Paragon Shipping Inc. Announces New Charter Agreement
for a Panamax Bulkcarrier

ATHENS, GREECE, Dec 22, 2011 (MARKETWIRE via COMTEX) - Paragon Shipping Inc. PRGN +2.72% , or the Company, a global shipping transportation company specializing in drybulk cargoes, announced today that it has entered into a fixed rate time charter agreement for its Panamax Vessel, M/V Coral Seas, with Morgan Stanley Capital Group Inc.

The M/V Coral Seas, a 2006 build, 74,477 dwt Panamax bulkcarrier, has been fixed to Morgan Stanley Capital Group Inc. (or the Charterers) for a period of 23 to 25 months at a gross daily rate of $12,000. In addition, the Charterers have an option to extend the charter period for an additional 11 to 13 months at a gross daily rate of $14,500. As a result, the Company's fixed revenue days have now increased to 89% from 84% in 2012, to 66% from 59% in 2013 and to 37% from 30% in 2014 based on latest redelivery dates.

Commenting on these developments Michael Bodouroglou, Chairman and Chief Executive Officer of Paragon Shipping, stated, "We are pleased to announce this new chartering agreement with a respected charterer in the industry. The new time charter contract is anticipated to contribute approximately $8.2 million of gross revenues during the minimum scheduled period of the charter and raises our cash flow visibility during these turbulent market conditions."

About Paragon Shipping Inc.
Paragon Shipping Inc. is a Marshall Islands-based international shipping company with executive offices in Athens, Greece specializing in the transportation of drybulk cargoes. The Company's current fleet consists of ten drybulk vessels with a total carrying capacity of 704,772 dwt. In addition, Paragon entered into contracts for the construction of four Handysize drybulk carriers that are scheduled to be delivered in 2012 and two 4,800 TEU Containerships that are scheduled to be delivered in 2013 and, as a result will increase the fleet size to fourteen dry bulk vessels with a total carrying capacity of 853,572 dwt and two Containerships with a total carrying capacity of 9,600 TEU.

Paragon Shipping Inc. press release