According to MANA, Photographs show the blue fishing boat rocking violently before capsizing, sending migrants tumbling into the sea. Some then climbed onto the hull of the overturned vessel, while others swam for life boats or toward the navy ship.
Women and children were among those rescued, but no details of the migrants' nationalities have been given.
The Italian navy patrol boat Bettica saw that the vessel was in difficulty and approached it to hand out life jackets, but before it could begin a rescue the boat flipped over due to the sudden movement of the passengers.
Boat arrivals rose sharply this week amid warm weather and calm seas. Italy's coastguard said 5,600 migrants were rescued on Monday and Tuesday, and officials fear numbers will increase as conditions continue to improve.