Diana Shipping Inc. Reports Financial Results for the First Quarter Ended March 31, 2008 and Declares Cash Dividend of $0.85 per Share for the First Quarter

14/05/2008

ATHENS, GREECE, May 14, 2008 – Diana Shipping Inc. (NYSE: DSX), a global shipping transportation company specializing in dry bulk cargoes, today reported net income of $53.2 million for the first quarter of 2008. This compared to net income of $21.4 million reported in the first quarter of 2007.

Voyage and time charter revenues were $78.9 million for the first quarter of 2008, compared to $38.5 million for the same period of 2007, due to an increase in prevailing time charter rates and the increase in operating days due to the enlargement of the Company’s fleet.

Dividend Declaration

The Company has declared a cash dividend on its common stock of $0.85 per share, based on its results of operations during the first quarter ended March 31, 2008. The cash dividend will be payable on or about June 5, 2008 to shareholders of record as of May 28, 2008. The Company has 74.4 million shares of common stock outstanding.

Chairman and Chief Executive Officer’s Comments

“This is certainly our strongest quarter ever and we believe that results for the remainder of the year will be equally strong, based on the fact that we have already secured $241 million to $247 million in revenues for the 95% to 97% of the operating days remaining for the year 2008. It should be noted that for the entire same period last year the gross revenues were $152 million. Our shareholders are being rewarded through the dividends for actively participating in the dry bulk industry today. Our latest dividend declaration of $0.85 per share is confirmation of the present favourable market conditions, but more importantly we believe that it also reflects the outcome of our prudent vessel acquisition and chartering strategy,” said Simeon Palios, Chairman and Chief Executive Officer of Diana Shipping…