Diana Shipping Inc. Announces Time Charter Contract For M/V Alcmene And Acquisition Of Its Executive Offices

ATHENS, Greece, Oct. 19, 2010 (GLOBE NEWSWIRE) -- Diana Shipping Inc. (NYSE:DSX), a global shipping company specializing in the transportation of dry bulk cargoes, today announced that it has entered into a time charter contract with Cargill International S.A., Geneva, for its Post-Panamax dry bulk carrier, the m/v Alcmene, at a gross charter rate of US$20,250 per day for a period of about twenty three (23) to about twenty five (25) months. The charter is expected to commence by the end of November 2010.

As previously announced on October 1, 2010, the above mentioned vessel is the former m/v East Sunrise 88, to be renamed "Alcmene," a 2010 built Post-Panamax dry bulk carrier of 93,193 dwt, which is expected to be delivered to the Company by the seller during the end of November 2010.

This employment is anticipated to generate approximately US$14 million of gross revenue for the minimum scheduled period of the charter.

Separately, the Company also announced today that it has completed the transfer of beneficial ownership of two entities that together own the real property and office building in Athens, Greece, in which the Company's principal executive offices are located. The Company purchased 100% of the outstanding stock of the two property owning companies from an entity affiliated with the Company's largest shareholder for an aggregate purchase price of US$21.5 million.

About the Company

Diana Shipping Inc. is a global provider of shipping transportation services. The Company specializes in transporting dry bulk cargoes, including such commodities as iron ore, coal, grain and other materials along worldwide shipping routes.

Cautionary Statement Regarding Forward-Looking Statements

Matters discussed in this press release may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts.