ATHENS, GREECE, May 11, 2006 – Diana Shipping Inc. (NYSE: DSX), a global shipping transportation company specializing in dry bulk cargoes, today reported net income of $11.7 million for the three months ended March 31, 2006 compared to $14.6 million for the same period of 2005. Voyage and time charter revenues were $24.2 million for the three months ended March 31, 2006, compared to $23.9 million for the same period of 2005. Voyage and time charter revenues and net income reported for the first quarter of 2006 have been reduced by $0.8 million, reflecting the non-cash amortization of the prepaid time charter revenue of the vessel Thetis.

Dividend declaration

The Company has declared a cash dividend on its common stock of $0.345 per share, based on the Company’s results from operations during the quarter ended March 31, 2006. The cash dividend will be payable on or about June 8, 2006 to all shareholders of record as of May 18, 2006. The Company has 45 million shares of common stock outstanding.

During the quarter ended March 31, 2006, there were 12.7 vessels on average operating in the Company’s fleet, as compared with 8.0 vessels during the corresponding period of 2005.