Diana Shipping Inc. Announces Completion of Follow-On Offering

ATHENS, GREECE, December 7, 2005  Diana Shipping Inc. (NYSE: DSX) today announced the completion of its follow on offering of 5,000,000 shares of common stock priced at $13.50 per share.

Bear, Stearns & Co., Inc. and Wachovia Capital Markets, LLC are the joint global coordinators and joint book-running managers for the offering.

In connection with the offering, the underwriters have been granted a 30-day option to purchase up to 750,000 additional shares of the Company’s common stock to cover any over-allotments.

A registration statement relating to these securities has been filed with and declared effective by the Securities and Exchange Commission.  This communication shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.  The offering of these securities will be made only by means of a prospectus.  A copy of the final prospectus may be obtained from the offices of Bear, Stearns & Co. Inc. at 383 Madison Avenue, New York, New York 10179, Attention: Prospectus Department.

About Diana Shipping Inc.

Diana Shipping Inc. is a global provider of shipping transportation services.  The Company specializes in transporting dry bulk cargoes, including such commodities as iron ore, coal, grain and other materials along worldwide shipping routes. The Company currently owns eleven modern Panamax and one modern Capesize bulk carrier and has agreed to acquire one additional modern Panamax dry bulk carrier. Diana Shipping Inc. priced its initial public offering of common stock on March 17, 2005.