Diamond Offshore Purchases Omega

Diamond Offshore has signed a memorandum of agreement to purchase the semisubmersible Omega for $65 million. The agreement is subject to certain conditions and the purchase is expected to be completed in the first quarter of 2003.

Prior to the delivery of the rig, the Omega will undergo its regularly scheduled five year survey at which time the seller has agreed to perform various upgrades to enhance the rig's equipment.

The Omega, currently working offshore South Africa, is a 3rd generation Bingo 3000 design rig constructed in 1983 which has been upgraded to work in water depths of up to 3,000 feet. The rig has worked in the North Sea, West Africa and the Gulf of Mexico.

Larry Dickerson, president and chief operating officer, said, "We believe the Omega will be a valuable addition to our fleet. Diamond Offshore pursues opportunities through both upgrades and acquisitions, but always with a focus on enhancing shareholder value."