Diamond Offshore Drilling, Inc. Announces Fourth Quarter/Year-End 2007 Results.

HOUSTON -- Diamond Offshore Drilling, Inc. (NYSE:DO) today reported net income for the fourth quarter of 2007 of $164.9 million, or $1.19 per share on a diluted basis, compared with net income of $221.4 million, or $1.60 per share on a diluted basis, in the same period a year earlier. Net income for the fourth quarter of 2007 includes $58.6 million, or $0.42 per share on a diluted basis, of non-recurring tax expense related to the distribution of previously untaxed earnings from one of the Company's foreign subsidiaries to its U.S. parent. Revenues for the fourth quarter of 2007 were $666.7 million, compared with revenues of $578.2 million for the fourth quarter of 2006.

For the year ended December 31, 2007, the Company reported net income of $846.5 million, or $6.12 per share on a diluted basis, compared with net income of $706.8 million, or $5.12 per share on a diluted basis, for the year ended December 31, 2006. Revenues for the year ended December 31, 2007 were $2.6 billion, compared with $2.1 billion for 2006.

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.

As previously announced, Diamond Offshore will provide a simulcast and rebroadcast of its fourth quarter/year-end 2007 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 February 7, 2008, beginning at 9:00 a.m. Central Time. The online replay will follow immediately and continue for the remainder of the first 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 existing contracts, commitments and backlog, fleet enhancements, access to new markets, 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.

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