R&B Falcon Corporation reports that R&B Falcon Drilling, Inc. has been awarded a three year drilling contract by Petrobras for the DP drillship, Peregrine III, for operations in Brazil in up to 3,900 feet of water. Total contract value for the three-year term is estimated at approximately $108 million. The drillship is currently located Galveston, Texas, where an upgrade project consisting of installation of a new blowout preventer stack and control system is underway. The rig will mobilize from Galveston this month for commencement of operations upon arrival in Brazil. Paul B. Loyd, Jr., R&B Falcon Corporation Chairman and CEO stated, "We are very pleased to have been awarded this contract and expand our valued and extensive relationship with Petorbras. We appreciate the confidence Petrobras has show in R&B Falcon by allowing us to play a significant role in their aggressive E&P budget for the year 2000 and beyond."