HOUSTON–(EMWNews)–Diamond Offshore Drilling, Inc. (NYSE:DO) today reported net

income for the second quarter of 2008 of $416.3 million, or $2.99 per

share on a diluted basis, compared with net income of $251.9 million, or

$1.81 per share on a diluted basis, in the same period a year earlier.

Revenues in the second quarter of 2008 were $954.4 million, compared

with revenues of $648.9 million for the second quarter of 2007.

For the six months ended June 30, 2008, the Company reported net income

of $706.9 million, or $5.08 per share on a diluted basis, compared with

net income of $476.1 million, or $3.46 per share on a diluted basis, for

the same period in 2007. Revenue for the six months ended June 30, 2008

was $1.7 billion, compared with $1.3 billion for the first six months of

2007.

The Company also announced that it has received Letters of Intent (LOIs)

for four semisubmersible rigs that could earn maximum revenue, excluding

un-priced options, totaling approximately $900 million and provide 6.5

rig years of work. The LOIs, which are subject to customary conditions,

including the execution of a definitive agreement, include:

International

• Ocean Ambassador – three years, plus

  un-priced option, commencing June 2009. Maximum total revenue $285

  million.

U.S. Gulf of Mexico

• Ocean Star – 18 months commencing

  November 2008. Maximum total revenue $285 million.

• Ocean America – one year commencing

  July 2009. Maximum total revenue $190 million.

• Ocean Victory – one year minimum term

  commencing May 2009. Maximum total revenue $197 million.

Diamond Offshore provides contract drilling services to the energy

industry and is a leader in deepwater drilling. Maximum contract revenue

as stated above assumes 100% rig utilization. Generally, rig utilization

rates approach 95-98% during contracted periods; however, utilization

rates can be adversely impacted by additional downtime due to

unscheduled repairs, maintenance and weather. Additional information on

Diamond Offshore Drilling, Inc. and access to the Company’s

SEC filings is available on the Internet at www.diamondoffshore.com.

As previously announced, Diamond Offshore will provide a simulcast and

rebroadcast of its second quarter 2008 earnings release conference call.

The live broadcast of the Diamond Offshore Drilling, Inc. quarterly

conference call will be available online at www.diamondoffshore.com

on July 24, 2008, beginning at 9:00 a.m. Central Time. The online replay

will follow immediately and continue for the remainder of the second

calendar quarter after the original call. Please go to the web site at

least 15 minutes before the broadcast to register, download and install

any necessary audio software.

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 future earnings,

future cash flows, market conditions, future market improvements, future

growth in demand for equipment types or in any region and future

contracts. 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, including, among others, the risk

that a Letter of Intent will not be converted to a contract, the risk

that full rig utilization may not be achieved during a contract period,

the risk that the fleet’s available days may

be reduced by unscheduled downtime, the risk that these and other

factors outside of the Company’s control may

adversely impact the amount of profit realized from a contract, the risk

that the markets for the Company’s services

will not continue to improve, the risk that the Company’s

market position may deteriorate, or the risk that the Company may not be

able to participate fully in any future market improvements. A

discussion of additional 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.