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Diana Shipping' Unit To Buy Two 3,400 TEU Newbuilding Containerships - Quick Facts

(RTTNews) - Diana Shipping Inc. (DSX) announced that Diana Containerships Inc., its majority-owned unit formed for the purpose of investing in containerships, has entered into agreements to acquire two 3,400 TEU newbuilding containerships built at TKMS Blohm + Voss Nordseewerke GmbH, Emden, Germany from a third-party seller for a purchase price of Euro 37.3 million each or about US$45.5 million based on the Euro/Dollar exchange rate as of June 8, 2010.

The first vessel is scheduled to be delivered to Diana Containerships Inc. by June 25, 2010, and the second is scheduled to be delivered between July 5 and July 15, 2010. Upon delivery, the first vessel is scheduled to be employed on charter with A.P. Moeller-Maersk A/S for a period of minimum 9 to maximum 12 months at a gross daily rate of US$16,000.

Also, Diana Shipping has made an investment of US$50 million in Diana Containerships Inc., representing nearly 55% of the issued and outstanding shares of the new entity, with the balance of the common shares held by institutional and accredited investors that acquired the shares in a private transaction.