Guidance for Manufacturing Division

-The equipment group expects to ship 30 loaders in 2006, similar to 2005. The current backlog is 14 units and holding delivery at 20 weeks.
- The marine group has backlog of 12 rig kits, strongest in more than two decades. Next kit delivery is anticipated to be in early 2008

Key questions from the fourth quarter earnings call conducted by Rowan Cos Inc. on March 1, 2006.

Given the recent retrenchment in commodity prices, are you hearing any feedback from operators about marginal wells, whether it be on-shore or offshore, potentially not being drilled or being deferred until a later portion of this year, when the commodity prices are expected to bounce back?

No. The management has not heard anything like that. Recently, the company signed another 3-year contract to build a new land rig. The company is still seeing a strong demand there and is still able to move pricing.

With the 4 units of rigs migrating over to Saudi, is the company replacing the loss on the Halifax with another gorilla unit? Does the company wants to continue moving assets to international areas or keep them here expecting the domestic rates to catch up and maybe even surpass international rates going forward?

The company is bidding on the Aramco work, which has five bids and one of those is to replace Halifax. However, they still haven''t come out with high pressure high temp bid, which is expected to happen later on this year and that is when the company would look at putting a Gorilla or a Tarzan rig over there.

Rowan plans on adding a couple of rigs to the Middle East and moving another rig to the North Sea. Also, the company is doing a development plan in Brazil, which is in the early stages. By this time in next year, the company could be down to 10 rigs in the Gulf of Mexico.

You had mentioned that the three rigs in Saudi Arabia would start up in March or April. Can you zero in on the exact timing for the 3 rigs?

The company is hopeful to have it on location before the end of the last week of March. Rowan is going through the inspections, and certification process. It is expected to be on the location in the first week of April.

Does the $45 million of fees over the fixed price contract term include the $115,000 day rate?

Yes. That is included.

The International Association of Drilling Contractors (IADC) is spearheading some of the industry''s efforts in terms of the Gulf of Mexico storms. Can you comment on what the industry is doing and what are the possible changes before the next hurricane season?

IADC is in the process of writing an API RP right now, and it hopes to have it published before June 1st. In the RP, IADC is going to increase the air gap to around 65 foot from the present 50 foot. IADC is still in the early stages there and is looking at the additional soil data that''s going to be required at each location. Also, IADC is looking at increasing preload capacity, in order to get closer to the storm requirement. IADC is asking operators to come up with better meteorological data in order to plan their business in August, September, and October, which are the worst three months that the operators will be drilling the well in shallow water. All of these things are going to be put in that RP.

The manufacturing business of Rowan is not doing really well. Has the company ever thought about spinning it off?

The company has not thought about that at this time. At present, the manufacturing business is fully integrated into the company’s joint business. Without the manufacturing business, the company would not be able to respond to the hurricane like it did. Right now, the management has no plans to spin it off.

You had mentioned that the company is going migrate more rigs out of the Gulf of Mexico, if operators do not start offering long-term contracts. Will the company sign a 3-year term contract in the Gulf of Mexico at the current rates, given the high international rates?

The company would try to get a higher rate than it is getting right now, because it still thinks that there is some more momentum on the upside in the Gulf of Mexico as far as day rates go. The company would sign a three year contract with a day rate of $118,000 to $200,000 a day for 116-C.

What is the company’s comment on the Norwegian speculators playing out the jack-up business going forward?

There are a lots rigs that are for sale and the company gets calls about them all the time. However, the management feels that it can build a better and cheaper rig for the price they’re offering. The company has no intention of buying any of those rigs and feels that it can come up with a better product that fits the niche market it is focused on.