Ocean Rig Approves Convertible Loan

Because VPS (the Norwegian electronic securities registration system) cannot handle bonds with a par of NOK 7.50 as assumed in the resolution from General Meeting on 21 November 2001, the board of the company decided to fix the par of the bonds at NOK 1.00. The conversion price remains NOK 7.50, so that 7.5 bonds can be converted into a new share.

The board further resolved, in accordance with the resolution from the general meeting on November 21, 2001 to take up a convertible loan reserved for those shareholders who were not invited to subscribe in the private placement which was approved by the general meeting November 21, 2001. Each share gives the right to subscribe 1.28872 new shares (equaling 9.665640 bonds each with a par value of NOK 1). The subscription rights are non-transferable, and will be credited to the VPS account of the shareholder on the basis of the shareholders as registered in VPS as of November 27, 2001.

Over subscriptions are allowed, so that the shareholders may maintain their relative ownership interest. The maximum size of the loan has been fixed at NOK 112,500,000 (equaling 15 million shares). The board reserves the right to reduce this limit in connection with the allocation, based on a review on the basis for the allocation in the private placement. The subscription period is November 29th through December 7, 2001, with the payment date being on about December 17, 2001.