ENSCO International Announces Letter of Intent for Ultra-Deepwater Semisubmersible Rig ENSCO 8503.

DALLAS -- ENSCO International Incorporated (NYSE: ESV) announced that the Company has entered into a letter of intent from a customer for a drilling contract for ENSCO 8503, an ultra-deepwater semisubmersible rig currently under construction. The contemplated contract will be for a two-year term, with an option for the customer to extend the contract at mutually agreed rates and term. The aggregate day rate revenue for the two-year term is expected to be approximately $372 million. The base operating rate is $510,000 per day, and the day rate will be subject to adjustment for variances in operating costs from current levels. The letter of intent is subject to negotiation and execution of a definitive drilling contract.

ENSCO 8503 is the Company's fourth ultra-deepwater semisubmersible rig in the ENSCO 8500 Series([R]) currently under construction, and will increase the Company's deepwater fleet to five rigs inclusive of the ENSCO 7500 deepwater semisubmersible rig that has been in service since 2000. All four of the 8500 Series rigs are under construction by the Keppel FELS Limited Shipyard in Singapore, with deliveries expected in the third quarter of 2008 for ENSCO 8500, the first quarter of 2009 for ENSCO 8501, late in the fourth quarter of 2009 for ENSCO 8502, and in the third quarter of 2010 for ENSCO 8503. All of the ENSCO 8500 Series([R]) rigs are now committed to customers for term work commencing upon delivery.

The ENSCO 8500 Series([R]) ultra-deepwater semisubmersibles are enhanced versions of ENSCO 7500, and are based upon an ENSCO proprietary design. Enhancements include a two million pound quad derrick, offline pipe handling capability, increased drilling capacity, greater variable deck load, and improved automatic station keeping ability. The rigs will be capable of drilling in up to 8,500 feet of water, and can be upgraded to 10,000 feet water-depth capability if required. With these features, the 8500 Series rigs will be especially well-suited for deepwater development drilling.

Statements contained in this news release that state Company or management intentions, hopes, beliefs, anticipations, expectations or predictions of future events are forward-looking statements. Such forward-looking statements include references to the expected contract for ENSCO 8503, the expected ENSCO 8500, ENSCO 8501, ENSCO 8502, and ENSCO 8503 delivery dates, and anticipated drilling contract revenues for ENSCO 8503. It is important to note that the Company's actual results could differ materially from those projected in such forward-looking statements. The factors that could cause actual results to differ materially from those in the forward-looking statements include the following: (i) failure to negotiate, agree upon and finalize a definitive drilling contract for ENSCO 8503, (ii) delay in the anticipated ENSCO 8500, ENSCO 8501, ENSCO 8502 and ENSCO 8503 delivery dates, (iii) changes in the actual drilling contract revenues or term, (iv) general rig construction risks, (v) risks of commissioning, delivery acceptance, and unforeseen engineering design problems and delays, (vi) risks associated with shipbuilding in foreign jurisdictions, (vii) force majeure events, (viii) renegotiation, cancellation, or breach of contracts, and (ix) the risks described from time to time in the Company's SEC filings. Copies of such SEC filings may be obtained at no charge by contacting our investor relations department at 214-397-3045 or by referring to the investor relations section of our website at http://www.enscous.com.

The Company disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements to reflect any change in Company or management expectations or any change in events, conditions or circumstances on which any such statements are based.

ENSCO, headquartered in Dallas, Texas, owns and operates a modern fleet of offshore drilling rigs servicing the petroleum industry on a global basis.