Diana Containerships Inc. Announces Proposed Public Offering of Common Shares and a Concurrent Private Placement to Diana Shipping Inc.

ATHENS, GREECE, May 31, 2011 - Diana Containerships Inc. (the “Company”) (Nasdaq: DCIX) today announced a follow-on offering of 14,000,000 of its common shares and a $20 million concurrent private placement of common shares to Diana Shipping Inc. All of the shares in the offering are being sold by the Company. In addition, the Company expects to grant the underwriters a 30-day option to purchase up to an additional 2,100,000 shares of common stock to cover over-allotments.

The proceeds of the offering and the concurrent private placement are expected to be used to repay in full the Company’s existing secured term loan facility with DnB NOR Bank ASA, to fund the balance of the acquisition costs of three containerships that the Company has agreed to acquire, and the balance for additional containership acquisitions and general corporate purposes, including working capital.

Wells Fargo Securities, BofA Merrill Lynch and Jefferies & Company, Inc. are acting as joint-book running managers for the proposed offering.

This press release does not constitute an offer to sell or the solicitation of an offer to buy securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful. A registration statement relating to these securities has been filed with the Securities and Exchange Commission but has not yet become effective. The offering will only be made pursuant to a prospectus forming part of the registration statement. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective.

A preliminary prospectus related to the offering has been filed with the Securities and Exchange Commission. When available, copies of the preliminary prospectus relating to the offering may be obtained from the offices of Wells Fargo Securities, Attn: Equity Syndicate Dept., 375 Park Avenue, New York, New York 10152, Telephone: (800) 326-5897, E-mail: cmclientsupport@wellsfargo.com, BofA Merrill Lynch, Attn: Prospectus Department, 4 World Financial Center, New York, New York 10080, E-mail: dg.prospectus_requests@baml.com and Jefferies & Company, Inc., 520 Madison Avenue, 12th Floor, New York, NY 10022, at 877-547-6340, E-mail: Prospectus_Department@Jefferies.com.

Diana Containerships Inc. press release