Diana Shipping Inc. Announces the Acquisition of a Kamsarmax Dry Bulk Carrier; Announces Time Charter Contracts for m/v Alcmene and m/v Danae

ATHENS, GREECE, February 14, 2013 – Diana Shipping Inc. (NYSE: DSX), a global shipping company specializing in the ownership and operation of dry bulk vessels, announced that on February 11, 2013, through a separate wholly-owned subsidiary, the Company was the successful bidder at an auction that took place in France, for the m/v “Valeria Della Gatta” (to be renamed Maia), a 2009-built Kamsarmax dry bulk carrier of 82,193 dwt, built by Tsuneishi Shipbuilding Co. Ltd., Japan, for a purchase price of €14.755 million.

Separately, the Company also announced that it has entered into a time charter contract with ADM International Sarl, Rolle, Switzerland, through a separate wholly-owned subsidiary, for one of its Post-Panamax dry bulk carriers, the m/v Alcmene. The gross charter rate is US$7,250 per day, minus a 5% commission paid to third parties, for a period of about eighteen (18) months to maximum twenty-four (24) months. The charter is expected to commence on February 23, 2013.

The Alcmene is a 93,193 dwt Post-Panamax dry bulk vessel built in 2010.

Additionally, the Company has entered into a time charter contract with Intermare Transport GmbH, Hamburg, through a separate wholly owned subsidiary, for one of its Panamax dry bulk carriers, the m/v Danae. The gross charter rate is US$8,250 per day, minus a 5% commission paid to third parties, for a period of minimum eighteen (18) months to maximum twenty-two (22) months. The charter is expected to commence at the beginning of March 2013.

The Danae is a 75,106 dwt Panamax dry bulk vessel built in 2001.

The employments of the Alcmene and the Danae are anticipated to generate a total of approximately US$8.26 million of gross revenue for the minimum scheduled period of the charters.

Including the newly acquired vessel, Diana Shipping Inc.’s fleet currently consists of 32 dry bulk carriers (17 Panamax, 2 Kamsarmax, 3 Post-Panamax, 8 Capesize and 2 Newcastlemax), as well as 2 new-building Ice Class Panamax vessels expected to be delivered to the Company during the fourth quarter of 2013. As of today, the combined carrying capacity of our current fleet, excluding the two vessels not yet delivered, is approximately 3.5 million dwt with a weighted average age of 5.9 years. A table describing the current Diana Shipping Inc. fleet can be found on the Company’s website, Information contained on the Company’s website does not constitute a part of this press release.

About the Company

Diana Shipping Inc. is a leading global provider of shipping transportation services through the ownership and operation of dry bulk vessels. The Company’s vessels are employed primarily on medium to long-term time charters and transport a range of dry bulk cargoes, including such commodities as iron ore, coal, grain and other materials along worldwide shipping routes.

Cautionary Statement Regarding Forward-Looking Statements

Matters discussed in this press release may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts.

The Company desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. The words “believe,” “anticipate,” “intends,” “estimate,” “forecast,” “project,” “plan,” “potential,” “may,” “should,” “expect,” “pending” and similar expressions identify forward-looking statements.

The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, our management’s examination of historical operating trends, data contained in our records and other data available from third parties. Although we believe that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, we cannot assure you that we will achieve or accomplish these expectations, beliefs or projections.

In addition to these important factors, other important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the strength of world economies and currencies, general market conditions, including fluctuations in charter rates and vessel values, changes in demand for dry bulk shipping capacity, changes in our operating expenses, including bunker prices, drydocking and insurance costs, the market for our vessels, availability of financing and refinancing, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, potential disruption of shipping routes due to accidents or political events, vessels breakdowns and instances of off-hires and other factors. Please see our filings with the Securities and Exchange Commission for a more complete discussion of these and other risks and uncertainties.