Diana Shipping Inc. Announces An En Bloc Deal For The Acquisition Of Two Modern Capesize Dry Bulk Carriers

ATHENS, Greece, Oct. 17, 2007 – Diana Shipping Inc. (NYSE:DSX), a global shipping transportation company specializing in dry bulk cargoes, today announced that it has signed two Memoranda of Agreement with unaffiliated third parties for the purchase of two Capesize dry bulk carriers, MV “Thalassini Niki” and MV “Thalassini Kyra” to be renamed MV “Salt Lake City” and MV “Norfolk” respectively. The “Thalassini Niki” is a 2005 built Capesize vessel of 171,810 dwt and the “Thalassini Kyra” is a 2002 built Capesize vessel of 164,218 dwt. The agreed-upon prices for the “Thalassini Niki” and “Thalassini Kyra” are US$140 million and US$135 million, respectively.

The “Thalassini Niki” is chartered as of September 28, 2007 to Refined Success Ltd., guaranteed by Cosco (H.K) Shipping Co Ltd. for a period of minimum 59 to maximum 61 months, at a daily rate of US$55,800 less 5% commission. The “Thalassini Niki” is expected to be delivered to the company on or about November 30, 2007.

The “Thalassini Kyra” is chartered to Corus UK Ltd. as agents on behalf of Corus Staal B.V. for a period of minimum 59 to maximum 61 months, at a daily rate of US$74,750 less 3.75% commission. The charter period for “Thalassini Kyra” is expected to commence upon delivery of the vessel to the company on or about February 6, 2008.

The employment of both vessels is anticipated to generate approximately US$225 million of gross revenues for the minimum scheduled period of the charters.

Diana Shipping Chairman and Chief Executive Officer, Simeon Palios, commented:

“We believe the acquisition of these vessels again demonstrates Diana’s ability to efficiently deploy proceeds of equity offerings in a manner that is accretive to the projected dividends of the Company. Furthermore, the charter agreements create a strong and stable cash flow while at the same time the period cover reduces the residual value risk.”

Mr. Palios added, “This en bloc deal gives the opportunity to Diana to prolong the existing relationship with Cosco and also establish a relationship with the Corus Group which is a subsidiary of Tata Steel. Tata Steel is the world’s sixth largest steel producer, with a combined presence in nearly 50 countries; including Corus, Tata Steel has 84,000 employees across five continents and a pro forma crude steel production of 27 million tons in 20071.”

About the Company
Diana Shipping Inc. is a global provider of shipping transportation services. The Company specializes in transporting dry bulk cargoes, including such commodities as iron ore, coal, grain and other materials along worldwide shipping routes.

Diana Shipping Inc