Diana Shipping Inc. Reports Financial Results for the Second Quarter and Six Months...

Diana Shipping Inc. Reports Financial Results for the Second Quarter and Six
Months Ended June 30, 2008

ATHENS, Greece, July 31, 2008 (PRIME NEWSWIRE) -- Diana Shipping Inc.
(NYSE:DSX), a global shipping company specializing in the transportation of dry
bulk cargoes, today reported net income of $56.7 million for the second quarter
of 2008. This compared to net income of $26.0 million reported in the second
quarter of 2007.

Voyage and time charter revenues were $86.8 million for the second quarter of
2008, compared to $44.0 million for the same period of 2007, due to an increase
in prevailing time charter rates and the increase in operating days due to the
enlargement of the Company's fleet.

Net income for the six months ended June 30, 2008 amounted to $109.9 million,
compared to net income of $47.5 million for the same period of 2007. Voyage and
time charter revenues were $165.6 million for the first six months of 2008,
compared to $82.5 million for the same period of 2007.

Dividend Declaration

The Company has declared a cash dividend on its common stock of $0.91 per share,
based on its results of operations during the second quarter ended June 30,
2008. The cash dividend will be payable on or about August 28, 2008 to
shareholders of record as of August 14, 2008. The Company has 74.4 million
shares of common stock outstanding.

Chairman and Chief Executive Officer's Comments

"Diana Shipping delivered record revenues and earnings for the second quarter
and first half of 2008. We are pleased that these robust financial results have
enabled us to increase our cash dividend per share for the 10th consecutive
quarter, producing an attractive dividend yield for our shareholders. The
consistency and visibility of our financial performance is reflected in the fact
that we have secured time charters that provide for $163.8 million to $167.8
million in revenues for the balance of 2008. Thus, we expect our capacity to
reward our shareholders with similarly attractive dividends to continue through
the remainder of the year. Furthermore, with our young fleet, strong balance
sheet, well-established relationships with industry-leading customers, and a
track record of revenue visibility, Diana Shipping is well-positioned to
continue to benefit from the favorable long-term dynamics of the dry bulk
industry," said Simeon Palios, Chairman and Chief Executive Officer of Diana
Shipping.

Fleet Employment Profile (As of July 29, 2008)
Currently Diana's fleet is employed as follows:

Sister Year
Name ships(1) Built DWT Employment(2) Charter Expiration(3)
----------------------------------------------------------------------
Nirefs A 2001 75,311 $60,500 Feb 3, 2010 -
Apr 3, 2010
Alcyon A 2001 75,247 $34,500 Nov 21, 2012 -
Feb 21, 2013
Triton A 2001 75,336 $24,400 Oct. 17, 2009 -
Jan 17, 2010(4)
Oceanis A 2001 75,211 $40,000 Jul 29, 2009 -
Oct 29, 2009
Dione A 2001 75,172 $82,000 Jan 7, 2009 -
Mar 7, 2009
Danae A 2001 75,106 $29,400 Feb 18, 2009 -
May 18, 2009
Protefs B 2004 73,630 $70,000 Aug 17, 2008 -
Sep 16, 2008
Calipso B 2005 73,691 $55,000 Jan 15, 2009 -
Mar 15, 2009
Clio B 2005 73,691 $27,000 Jan 27, 2009 -
Mar 27, 2009
Thetis B 2004 73,583 $60,250 Sep 2, 2008 -
Nov 2, 2008
Naias B 2006 73,546 $34,000 Aug 24, 2009 -
Oct 24, 2009
Erato C 2004 74,444 $80,300 Jan 1, 2009 -
Mar 1, 2009
Coronis C 2006 74,381 $27,500 Jan 18, 2009 -
Apr 9, 2009
Sideris GS D 2006 174,186 $43,000 Nov 30, 2008
$39,000 Nov 30, 2009
$36,000 Oct 15, 2010 -
Jan 15, 2011(5)
Aliki -- 2005 180,235 $52,000 May 1, 2009
$45,000 Mar 1, 2011 -
Jun 1, 2011(5)
Semirio D 2007 174,261 $51,000 Jun 15, 2009
$31,000 Apr 30, 2011 -
Jul 30, 2011(5)
Boston D 2007 177,828 $52,000 Sep 28, 2011 -
Dec 28, 2011(6)
Salt Lake
City -- 2005 171,810 $55,800 Aug 28, 2012 -
Oct 28, 2012
Norfolk -- 2002 164,218 $74,750 Jan 12, 2013 -
Mar 12, 2013
Hull
H1107(7),
(8),(9) D 2010 177,000 $48,000 Feb 28, 2015 -
Jun 30, 2015
Hull
H1108(7),
(8),(9) D 2010 177,000 -- --
----------
Total: 2,364,887

