Diana Shipping Inc. Announces the Acquisition
of a Panamax Dry Bulk Carrier

ATHENS, Greece, December 28, 2009 – Diana Shipping Inc. (NYSE:DSX), a global shipping transportation company specializing in dry bulk cargoes, today announced that it has agreed to purchase from an unaffiliated third party the MV “Teresa Hebei”, a 2004 built Panamax dry bulk carrier of 76,436 dwt, for a price of US$35.1 million. The vessel, to be renamed “Melite”, is expected to be delivered to the Company by the sellers during the end of January 2010.

Diana Shipping Chairman and Chief Executive Officer, Simeon Palios, commented: “Consistent with our strategy and our view regarding the dry bulk market, we have initiated our investment program which involves taking advantage of the growth opportunities presented during this low phase of the shipping cycle. As this program is implemented over the next two years, we believe that Diana will generate shareholder value through purchases of attractively-priced vessels, in accordance with our technical and age profile standards using our robust balance sheet and cash position, together with new debt as appropriate.”

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