DIANA SHIPPING INC. ANNOUNCES TIME CHARTER CONTRACT FOR MV CLIO

ATHENS, GREECE, January 13, 2009 – Diana Shipping Inc. (NYSE: DSX), a global shipping company specializing in the transportation of dry bulk cargoes, today announced that it has entered into an agreement with Cargill International S.A., Geneva, to charter one of its Panamax dry bulk carriers, the m/v Clio, at a gross rate of US$11,000 per day for a period of minimum ten (10) to a maximum thirteen (13) months, starting on February 26, 2009.

This employment is anticipated to generate approximately US$3.3 million of gross revenues for the minimum scheduled period of the charter. The charterer had the option to redeliver the vessel on January 27, 2009. The Company and the charterer have agreed to extend the existing charter so that from January 27 to February 26, 2009, the gross charter rate will be US$6,000 per day. Until January 27, 2009, the gross charter rate will remain at the current rate of US$27,000 per day.

The m/v Clio is a 73,691 dwt Panamax dry bulk carrier built in 2005.


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. press release