PARAGON SHIPPING INC. DECLARES QUARTERLY DIVIDEND OF $0.50 PER SHARE - Increases quarterly dividend by 14.3% - ATHENS, Greece, August 5, 2008 – Paragon Shipping Inc. (Nasdaq: PRGN), a global shipping transportation company specializing in dry bulk cargoes, announced today that on August 1, 2008 its Board of Directors declared a quarterly dividend of $0.50 per share payable on August 28, 2008 to shareholders of record as of August 18, 2008. This represents an increase of approximately 14.3% over the Company’s previous quarterly dividend of $0.4375 per share. Michael Bodouroglou, Chairman and Chief Executive Officer of Paragon Shipping, stated, "We are pleased to announce a 14.3% increase in our dividend. The growth of our fleet over the past year, together with the successful time charter fixtures we have recently completed, allow us to return additional cash to our shareholders, while still investing in the growth of our business.” 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 Paragon Shipping Press Release