Diamond Offshore Drilling, Inc. Increases Special Cash Dividend to $1.875 Per Share

Also Declares Regular Cash Dividend of $0.125 Per Share
HOUSTON--(Business Wire)--
Diamond Offshore Drilling, Inc. (NYSE:DO) announced today that the
Company has declared an increased special cash dividend of $1.875 per
share of common stock and a regular quarterly cash dividend of $0.125
per share of common stock. Both dividends are payable on December 1,
2008 to shareholders of record on November 3, 2008. The Company has
paid special cash dividends of $1.25 per share of common stock in each
of the past four quarters.

The Company has adopted a 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 which 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
www.diamondoffshore.com.

Statements in this press release may contain "forward-looking
statements" within the meaning of Section 27A of the Securities Act of
1933, as amended, and Section 21E of the Securities Exchange Act of
1934, as amended. Such statements may include, but are not limited to,
statements concerning future dividends, earnings, future cash flows,
market conditions, future market improvements, future growth in demand
for equipment types or in any region and future contracts. Such
statements are inherently subject to a variety of risks and
uncertainties that could cause actual results to differ materially
from those anticipated or projected. A discussion of additional risk
factors that could impact these areas and the Company's overall
business and financial performance can be found in the Company's
reports and other filings with the Securities and Exchange Commission.
These factors include, among others, general economic and business
conditions, casualty losses, industry fleet capacity, changes in
foreign and domestic oil and gas exploration and production activity,
competition, changes in foreign, political, social and economic
conditions, regulatory initiatives and compliance with governmental
regulations, customer preferences and various other matters, many of
which are beyond the Company's control. Given these concerns,
investors and analysts should not place undue reliance on
forward-looking statements. Each forward-looking statement speaks 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.

Diamond Offshore Drilling, Inc., Houston
Director, Investor Relations
Les Van Dyke, 281-492-5370

Copyright Business Wire 2008