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

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

Announces Delivery of the Post-Panamax Dry Bulk Carrier M/V Polymnia and Entry
Into Time Charter Contract

Announces Time Charter Contract for the M/V Arethusa

ATHENS, Greece, Nov. 20, 2012 (GLOBE NEWSWIRE) -- Diana Shipping Inc.
(NYSE:DSX), a global shipping company specializing in the ownership and
operation of dry bulk vessels, today reported net income of $12.3 million for
the third quarter of 2012, compared to net income of $26.4 million reported in
the third quarter of 2011.

Time charter revenues were $56.2 million for the third quarter of 2012,
compared to $64.2 million for the same period of 2011, mainly due to reduced
time charter rates. The decrease in time charter revenues was partly offset by
revenues derived from the increase in ownership days resulting from the
addition to the Company's fleet of the vessels Leto delivered in January 2012,
Los Angeles delivered in February 2012, Philadelphia and Melia delivered in
May 2012, and Amphitrite delivered in August 2012.

Net income to Diana Shipping Inc. for the nine months ended September 30, 2012
amounted to $49.6 million, compared to net income of $87.3 million for the
same period of 2011. Time charter revenues were $171.4 million for the nine
months ended September 30, 2012, compared to $198.3 million for 2011.

Delivery of the m/v Polymnia and Entry into Time Charter Contract

In addition, the Company also announced that, through a separate wholly-owned
subsidiary, it has taken delivery today of the m/v "Polymnia," a 98,704 dwt
newly built Post-Panamax dry bulk carrier that the Company entered into an
agreement to purchase in October 2012.

The Company also announced that it has entered into a time charter contract
with Sino East Transportation Ltd., Hong Kong, through the aforementioned
subsidiary, for the newly delivered Polymnia at a gross charter rate of
US$8,000 per day, minus a 5% commission paid to third parties, for a period of
about forty-five (45) to fifty-five (55) days. The charter is expected to
commence tomorrow, November 21, 2012.

Time Charter Contract for the m/v Arethusa

The Company also announced that it has entered into a time charter contract
with Cargill International S.A., Geneva, through a separate wholly-owned
subsidiary, for one of its Panamax dry bulk carriers, the m/v "Arethusa", at a
gross charter rate of US$7,300 per day, minus a 5% commission paid to third
parties, for a period of minimum eighteen (18) months to maximum twenty-four
(24) months. The charter is expected to commence on November 23, 2012.

This employment is anticipated to generate approximately US$3.9 million of
gross revenue for the minimum scheduled period of the charter.

The Arethusa is a 73,593 dwt Panamax dry bulk vessel built in 2007.

Including the newly-delivered m/v Polymnia, Diana Shipping Inc.'s fleet
currently consists of 30 dry bulk carriers (17 Panamax, 3 Post-Panamax, 8
Capesize and 2 Newcastlemax), as well as 2 new-building Ice Class Panamax
vessels expected to be delivered to the Company during the fourth quarter of
2013. As of today, the combined carrying capacity of our current fleet,
excluding the two vessels not yet delivered, is approximately 3.4 million dwt
with a weighted average age of 5.9 years. A table describing the current Diana
Shipping Inc. fleet can be found on the Company's website,
www.dianashippinginc.com. Information contained on the Company's website does
not constitute a part of this press release.

   Fleet Employment Profile (As of November 20, 2012)                              
   Currently Diana Shipping Inc.'s fleet is employed as follows:                   
                                                                           
