Paragon Shipping Announces Early Termination of Charter

ATHENS, Greece, Jan. 30, 2012 /PRNewswire via COMTEX/

Paragon Shipping Inc. PRGN -0.55% ("Paragon Shipping" or the "Company"), announced today that Deiulemar Compagnia di Navigazione SpA, the charterer of the M/V Friendly Seas (the "Vessel"), a 2008-built 58,779 dwt Supramax bulkcarrier (the "Charterer"), has continued to fail to provide payment due since January 5 and has failed to provide the Vessel with voyage instructions.

Accordingly, Paragon Shipping has provided written notice to the Charterer of the termination of the charter, but has received no response. Paragon Shipping is currently seeking alternative employment for the Vessel and will seek damages for the Charterer's breach. There can be no assurance that Paragon Shipping will be able to employ the Vessel at similar rates to those under the original charter or that the Company would be able to recover any claimable amounts from the Charterer. Current spot charter rates are significantly lower than the contracted rate under the original charter.

About Paragon Shipping
Paragon Shipping 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 Shipping 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 drybulk vessels with a total carrying capacity of 853,572 dwt and two Containerships with a total carrying capacity of 9,600 TEU.

Paragon Shipping has granted Box Ships Inc., an affiliated company, the option to acquire its two Containerships under construction. For more information, visit: www.paragonship.com

Paragon Shipping Inc. press release