Paragon Shipping Announces Effectiveness
of One-For-Ten Reverse Stock Split

ATHENS, Greece (November 5, 2012)

Paragon Shipping Inc. (NYSE: PRGN) ("Paragon Shipping" or the "Company"), today announced that the previously announced one-for-ten reverse stock split of the Company's issued and outstanding shares of common stock, par value $0.001 per share (the "Common Stock"), became effective after the close of trading today. The Company's Common Stock will commence trading on a split-adjusted basis on the New York Stock Exchange ("NYSE") upon the open of trading on November 6, 2012. The Common Stock will continue trading on the NYSE under the symbol "PRGN" but will trade under a new CUSIP number, 69913R 408.

The reverse stock split was previously approved by the Company's board of directors and by shareholders at the 2012 Annual General Meeting of Shareholders held on October 24, 2012.

Upon effectiveness of the reverse stock split, each ten (10) shares of the Company's issued and outstanding Common Stock was automatically and without any action on the part of the respective holders thereof combined and converted into one (1) issued and outstanding share of Common Stock. This reduced the number of issued and outstanding shares of the Company's Common Stock from approximately 61.0 million to approximately 6.1 million. The reverse stock split affected all issued and outstanding shares of the Company's Common Stock, as well as Common Stock underlying stock options outstanding immediately prior to the effectiveness of the reverse stock split. The number of authorized shares of the Company's Common Stock was not affected by the reverse split.

No fractional shares were issued in connection with the reverse stock split. Shareholders who would have otherwise held a fractional share of the Company's Common Stock as a result of the reverse stock split will receive a cash payment in lieu of such fractional share.

Shareholders holding physical share certificates will receive instructions from the Company's exchange agent, Computershare Trust Company, N.A., regarding the process for exchanging their shares. Shareholders with shares held in book-entry form or through a bank, broker, or other nominee are not required to take any action and will see the impact of the reverse stock split reflected in their accounts after November 5, 2012. Beneficial holders may contact their bank, broker, or nominee for more information.

About Paragon Shipping Inc.
Paragon Shipping is a Marshall Islands-based international shipping company with executive offices in Athens, Greece, specializing in the transportation of drybulk cargoes. The Company's current fleet consists of twelve drybulk vessels with a total carrying capacity of 779,270 dwt. In addition, the Company's current newbuilding program consists of two Handysize drybulk carriers and two 4,800 TEU Containerships. Paragon Shipping has granted Box Ships Inc., an affiliated company, the option to acquire its two Containerships under construction. For more information, visit: www.paragonship.com (the information contained on the Company's website does not constitute part of this press release).

Paragon Shipping Inc. press release