Diana Shipping Acquires New Vessel

Wednesday, September 13, 2006
Diana Shipping Inc. announced that it has agreed to purchase from an unaffiliated third party, a Capesize dry bulk carrier of approximately 175,000 dwt, currently under construction by Shanghai Waigaoqiao Shipbuilding Co., Ltd. for a price of $91 million. The vessel, to be named Sideris GS, is expected to be delivered to the Company by the sellers immediately upon completion of its construction in or about December 2006.

Upon delivery of this vessel, the Company's fleet will consist of thirteen Panamax dry bulk carriers and two Capesize dry bulk carriers.

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