DIANA SHIPPING INC. ANNOUNCES TIME CHARTER CONTRACT FOR MV THETIS

ATHENS, GREECE, December 3, 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 time charter contract with Cargill International S.A., Geneva , for one of its Panamax dry bulk carriers, the m/v Thetis, at a gross rate of US$10,500 per day for a minimum eleven (11) to a maximum fourteen (14) month period.

This employment is anticipated to generate approximately US$3.5 million of gross revenues for the minimum scheduled period of the charter. The charter is expected to commence during January 2009.

The m/v Thetis is a 73,583 dwt Panamax dry bulk carrier built in 2004.

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