Offshore staff

HOUSTON -- Contracts for two Class 116-C jackup drilling rigs to operate off Qatar in late 2006 or early 2007 were signed by Rowan Co.s Inc.

Each contract is for 2 years with a 1-year option. Both rigs are in the Gulf of Mexico now and are expected to complete relocation by year-end.

Value of the two contracts is estimated between $278 and $293 million, depending upon when drilling begins.

"We are pleased to expand our share of the growing Middle East drilling market," said Danny McNease, chairman and CEO of Rowan. "These term contracts offer revenues and earnings visibility that is not currently available in the Gulf of Mexico market and assist us in achieving our goal to geographically aggressively pursue contracts throughout the world that provide the best opportunities for long-term returns."

8/7/06