Box Ships Inc. Files a Registration Statement for an Initial Public Offering of Shares

ATHENS, GREECE--(Marketwire - April 4, 2011) - Box Ships Inc., a wholly-owned subsidiary of Paragon Shipping Inc. (NYSE: PRGN), today announced that it has filed a registration statement with the Securities and Exchange Commission for an initial public offering of 10,000,000 shares of its common stock, and has granted the underwriters an option to purchase up to an additional 1,500,000 shares of common stock at the initial public offering price to cover over-allotments. The initial offering price is expected to be between $15.00 and $17.00 per share. Box Ships' common stock has been approved for listing on the New York Stock Exchange under the symbol "TEU."

Box Ships Inc., a recently formed Marshall Islands corporation, will use the net proceeds of the offering to partially fund the acquisition of an initial fleet of six containerships, including three containerships being acquired from Paragon Shipping, with an aggregate capacity of 28,177 TEUs.

The joint book-running managers for the offering are UBS Investment Bank and Morgan Stanley & Co. Incorporated. Cantor Fitzgerald & Co., ABN AMRO Bank N.V., Stifel, Nicolaus & Company, Incorporated, Lazard Capital Markets LLC and UniCredit Capital Markets, Inc. are acting as co-managers of the offering. 

This offering of common stock will be made only by means of a prospectus. When available, copies of the prospectus relating to the offering may be obtained from UBS Investment Bank at 299 Park Avenue, New York, New York 10171, Attention: Prospectus Department; phone: (888) 827-7275, or from Morgan Stanley & Co. Incorporated, Attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, New York 10014, telephone (866) 718-1649, or by e-mailing prospectus@morganstanley.com.

A registration statement relating to these securities has been filed with the Securities and Exchange Commission but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This communication shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

The statements in this press release that are not historical facts may be forward-looking statements. These forward-looking statements involve risks and uncertainties that could cause the outcome to be materially different.

Contact Information:

Contacts:
Investor Relations / Media
Capital Link, Inc.
Paul Lampoutis
230 Park Avenue
Suite 1536
New York, NY 10169
Tel. (212) 661-7566
E-mail: boxships@capitallink.com