ATHENS, GREECE, May 5, 2005 – Diana Shipping Inc. (NYSE: DSX), a global shipping transportation company specializing in dry bulk cargoes, today reported net income of $14.6 million for the first quarter of 2005. This represents an increase of $7.4 million or 103% compared to net income of $7.2 million recorded in the first quarter of 2004.

Dividend declaration

The Company has declared a cash dividend on its common stock of $0.08 per share, based on the Company’s operations during the 14-day stub period from March 18, when its shares started trading on the New York Stock Exchange, to March 31, 2005. The cash dividend will be payable on June 2, 2005 to all shareholders of record as at May 16, 2005. The company has 40 million shares of common stock outstanding.

During this 14-day stub period, which followed the pricing of the Company’s initial public offering of common stock, there were nine vessels operating as compared to ten vessels expected to be operating in the fleet after the delivery of a newbuilding panamax bulk carrier in May 2005.