Diana Containerships Inc. Reports Financial Results for the Third Quarter and Nine Months Ended September 30, 2012;

Declares Cash Dividend of $0.30 per Share for the Third Quarter;

Announces the Delivery of a Panamax Container Vessel, the APL Garnet, and Commencement of Time Charter Contract.

ATHENS, GREECE, November 19, 2012

Diana Containerships Inc. (NASDAQ: DCIX), a global shipping company specializing in owning and operating containerships, today reported net income of $1.6 million for the third quarter of 2012, compared to net income of $2.7 million for the same period of 2011.

Time charter revenues were $14.6 million for the third quarter of 2012, compared to $9.7 million for the same period of 2011, mainly due to the increase in the number of vessels in the fleet following the delivery in February and March 2012 of the Cap San Marco (renamed Cap Domingo), Cap San Raphael (renamed Cap Doukato), APL Sardonyx and APL Spinel.

Net income to Diana Containerships Inc. for the nine months ended September 30, 2012 amounted to $5.7 million, compared to net income of $2.3 million for the same period of 2011. Time charter revenues were $42.0 million for the nine months ended September 30, 2012, compared to $17.2 million for the same period in 2011.

Dividend Declaration
The Company has declared a cash dividend on its common stock of $0.30 per share. The cash dividend will be payable on or around December 18, 2012 to all shareholders of record as at December 4, 2012. The Company has 32,191,964 shares of common stock outstanding.

Delivery of the m/v APL Garnet and Commencement of Time Charter Contract
In addition, the Company also announced that, through a separate wholly-owned subsidiary, it took delivery today of a Panamax container vessel, the m/v “APL Garnet”, a 1995-built vessel of approximately 4,750 TEU capacity. As previously announced, the APL Garnet is chartered to NOL Liner (Pte.) Ltd. (or a guaranteed nominee or other entity of the NOL Group, subject to the Company’s approval), for a period of thirty-four (34) months at a rate of US$27,000 per day, with 30 days more or less at the charterer’s option. The time-charter party commenced today and is expected to generate approximately US$26.7 million of revenues for the minimum agreed period of the charter.

Including the newly-delivered APL Garnet, Diana Containerships Inc.’s fleet currently consists of 10 Panamax container vessels. A table describing the current Diana Containerships Inc. fleet can be found on the Company’s website, www.dcontainerships.com. Information included on the Company’s website does not constitute a part of this press release.

Chairman and Chief Executive Officer’s Comments
“Our performance during this quarter reflects our successful efforts to build a solid business, with the capacity to pursue opportunities in the containership sector and to deliver strong financial performance relative to the current market environment and long-term shareholder value. Through our efforts to grow our fleet, including the newly-delivered m/v APL Garnet, we now have a fleet of 10 vessels – a significant increase over the two vessels we owned at the end of 2010. The growth of our fleet contributed to a dramatic rise in revenues and solid earnings for the third quarter of 2012. We also have a strong balance sheet, with a prudent level of debt and the resources to support our continued growth. “Our Board of Directors commenced a dividend policy as of the second quarter of 2011. Since that time, up to and including the third quarter of 2012, we will have paid dividends to our shareholders totalling $1.18 per share. We have added more vessels and strengthened our revenue-generating capacity since first establishing our dividend policy. It is our intention, assuming the continued performance of our current time charters and no unanticipated extraordinary expenses, to maintain for the foreseeable future the current quarterly dividend level of $0.30 per share.”

Diana Containerships Inc. press release