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NICOSIA, CYPRUS -- (Marketwire) -- 11/14/12 -- Ocean Rig UDW Inc. (NASDAQ: ORIG), or the Company, an international contractor of offshore deepwater drilling services today announced its unaudited financial and operating results for the third quarter ended September 30, 2012.

Third Quarter 2012 Financial Highlights

•For the third quarter of 2012, the Company reported a net loss of $12.2 million, or $0.09 basic and diluted loss per share.

Included in the third quarter of 2012 results are:

•Costs associated with the 10-year class survey for the Eirik Raude of $16.8 million, or $0.13 per share; •Non-cash write offs associated with the full repayment of the $1.04 billion senior secured credit facility totaling $18.3 million, or $0.14 per share; and •Non-cash mark-to-market losses on interest rate swaps totaling $3.3 million or $0.03 per share.

Excluding the above items, the Company's net results would have amounted to a net income of $26.2 million, or $0.21 per share.

The Company reported Adjusted EBITDA of $122.5 million for the third quarter of 2012, as compared to $132.6 million for the third quarter of 2011.(1)

Recent Events

•Pursuant to the Company's previous announcements related to potential contract awards for the Ocean Rig Poseidon and Ocean Rig Athena, the Company has been awarded two three-year contracts for each rig for drilling in Angola from two different major international oil companies.

•On September 20, 2012, the Company signed a contract to construct a seventh generation ultra-deepwater drillship at Samsung Heavy Industries Co Ltd., or Samsung. This seventh generation drillship is a "sister ship" to the Company's three newbuilding drillships currently under construction at Samsung, and is scheduled to be delivered in January 2015.

•On September 20, 2012, the Company's wholly-owned subsidiary, Drill Rigs Holdings Inc., issued $800.0 million of aggregate principal amount of 6.50% Senior Secured Notes due 2017 offered in a private offering, resulting in net proceeds of approximately $782.0 million. The Company used a portion of the net proceeds of the sale of the notes to repay the full amount outstanding under its $1.04 billion senior secured credit facility.

•On August 17, 2012, the Company entered into a drilling contract with Repsol for drilling operations offshore Brazil for our seventh generation drillship under construction scheduled to be delivered in July 2013, the Ocean Rig Mylos. The drilling contract has a three-year term, commencing upon delivery of the drillship from the shipyard, and has an estimated revenue backlog of approximately $700.0 million. Under the contract, Repsol also has options to extend the contract for up to two years beyond the initial three-year contract period.

•In July 2012, the Company formally commenced syndication of a $1.35 billion senior secured term loan facility to partially finance our drillship newbuilding hulls Ocean Rig Mylos, Ocean Rig Skyros and Ocean Rig Athena. This facility will be led by DNB and Nordea and is expected to have a commercial tranche and two export credit agency or ECA tranches. The Company has received conditional commitments for the commercial tranche and one of the ECA tranches, and expects to finalize this transaction during the first quarter of 2013.