                        Gross                          Delivery   Redelivery
   Vessel       Sister Rate     Com**  Charterer      Date to    Date to    Notes  
    BUILTDWT    Ships* (USD Per                       Charterer  Owners***
                        Day)
   Panamax Bulk Carriers                                                           
                                        EDF Trading               27-Nov-13
1  CORONIS      C      $10,600  5.00%  Limited,       12-Mar-12  -                
                                        London                    27-Jun-14
   200674,381                                                              
                                        Hyundai
                                        Merchant                  26-Dec-12
2  ERATO       C      $12,200  5.00%  Marine Co.,    26-Nov-11  -                
                                        Ltd., Seoul,              10-Apr-13
                                        South Korea
   200474,444                                                              
3  ARETHUSA     B      $9,250   5.00%  DS Norden A/S, 17-May-12  22-Nov-12  1     
                                        Copenhagen
                                        Cargill                   23-May-14
                     $7,300  5.00%  International, 23-Nov-12 -                
                                        S.A., Geneva             23-Nov-14
   200773,593                                                              
                                        J. Aron &
4  NAIAS        B      $19,750  5.00%  Company, New   24-Sep-10  2-Sep-12         
                                        York
                                        Ultrabulk A/S,            2-Feb-14 -
                     $9,250   5.00%  Copenhagen,    2-Sep-12   2-Aug-14         
                                        Denmark
   200673,546                                                              
                                        Cargill                   22-Aug-13
5  CLIO         B      $10,750  5.00%  International  22-Feb-12  -                
                                        S.A., Geneva              22-Feb-14
   200573,691                                                              
                                        Louis Dreyfus             11-Aug-13
6  CALIPSO     B      $12,250  5.00%  Commodities    11-Oct-11  -                
                                        Suisse S.A.,              11-Dec-13
                                        Geneva
   200573,691                                                              
                                        Cargill
7  PROTEFS      B      $11,750  4.75%  International  6-Aug-11   2-Sep-12   2     
                                        S.A., Geneva
                                                                  14-Sep-14
   200473,630        $9,000   5.00%                14-Sep-12  -          
                                                                  14-Feb-15
                                        EDF Trading               22-Aug-13
8  THETIS       B      $10,500  5.00%  Limited,       22-Feb-12  -          3     
                                        London                    22-Jun-14
   200473,583                                                              
                                        Louis Dreyfus
9  DIONE       A      $20,500 5.00% Commodities    26-Sep-10  19-Jul-12        
                                        Suisse S.A.,
                                        Geneva
                                        EDF Trading               19-Jul-14
                     $9,700   5.00%  Limited,       19-Jul-12  -          4     
                                        London                    19-Dec-14
   200175,172                                                              
                                        Hyundai
                                        Merchant                  18-Mar-13
10 DANAE       A      $15,600 5.00% Marine Co.,    18-Apr-11  -          5     
                                        Ltd., Seoul,              18-May-13
                                        South Korea
   200175,106                                                              
                                        China National
                                        Chartering Co.
11 OCEANIS     A      $19,750  5.00%  Ltd.           17-Sep-10  14-Aug-12  6     
                                        (Sinochart
                                        BJ), Beijing
                                        Ultrabulk A/S,            14-Jan-14
                     $9,250   5.00%  Copenhagen,    14-Aug-12  -          
                                        Denmark                   14-Jul-14
   200175,211                                                              
                                        Resource                  11-Nov-13
12 TRITON       A      $19,500  4.75%  Marine Pte.,   11-Dec-10  -          7     
                                        Ltd, Singapore            11-Feb-14
   200175,336                                                              
                                        Cargill
13 ALCYON       A      $34,500  4.75%  International  21-Feb-08  19-Nov-12  8,9,10 
                                        S.A., Geneva
   200175,247                                                              
                                        Morgan Stanley            18-Jan-13
14 NIREFS       A      $12,250  5.00%  Capital Group  18-Dec-11  -          11,12  
                                        Inc.                      18-Apr-13
   200175,311                                                              
                                        STX Panocean              2-Apr-13 -
15 MELIA        G      $10,900  5.00%  Co., Ltd.,     2-May-12   2-Jul-13         
                                        Seoul
   200576,225                                                              
                                        Cargill                   1-Jan-13 -
16 MELITE       G      $16,500  5.00%  International  1-Feb-11   1-Mar-13         
                                        S.A., Geneva
   200476,436                                                              
                                        EDF Trading               17-Jan-14
17 LETO               $12,900  5.00%  Limited,       17-Jan-12  -                
                                        London                    17-Nov-14
   201081,297                                                              
   Post-Panamax Bulk Carriers                                                      
                                        Cargill
18 ALCMENE            $20,250  5.00%  International  20-Nov-10  24-Oct-12  13    
                                        S.A., Geneva
                                        Oldendorff                6-Dec-12 -
   201093,193        $6,250   5.00%  GmbH Co., KG,  1-Nov-12   16-Dec-12  14    
                                        Luebeck
                                        Bunge S.A.,               31-May-14
19 AMPHITRITE         $10,000  5,00%  Geneva         15-Aug-12  -          15    
                                                                  30-Oct-14
   201298,697                                                              
                                        Sino East                 5-Jan-13 -
20 POLYMNIA           $8,000   5.00%  Transportation 21-Nov-12  15-Jan-13  16,17  
                                        Ltd, Hong Kong
