Diana Shipping Inc. Announces Partial Exercise of Over-allotment Option to Purchase Additional 8.875% Series B Cumulative

Diana Shipping Inc. Announces Partial Exercise of Over-allotment Option to
Purchase Additional 8.875% Series B Cumulative Redeemable Perpetual Preferred
Shares

ATHENS, Greece, Feb. 25, 2014 (GLOBE NEWSWIRE) -- Diana Shipping Inc.
(NYSE:DSX) (the "Company") today announced that, in connection with its
previously announced underwritten public offering of 2,400,000 shares of its
8.875% Series B Cumulative Redeemable Perpetual Preferred Shares, par value
$0.01 per share, liquidation preference $25.00 per share (the "Series B
Preferred Shares") at $25.00 per share, the Company has sold an additional
200,000 Series B Preferred Shares on the same terms on which the 2,400,000
Series B Preferred Shares were sold to the underwriters pursuant to the
underwriters' partial exercise of their over-allotment option. The net
proceeds from the sale of the additional Series B Preferred Shares pursuant to
the over-allotment option were approximately $4.8 million. As previously
announced, the Company plans to use the net proceeds of the offering for
general corporate purposes, which may include the repayment of debt and the
acquisition of vessels.

The Series B Preferred Shares began trading on the New York Stock Exchange
under the symbol "DSXPRB" on February 21, 2014.

Following the closing of the sale of the additional Series B Preferred Shares
on February 24, 2014, the Company has 2,600,000 Series B Preferred Shares
issued and outstanding and 82,841,370 shares of common stock, par value $0.01
per share, issued and outstanding.

Morgan Stanley & Co. LLC, UBS Securities LLC and Deutsche Bank Securities Inc.
are acting as the joint bookrunning managers for the offering.

The final prospectus supplement and the accompanying prospectus relating to
the offering have been filed with the SEC and are available at the SEC's
website at http://www.sec.gov. Copies of the final prospectus supplement and
the accompanying prospectus relating to the offering may also be obtained from
Morgan Stanley & Co. LLC, 180 Varick Street, 2nd Floor, New York, NY 10014,
Attention: Prospectus Department, or by calling 1 866 718-1649 or by e-mail at
prospectus@morganstanley.com; UBS Securities LLC, 299 Park Avenue, New York,
NY 10171, Attention: Prospectus Specialist, or by calling: 1 877 827-6444,
ext. 561 3884; or Deutsche Bank Securities Inc., Harborside Financial Center,
100 Plaza One, Floor 2, Jersey City, NJ 07311-3988, Attention: Prospectus
Department, or by calling 1 (800) 503-4611 or by email at
prospectus.cpdg@db.com.

The offering was made pursuant to the Company's existing shelf registration
statement previously filed with the Securities and Exchange Commission ("SEC")
and declared effective. This press release shall not constitute an offer to
sell or the solicitation of an offer to buy these securities, nor shall there
be any sale of these securities, in any state or other jurisdiction in which
such offer, solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such state or other
jurisdiction.

About Diana Shipping Inc.

Diana Shipping Inc. is a leading global provider of shipping transportation
services through its ownership 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. The Company's common shares
trade on the New York Stock Exchange under the symbol "DSX."

Forward-Looking Statements

Certain of the statements made in this press release are "forward-looking
statements" as defined by U.S. federal securities laws, such as those, among
others, relating to the Company's expectations regarding the use of proceeds
of this offering. Words such as, but not limited to, "believe," "expect,"
"anticipate," "estimate," "intend," "plan," "targets," "projects," "likely,"
"will," "would," "could" and similar expressions or phrases may identify
forward-looking statements. All forward-looking statements involve risks and
uncertainties. Actual results or developments may differ materially from those
projected or implied in these forward-looking statements. Factors that may
cause such a difference include, without limitation, risks and uncertainties
related to market conditions and other risks set forth in the prospectus for
the offering described herein.

CONTACT: Corporate Contact:
         Ioannis Zafirakis
         Director, Executive Vice-President and Secretary
         Telephone: + 30-210-947-0100
         Email: izafirakis@dianashippinginc.com
        
         Investor and Media Relations:
         Edward Nebb
         Comm-Counsellors, LLC
         Telephone: + 1-203-972-8350
         Email: enebb@optonline.net
 
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