(1) Each vessel is a sister ship of the other vessels that have the
same letter.
(2) Gross time charter rate per day.
(3) Charterers' optional period to redeliver the vessel to us.
Charterers have the right to add the off-hire days, if any, and
therefore the optional period may be extended.
(4) The charterer has the option to employ the vessel for a further
11-13 month period at a daily rate based on the average rate of
four pre-determined time charter routes as published by the
Baltic Exchange. The optional period, if exercised, must be
declared on or before the end of the 30th month of employment and
can only commence at the end of the 36th month.
(5) The charterer has the option to employ the vessel for a further
11-13 month period. The optional period, if exercised, must be
declared on or before the end of the 42nd month of employment and
can only commence at the end of the 48th month, at the daily time
charter rate of $48,500.
(6) The charterer has the option to employ the vessel for a further
11-13 month period. The optional period, if exercised, must be
declared on or before the end of the 42nd month of employment and
can only commence at the end of the 48th month, at the daily time
charter rate of $52,000.
(7) Expected to be delivered to us in the second quarter of 2010
(8) The time charter rate of $48,000 per day is based on the latest
possible date of delivery to the charterer (see also Note 9).
(9) The Company has the option to deliver either Hull H1107 or Hull
H1108 to the charterer. The gross rate will vary as follows:
US$50,000 per day for delivery between October 1, 2009 and
January 31, 2010 or US$48,000 per day for delivery between
February 1, 2010 and April 30, 2010.

Summary of Selected Financial & Other Data

Three Months Ended Six Months Ended
June 30, June 30,
2008 2007 2008 2007
---------- ---------- ---------- ----------
(unaudited) (unaudited) (unaudited) (unaudited)
INCOME STATEMENT DATA
(in thousands of U.S.
Dollars):
Voyage and time
charter revenues $ 86,768 $ 43,997 $ 165,644 $ 82,505
Voyage expenses 4,046 2,004 6,640 3,680
Vessel operating
expenses 9,859 6,908 19,072 13,429
Net income 56,733 26,017 109,948 47,463
FLEET DATA
Average number of
vessels 19.0 15.9 18.8 15.4
Number of vessels 19.0 17.0 19.0 17.0
Weighted average age
of fleet (in years) 3.8 3.6 3.8 3.6
Ownership days 1,729 1,444 3,417 2,794
Available days 1,729 1,444 3,417 2,794
Operating days 1,728 1,441 3,412 2,764
Fleet utilization 99.9% 99.8% 99.9% 98.9%
AVERAGE DAILY RESULTS
Time charter
equivalent (TCE)
rate(1) $ 47,844 $ 29,081 $ 46,533 $ 28,212
Daily vessel operating
expenses(2)
$ 5,702 $ 4,784 $ 5,582 $ 4,806

-----------
(1) Time charter equivalent rates, or TCE rates, are defined as our
voyage and time charter revenues less voyage expenses during a
period divided by the number of our available days during the
period, which is consistent with industry standards. Voyage
expenses include port charges, bunker (fuel) expenses, canal
charges and commissions. TCE rate is a standard shipping industry
performance measure used primarily to compare daily earnings
generated by vessels on time charters with daily earnings
generated by vessels on voyage charters, because charter hire
rates for vessels on voyage charters are generally not expressed
in per day amounts while charter hire rates for vessels on time
charters are generally expressed in such amounts.

(2) Daily vessel operating expenses, which include crew wages and
related costs, the cost of insurance, expenses relating to
repairs and maintenance, the costs of spares and consumable
stores, tonnage taxes and other miscellaneous expenses, are
calculated by dividing vessel operating expenses by ownership
days for the relevant period.
Conference Call and Webcast Information

Diana Shipping Inc. will conduct a conference call and simultaneous Internet
webcast to review these results at 9:00 A.M. (Eastern Daylight Time) on
Thursday, July 31, 2008.

