Paragon Shipping Announces the Acquisition of Two
Newbuilding Ultramax Drybulk Carriers

Athens, Greece - October 3, 2013

Paragon Shipping Inc. (NASDAQ: PRGN) ("Paragon Shipping" or the "Company"), a global shipping transportation company specializing in drybulk cargoes, announced today that, following the completion of its previously announced public offering of 6,000,000 common shares on September 27, 2013, it has completed the acquisition of two Ultramax newbuilding drybulk carriers from an affiliated entity. The Ultramax newbuildings have a carrying capacity of 63,500 dwt each, and are currently under construction at Yangzhou Dayang Shipbuilding Co., Ltd., member of Sinopacific Shipbuilding Group, with scheduled delivery on May 31, 2014 and July 31, 2014, respectively.

The total consideration for these two newbuildings was $53.0 million, and on October 3, 2013, the Company paid a first installment of $8.1 million per vessel. The balance of the contract price, or $18.4 million per vessel, will be payable upon the delivery of each vessel. Commenting on the developments, our Chairman and CEO, Michael Bodouroglou stated "We are very pleased to announce the acquisition of the two Ultramax newbuildings, which underlines our commitment to our strategy of conservative growth and maintaining a modern fleet. Both vessels are of eco-design and we expect them to have a competitive advantage in the marketplace."

About Paragon Shipping
Paragon Shipping is an international shipping company incorporated under the laws of the Republic of the Marshall Islands with executive offices in Athens, Greece, specializing in the transportation of drybulk cargoes. Paragon Shipping's current fleet consists of thirteen drybulk vessels with a total carrying capacity of 816,472 dwt. In addition, Paragon Shipping's current newbuilding program consists of one Handysize drybulk carrier scheduled to be delivered in the fourth quarter of 2013, as well as two Ultramax drybulk carriers and two 4,800 TEU containerships that are scheduled to be delivered in 2014. Paragon Shipping has granted Box Ships Inc., an affiliated company, the option to acquire its two containerships under construction. For more information, visit: The information contained on the Paragon Shipping's website does not constitute part of this press release.

Paragon Shipping Inc. press release