ATHENS, GREECE, February 21, 2007 – Diana Shipping Inc. (NYSE: DSX), a global shipping transportation company specializing in dry bulk cargoes, today reported net income of $19.4 million for the fourth quarter of 2006, compared to net income of $13.9 million reported for the same period of 2005.

Voyage and time charter revenues were $35.2 million for the fourth quarter of 2006, compared to $24.0 million for the same period of 2005. This increase was due to the growth in the number of vessels in the Company’s fleet and to increased time charter rates.

Net income for the year ended December 31, 2006, amounted to $61.1 million compared to net income of $65.0 million for the same period of 2005. Net income available to common stockholders during the period, after the non-recurring preferential deemed dividend of $20.3 million relating to the purchase of Diana Shipping Services S.A. on April 1, 2006, was $40.8 million. Voyage and time charter revenues were $116.1 million for the year ended December 31, 2006, compared to $103.1 million for the same period of 2005.

Dividend Declaration

The Company has declared a cash dividend on its common stock of $0.46 per share, based on its cash from operations during the fourth quarter of 2006. The cash dividend will be payable on or about March 14, 2007 to shareholders of record as of March 7, 2007. The Company has 53.05 million shares of common stock outstanding.

“We are pleased that our earnings per share performance has continued its positive sequential trend during the year 2006. EPS rose during 2006 to US$0.37 in the fourth quarter, up from US$0.32 in the third quarter, US$0.28 in the second quarter (before the non-recurring preferential deemed dividend), and US$0.26 in the first quarter. We believe that our strategy of expanding our fleet, while maintaining a flexible chartering policy that permits the Company to benefit from the dynamic nature of the freight market, has driven our strong results and enabled us to continue increasing our dividend for the fourth quarter of 2006 to 46 cents per share,” said Simeon Palios, Chairman and Chief Executive Officer of Diana Shipping Inc.