Diamond Offshore Drilling, Inc.(DO) Declares Special Cash Dividend of $1.875 Per Share and $0.125/Share Regular Dividend

Diamond Offshore Drilling, Inc. (DO - Quote) announced today that the Company has declared a 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 September 1, 2009 to shareholders of record on August 3, 2009.

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.

Disclosure I am long DO in my oil n gas folio, currently up 26.12% year to date(not including prior dividends paid).