Rowan Companies to Pursue Monetization of LeTourneau Technologies, Inc.

Steel Partners Withdraws Nominees for Rowan Board
HOUSTON--(Business Wire)--
Rowan Companies, Inc. (NYSE:RDC) today announced that its Board of
Directors has decided to pursue a monetization of its wholly-owned
manufacturing subsidiary, LeTourneau Technologies, Inc. (LTI). Rowan
will be assisted in this matter by its financial advisors, Lehman
Brothers, Inc. and Morgan Stanley & Co. Incorporated.

Daniel F. McNease, Chairman and Chief Executive Officer of Rowan,
stated: "LTI's leading market positions in its operating segments have
enabled it to generate significant returns for Rowan over time. Given
LTI's record performance in 2007 and strength heading into 2008, we
believe that now is the appropriate time for Rowan to crystallize the
value we have created in LTI for the benefit of our stockholders."

The Company does not expect to disclose further developments
regarding the process until the completion of a review and decision by
the Board of Directors regarding a transaction or course of action.

In connection with this announcement, Rowan and Steel Partners II,
L.P. have entered into an agreement pursuant to which Steel Partners
has withdrawn its slate of three nominees for election to Rowan's
Board of Directors at Rowan's 2008 Annual Meeting of Stockholders. The
agreement also provides that if Rowan does not monetize its LTI
investment by the end of 2008, either Warren Lichtenstein or another
person designated by Steel Partners will be added to Rowan's Board
effective January 1, 2009. Rowan also agreed that if the LTI
monetization is accomplished through an initial public offering of LTI
shares or a private sale of LTI, Rowan will repurchase at least $400
million of its outstanding common stock.

About LTI

LTI has manufacturing facilities in Longview and Houston, Texas
and Vicksburg, Mississippi that collectively produce mining, timber
and transportation equipment, alloy steel and steel plate, and
drilling rigs and various rig components. Featured drilling products
include complete jack-up rigs, rig kits and component packages,
primary drilling equipment such as mud pumps, drawworks, top drives,
and rotary tables, and electrical components such as variable-speed
motors and drives.

LTI built the first offshore jack-up drilling rig in 1955 and has
designed or built more than 200 rigs since, including all 21 in the
Rowan fleet and nine additional Rowan rigs under construction or on
order. LTI has led the strategic expansion and upgrade of Rowan's
drilling fleet over the past decade and, in recent years, has expanded
product lines, increased external sales and improved contributions to
the Company's operating results.

About Rowan

Rowan Companies, Inc. is a major provider of international and
domestic contract drilling services with a significant presence in the
Middle East. The Company also owns and operates a manufacturing
division (LTI) that produces equipment for the drilling, mining and
timber industries. The Company's stock is traded on the New York Stock
Exchange. Common Stock trading symbol: RDC.

This report contains forward looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995, including,
without limitation, statements as to the expectations, beliefs and
future expected financial performance of the Company that are based on
current expectations and are subject to certain risks, trends and
uncertainties that could cause actual results to differ materially
from those projected by the Company. Among the factors that could
cause actual results to differ materially include oil and natural gas
prices, the level of offshore expenditures by energy companies, energy
demand, the general economy, including inflation, weather conditions
in the Company's principal operating areas and environmental and other
laws and regulations. Other relevant factors have been disclosed in
the Company's filings with the U. S. Securities and Exchange
Commission.

Rowan Companies, Inc., Houston
Vice-President - Investor Relations
William C. Provine, 713-960-7575
www.rowancompanies.com

Copyright Business Wire 2008