Diana Acquires Two Containerships

The m/v "APL Sardonyx" is a 1995-built vessel of approximately 4,750 TEU capacity and the m/v "APL Spinel" is a 1996-built vessel of approximately 4,750 TEU capacity. The purchase price for each vessel is $30 million. The expected dates of delivery from their previous owners to the Company for both vessels are within the first quarter of 2012.

Each of the two vessels is chartered to APL (Bermuda) Ltd., or to a guaranteed nominee or to another entity of the NOL Group with similar or better net worth than APL (Bermuda) Ltd. for a period of minimum 24 months plus or minus forty-five (45) days at a daily rate of $24,750. The charterer has the option to employ each vessel for a further twelve (12) month period plus or minus forty-five (45) days, at a daily rate of US$24,750 starting twenty-four (24) months

after delivery of the vessel to the charterer. After that period the charterer has the option to employ each vessel for a further twelve (12) month period plus or minus forty-five (45) days, at a daily rate of $28,000 starting thirty-six (36) months after delivery of the vessel to the charterer. Options must be declared by the charterer not later than twenty (20) months for the first option and thirty-two (32) months for the second option after the delivery date to the charterer. Daily rates include a total commission of 2% paid to third parties and Diana Shipping Services S.A.

The employment of the two vessels is anticipated to generate approximately $33.5 million of gross revenues for the minimum agreed period of the charters.