ANNOUNCEMENT OF A NEW PURCHASING AGREEMENT Posted on Friday, June 20 2008 ATHENS, Greece, June 19, 2008 – Paragon Shipping Inc. (Nasdaq: PRGN), a global shipping transportation company specializing in drybulk cargoes, announced today that it has entered into an agreement with an unaffiliated third party to acquire a 2008-built Supramax drybulk carrier. The vessel, to be named the Friendly Seas, has a capacity of 58,779 dwt and will be purchased with a timecharter attached at $55,000 per day for a period of 10 to 12 months to Irika Shipping, who, in turn, have chartered the vessel to Cargill on identical terms. Immediately following the expiration of this charter, the vessel has been fixed to Dieulemar at $33,750 per day for a period of 58 to 62 months. The vessel is expected to be delivered to Paragon between July 1, 2008 and September 1, 2008. About Paragon Shipping Inc. Paragon Shipping Inc. is an Athens, Greece-based international shipping company specializing in the transportation of drybulk cargoes. The Company's current fleet consists of eleven vessels with a total carrying capacity of 706,358 dwt. For further information, please visit the Company's website at http://www.paragonship.com. Paragon Shipping Press Release