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Transocean Inc. Reports Fourth Quarter and Full-Year 2003 Results

February 3, 2004

HOUSTON--(BUSINESS WIRE)--Feb. 3, 2004--Transocean Inc. (NYSE:RIG) today reported net income for the three months ended December 31, 2003 of $5.5 million, or $0.02 per diluted share, on revenues of $591.5 million. Results for the quarter included an after-tax charge totaling $17.4 million, or $0.05 per diluted share, pertaining to the restructuring of certain benefit plans in Nigeria. Excluding the impact of the Nigeria benefit plan charge, net income for the three months ended December 31, 2003 was $22.9 million, or $0.07 per diluted share.

During the corresponding three months in 2002, the company reported a net loss of $2,780.7 million, or $8.71 per diluted share, on revenues of $664.6 million. The results included a non-cash charge of $2,876.0 million, or $9.01 per diluted share, relating to the company's annual test for impairment of goodwill, and an after-tax charge of $6.2 million, or $0.02 per diluted share, pertaining to an impairment loss on long-lived assets. Excluding the impact of the goodwill impairment charge and impairment loss on long-lived assets, net income for the three months ended December 31, 2002 was $101.5 million, or $0.32 per diluted share.

For the twelve months ended December 31, 2003, net income was $19.2 million, or $0.06 per diluted share, on revenues of $2,434.3 million. Full year 2003 results included the previously discussed charge relating to the restructuring of benefit plans in Nigeria, as well as costs totaling $8.8 million, or $0.03 per diluted share, relating to the planned initial public offering (IPO) of the company's Gulf of Mexico Shallow and Inland Water business segment, operated through its wholly-owned subsidiary, TODCO, after-tax charges of $26.4 million, or $0.08 per diluted share, resulting from the impairment of certain assets, and an after-tax loss of $13.8 million, or $0.04 per diluted share, relating to the early retirement of debt, partially offset by a favorable resolution of a non-U.S. income tax liability of $14.6 million, or $0.04 per diluted share. Excluding the impact of the charge relating to the restructuring of benefit plans in Nigeria, IPO costs, asset impairment charges, debt retirement loss and favorable income tax resolution, net income for the twelve months ended December 31, 2003 was $71.0 million, or $0.22 per diluted share.

During the corresponding twelve months in 2002, the company reported a net loss of $3,731.9 million, or $11.69 per diluted share, on revenues of $2,673.9 million. Full year 2002 results included a non-cash charge of $4,239.7 million, or $13.29 per diluted share, relating to the impairment of goodwill following the company's adoption of Statement of Financial Accounting Standards (SFAS) 142, Goodwill and Other Intangible Assets, and the October 2002 annual test for impairment of goodwill as prescribed by SFAS 142. In addition, full year 2002 results included an after-tax loss of $33.5 million, or $0.10 per diluted share, resulting from the non-cash impairment of certain long-lived assets. These charges were partially offset by a tax benefit totaling $175.7 million, or $0.55 per diluted share, attributable to the restructuring of certain non-U.S. operations. Excluding the impact of charges relating to goodwill impairment, the impairment of long-lived assets and the tax benefit, net income for the twelve months ended December 31, 2002 was $365.6 million, or $1.15 per diluted share.

Cash flow from operations totaled $61.2 million and $525.8 million for the three and twelve months ended December 31, 2003, respectively. During 2003, the company reduced total debt by $1,019.9 million. In addition, the company's capital expenditures for 2003 included $382.8 million to terminate two deepwater drillship synthetic operating leases.

Revenues for the company's International and U.S. Floater Contract Drilling Services business segment totaled $531.1 million for the three months ended December 31, 2003, down 6% from segment revenues of $564.4 million in the preceding three months of 2003. During the corresponding three months in 2002, segment revenues were $612.6 million. Segment operating income, before general and administrative expense, was $75.4 million during the three months ended December 31, 2003, while field operating income (defined as revenues less operating and maintenance expenses) totaled $177.0 million. The segment results compared to operating income, before general and administrative expense, of $118.9 million and field operating income of $222.0 million for the preceding quarter of 2003. During the corresponding three months in 2002, the segment reported an operating loss, before general and administrative expense, of $2,309.8 million, which included a non-cash charge of $2,494.1 million resulting from the company's annual test for impairment of goodwill. Field operating income during the same three months in 2002 was $295.8 million. Segment fleet utilization for the three months ended December 31, 2003 declined to 68% from 71% during the preceding three months in 2003, due principally to lower business activity among floating rigs in the U.S. Gulf of Mexico and North Sea. Segment fleet utilization during the fourth quarter of 2002 was 74%.