Investors may access the webcast by visiting the Company's website at
www.dianashippinginc.com, and clicking on the webcast link. The webcast also is
accessible at www.viavid.net, by clicking on the Diana Shipping link under
"Events". The conference call also may be accessed by telephone by dialing
1-800-762-8795 (for U.S.-based callers) or 1-480-629-9031 (for international
callers).

A replay of the webcast will be available soon after the completion of the call
and will be accessible on both www.dianashippinginc.com and www.viavid.net. A
telephone replay will be available by dialing 1-800-406-7325 (for U.S.-based
callers) or 1-303-590-3030 (for international callers); callers must use the PIN
number 3896305.

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.

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," "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.

DIANA SHIPPING INC.
FINANCIAL TABLES
Expressed in thousands of U.S. Dollars, except share and per
share data

CONSOLIDATED STATEMENTS OF INCOME

Three Months Ended Six Months Ended
June 30, June 30,
2008 2007 2008 2007
---------- ---------- ---------- ----------
(unaudited) (unaudited) (unaudited) (unaudited)
REVENUES:
Voyage and time charter
revenues 86,768 $ 43,997 $ 165,644 $ 82,505

EXPENSES:
Voyage expenses 4,046 2,004 6,640 3,680
Vessel operating
expenses 9,859 6,908 19,072 13,429
Depreciation and
amortization of
deferred charges 10,956 5,423 21,209 10,223
General and
administrative
expenses 3,869 2,261 7,458 4,415
Foreign currency
losses (gains) (97) (47) (106) (117)
---------- ---------- ---------- ----------
Operating income 58,135 27,448 111,371 50,875
---------- ---------- ---------- ----------

OTHER INCOME (EXPENSES):
Interest and finance
costs (1,498) (1,772) (3,016) (3,900)
Interest Income 96 341 648 488
Insurance settlement
for vessel
un-repaired damages -- -- 945 --
---------- ---------- ---------- ----------

Total other income
(expenses), net (1,402) (1,431) (1,423) (3,412)
---------- ---------- ---------- ----------

Net Income 56,733 $ 26,017 $ 109,948 $ 47,463
========== ========== ========== ==========

Earnings/(losses) per
common share, basic
and diluted 0.76 $ 0.41 $ 1.48 $ 0.82
========== ========== ========== ==========

Weighted average number
of common shares,
basic 74,375,000 62,875,000 74,375,000 58,126,381
========== ========== ========== ==========

Weighted average number
of common shares,
diluted 74,443,702 62,875,000 74,425,504 58,126,381
========== =========== ========== ==========

BALANCE SHEET DATA

June 30, Dec. 31,
2008 2007
--------- ---------
ASSETS (unaudited)
------

Cash and cash equivalents 22,705 16,726
Other current assets 3,968 4,788
Advances for vessels under construction and
acquisitions and other vessel costs 26,692 53,104
Vessels' net book value 982,262 867,632
Other fixed assets, net 896 956
Other non-current assets 505 1,136
--------- ---------
Total assets 1,037,028 944,342
========= =========

LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------

Current liabilities 20,275 20,964
Long-term debt 189,727 98,819
Deferred revenue, non current portion 24,032 23,965
Other non-current liabilities 1,254 1,120
Total stockholders' equity 801,740 799,474
--------- ---------
Total liabilities and stockholders' equity 1,037,028 944,342
========= =========

OTHER FINANCIAL DATA

Three Months Ended Six Months Ended
June 30, June 30,
2008 2007 2008 2007
---------- ---------- ---------- ----------
(unaudited) (unaudited) (unaudited) (unaudited)
Net cash from operating
activities $ 68,963 $ 32,619 $ 130,861 $ 60,649
Net cash used in
investing activities (254) (200,266) (108,129) (231,339)
Net cash from/(used in)
financing activities (70,583) 170,205 (16,753) 167,802
-0-
CONTACT: Diana Shipping Inc.
Ioannis Zafirakis, Director, Executive Vice-President and
Secretary
+ 30-210-9470100
izafirakis@dianashippinginc.com

Comm-Counsellors, LLC
Investor and Media Relations:
Edward Nebb
+ 1-203-972-8350
enebb@optonline.net