Atwood Beacon Expected to Be Repaired by January 2005

Atwood Oceanics announced that all three legs of the Atwood Beacon that were damaged, along with the drilling unit, on July 25, 2004 have now been recovered, transported to Singapore and inspected. As previously announced, the Atwood Beacon has been awarded a contract in Vietnam which is to commence between January 15 and April 15, 2005. Based on the current shipyard schedule, the rig should be repaired within the 180 days loss of hire insurance coverage period and be ready to begin operations in Vietnam by the end of January 2005.