DIANA SHIPPING INC. ANNOUNCES LONG-TERM TIME CHARTER CONTRACT
FOR ONE OF THE TWO CAPESIZE NEWBUILDINGS ON ORDER

ATHENS, GREECE February 26, 2008 – Diana Shipping Inc. (NYSE: DSX), a global shipping company specializing in the transportation of dry bulk cargoes, today announced that it has entered into a long-term time charter contract with a major Japanese charterer for one of its Capesize newbuilding dry bulk carriers. Diana Shipping has the option to deliver either Hull 1107 or Hull 1108 to the charterer for a minimum fifty eight (58) to a maximum sixty two (62) month period. Based on the vessels’ delivery dates from the shipbuilding yard (Shanghai Waigaoqiao Shipbuilding Co., Ltd.), the gross rate will vary as follows: US$50,000 per day for delivery between October 1, 2009 and January 31, 2010 or US$48,000 for delivery between February 1, 2010 and April 30, 2010.

As previously announced, the above mentioned Capesize dry bulk carriers of approximately 177,000 dwt were contracted for a price of $60.4 million each. This employment is anticipated to generate approximately US$84 million to US$87 million of gross revenues for the minimum scheduled period of the charter.

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