The company expects continued difficulty in its International and U.S. Floater Contract Drilling Services business segment in the near-term, with encouraging signs of improvement for this segment during the second half of the year and into 2005. The company's Other Floater rigs, consisting largely of second- and third-generation semisubmersibles with conventional capabilities, will remain in a business environment characterized by excess capacity on a global scale. Seasonal improvement through the spring and summer drilling period in the U.K.-sector of the North Sea should offer a modest recovery. In Norway, improvement in semisubmersible demand has recently produced a contract extension on one of the company's rigs as well as other near-term contract possibilities. With respect to the international jackup market sector, excess capacity continues in West Africa, although global demand for these jackup rigs remains strong and is expected to improve throughout 2004. Although the company expects intermittent idle time on some of its deepwater rigs through the first half of 2004, it has seen an increase in bid opportunities for long-term contracts starting in the second half of 2004 and into 2005 for these units.

The Gulf of Mexico Shallow and Inland Water business segment (TODCO) experienced a 3% improvement in revenues for the three months ended December 31, 2003, to $60.4 million, compared to segment revenues of $58.5 million during the preceding three months in 2003. During the corresponding three months in 2002, segment revenues were $52.0 million. The business segment's operating loss, before general and administrative expense, declined during the three months ended December 31, 2003, to $14.6 million, from an operating loss, before general and administrative expense, of $24.9 million during the preceding three months in 2003. An operating loss, before general and administrative expense, of $403.5 million during the corresponding three months in 2002 included a non-cash charge of $381.9 million pertaining to the company's annual test for impairment of goodwill. Field operating income increased to $7.7 million for the three months ended December 31, 2003, from a field operating loss of $2.1 million during the preceding three months in 2003. Field operating income totaled $ 2.3 million during the corresponding three months in 2002. Higher average dayrates of $25,800 among the segment's jackup and submersible rigs were a primary contributor to the improved revenue and operating measures for the three months ended December 31, 2003. The average dayrate compared to $20,800 for the preceding three months in 2003 and $21,700 for the corresponding three months in 2002.

Conference Call Information

Transocean will conduct a teleconference call at 10:00 a.m. ET on February 3, 2004. To participate, dial 303-262-2075 approximately five to 10 minutes prior to the scheduled start time of the call.

In addition, the conference call will be simultaneously broadcast over the Internet in a listen-only mode and can be accessed by logging onto the company's website at www.deepwater.com and selecting "Investor Relations." It may also be accessed via the Internet at www.CompanyBoardroom.com by typing in the company's New York Stock Exchange trading symbol, "RIG."

A telephonic replay of the conference call should be available after 1:00 p.m. ET on February 3 and can be accessed by dialing 303-590-3000 and referring to the passcode 566555. Also, a replay will be available through the Internet and can be accessed by visiting either of the above-referenced Worldwide Web addresses.

Monthly Fleet Update Information

Drilling rig status and contract information on Transocean Inc.'s offshore drilling fleet has been condensed into a report titled "Monthly Fleet Update" and is available through the company's website at www.deepwater.com. The report is located in the "Investor Relations/Financial Reports" section of the website. By subscribing to the Transocean Financial Report Alert, you will be immediately notified when new postings are made to this page by an automated e-mail that will provide a link directly to the page that has been updated. Shareholders and other interested parties are invited to sign up for this service.

Forward-Looking Disclaimer

Statements regarding future opportunities and outlook for the company and the company's International and U.S. Floater Contract Drilling Services business segment and fleet categories, dayrates, rig utilization, drilling activity, as well as any other statements that are not historical facts in this release, are forward-looking statements that involve certain risks, uncertainties and assumptions. These include but are not limited to operating hazards and delays, risks associated with international operations, results of investigations regarding riser, actions by customers and other third parties, the future price of oil and gas and other factors detailed in the company's most recent Form 10-K and other filings with the Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated.

