Paragon Shipping Inc. Announces New Charter Agreements for Two of its Handysize Newbuildings and for M/V Deep Seas
News Release
Paragon Shipping Inc.
July 18, 2011
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<P align=left>ATHENS, Greece, July 18, 2011 - Paragon Shipping Inc. (NYSE:
PRGN), or the Company, a global shipping</P>
<P align=left>transportation company specializing in drybulk cargoes, announced
today that it has entered into fixed rate time</P>
<P align=left>charter agreements for two of its 37,200 dwt, Handysize
newbuildings with Cargill International S.A. Both vessels</P>
<P align=left>have been fixed for a period of two years at a gross daily rate of
$12,125 commencing upon their delivery to the</P>
<P align=left>Company, which is expected to take place in the first quarter of
2012. In addition, the charterers have an option to</P>
<P align=left>extend the charter period for an additional year at a gross daily
rate of $15,500.</P>
<P align=left>The Company also announced that it has entered into a three year
time charter agreement for the </FONT></FONT><I><FONT size=2
face="Times New Roman"><FONT size=2 face="Times New Roman">M/V Deep
Seas</I></FONT></FONT><FONT size=2 face="Times New Roman"><FONT size=2
face="Times New Roman">, a</P>
<P align=left>1999 build, 72,891 dwt Panamax bulkcarrier, with Morgan Stanley
Capital Group Inc. at a gross daily rate of</P>
<P align=left>$11,000, plus 50% profit sharing based on the BPI Index commencing
when its current time charter agreement</P>
<P align=left>expires in September, 2011. Furthermore, the charterers have an
option to extend the charter period for an</P>
<P align=left>additional year at a gross daily rate of $14,000.</P>
<P align=left>Commenting on these developments Michael Bodouroglou, Chairman and
Chief Executive Officer of Paragon</P>
<P align=left>Shipping, stated, "We are pleased to announce these new chartering
agreements with Cargill and Morgan Stanley,</P>
<P align=left>two well respected charterers in the industry. As a result, our
fixed revenue days are 57% in 2012 and 35% in 2013,</P>
<P align=left>which increases our cash flow visibility during these turbulent
market conditions. These three new time charter</P>
<P align=left>contracts are anticipated to contribute approximately $27.7
million of gross revenues during the minimum scheduled</P>
<P align=left>periods of the charters. In addition, our time charter on
</FONT></FONT><I><FONT size=2 face="Times New Roman"><FONT size=2
face="Times New Roman">M/V Deep Seas </I></FONT></FONT><FONT size=2
face="Times New Roman"><FONT size=2 face="Times New Roman">allows us to
participate in any upturn in</P>
<P>freight rates during the initial charter period through our profit sharing
agreement."</P></FONT></FONT></DIV></BODY></HTML>
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<DIV><FONT size=2 face="Times New Roman"><FONT size=2 face="Times New Roman">
<P align=left>ATHENS, Greece, July 18, 2011 - Paragon Shipping Inc. (NYSE:
PRGN), or the Company, a global shipping</P>
<P align=left>transportation company specializing in drybulk cargoes, announced
today that it has entered into fixed rate time</P>
<P align=left>charter agreements for two of its 37,200 dwt, Handysize
newbuildings with Cargill International S.A. Both vessels</P>
<P align=left>have been fixed for a period of two years at a gross daily rate of
$12,125 commencing upon their delivery to the</P>
<P align=left>Company, which is expected to take place in the first quarter of
2012. In addition, the charterers have an option to</P>
<P align=left>extend the charter period for an additional year at a gross daily
rate of $15,500.</P>
<P align=left>The Company also announced that it has entered into a three year
time charter agreement for the </FONT></FONT><I><FONT size=2
face="Times New Roman"><FONT size=2 face="Times New Roman">M/V Deep
Seas</I></FONT></FONT><FONT size=2 face="Times New Roman"><FONT size=2
face="Times New Roman">, a</P>
<P align=left>1999 build, 72,891 dwt Panamax bulkcarrier, with Morgan Stanley
Capital Group Inc. at a gross daily rate of</P>
<P align=left>$11,000, plus 50% profit sharing based on the BPI Index commencing
when its current time charter agreement</P>
<P align=left>expires in September, 2011. Furthermore, the charterers have an
option to extend the charter period for an</P>
<P align=left>additional year at a gross daily rate of $14,000.</P>
<P align=left>Commenting on these developments Michael Bodouroglou, Chairman and
Chief Executive Officer of Paragon</P>
<P align=left>Shipping, stated, "We are pleased to announce these new chartering
agreements with Cargill and Morgan Stanley,</P>
<P align=left>two well respected charterers in the industry. As a result, our
fixed revenue days are 57% in 2012 and 35% in 2013,</P>
<P align=left>which increases our cash flow visibility during these turbulent
market conditions. These three new time charter</P>
<P align=left>contracts are anticipated to contribute approximately $27.7
million of gross revenues during the minimum scheduled</P>
<P align=left>periods of the charters. In addition, our time charter on
</FONT></FONT><I><FONT size=2 face="Times New Roman"><FONT size=2
face="Times New Roman">M/V Deep Seas </I></FONT></FONT><FONT size=2
face="Times New Roman"><FONT size=2 face="Times New Roman">allows us to
participate in any upturn in</P>
<P>freight rates during the initial charter period through our profit sharing
agreement."</P></FONT></FONT></DIV></BODY></HTML>