   201298,704                                                              
   Capesize Bulk Carriers                                                          
                                        Corus UK                  12-Jan-13
21 NORFOLK            $74,750  3.75%  Limited        12-Feb-08  -          18,19  
                                                                  12-Mar-13
   2002164,218                                                             
                                        Minmetals
22 ALIKI              $26,500  5.00%  Logistics      1-Mar-11   1-Feb-16 -       
                                        Group Co.                 1-Apr-16
                                        Ltd., Beijing
   2005180,235                                                             
    SALT LAKE                           Refined
23 CITY               $55,800  5.00%  Success        28-Sep-07  29-Jul-12  20,21  
                                        Limited
                                        Morgan Stanley            11-Jun-14
                     $13,000  5.00%  Capital Group  11-Aug-12  -          
                                        Inc.                      11-Dec-14
   2005171,810                                                             
                                        BHP Billiton              16-Feb-13
24 SIDERIS GS   D      $30,500  5.00%  Marketing AG   16-Oct-10  -          22    
                                                                  16-Jun-13
   2006174,186                                                             
                                        Cargill                   15-Mar-13
25 SEMIRIO      D      $17,350  5.00%  International  30-May-11  -                
                                        S.A., Geneva              14-Aug-13
   2007174,261                                                             
                                        Morgan Stanley            29-Aug-13
26 BOSTON       D      $14,000  5.00%  Capital Group  29-Oct-11  -          23    
                                        Inc.                      29-Dec-13
   2007177,828                                                             
27 HOUSTON      D      $55,000  4.75%  Shagang        3-Nov-09   3-Oct-14 - 24    
                                        Shipping Co.              3-Jan-15
   2009177,729                                                             
                                        Nippon Yusen              3-Jan-15 -
28 NEW YORK     D      $48,000  3.75%  Kaisha, Tokyo  3-Mar-10   3-May-15         
                                        (NYK)
   2010177,773                                                             
   Newcastlemax Bulk Carriers                                                      
                                        EDF Trading               9-Dec-15 -
29 LOS ANGELES  E      $18,000  5.00%  Limited,       9-Feb-12   9-Apr-16         
                                        London
   2012206,104                                                             
                                        EDF Trading               17-Jan-16
30 PHILADELPHIA E      $18,000  5.00%  Limited,       17-May-12  -          25    
                                        London                    17-Jul-16
   2012206,040                                                             
   Vessels Under Construction                                                      
31 HULL H2528   F      --       --     --             --         -- -- --   26    
   201376,000                                                              
32 HULL H2529   F      --       --     --             --         -- -- --   26    
   201376,000                                                              
* Each dry bulk carrier is a "sister ship," or closely similar, to other dry bulk   
carriers that have the same letter.
** Total commission percentage paid to third parties.                               
*** Charterers' optional period to redeliver the vessel to owners. Charterers have
the right to add the off hire days, if any, and therefore the optional period may   
be extended.
1 Estimated date.                                                                   
2 Vessel off-hire for drydocking from September 2, 2012 to September 14, 2012.      
3 Vessel off-hire from September 23, 2012 to October 3, 2012.                       
4 The previous charterers, Louis Dreyfus Commodities Suisse S.A., Geneva, have
agreed to compensate the owners for the early redelivery by paying US$ 11,875 gross
per day, minus 5% commission paid to third parties, starting from the date of       
redelivery to owners, on July 19, 2012, to the minimum agreed redelivery date, July
26, 2012.
5 Vessel off-hire for unscheduled maintenance from May 5, 2012 to May 9, 2012.      
6 The previous charterers, China National Chartering Co. Ltd (Sinochart BJ),
Beijing have agreed to compensate the owners for the early redelivery of the vessel 
on August 14, 2012 till the minimum agreed redelivery date, August 17, 2012.
7 Resource Marine Pte., Ltd, Singapore is a guaranteed nominee of Macquarie Bank    
Limited.
8 Vessel off-hire from July 28, 2012 to July 30, 2012.                              
9 The previous charterers, Cargill International S.A., Geneva, have agreed to
compensate the owners for the early redelivery of the vessel on November 19,        
2012till the minimum agreed redelivery date, November 21, 2012.
10 Vessel currently undergoing scheduled maintenance.                               
11 Vessel off-hire for drydocking from September 26, 2012 to October 15, 2012.      
12 Vessel currently off-hire for unscheduled maintenance.                           
13 Vessel drydocked from October 24, 2012 to November 1, 2012.                      
14 Redelivery dates based on an estimated voyage duration of about 35-45 days.      
15 The charterer has the option to employ the vessel for a further 11 to 14 month
period at a gross charter rate of $11,300 per day. The optional period, if          
exercised, must be declared on or before the end of the 21st month of employment
and will only commence at the end of the 24th month.
16 Estimated date of delivery to the charterers.                                    
17 Redelivery dates based on an estimated voyage duration of about 45-55 days.      
18 Since September2010 charterer's name has changed to Tata Steel UK, Limited.     
19 Vessel off-hire for drydocking from September 8, 2012 to September 17, 2012.     
20 The previous charterers, Refined Success Limited, have agreed to compensate the
owners for the early redelivery by paying US$ 1,540,132.71 gross, minus 3.75%
commission paid to third parties, for the period starting from the date of          
redelivery to owners, on July 29, 2012, to the minimum agreed redelivery date,
August 28, 2012.
21 Vessel drydocked from July 29, 2012 till August 11, 2012.                        
22 Since October 25, 2012 charterers have changed to BHP Billiton Singapore Pte     
Ltd.
23 Morgan Stanley Capital Group Inc. has the option to employ the vessel for a
further minimum eleven (11) to a maximum thirteen (13) month period at a gross rate 
of US$15,000 per day starting twenty-four (24) months after delivery of the vessel
to the charterer.
24 Shagang Shipping Co. is a guaranteed nominee of the Jiangsu Shagang Group Co.    
25 Vessel off-hire for unscheduled maintenance from June 1, 2012 to June 5, 2012.   
26 Year of delivery and dwt are based on shipbuilding contract.                     

