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Rowan Posts Contract Status of Rig Fleets and Provides Operational Update

HOUSTON-(Business Wire)-September 24, 2008 - Rowan Companies, Inc. (NYSE:RDC) has updated its offshore and land rig fleet contract status reports as of September 24, 2008. These reports are accessible from the Company’s website at www.rowancompanies.com and have been filed with the Securities and Exchange Commission via Form 8-K.

Danny McNease, Rowan Chairman and Chief Executive Officer, commented, “The Gorilla V should return to service for Total next weekend following approximately 45 days of shipyard time for upgrades. Last month, the Rowan-Middletown completed a 36-day shipyard stay. In each case, we have enhanced the operational capability of the rig at a cost to current period results. Collectively, these events are expected to reduce our third quarter 2008 revenues by more than $11 million and our net income by approximately $.06 per share. We view each as an investment well worth making.

“Our loss of the Rowan-Anchorage during Hurricane Ike was a blow to our drilling operations. At its current day rate, the loss of the rig will reduce our 2008 drilling revenues by over $6.5 million, including more than $1 million during the third quarter. Insurance proceeds from the loss are expected to yield a $38 million gain upon collection, which should occur in the fourth quarter.

“The after effects of the storm have proven even more disruptive to our Houston-based manufacturing operations. Power outages and fuel shortages throughout the Houston area have interrupted our manufacturing supply chain and slowed our ability to ship completed products. Employee evacuations and mandated citywide curfews have forced reductions in plant operating hours and production, in our facility as well as those of many area vendors. Certain key suppliers have advised of minimum 30-day delays in delivery of critical components. While these are temporary circumstances that are being remedied, they have adversely impacted our 2008 operating results. We expect that our external manufacturing revenues for the third quarter will be down sequentially from the second quarter by approximately 20-25%, nearly all of which is attributable to our production and shipping delays in Houston, and over half of that amount can be directly traced to effects of the storm. We have continued to add to our backlog of orders in recent months and the long-term outlook for our manufacturing division has never been better.

“As a result of these and other factors, our third quarter 2008 net operating results (excluding gains) will fall short of current consensus estimates, and are expected to be in the range of $0.85 to $0.88 per share.”

Rowan Companies, Inc. is a major provider of international and domestic contract drilling services. The Company also owns and operates a manufacturing division that produces equipment for the drilling, mining and timber industries. The Company’s stock is traded on the New York Stock Exchange. Common Stock trading symbol: RDC.

This report contains forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, statements as to the expectations, beliefs and future expected financial performance of the Company that are based on current expectations and are subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected by the Company. Among the factors that could cause actual results to differ materially include oil and natural gas prices, the level of offshore expenditures by energy companies, energy demand, the general economy, including inflation, weather conditions in the Company’s principal operating areas and environmental and other laws and regulations. Other relevant factors have been disclosed in the Company’s filings with the U. S. Securities and Exchange Commission.

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