Diamond Offshore Drilling, Inc. Declares Special Cash Dividend of $0.75 Per Share

Diamond Offshore Drilling, Inc. (NYSE: DO) announced today that
the Company has declared a special quarterly cash dividend of $0.75 per
share of common stock and a regular quarterly cash dividend of $0.125
per share of common stock. Both dividends are payable on September 1,
2010 to shareholders of record on August 2, 2010.

The Board reiterated its stated policy of considering paying special
cash dividends, in amounts to be determined, on a quarterly basis. Any
determination to declare a special dividend, as well as the amount of
any special dividend that may be declared, will be based on the
Company's financial position, earnings, earnings outlook, capital
spending plans, and other relevant factors at that time.

Diamond Offshore provides contract drilling services to the energy
industry around the globe and is a leader in deepwater drilling.
Additional information on Diamond Offshore Drilling, Inc. and access to
the Company′s SEC filings is available on the Internet at

Statements contained in this press release which are not historical
facts are 'forward-looking statements? within the meaning of the federal
securities laws. Forward-looking statements are inherently uncertain and
subject to a variety of risks that could cause actual results to differ
materially from those expected by management of the Company. A
discussion of the important risk factors and other considerations that
could materially impact these matters as well as the Company′s overall
business and financial performance can be found in the Company′s reports
filed with the Securities and Exchange Commission and readers of this
release are urged to review those reports carefully when considering
these forward-looking statements. Copies of these reports are available
through the Company′s website Given these risk factors, investors and analysts should not place undue
reliance on forward-looking statements. Any such forward-looking
statements speak only as of the date of this press release. The Company
expressly disclaims any obligation or undertaking to release publicly
any updates or revisions to any forward-looking statement to reflect any
change in the Company′s expectations with regard thereto or any change
in events, conditions or circumstances on which any forward-looking
statement is based.