Summary of
Selected Financial                                            
& Other Data
                  For the three months ended     For the nine months ended
                   September 30,                  September 30,
                  2012            2011           2012           2011
                  (unaudited)     (unaudited)    (unaudited)    (unaudited)
INCOME STATEMENT
DATA (in thousands                                            
of US Dollars):
Time charter       $ 56,220       $ 64,248      $ 171,405     $ 198,299
revenues
Voyage expenses    1,090          3,105         6,191         8,666
Vessel operating   16,950         14,065        46,977        40,507
expenses
Net income
attributed to      12,285         26,443        49,623        87,256
Diana Shipping
Inc.
FLEET DATA                                                   
Average number of  28.5           23.9          27.0          23.4
vessels
Number of vessels  29.0           24.0          29.0          24.0
Weighted average
age of vessels (in 5.9            6.1           5.9           6.1
years)
Ownership days     2,624          2,202         7,409         6,401
Available days     2,584          2,187         7,323         6,318
Operating days     2,567          2,181         7,290         6,279
Fleet utilization  99.3%           99.7%          99.5%          99.4%
AVERAGE DAILY                                                 
RESULTS
Time charter
equivalent (TCE)   $ 21,335       $ 27,957      $ 22,561      $ 30,015
rate (1)
Daily vessel
operating expenses $ 6,460        $ 6,387       $ 6,341       $ 6,328
(2)
                                                             
