Diamond Notes

Diamond Offshore announced that it learned of a cash tender offer being made to holders of its 3.75% Convertible Subordinated Notes Due 2/15/2007 at a below market price of $689.15 per note. The Company cautioned it's noteholders that the price does not represent current market value for the notes. Noteholders have no obligation to accept or otherwise respond to this offer and it is the Company's recommendation that noteholders reject the offer.