Best Quarterly EBITDA Ever for Ocean Rig

The drilling rigs Eirik Raude and Leiv Eiriksson both commenced new contracts at significantly higher day rates in the middle of the Quarter, resulting in EBITDA of $30.2 million for the Quarter ($23.2 million), the best ever for Ocean Rig. Net Income for the 3rd Quarter was $1.0 million ($ -7.4 million), resulting in earnings per share of $0.01 ($ -0.04), and diluted earnings per share of $0.01 ($ -0.04).

On July 25, Eirik Raude commenced a two-year contract with ExxonMobil. Leiv Eiriksson commenced a one-year fixed term contract for Total Angola on September 3. Both new contracts have significantly higher day rates than the previous contracts.

In accordance with the press release on December 29, 2005, the Company has followed up on the intention to repay capital to shareholders, and has now fully utilized its existing authority to repurchase 10% of the outstanding shares. The Company has called for an Extraordinary General Meeting in order to cancel 15,981,500 shares and establish a new authority to repurchase 10% of the remaining outstanding shares.

The Chairman of the Board, Geir Aune said: "The reported EBITDA figure is the best ever for the company, but still not yet fully reflecting the increased day rates on new contracts. This will take place in the 4th quarter."

Ocean Rig owns and operates two of the world's largest and most modern drilling rigs, built for ultra deep waters and extreme weather conditions. The units are currently operating offshore Angola and Canada.

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