(1) Time charter equivalent rates, or TCE rates, are defined as our time
charter revenues less voyage expenses during a period divided by the number of
our available days during the period, which is consistent with industry
standards.Voyage expenses include port charges, bunker (fuel) expenses, canal
charges and commissions.TCE is a non-GAAP measure.TCE rate is a standard
shipping industry performance measure used primarily to compare daily earnings
generated by vessels on time charters with daily earnings generated by vessels
on voyage charters, because charter hire rates for vessels on voyage charters
are generally not expressed in per day amounts while charter hire rates for
vessels on time charters are generally expressed in such amounts.
                                                             
(2) Daily vessel operating expenses, which include crew wages and related
costs, the cost of insurance, expenses relating to repairs and maintenance,
the costs of spares and consumable stores, tonnage taxes and other
miscellaneous expenses, are calculated by dividing vessel operating expenses
by ownership days for the relevant period.

Conference Call and Webcast Information

Diana Shipping Inc. will conduct a conference call and simultaneous Internet
webcast to review these results at 9:00 A.M. (Eastern Time) on Tuesday,
November 20, 2012.

Investors may access the webcast by visiting the Company's website at
www.dianashippinginc.com, and clicking on the webcast link.The conference
call also may be accessed by telephone by dialing 1-877-407-8291 (for
U.S.-based callers) or 1-201-689-8345 (for international callers), and asking
the operator for the Diana Shipping Inc. conference call.

A replay of the webcast will be available soon after the completion of the
call and will be accessible for 30 days on www.dianashippinginc.com.A
telephone replay also will be available for 30 days by dialing 1-877-660-6853
(for U.S.-based callers) or 1-201-612-7415 (for international callers), and
providing the Replay ID number 401891.

About the Company

Diana Shipping Inc. is a leading global provider of shipping transportation
services through the ownership and operation of dry bulk vessels. The
Company's vessels are employed primarily on medium to long-term time charters
and transport a range of dry bulk cargoes, including such commodities as iron
ore, coal, grain and other materials along worldwide shipping routes.

Cautionary Statement Regarding Forward-Looking Statements

Matters discussed in this press release may constitute forward-looking
statements.The Private Securities Litigation Reform Act of 1995 provides safe
harbor protections for forward-looking statements in order to encourage
companies to provide prospective information about their
business.Forward-looking statements include statements concerning plans,
objectives, goals, strategies, future events or performance, and underlying
assumptions and other statements, which are other than statements of
historical facts.

The Company desires to take advantage of the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995 and is including this
cautionary statement in connection with this safe harbor legislation. The
words "believe," "anticipate," "intends," "estimate," "forecast," "project,"
"plan," "potential," "may," "should," "expect," "pending" and similar
expressions identify forward-looking statements.

The forward-looking statements in this press release are based upon various
assumptions, many of which are based, in turn, upon further assumptions,
including without limitation, our management's examination of historical
operating trends, data contained in our records and other data available from
third parties.Although we believe that these assumptions were reasonable when
made, because these assumptions are inherently subject to significant
uncertainties and contingencies which are difficult or impossible to predict
and are beyond our control, we cannot assure you that we will achieve or
accomplish these expectations, beliefs or projections.

In addition to these important factors, other important factors that, in our
view, could cause actual results to differ materially from those discussed in
the forward-looking statements include the strength of world economies and
currencies, general market conditions, including fluctuations in charter rates
and vessel values, changes in demand for dry bulk shipping capacity, changes
in our operating expenses, including bunker prices, drydocking and insurance
costs, the market for our vessels, availability of financing and refinancing,
changes in governmental rules and regulations or actions taken by regulatory
authorities, potential liability from pending or future litigation, general
domestic and international political conditions, potential disruption of
shipping routes due to accidents or political events, vessels breakdowns and
instances of off-hires and other factors.Please see our filings with the
Securities and Exchange Commission for a more complete discussion of these and
other risks and uncertainties.

