Diana Shipping Announces Delivery of the Panamax Dry Bulk Carrier M/V Arethusa and Commencement of Time Charter Contract With Cargill

Diana Shipping Inc.

announced today that the Company has taken delivery on July 7, 2011 of the m/v "Corona", renamed "Arethusa", a 73,593 dwt Panamax dry bulk carrier built in 2007. As previously announced, the Arethusa is chartered to Cargill International S.A., Geneva for a period of about eleven (11) months to about thirteen (13) months, at a gross charter rate of US$13,250 per day, minus a 5% commission paid to third parties. The charter commenced today. This employment is anticipated to generate approximately US$4.2 million of gross revenue for the minimum scheduled period of the charter.