DIANA SHIPPING INC. ANNOUNCES PUBLIC
OFFERING OF COMMON SHARES

ATHENS, GREECE, September 12, 2007, Diana Shipping Inc. (NYSE: DSX), a global shipping company specializing in the transportation of dry bulk cargoes, today announced that it is commencing a public offering of 10,000,000 primary shares of its common stock pursuant to an effective shelf registration statement. Wachovia Securities and JPMorgan will act as joint book running managers. The Company expects to grant the underwriters an option to purchase an additional 1,500,000 common shares to cover any over-allotments, exercisable within 30 days, and expects to price the offering in due course.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale, of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.

The offering will be made only by means of a prospectus and related prospectus supplement filed with the Securities and Exchange Commission. When available, copies of the prospectus and prospectus supplement relating to the offering may be obtained from Wachovia Securities at 375 Park Avenue, New York, NY 10152, telephone: 800- 326-5897 or from JPMorgan at National Statement Processing, Prospectus Library, 4 Chase Metrotech Center, CS Level, Brooklyn, NY 11245, telephone: 718-242-8002.

About the Company
Diana Shipping Inc. (NYSE: DSX) is a global provider of shipping transportation services. The Company specializes in transporting dry bulk cargoes, including such commodities as iron ore, coal, grain and other materials along worldwide shipping routes.

Diana Shipping Inc