Paragon Shipping Announces that it has Signed
Agreements with Several of its Lenders

ATHENS, Greece (December 12, 2012)

Paragon Shipping Inc. (NYSE: PRGN) ("Paragon Shipping" or the "Company"), announced today that it has signed agreements with four of its lenders, subject to certain conditions, and agreed to amended terms in the following loan agreements: the loan agreement with Unicredit Bank AG dated November 19, 2007, the loan agreement with The Bank of Scotland Plc dated December 4, 2007, the loan agreement with Bank of Ireland dated March 30, 2009, and the loan agreement with HSBC Bank Plc dated July 2, 2010.

More specifically, the Company obtained waivers and agreed to the relaxation of several financial and security coverage ratio covenants, the deferral of a portion of its scheduled quarterly installments and, in the case of the loan agreement with Bank of Ireland and The Bank of Scotland Plc, the extension of the loan agreements to the second quarter of 2017 and to the third quarter of 2015, respectively. In addition, in respect to the loan agreement with The Bank of Scotland Plc, the Company agreed to a payment of $2.8 million for the full and final settlement of $4.7 million in debt, representing the portion of the loan of one of the syndicate members. This advance payment of $2.8 million was made on December 10, 2012.

The above-mentioned agreements are subject to the satisfaction of a number of conditions. For additional details on these agreements please refer to the Company's report on Form 6-K, filed today with the Securities and Exchange Commission and available at www.sec.gov.

Commenting on the agreements, Michael Bodouroglou, the Company's Chairman and Chief Executive Officer stated, "We are pleased to have come to terms with the majority of our lenders, and appreciate the efforts and ongoing support of our banking group. These agreements will significantly improve the Company's liquidity, financial position and overall stability through these difficult market conditions."

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 that are scheduled to be delivered in 2013 and two 4,800 TEU containerships that are scheduled to be delivered in 2014. 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