Transocean Inc. is the world's largest offshore drilling contractor with more than 160 full or partially owned and managed mobile offshore drilling units, inland drilling barges and other assets utilized in the support of offshore drilling activities worldwide. The company's mobile offshore drilling fleet is considered one of the most modern and versatile in the world due to its concentration in technically demanding segments of the offshore drilling business, including industry-leading positions in high-specification deepwater and harsh environment drilling units. The company's fleet consists of 32 high-specification semisubmersibles and drillships (floaters), 27 other floaters and 50 jackup drilling rigs. With a current equity market capitalization in excess of $8 billion, Transocean Inc.'s ordinary shares are traded on the New York Stock Exchange under the symbol "RIG."

                   TRANSOCEAN INC. AND SUBSIDIARIES
                 CONSOLIDATED STATEMENTS OF OPERATIONS
                 (In millions, except per share data)

                              Three Months Ended  Twelve Months Ended
                                 December 31,         December 31,
                              ------------------- --------------------
                               2003      2002       2003      2002
                              -------- ---------- --------- ----------

Operating Revenues
  Contract Drilling Revenues   $569.1     $664.6  $2,333.8   $2,673.9
  Client Reimbursable Revenues   22.4          -     100.5          -
                                591.5      664.6   2,434.3    2,673.9

Costs and Expenses
  Operating and maintenance     406.8      366.5   1,610.4    1,494.2
  Depreciation                  127.1      126.2     508.2      500.3
  General and administrative     15.3       14.0      65.3       65.6
  Impairment loss on long-
   lived assets                  (0.3)   2,885.4      16.5    2,927.4
  Gain from sale of assets,
   net                           (2.9)      (0.2)     (5.8)      (3.7)
                                546.0    3,391.9   2,194.6    4,983.8

Operating Income (Loss)          45.5   (2,727.3)    239.7   (2,309.9)

Other Income (Expense), net
  Equity in earnings (losses)
   of joint ventures             (2.2)       3.0       5.1        7.8
  Interest income                 3.1        9.6      18.8       25.6
  Interest expense              (47.6)     (51.3)   (202.0)    (212.0)
  Loss on retirement of debt        -          -     (15.7)         -
  Impairment loss on note
   receivable from related
   party                            -          -     (21.3)         -
  Other, net                      0.5       (0.5)     (3.0)      (0.3)
                                (46.2)     (39.2)   (218.1)    (178.9)

Income (Loss) Before Income
 Taxes, Minority Interest and
 Cumulative Effect of a Change
 in Accounting Principle         (0.7)  (2,766.5)     21.6   (2,488.8)

Income Tax Expense (Benefit)     (5.3)      14.1       3.0     (123.0)
Minority Interest                (0.1)       0.1       0.2        2.4
Income (Loss) Before
 Cumulative Effect of a Change
 in Accounting Principle          4.7   (2,780.7)     18.4   (2,368.2)

Cumulative Effect of a Change
 in Accounting Principle          0.8          -       0.8   (1,363.7)
Net Income (Loss)                $5.5  $(2,780.7)    $19.2  $(3,731.9)

Basic Earnings (Loss) Per
 Share
  Income (Loss) Before
   Cumulative Effect of a
   Change in Accounting
   Principle                   $ 0.02    $ (8.71)    $0.06    $ (7.42)
  Loss on Cumulative Effect of
   a Change in Accounting
   Principle                        -          -         -      (4.27)
  Net Income (Loss)             $0.02     $(8.71)    $0.06    $(11.69)

Diluted Earnings (Loss) Per
 Share
  Income (Loss) Before
   Cumulative Effect of a
   Change in Accounting
   Principle                   $ 0.02    $ (8.71)    $0.06    $ (7.42)
  Loss on Cumulative Effect of
   a Change in Accounting
   Principle                        -          -         -      (4.27)
   Net Income (Loss)            $0.02     $(8.71)    $0.06    $(11.69)

Weighted Average Shares
 Outstanding
   Basic                        319.9      319.2     319.8      319.1
   Diluted                      321.3      319.2     321.4      319.1


                   TRANSOCEAN INC. AND SUBSIDIARIES
                      CONSOLIDATED BALANCE SHEETS
                   (In millions, except share data)

