This summary is based on the third-quarter earnings call conducted by Rowan Companies, Inc. on November 1st, 2005.

Key Investors Issues

- Revenues rose 57% from a year ago to $284 million.
- Income from continuing operations rose to 67 cents per share compared to 9 cents in 2004.
- Drilling revenues increased by $83 million or 62% from a year ago to a record $217 million.
- Net gains from asset disposals contributed 18 cents per share to third-quarter earnings.
- Another 15 cents per share of expected gains have been deferred pending collection of the insurance proceeds.

Third-Quarter Financial Highlights

- Income from continuing operations during the nine months ended September 30, 2005 was $148.4 million, or $1.35 per share, on revenues of $751.4 million, compared to income from continuing operations of $11.1 million, or 10 cents per share, on revenues of $489.0 million during the same period of 2004.

- Net income was $160.3 million, or $1.46 per share, for the first nine months of 2005, compared to a net loss of $3.5 million, or 3 cents per share, for the same period in 2004.

- The external manufacturing backlog is a record $318 million and includes one jack-up rig and three rig kits that should provide approximately $206 million in revenues over the next two years.

- The company has orders for 14 mining loaders and 41 mud pumps that will be delivered within the next 12 months.

- Revenues increased by $40 million or 16% sequentially.
- Income from continuing operations improved by $31 million or 28 cents per share sequentially.

The company’s activity rates remained near peak levels in the quarter.

- Gulf of Mexico rigs were 99% utilized, up from 97% in 2004.
- Total offshore fleet was 97% utilized, unchanged from 2004.
- The company’s 16 actively-marketed land rigs were 100% utilized, unchanged from 2004.

Average day rates improved significantly from a year ago.

- Gulf of Mexico rates increased by 60% to a record $74,400 a day.
- Land rates increased by 52% from a year ago to $18,800 a day.

Third-Quarter Drilling Expenses

Drilling expenses increased by $11 million or 13% from a year ago, primarily due to:

- The start-up of the new project Bob Keller in September, 2005.
- Reactivation of one land rig in February, 2005.
- The average 8% wage increase effectively May 1, 2005.
- Incremental incentive compensation costs and $2 million of additional costs to plug an abandoned Tuscan''s Ardmore project.

Manufacturing revenues increased by $19 million or 41%, due to the improved contribution from the equipment group.

- Equipment group revenues increased by $14 million or 64% from a year ago.
- Seven mining loaders were shipped in 2005 compared to three in 2004.
- Manufacturing backlog more than tripled from a year ago to $318 million at September 30, 2005.

Selling, general and administrative expenses

SG&A expenses increased by $8 million from a year ago or 77% due to the incremental professional services, incentive compensation and manufactured selling costs.

Drilling revenues increased by $35 million or 19% primarily due to higher average offshore and land day rates in the startup of the Bob Keller in September of 2005.