                       (See financial tables attached)

                                                                        
                                                                        
DIANA SHIPPING INC.                                                          
FINANCIAL TABLES                                                             
Expressed in thousands of U.S. Dollars, except share and per share data      
                                                                        
UNAUDITED INTERIM CONSOLIDATED STATEMENTS OF INCOME                         
                                                                        
                       For the three months ended For the nine months ended 
                        September 30,              September 30,
                       2012          2011         2012         2011         
                                                                        
REVENUES:                                                                
Time charter revenues   $ 56,220   $64,248    $171,405   $ 198,299   
Other revenues          614         352        1,800      753        
                                                                        
EXPENSES:                                                                
Voyage expenses         1,090       3,105      6,191      8,666      
Vessel operating        16,950      14,065     46,977     40,507     
expenses
Depreciation and
amortization of         15,993      14,105     45,908     41,169     
deferred charges
General and             6,222       6,099      18,904     18,849     
administrative expenses
Foreign currency gains  (338)         (145)        (1,110)      (343)        
Operating income        16,917      27,371     56,335     90,204     
                                                                        
OTHER INCOME /                                                           
(EXPENSES):
Interest and finance    (2,165)       (1,212)      (5,564)      (3,670)      
costs
Interest income         291         258        1,186      697        
Loss from derivative    (276)         (381)        (516)        (955)        
instruments
Income / (loss) from
investment in Diana     (2,482)       407        (1,818)      978        
Containerships Inc.
Total other expenses,   (4,632)       (928)        (6,712)      (2,950)      
net
                                                                        
Net Income             $ 12,285    $ 26,443    $ 49,623    $ 87,254    
                                                                        
Loss assumed by
non-controlling         --          --         --         2          
interests
                                                                        
Net income attributed   12,285      26,443     49,623     87,256     
to Diana Shipping Inc.
                                                                        
Earnings per common
share, basic and        $ 0.15     $ 0.33      $ 0.61      $ 1.08      
diluted
                                                                        
Weighted average number 80,931,326   81,089,446  81,182,564  81,048,635  
of common shares, basic
                                                                        
Weighted average number
of common shares,       80,931,326   81,143,058  81,182,564  81,079,457  
diluted
                                                                        
UNAUDITED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME           
                                                                        
                       For the three months ended For the nine months ended 
                        September 30,              September 30,
                       2012         2011        2012         2011         
Net income              $ 12,285    $ 26,443    $ 49,623    $ 87,254    
                                                                        
Comprehensive loss
assumed by              --          --         --         2          
non-controlling
interests
                                                                        
Comprehensive income
attributed to Diana     $ 12,285     $ 26,443    $ 49,623    $ 87,256    
Shipping Inc.

                                                                
                                                                
CONDENSED UNAUDITED CONSOLIDATED BALANCE SHEET DATA              
(in thousands of US Dollars)                                     
                                                                
                                                   September 30, December 31,
                                                    2012          2011
ASSETS                                                           
                                                                
Cash and cash equivalents                         $ 452,454    $ 416,674
Other current assets                               16,990       16,017
Advances for vessels under construction and        8,772        63,440
acquisitions and other vessel costs
Vessels' net book value                           1,201,524    1,046,719
Other fixed assets, net                            22,319       21,659
Investments                                        25,690       29,842
Other non-current assets                           6,436        10,120
Total assets                                       $ 1,734,185  $ 1,604,471
                                                                
LIABILITIES AND STOCKHOLDERS' EQUITY                             
                                                                
Current liabilities, including current portion of  $ 58,032     $ 48,095
long-term debt
Long-term debt, net of current portion and of      413,662      345,638
deferred financing costs
Other non-current liabilities                      2,137        1,860
Total stockholders' equity                         1,260,354    1,208,878
Total liabilities and stockholders' equity         $ 1,734,185  $ 1,604,471

OTHER FINANCIAL DATA                                           
                         For the three months ended For the nine months ended
                          September 30,              September 30,
                         2012          2011        2012         2011
                         (unaudited)   (unaudited)  (unaudited)  (unaudited)
Net Cash provided by     $ 29,519      $ 39,458     $ 97,552     $ 120,523
Operating Activities
Net Cash used in         (24,372)      (33,259)     (141,665)    (80,815)
Investing Activities
Net Cash provided by /
(used in) Financing       (4,169)       13,455      79,893      10,145
Activities

CONTACT: Corporate Contact:
         Ioannis Zafirakis
         Director, Executive Vice-President and Secretary
         Telephone: + 30-210-9470100
         Email: izafirakis@dianashippinginc.com
         Website: www.dianashippinginc.com
        
         Investor and Media Relations:
         Edward Nebb
         Comm-Counsellors, LLC
         Telephone: + 1-203-972-8350
         Email: enebb@optonline.net