Paragon Shipping Inc. announces new charter agreements for two of its handysize newbuildings and for M/V Deep Seas

Athens, Greece, July 18, 2011

Paragon Shipping Inc. (NYSE: PRGN), or the Company, a global shipping transportation company specializing in drybulk cargoes, announced today that it has entered into fixed rate time charter agreements for two of its 37,200 dwt, Handysize newbuildings with Cargill International S.A. Both vessels have been fixed for a period of two years at a gross daily rate of $12,125 commencing upon their delivery to the Company, which is expected to take place in the first quarter of 2012. In addition, the charterers have an option to extend the charter period for an additional year at a gross daily rate of $15,500.

The Company also announced that it has entered into a three year time charter agreement for the M/V Deep Seas, a 1999 build, 72,891 dwt Panamax bulkcarrier, with Morgan Stanley Capital Group Inc. at a gross daily rate of $11,000, plus 50% profit sharing based on the BPI Index commencing when its current time charter agreement expires in September, 2011. Furthermore, the charterers have an option to extend the charter period for an additional year at a gross daily rate of $14,000.

Commenting on these developments Michael Bodouroglou, Chairman and Chief Executive Officer of Paragon Shipping, stated, "We are pleased to announce these new chartering agreements with Cargill and Morgan Stanley, two well respected charterers in the industry. As a result, our fixed revenue days are 57% in 2012 and 35% in 2013, which increases our cash flow visibility during these turbulent market conditions. These three new time charter contracts are anticipated to contribute approximately $27.7 million of gross revenues during the minimum scheduled periods of the charters. In addition, our time charter on M/V Deep Seas allows us to participate in any upturn in freight rates during the initial charter period through our profit sharing agreement."

About Paragon Shipping Inc.
Paragon Shipping Inc. is an Athens, Greece-based international shipping company specializing in the transportation of drybulk cargoes. The Company's current fleet consists of eleven drybulk vessels with a total carrying capacity of 747,994 dwt. In addition, Paragon entered into contracts for the construction of four Handysize and one Kamsarmax drybulk carriers that are scheduled to be delivered in 2011 and 2012 and as a result will increase the fleet size to 16 dry bulk vessels with a dwt capacity of 978,794.

Paragon Shipping Inc. press release