                                                     December 31,
                                                 ---------------------
                                                   2003       2002
                                                 ---------- ----------

                      ASSETS

Cash and Cash Equivalents                           $474.0   $1,214.2
Accounts Receivable
  Trade, net                                         435.3      437.6
  Other                                               45.0       61.7
Materials and Supplies                               152.0      155.8
Deferred Income Taxes                                 41.0       21.9
Other Current Assets                                  31.6       20.5
  Total Current Assets                             1,178.9    1,911.7

Property and Equipment                            10,673.0   10,198.0
Less Accumulated Depreciation                      2,663.4    2,168.2
  Property and Equipment, net                      8,009.6    8,029.8

Goodwill, net                                      2,230.8    2,218.2
Investments in and Advances to Joint Ventures          5.5      108.5
Deferred Income Taxes                                 28.2       26.2
Other Assets                                         209.6      370.7
  Total Assets                                   $11,662.6  $12,665.1

      LIABILITIES AND SHAREHOLDERS' EQUITY

Accounts Payable                                    $146.1     $134.1
Accrued Income Taxes                                  57.2       59.5
Debt Due Within One Year                              45.8    1,048.1
Other Current Liabilities                            262.0      262.2
   Total Current Liabilities                         511.1    1,503.9

Long-Term Debt                                     3,612.3    3,629.9
Deferred Income Taxes                                 42.8      107.2
Other Long-Term Liabilities                          303.8      282.7
   Total Long-Term Liabilities                     3,958.9    4,019.8

Commitments and Contingencies
Preference Shares, $0.10 par value; 50,000,000
 shares authorized, none issued and outstanding          -          -
Ordinary Shares, $0.01 par value; 800,000,000
 shares authorized, 319,926,500 and 319,219,072
 shares issued and outstanding at December 31,
 2003 and 2002, respectively                           3.2        3.2
Additional Paid-in Capital                        10,643.8   10,623.1
Accumulated Other Comprehensive Loss                 (20.2)     (31.5)
Retained Deficit                                  (3,434.2)  (3,453.4)
   Total Shareholders' Equity                      7,192.6    7,141.4
   Total Liabilities and Shareholders' Equity    $11,662.6  $12,665.1


                   TRANSOCEAN INC. AND SUBSIDIARIES
                 CONSOLIDATED STATEMENTS OF CASH FLOWS
                             (In millions)

                               Three Months Ended Twelve Months Ended
                                  December 31,        December 31,
                               ------------------ --------------------
                                2003     2002       2003      2002
                               ------- ---------- --------- ----------

Cash Flows from Operating
 Activities
  Net income (loss)              $5.5  $(2,780.7)    $19.2  $(3,731.9)
  Adjustments to reconcile net
   income (loss) to net cash
   provided by operating
   activities
    Depreciation                127.1      126.2     508.2      500.3
    Impairment loss on goodwill     -    2,876.0         -    4,239.7
    Deferred income taxes       (58.1)     (34.6)    (98.5)    (224.4)
    Equity in (earnings) losses
     of joint ventures            2.2       (3.0)     (5.1)      (7.8)
    Net loss from disposal of
     assets                       1.2        2.7      13.4        3.9
    Loss on retirement of debt      -          -      15.7          -
    Impairment loss on long-
     lived assets                (0.3)       9.4      16.5       51.4
    Impairment loss on note
     receivable from related
     party                          -          -      21.3          -
    Amortization of debt-
     related
     discounts/premiums, fair
     value adjustments and
     issue costs, net            (8.2)       1.6     (24.3)       6.2
    Deferred income, net         11.3        3.8       4.4       (5.5)
    Deferred expenses, net      (30.8)     (12.3)    (33.2)     (20.0)
    Other long-term liabilities  (2.9)       6.8      10.8       17.1
    Other, net                   (0.6)     (15.0)     15.8      (13.4)
    Changes in operating assets
     and liabilities
       Accounts receivable       12.2       47.4      19.8      179.4
       Accounts payable and
        other current
        liabilities             (40.1)     (36.9)      6.5      (78.8)
       Income taxes
        receivable/payable, net  26.2       24.8      27.8        8.9
       Other current assets      16.5       20.2       7.5       11.5
Net Cash Provided by Operating
 Activities                      61.2      236.4     525.8      936.6

