Diamond Offshore Expands Relationship with CapRock Communications

Deepwater drilling contractor signs new agreement with communications leader

HOUSTON - August 15, 2006

For Diamond Offshore, a leading deepwater drilling contractor, reliable satellite communication is vital to the success of its demanding offshore operations. To receive reliable world-class communications, Diamond Offshore has chosen to expand its relationship with CapRock Communications.

"Diamond Offshore's contract renewal with CapRock is evidence that building a reliable network with unparalleled support creates recognizable value when compared to others," said CapRock President and COO Errol Olivier. "Being selected to provide satellite communications for a leading drilling contractor like Diamond Offshore is a privilege for CapRock. We look forward to continuing our commitment to providing Diamond Offshore with uncompromising services."

Under the terms of the agreement, CapRock will provide Diamond's entire fleet of drilling rigs operating in the Gulf of Mexico and the Bay of Campeche with Voice over IP (VoIP) services, Internet access and high-speed data connectivity to its corporate network. CapRock will leverage its own global satellite network and worldwide service organization, including its support centers in the United States and Mexico, to provide local service and support. CapRock currently provides Diamond Offshore with communication services to its rigs off the coast of Brazil.

The agreement with the owner and operator of one of the largest drilling fleets in the world represents another one of CapRock's significant milestones since pioneering commercial satellite service for the drilling industry in the Gulf of Mexico nearly two decades ago. CapRock also serves leading energy companies' offshore operations in regions from South America and Africa to Europe and Asia – for all types of offshore sites, such as drilling rigs, production platforms, support vessels and work boats.

About CapRock Communications

Celebrating 25 years in business, CapRock Communications is a premier global satellite communications provider for the off-shore energy, maritime, construction and mining industries, as well as for disaster relief and government applications. The Company utilizes the latest field proven satellite technologies to deliver highly reliable managed communication services for broadband networking, real-time video and digital telephony to the world's harshest and most remote locations. CapRock delivers on its promise to be the market's reliability leader by leveraging "best of breed" partnerships, technical expertise and a robust self-owned and operated global infrastructure that includes four international teleports and ten regional operation centers across the U.S., Central and South America, Europe, West Africa and Asia Pacific. More information about CapRock is available at www.caprock.com.

About Diamond Offshore

Diamond Offshore provides contract drilling services to the energy industry around the globe and is a leader in deepwater drilling. The Company owns and operates one of the world's largest fleets of offshore drilling rigs. Headquartered in Houston, Texas, the company employs 4,500 people working on board its rigs and in its offices. Diamond Offshore's common stock is listed on the New York Stock Exchange under the symbol "DO."

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