ATHENS, GREECE, October 28, 2005 – Diana Shipping Inc. (NYSE: DSX), a global shipping transportation company specializing in dry bulk cargoes, today reported net income of $16.4 million for the third quarter of 2005, compared to net income of $8.9 million recorded in the third quarter of 2004, representing an increase of $7.5 million or 84%. Voyage and time charter revenues were $25.8 million for the third quarter of 2005, an
increase of 70% from the $15.2 million reported in the same period of 2004.

Net income for the nine months ended September 30, 2005 increased by $22.6 million or 79% to $51.1 million, compared to $28.5 million for the equivalent period in 2004. Voyage and time charter revenues were $79.1
million for the first nine months of 2005, compared to $45.4 million for the same period of 2004, representing an increase of 74%.

Dividend Declaration

The Company has declared a cash dividend on its common stock of $0.465 per share, based on the Company’s results of operations during the third quarter ended September 30, 2005. The cash dividend will be payable on
or about November 22, 2005 to all shareholders of record as of November 7, 2005. The Company has 40 million shares of common stock outstanding.