Paragon Shipping Inc. Reports the Sale of one Kamsarmax Newbuilding Contract and the Purchase of Two 3,400 TEU Container Vessels

News Release Paragon Shipping Inc. June 30, 2010

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ATHENS, Greece, June 30, 2010 - Paragon Shipping Inc. (NYSE:
PRGN), or the Company, a global shipping
transportation company, announced today that it has sold one of
its newbuilding Kamsarmax contracts and has also
entered into agreements to acquire two 3,400 TEU newly built
containerships from their builder Howardtwerke-
Deutsche Werft, GmbH, Germany at a price of Euro 40 million per
vessel (or approximately $49 million based on
today’s exchange rate). The container vessels are scheduled to be
delivered to Paragon between July and August,
2010.
Commenting on the events, Michael Bodouroglou, Chairman and Chief
Executive Officer of Paragon Shipping,
stated, “We have taken advantage of favourable conditions in the
sale and purchase markets to sell one of our
Kamsarmax newbuilding contracts and also to acquire two 3,400 TEU
newbuild container vessels with prompt
delivery within July and August 2010. We were able to sell the
Kamsarmax contract at a one time cash profit to the
Company and we believe the acquisition of the container vessels
were made at attractive prices at an advantageous
point in the container cycle.”
Mr. Bodouroglou concluded, “We believe the diversification into
the container market at this point of time will
strengthen the Company’s prospects and its ability to enhance
shareholder value. It is our view that the container
market is currently at the early stages of its rebound with asset
prices at attractive levels enabling us to maximize
investment returns over time as freight rates recover. We are
seeking employment for these vessels and we shall
continue to focus on fixed rate period charter employment, a
strategy that has been profitable for Paragon and its
shareholders. The sale of the Kamsarmax contract will partially
reduce our capital expenditure requirements while
producing a cash profit to the Company. Upon completion of these
acquisitions and our newbuilding programme
Paragon will have a fleet of 21 vessels operating in five segments
of the drybulk market and the container sector.
We intend to continue seeking accretive acquisitions in the
container and drybulk sectors. Aiming to maximize
shareholder value, we will explore all options for our drybulk and
container fleet.”</DIV></BODY></HTML>