Diamond Offshore Drilling, Inc. to Redeem 1 1/2% Convertible Senior Debentures Due 2031

Diamond Offshore Drilling, Inc. (NYSE:DO) today announced its decision to redeem on April 15, 2008 all of its outstanding 1½% Convertible Senior Debentures Due 2031 at a redemption price equal to 100% of the principal amount thereof, in accordance with the Indenture under which the Debentures were issued. On April 15, 2008, the redemption price, plus accrued and unpaid interest to, but excluding, such date, will become due and payable and interest on the Debentures will cease to accrue. The Debentures are convertible, at any time until the close of business on April 14, 2008, into Diamond Offshore common stock at a conversion rate of 20.3978 shares of common stock per $1,000 principal amount of Debentures, subject to adjustment in certain circumstances. Diamond Offshore issued $460,000,000 principal amount of the 1½% Convertible Senior Debentures Due 2031 in April 2001. Debentures in the aggregate principal amount of $3,435,000 are presently outstanding. Copies of the Notice of Redemption, which includes instructions for delivery of 1½% Convertible Senior Debentures Due 2031 for redemption or conversion, may be obtained from the trustee with respect to the Debentures, The Bank of New York, 101 Barclay Street, Floor 8-W, New York, NY 10286 Telephone No. (212) 815-3349, Fax No. (212) 815-5704. Diamond Offshore provides contract drilling services to the energy industry around the globe and is a leader in deepwater drilling. Additional information on Diamond Offshore Drilling, Inc. and access to the Company’s SEC filings is available on the Internet at www.diamondoffshore.com. Statements in this press release may contain "forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements may include, but are not limited to, statements concerning completion of the redemption. Such statements are inherently subject to a variety of risks and uncertainties that could cause actual results to differ materially from those anticipated or projected. A discussion of risk factors that could impact these areas and the Company’s overall business and financial performance can be found in the Company’s reports and other filings with the Securities and Exchange Commission. These factors include, among others, general economic and business conditions, casualty losses, industry fleet capacity, changes in foreign and domestic oil and gas exploration and production activity, competition, changes in foreign, political, social and economic conditions, regulatory initiatives and compliance with governmental regulations, customer preferences and various other matters, many of which are beyond the Company’s control. Given these concerns, investors and analysts should not place undue reliance on forward-looking statements. Each forward-looking statement speaks only as of the date of this press release. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement to reflect any change in the Company’s expectations with regard thereto or any change in events, conditions or circumstances on which any forward-looking statement is based.