Diana Shipping Inc. Announces Delivery of Panamax Bulk Carrier

ATHENS, GREECE, January 29, 2010 – Diana Shipping Inc. (NYSE: DSX), a global shipping transportation company specializing in dry bulk cargoes, announced today that the Company took delivery of a 76,436 dwt Panamax dry bulk carrier “Theresa Hebei”, renamed “Melite”, built in 2004 by Tsuneishi Corp., Tadotsu, Japan, on January 28, 2010. The agreement to purchase this vessel was originally announced on December 28, 2009.

As previously announced, the Melite is chartered to J. Aron & Company, New York, at a gross charter rate of US$24,250 per day for a period of minimum eleven (11) to maximum thirteen (13) months. The charter commenced on January 29, 2010.

During the minimum period, this employment is expected to generate gross revenues of approximately US$8 million.

About Diana Shipping Inc.
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