Rowan Offshore Fleet to increase by More Than 40% Over the Next 3 Years

For the three months ended March 31, 2008, Rowan Companies, Inc. generated net income of $98.6 million or 88 cents per share, compared to $86.4 million or 77 cents per share in the first quarter of 2007 and $138.5 million or $1.23 per share in the fourth quarter of 2007. Revenues were $485.5 million in the first quarter of 2008, compared to $462.3 million in the first quarter of 2007 and $623.6 million in the fourth quarter of 2007.

The first quarter 2008 results included $5.4 million, or 4 cents per share, of gains on asset sales, compared to $24.1 million, or 14 cents per share, in the prior year period. There were no significant asset sales in the fourth quarter of 2007.

Rowan's offshore rig utilization was 91% during the first quarter of 2008, up from 84% in the first quarter of 2007 but down from 97% in the fourth quarter of 2007. As previously reported, our utilization in the current quarter was adversely impacted by mobilization and shipyard time incurred in preparation for term contracts. The Company's average offshore day rate was $159,700 during the first quarter of 2008, up by $16,400 or 11% from the first quarter of 2007, but down by $4,600 or 3% from the fourth quarter of 2007. Rowan's land rig utilization was 89% during the first quarter of 2008, compared to 92% in the first quarter of 2007 and 94% in the fourth quarter of 2007. The Company's average land rig day rate was $23,200 during the first quarter of 2008, down by $700 or 3% from the first quarter of 2007, but up by $200 or 1% from the fourth quarter of 2007.

Rowan's drilling operations generated revenues of $340.4 million during the first quarter of 2008, up by 18% from the first quarter of 2007 but down by 9% from the fourth quarter of 2007. The Company's income from drilling operations was $143.6 million or 42% of revenues during the first quarter of 2008, up by 14% from the first quarter of 2007, but down by 16% from the fourth quarter of 2007. The Company's current backlog of drilling contracts is estimated to be approximately $2.0 billion.

Rowan's manufacturing operations generated external revenues of $145.1 million during the first quarter of 2008, down by 17% from the first quarter of 2007 and by 42% from the record fourth quarter of 2007. The Company's income from manufacturing operations was $4.1 million during the first quarter of 2008, down by 34% from the first quarter of 2007 and by 89% from the fourth quarter of 2007.

Danny McNease, Chairman and Chief Executive Officer, commented, "As we announced two weeks ago, our first quarter operating results were adversely affected by several timing events that we believe will have no impact on the long-term prospects for our drilling and manufacturing businesses. Our strategic redeployment of assets is continuing, and Rowan's drilling operations are more geographically diversified than ever before. Our backlog of revenues is growing in both our manufacturing and drilling businesses, and 80% of Rowan's drilling backlog is from areas outside the United States. Our newbuild program is proceeding, with the Rowan offshore fleet set to increase by more than 40% over the next three years."

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