Diana Shipping Inc. Announces Delivery of the Panamax Dry Bulk Carrier m/v Leto and Commencement of Time Charter Contract with EDF

ATHENS, GREECE, January 17, 2012

Diana Shipping Inc. (NYSE: DSX), a global shipping company specializing in the ownership and operation of dry bulk vessels, announced today that the Company yesterday took delivery of the m/v “Leto”, (formerly “Vathy”), a 81,297 dwt Panamax dry bulk carrier built in 2010.

As previously announced, the Leto is chartered to EDF Trading Ltd., London, at a gross charter rate of US$12,900 per day, minus a 5% commission paid to third parties, for a period of minimum twenty-four (24) months to maximum thirty-four (34) months. The charter commenced today.

This employment is anticipated to generate approximately US$9.3 million of gross revenue for the minimum scheduled period of the charter.

Including the newly-delivered Leto, the Diana Shipping Inc. fleet currently consists of 25 dry bulk carriers (16 Panamax, 1 Post-Panamax and 8 Capesize) with a weighted average age of 6.2 years. The Company also previously announced two Newcastlemax new-building dry bulk carriers that are expected to be delivered during the first half of 2012. A table describing the current Diana Shipping Inc. fleet can be found on the Company’s website, www.dianashippinginc.com.

About the Company
Diana Shipping Inc. is a leading global provider of shipping transportation services through the ownership and operation of dry bulk vessels. The Company’s vessels are employed primarily on medium to long-term time charters and transport a range of dry bulk cargoes, including such commodities as iron ore, coal, grain and other materials along worldwide shipping routes.

Diana Shipping Inc. press release