Press Release

--(BUSINESS WIRE)--

In BW2191, (TX-DIAMOND-OFFSHORE) Announces Fourth Quarter 2001 Earnings, in the Consolidated Statements of Income table under the heading Twelve Months Ended Dec. 31, 2001, the dilutive potential common shares should read xxx 16,408 (sted 9,479). The total weighted average shares outstanding should read xxx 149,294 (sted 142,365). The corrected table follows.

            DIAMOND OFFSHORE DRILLING INC. AND SUBSIDIARIES
                   CONSOLIDATED STATEMENTS OF INCOME
                 (In thousands, except per share data)

                            Three Months Ended    Twelve Months Ended
                                December 31,          December 31,
                            -------------------   -------------------
                              2001       2000       2001       2000
                            --------   --------   --------   --------
Revenues                    $222,157   $190,943   $885,349   $659,436

Operating expenses:
  Contract drilling          125,985    118,091    464,964    433,091
  Depreciation and
   amortization               43,144     35,096    170,017    145,596
  General and
   administrative              6,482      5,950     25,502     23,803
                            --------   --------   --------   --------
    Total operating
     expenses                175,611    159,137    660,483    602,490
                            --------   --------   --------   --------

Operating income              46,546     31,806    224,866     56,946

Other income (expense):
  Gain on sale of assets          35         93        327     14,324
  Interest income             12,246     14,288     48,682     49,525
  Interest expense            (5,841)    (3,570)   (26,205)   (10,272)
  Other, net                   8,258      1,081     24,695        344
                            --------   --------   --------   --------
Income before income tax
 expense and
 extraordinary item           61,244     43,698    272,365    110,867

Income tax expense           (21,436)   (15,019)   (90,820)   (38,586)
                            --------   --------   --------   --------

Income before
 extraordinary item           39,808     28,679    181,545     72,281
                            --------   --------   --------   --------

Extraordinary item-loss on
 early debt extinguishment,
 less applicable income
 tax of $4,158                    --         --     (7,722)        --
                            --------   --------   --------   --------

Net income                   $39,808    $28,679   $173,823    $72,281
                            ========   ========   ========   ========

Earnings per share:
  Basic
  Income before
   extraordinary item          $0.30      $0.21      $1.37      $0.53
  Extraordinary item              --         --      (0.06)        --
                            --------   --------   --------   --------
  Net                          $0.30      $0.21      $1.31      $0.53
                            ========   ========   ========   ========
  Diluted
  Income before
   extraordinary item          $0.29      $0.20      $1.31      $0.53
  Extraordinary item              --         --      (0.05)        --
                            --------   --------   --------   --------
  Net                          $0.29      $0.20      $1.26      $0.53
                            ========   ========   ========   ========

Weighted average shares
 outstanding
  Common shares              132,054    133,976    132,886    135,164

  Dilutive potential
   common shares               9,645     16,837     16,408      9,876
                            --------   --------   --------   --------
    Total weighted average
     shares outstanding      141,699    150,813    149,294    145,040
                            ========   ========   ========   ========

--30--MJB/ho*