ATHENS, GREECE, August 6, 2009 – Diana Shipping Inc. (NYSE: DSX), a global shipping company specializing in the transportation of dry bulk cargoes, today reported net income of $30.4 million for the second quarter of 2009. This compared to net income of $56.7 million reported in the second quarter of 2008.

Voyage and time charter revenues were $59.8 million for the second quarter of 2009, compared to $86.8 million for the same period of 2008, due to a decrease in prevailing time charter rates and increased off-hire days.

Net income for the six months ended June 30, 2009 amounted to $65.2 million, compared to net income of $109.9 million for the same period of 2008. Voyage and time charter revenues were $122.5 million for the six months ended June 30, 2009, compared to $165.6 million for the same period of 2008.

Chairman and Chief Executive Officer’s Comments

“We are pleased to note that Diana Shipping’s second quarter performance was distinguished by profitable operations, a strong cash position and minimal leverage, despite the continuing weakness in overall economic conditions. The consistent application of our strategies has enabled the Company to deliver a predictable revenue stream from relationships with quality charterers. At the same time, we have substantially grown our cash position to nearly $218 million and maintained one of the lowest debt levels in our industry,” said Simeon Palios, Chairman and Chief Executive Officer of Diana Shipping Inc.

Mr. Palios further stated, “We believe that Diana is well-positioned, not only to navigate this turbulent economic cycle, but also to seize upon the opportunities that will be available to strong competitors in the dry bulk sector. Over time, we plan to take advantage of these opportunities to expand our fleet and enhance our cash generation potential for the benefit of our shareholders. That said, we believe that the difficult phase of the cycle is far from over in the dry bulk market. We will therefore be patient and disciplined, gradually deploying our resources as we invest in future opportunities.”