ATHENS, GREECE, November 7, 2006 – Diana Shipping Inc. (NYSE: DSX), a global shipping transportation company specializing in dry bulk cargoes, today reported net income of $16.7 million for the third quarter of 2006, compared to net income of $16.4 million reported for the same period of 2005.

Voyage and time charter revenues were $30.6 million for the third quarter of 2006, compared to $25.8 million for the same period of 2005. This increase was due to an increase in the number of vessels in the Company’s fleet, which was partially offset by decreased hire rates.

Net income for the nine months ended September 30, 2006, amounted to $41.6 million compared to net income of $51.1 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 $21.4 million. Voyage and time charter revenues were $80.9 million for the first nine months of 2006, compared to $79.1 million for the same period of 2005.

Dividend Declaration

The Company has declared a cash dividend on its common stock of $0.40 per share, based on the Company’s results from operations during the third quarter ended September 30, 2006. The cash dividend will be payable on or about November 30, 2006 to shareholders of record as of November 22, 2006. The Company has 53.05 million shares of common stock outstanding.

“We are pleased that our earnings per share performance has continued its positive trend during the first three quarters of 2006. EPS rose to US$0.32 in the third quarter, up from US$0.28 in the second quarter (before the non-recurring preferential deemed dividend), and US$0.26 in the first quarter. Our successful strategies to grow our fleet, while maintaining a flexible chartering policy that permits the Company to benefit from the dynamic of our marketplace, also have resulted in our being able to increase our dividend for the third quarter of 2006 to 40 cents per share,” said Simeon Palios, Chairman and Chief Executive Officer of Diana Shipping Inc.