Diamond Offshore Drilling, Inc. announced that its Board of Directors has declared a special cash dividend of $1.25 per share of common stock and a regular quarterly cash dividend of $0.125 per share of common stock. Both dividends are payable on June 2, 2008 to shareholders of record on May 2, 2008.

The Company's Board of Directors has adopted a policy of considering paying special cash dividends, in amounts to be determined, on a quarterly basis. Any determination to declare a special dividend, as well as the amount of any special dividend which may be declared, will be based on the Company's financial position, earnings, earnings outlook, capital spending plans and other relevant factors at that time.