Diana Shipping Time Charter Contract

On Jan. 13, Diana Shipping Inc. (NYSE:DSX), a global shipping company specializing in the transportation of dry bulk cargoes, announced that it has entered into an agreement with Cargill International S.A., Geneva, to charter one of its Panamax dry bulk carriers, the M/V Clio, at a gross rate of$11,000 per day for a period of minimum 10 to a maximum13 months, starting on February 26, 2009.

This employment is anticipated to generate approximately $3.3m of gross revenues for the minimum scheduled period of the charter.

The charterer had the option to redeliver the vessel on January 27, 2009. The company and the charterer have agreed to extend the existing charter so that from January 27 to February 26, 2009, the gross charter rate will be $6,000 per day. Until January 27, 2009, the gross charter rate will remain at the current rate of $27,000 per day.

The M/V Clio is a 73,691 dwt Panamax dry bulk carrier built in 2005.