Paragon Shipping Inc. Changes Policy of Accounting for Drydocking Costs

ATHENS, Greece, Jan. 22, 2008 (PRIME NEWSWIRE) -- Paragon Shipping Inc.
(Nasdaq:PRGN) announced today that starting with its fiscal fourth quarter ended
December 31, 2007, Paragon Shipping Inc. (the "Company") has elected to change
its method of accounting for drydocking costs from the deferral method, under
which the Company deferred and amortized its drydocking costs over the estimated
period of benefit between drydockings, to the direct expense method, under which
the Company expenses all drydocking costs as incurred.

The Company believes that the direct method eliminates the significant amount of
time and subjectivity that is needed to determine which costs and activities
related to drydocking should be deferred. Since no drydocking costs have been
incurred prior to the fourth quarter of 2007, there will be no impact on the
Company's prior financial statements as a result of the adoption of this change
in policy. The effect of this change in accounting policy, which will not impact
the Company's cash flow or dividend distributions per share, will appear in the
Company's Annual Report on Form 20-F for the year ended December 31, 2007.

About Paragon Shipping Inc.

Paragon Shipping Inc. is an Athens, Greece-based international shipping company
specializing in the transportation of drybulk cargoes. The Company's current
fleet consists of eleven vessels with a total carrying capacity of 706,358 dwt.
For further information, please visit the Company's website at
www.paragonship.com

Cautionary Statement Regarding Forward-Looking Statement

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.

The Company desires to take advantage of the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995 and is including this
cautionary statement in connection with this safe harbor legislation. The words
"believe," "anticipate," "intends," "estimate," "forecast," "project," "plan,"
"potential," "will," "may," "should," "expect" "pending" and similar expressions
identify forward-looking statements.

The forward-looking statements in this press release are based upon various
assumptions, many of which are based, in turn, upon further assumptions,
including without limitation, our management's examination of historical
operating trends, data contained in our records and other data available from
third parties. Although we believe that these assumptions were reasonable when
made, because these assumptions are inherently subject to significant
uncertainties and contingencies which are difficult or impossible to predict and
are beyond our control, we cannot assure you that we will achieve or accomplish
these expectations, beliefs or projections.

In addition to these important factors, other important factors that, in our
view, could cause actual results to differ materially from those discussed in
the forward-looking statements include the strength of world economies and
currencies, general market conditions, including fluctuations in charter rates
and vessel values, changes in demand for dry bulk shipping capacity, changes in
our operating expenses, including bunker prices, drydocking and insurance costs,
the market for our vessels, availability of financing and refinancing, changes
in governmental rules and regulations or actions taken by regulatory
authorities, potential liability from pending or future litigation, general
domestic and international political conditions, potential disruption of
shipping routes due to accidents or political events, vessels breakdowns and
instances of off-hires and other factors. Please see our filings with the
Securities and Exchange Commission for a more complete discussion of these and
other risks and uncertainties.

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CONTACT: Paragon Shipping Inc.
Christopher Thomas, Chief Financial Officer
+30 (210) 8914 600
15 Karamanli Ave.
GR 166 73
Voula, Greece

FD
Scot Hoffman
+1(212) 850-5600