ATHENS, GREECE, April 25, 2005 – Diana Shipping Inc. (NYSE: DSX), a global shipping transportation company specializing in dry bulk cargoes, today reported net income of $31.6 million for the fourth quarter of 2004. This represents an increase of $28.2 million or 829% compared to net income of $3.4 million for the fourth quarter of 2003. Results for the twelve months ended December 31, 2004, show net income of $60.1 million, which increased by $50.6 million or 533% compared to net income of $9.5 million for 2003.

The company attributed the sharp increase in earnings primarily to higher voyage and time charter revenues, as well as a gain on the sale of a vessel in October 2004. Voyage and time charter revenues rose 111% for the fourth quarter and 153% for the year ended December 31, 2004, as compared with the respective 2003 periods, largely due to fleet expansion and increases in time charter hire rates.

Announcement of First Quarter Results; Expected Dividend Declaration

Diana Shipping expects to report its financial results for the first quarter of 2005, including the declaration of its dividend for the 14-day stub period ended March 31, 2005, on May 5, 2005. The daily Time Charter Equivalent rate for the first quarter of 2005 is expected to be approximately 15% higher than the Time Charter Equivalent for the fourth quarter of 2004 and approximately 45% higher than the Time Charter Equivalent for the first quarter of 2004.