea. Miss Marilena and Lichtenstein are the two out of six 50,000 dwt product / chemical tankers to be delivered within the first and second quarter of 2009. Miss Marilena and Lichtenstein entered into a bareboat time-charter employment for a period of ten years at a daily rate of $14,400 and $14,550, respectively.

On March 19, 2009, the Company took delivery of the vessels Ionian Wave and Tyrrhenian Wave from SPP Plant & Shipbuilding Co., Ltd of the Republic of Korea. Ionian Wave and Tyrrhenian Wave are the third and fourth out of six 50,000dwt product / chemical tankers to be delivered within the first and second quarter of 2009. Ionian Wave and Tyrrhenian Wave entered into a bareboat time-charter employment for a period of seven years at a daily rate of $14,300, with three successive one-year options at a higher daily rate.

On May 22, 2009, the Company took delivery of the vessel Britto from SPP Plant & Shipbuilding Co., Ltd of the Republic of Korea. Britto is the fifth out of six 50,000dwt product / chemical tankers to be delivered within the first and second quarter of 2009. Britto entered into a bareboat time-charter employment for a period of ten years at a daily rate of $14,550.

   Fleet Deployment:    Tanker Vessels:   

During the first quarter of 2009, seven of the Company's Handymax tankers operated under long-term employment contracts that provide for a base rate and additional profit sharing earning on average $17,204 per vessel per day on a time charter equivalent (TCE) basis, including profit-sharing allocated to the Company and four under bareboat charter earning on average $13,990 per vessel per day.

Drybulk Vessels:

During the first quarter of 2009, four of the Company's drybulk vessels operated under time charter contracts earning on average $40,590 per vessel per day on a time charter equivalent (TCE) basis and one under bareboat charter earning on average $49,489 per vessel including the amortization of the fair value of acquired time charter contracts of $26,077 per vessel per day.

The following table presents the Company's current fleet list and employment:

                                  Year                                Daily                        Dwt       Built    Charter Type   Expiry    Base Rate     12 Handymax     Tankers    Relentless(A)      47,084      1992    Time Charter   Q2/2009    $14,000    Vanguard(B)        47,084      1992    Time Charter   Q1/2010    $15,250    Spotless(B)        47,094      1991    Time Charter   Q1/2010    $15,250    Doubtless(B)       47,076      1991    Time Charter   Q1/2010    $15,250    Faithful(B)        45,720      1992    Time Charter   Q2/2010    $14,500    Dauntless(C)       46,168      1999    Time Charter   Q1/2010    $16,250    Ioannis P(C).