Paragon Shipping Announces Results of 2012 Annual General Meeting of Shareholders and Implementation of Reverse Stock Split

ATHENS, Greece (October 24, 2012)

Paragon Shipping Inc. (NYSE: PRGN) ("Paragon Shipping" or the "Company"), today announced the results of its 2012 Annual General Meeting of Shareholders (the "Meeting").

The following proposals, comprising all of the proposals voted on at the Meeting, were approved and adopted at the Meeting:

1. The election of Mr. Michael Bodouroglou as Class C Director to serve until the Company's 2015 Annual General Meeting of Shareholders;

2. The ratification of the appointment of Ernst & Young (Hellas) Certified Auditors Accountants S.A., as the Company's independent auditors for the fiscal year ending December 31, 2012; and

3. The approval of an amendment to the Company's Amended and Restated Articles of Incorporation to effect a reverse stock split of the Company's issued and outstanding shares of common stock by a ratio of one-for-ten and the authorization of the Company's Board of Directors to implement the reverse stock split by filing such amendment with the Registrar of Corporations of the Republic of the Marshall Islands.

Reverse Stock Split
The Company today also announced that the Board of Directors has decided to implement the reverse stock split approved by shareholders at the Meeting. The Company anticipates the reverse stock split will become effective as of the close of trading on November 5, 2012 and that the Company's common stock will commence trading on a split-adjusted basis on the New York Stock Exchange ("NYSE") as of the open of trading on November 6, 2012.

Upon effectiveness of the reverse stock split, each ten (10) shares of the Company's issued and outstanding common stock automatically and without any action on the part of the respective holders thereof will be combined and converted into one (1) issued and outstanding share of common stock. This will reduce the number of issued and outstanding shares of the Company's common stock from approximately 61.0 million to approximately 6.1 million. The number of authorized shares of the Company's common stock will not be affected by the reverse split.

No fractional shares will be issued in connection with the reverse stock split. Shareholders who would otherwise hold a fractional share of the Company's common stock will receive a cash payment in lieu of such fractional share.

After the reverse stock split takes effect, shareholders holding physical share certificates will receive instructions from the Company's exchange agent regarding the process for exchanging their shares. Shareholders with shares held in book-entry form or through a bank, broker, or other nominee are not required to take any action and will see the impact of the reverse stock split reflected in their accounts after November 5, 2012. Beneficial holders may contact their bank, broker, or nominee for more information.

About Paragon Shipping Inc.
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 twelve drybulk vessels with a total carrying capacity of 779,270 dwt. In addition, the Company's current newbuilding program consists of two Handysize drybulk carriers and two 4,800 TEU Containerships. 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 (the information contained on the Company's website does not constitute part of this press release).

Paragon Shipping Inc. press release