ATHENS, GREECE, February 15, 2006 – Diana Shipping Inc. (NYSE: DSX), a global shipping transportation company specializing in dry bulk cargoes, today reported net income of $65.0 million for the year ended December 31, 2005, representing an increase of $4.9 million compared to $60.1 million for 2004. Voyage and time charter revenues were $103.1 million for the year ended December 31, 2005, compared to $63.8 million for 2004.

For the fourth quarter of 2005, net income was $13.9 million compared to net income of $31.6 million reported in the same period of 2004. For the fourth quarter of 2005, voyage and time charter revenues increased by $5.5 million to $24.0 million compared to $18.5 million reported in the same period of 2004.

During the fourth quarter of 2004, the Company recorded a gain on the sale of one of its vessels of approximately $20.0 million, which is included in the net income of both the fourth quarter of 2004 and the year ended December 31, 2004.

Dividend declaration

The Company has declared a cash dividend on its common stock of $0.40 per share, based on the Company’s results from operations during the quarter ended December 31, 2005. The cash dividend will be payable on or about March 9, 2006 to all shareholders of record as of February 28, 2006. The Company has 45 million shares of common stock outstanding.

During the year ended December 31, 2005, there were 9.6 vessels on average operating in the Company’s fleet, as compared with 6.3 vessels during 2004.