Diana Shipping Inc. Announces Completion of Previously Announced Investment in New Containership Project

Athens, Greece, April 7, 2010 – Diana Shipping Inc. (NYSE:DSX; “Diana Shipping”), a global shipping company specializing in the transportation of dry bulk cargoes, today announced that it has completed its investment of US$50 million in the previously announced new project involving a company formed for the purpose of investing in containerships. Due to a change in the size of the offering, the investment by Diana Shipping is equivalent to an interest of approximately 60% of the common shares of the new company. The balance of the new company’s common shares were purchased by institutional and accredited investors in a private transaction.

The proceeds raised in the private transaction from Diana Shipping and the other investors are expected to be used primarily to invest in containerships over the next 12-18 months.

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