ATHENS, GREECE, February 23, 2010 – Diana Shipping Inc. (NYSE: DSX), a global shipping company specializing in the transportation of dry bulk cargoes, today reported net income of $27.6 million for the fourth quarter of 2009. This compared to net income of $54.2 million reported in the fourth quarter of 2008.

Voyage and time charter revenues were $58.6 million for the fourth quarter of 2009, compared to $84.3 million for the same period of 2008, due to a decrease in prevailing time charter rates and increased off-hire and drydock days.

Net income for the year ended December 31, 2009 amounted to $121.5 million, compared to net income of $221.7 million for 2008. Voyage and time charter revenues were $239.3 million for the year ended December 31, 2009, compared to $337.4 million for 2008.

Chairman and Chief Executive Officer’s Comments

“Diana Shipping Inc. has delivered another profitable quarter while at the same time implementing our strategy to build the company in a consistent and disciplined manner. It is our view that the actual deliveries of dry bulk vessels in the next two years will not be easily absorbed by the growth in demand, although demand is expected to be more solid than in the recent recessionary period. Therefore we continue to feel strongly that the market will present us with many attractive opportunities, given our strong balance sheet, track record of profitability and well-defined strategic direction, and we will gradually and deliberately seek to take advantage of those opportunities. As previously announced, we are pursuing a strategy of expanding our investments in the dry bulk sector through vessel purchases during the next 24 months, and have begun this effort with the purchase in December 2009 of MV Melite. We will continue to be disciplined in our execution, while looking forward to opportunities that offer the potential to benefit all of our shareholders,” said Simeon Palios, Chairman and Chief Executive Officer of Diana Shipping Inc…