Diana Shipping to Acquire New Post-Panamax Tonnage

Newly Built Post-Panamax Dry Bulk Carrier "Polymnia" to be Delivered in late 2012.

Diana Shipping Inc. (NYSE:DSX), a global shipping company specializing in the ownership and operation of dry bulk vessels, has announced that it has signed, through a separate wholly-owned subsidiary, a Memorandum of Agreement to acquire a newly-built Post-Panamax dry bulk carrier of 98,704 dwt, built by Tsuneishi Group (Zhoushan) Shipbuilding Inc., from a third party seller for a purchase price of US$24.6 million. The vessel, to be named "Polymnia", is expected to be delivered from the yard to the Company by the sellers by the end of November 2012.

Including the aforementioned vessel Diana Shipping Inc.'s fleet currently consists of 30 dry bulk carriers (17 Panamax, 3 Post-Panamax, 8 Capesize and 2 Newcastlemax), as well as 2 new-building Ice Class Panamax vessels expected to be delivered to the Company during the fourth quarter of 2013. As of today, the combined carrying capacity of our current fleet, excluding the three vessels not yet delivered, is 3.3 million dwt with a weighted average age of 6 years. A table describing the current Diana Shipping Inc. fleet can be found on the Company's website, www.dianashippinginc.com.