ATHENS, GREECE, August 1, 2005 – Diana Shipping Inc. (NYSE: DSX), a global shipping transportation company specializing in dry bulk cargoes, today reported net income of $20.1 million for the second quarter of 2005, compared to net income of $12.4 million recorded in the second quarter of 2004, representing an increase of $7.7 million or 62%. Voyage and time charter revenues were $29.4 million for the second quarter of 2005, an increase of 64% from the $17.9 million reported in the same period of 2004. The Company attributed the increase in net income and revenue from vessels primarily to the enlargement of its fleet and improved trading conditions in the second quarter of 2005 compared with the same period of 2004.

Net income for the six months ended June 30, 2005 increased by $15.1 million or 77% to $34.7 million compared to $19.6 million in 2004. Voyage and time charter revenues were $53.3 million for the first six months of 2005, compared to $30.2 million for the same period of 2004, representing an increase of 76%.

Dividend declaration

The Company has declared a cash dividend on its common stock of $0.54 per share, based on the Company’s operations during the second quarter ended June 30, 2005. The cash dividend will be payable on August 31, 2005 to all shareholders of record as of August 16, 2005. The Company has 40 million shares of common stock outstanding.

During the second quarter of 2005, there were 9.6 vessels on average operating in the Company’s fleet after the delivery of a newbuilding panamax bulk carrier, the Clio, on May 9, 2005.