New York, New York, November 16, 2005 – Diana Shipping Inc. (NYSE: DSX) today announced that it has filed a registration statement with the Securities and Exchange Commission for a proposed follow on offering of common stock.  Bear, Stearns & Co., Inc. will act as bookrunning manager.

The Company further announced that it will file today an amendment to the registration statement solely for the purpose of amending the calculation of the registration fee.  Specifically, the amendment will reflect that the estimated offering price, solely for the purpose of calculating the registration fee, will be the closing price of the Company’s common stock on the New York Stock Exchange as of November 15, 2005, of $15.12 per share.

The registration statement relating to these securities has been filed with the Securities and Exchange Commission but has not yet become effective.  These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. 

This communication shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.

When available, copies of the prospectus relating to the offering may be obtained from the offices of Bear, Stearns & Co. Inc. at 383 Madison Avenue, New York, New York 10179, Attention: Prospectus Department.

About Diana Shipping Inc.

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.  The Company currently owns nine modern Panamax and one modern Capesize bulk carrier and has agreed to acquire three additional modern Panamax dry bulk carriers.  Diana Shipping Inc. priced its initial public offering of common stock on March 17, 2005.