R&B Falcon Corporation announced today that R&B Falcon Drilling (International & Deepwater) Inc. has received a letter of intent from Petroleo Brasileiro S/A-PETROBRAS for a two-year contract for the dynamically positioned drillship, Deepwater Frontier for operations offshore Brazil in water depths up to approximately 8,900 feet. The Deepwater Frontier which is capable of drilling in water depths up to 10,000 feet, is owned by R&B Falcon (60%) and Conoco (40%). The vessel will sail to Brazil upon completion of its current one-well commitment in West Africa, and then it is expected to begin work for Petrobras in November 1999. The current well underway in West Africa and the Petrobras work will essentially complete all of R&B Falcon’s 2-1/2 year drilling contract obligation with respect to the Deepwater Frontier pursuant to the rig sharing agreement with Conoco.