Paragon Shipping Consolidates its 4800 TEU Containerships, Reduces the Contract Price on Remaining Vessel and Purchases two Additional Eco-Design Ultramax Newbuildings

Athens, Greece, December 9, 2013

Paragon Shipping Inc. (NASDAQ: PRGN) ("Paragon Shipping" or the "Company"), a global shipping transportation company specializing in drybulk cargoes, announced today that it has entered into an agreement with a Chinese shipyard to cancel one of its two 4,800 TEU containership newbuilding contracts at no cost to the Company, transfer the deposit to the remaining vessel and to reduce its contract price from the original $57.5 million to$55.0 million. After taking into consideration the above changes, the Company will have one 4,800 TEU containership newbuilding on order with $23.0 million, or approximately 42% of the purchase price, already funded and the remainder of the contract price due upon delivery in the second quarter of 2014. The final installment due on delivery will be financed through the Company's loan facility with China Development Bank, subject to certain closing conditions. The Company has granted Box Ships Inc. an option to acquire the containership newbuilding.

Subsequently, the Company announced that it has acquired two additional Eco-Design Ultramax newbuilding drybulk carriers from an affiliated entity with scheduled deliveries in the second quarter of 2015. The two Ultramax newbuildings are being built in Yangzhou Dayang Shipbuilding Co., a member of the Sinopacific Shipbuilding Group, and will have acarrying capacity of 63,500 dwt each. The Ultramax vessels are sister ships to our existing two Ultramax newbuildingsunder construction at the same yard that are expected to be delivered in 2014, and include approximately $1.6 million in extra equipment. The total consideration for these two Ultramax newbuildings is $56.5 million.

Commenting on the developments, our Chairman and CEO, Michael Bodouroglou, stated "The cancellation and reduction in price of the containership newbuilding improves the Company's equity position, and gives Paragon greater flexibility as it can now take delivery of the one containership with little or no additional equity. We now have 13 vessels on the water and we believe this recent positive event will result in additional long-term growth for the Company. By acquiring the two additional Eco-Design Ultramax newbuildings, our newbuilding program has grown to six vessels, including the one containership, to be delivered starting December 2013 through to the middle of 2015. "

About Paragon Shipping Inc.
Paragon Shipping Inc. is an international shipping company incorporated under the laws of the Republic of the MarshallIslands 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, two Ultramax drybulk carriers and one 4,800 TEU containership that are scheduled to be delivered in 2014 and two Ultramax drybulk carriers that are scheduled to be delivered in 2015. Paragon Shipping has granted Box Ships Inc., an affiliated company, the option to acquire its containership under construction. For more information, visit:www.paragonship.com. The information contained on the Paragon Shipping's website does not constitute part of this press release.

Paragon Shipping Inc. press release