Cash Flows from Investing
 Activities
  Capital expenditures         (422.3)     (26.4)   (495.9)    (141.0)
  Note issued to related party      -          -     (46.1)         -
  Payments received from note
   issued to related party       44.2          -      46.1          -
  Proceeds from disposal of
   assets, net                    4.3       14.7       8.4       88.3
  Acquisition of 40 percent
   interest in Deepwater
   Drilling II L.L.C., net of
   cash acquired                    -          -      18.1          -
  Deepwater Drilling L.L.C.'s
   cash acquired                 18.6          -      18.6          -
  Joint ventures and other
   investments, net               0.5        2.8       3.3        7.4
Net Cash Used in Investing
 Activities                    (354.7)      (8.9)   (447.5)     (45.3)

Cash Flows from Financing
 Activities
  Borrowings under capital
   lease obligations              1.1          -       2.1          -
  Borrowings under revolving
   credit agreement             250.0          -     250.0          -
  Repayments under commercial
   paper program                    -          -         -     (326.4)
  Repayments on other debt
   instruments and capital
   lease obligations           (285.5)     (35.0) (1,252.7)    (189.3)
  Cash from termination of
   interest rate swaps              -          -     173.5          -
  Net proceeds from issuance of
   ordinary shares under stock-
   based compensation plans       0.5          -      12.8       10.2
  Dividends paid                    -          -         -      (19.1)
  Financing costs                (4.9)      (0.4)     (4.9)      (8.5)
  Other, net                        -        0.3       0.7        2.6
Net Cash Used in Financing
 Activities                     (38.8)     (35.1)   (818.5)    (530.5)

Net Increase (Decrease) in Cash
 and Cash Equivalents          (332.3)     192.4    (740.2)     360.8
Cash and Cash Equivalents at
 Beginning of Period            806.3    1,021.8   1,214.2      853.4
Cash and Cash Equivalents at
 End of Period                 $474.0   $1,214.2    $474.0   $1,214.2


                            Transocean Inc.
                      Fleet Operating Statistics

                            Operating Revenues ($ Millions) (1)
                     -------------------------------------------------
                                                   Twelve Months Ended
                          Three Months Ended           December 31,
                     ----------------------------- -------------------
International and
 U.S. Floater        December  September December
 Contract Drilling      31,       30,       31,
 Services Segment:     2003      2003      2002      2003      2002
                     --------- --------- --------- --------- ---------
Contract Drilling
 Revenues
  High-Specification
   Floaters:
    5th Generation
     Deepwater         $187.5    $188.7    $182.6    $720.4    $674.0
    Other Deepwater     $96.9    $113.2    $159.0    $432.3    $572.1
    Other High-
     Specification
     Floaters           $31.9     $32.1     $33.5    $128.5    $132.9
  Total High-
   Specification
   Floaters            $316.3    $334.0    $375.1  $1,281.2  $1,379.0
  Other Floaters        $67.9     $74.3    $104.0    $306.7    $536.7
  Jackups - Non-U.S.   $104.6    $110.4    $114.5    $446.9    $462.9
  Other Rigs            $24.2     $25.7     $19.0     $89.2    $107.5
Subtotal               $513.0    $544.4    $612.6  $2,124.0  $2,486.1
  Client
   Reimbursables        $18.1     $20.0         -     $82.7         -
Segment Total          $531.1    $564.4    $612.6  $2,206.7  $2,486.1

Gulf of Mexico
 Shallow and Inland
 Water Segment:
Contract Drilling
 Revenues
  Jackups and
   Submersibles         $30.4     $25.7     $19.9     $94.8     $66.0
  Inland Barges         $18.9     $17.7     $24.8     $77.3     $87.5
  Other                  $6.8     $10.7      $7.3     $37.7     $34.3
Subtotal                $56.1     $54.1     $52.0    $209.8    $187.8
  Client
   Reimbursables         $4.3      $4.4         -     $17.8         -
Segment Total           $60.4     $58.5     $52.0    $227.6    $187.8

Total Company          $591.5    $622.9    $664.6  $2,434.3  $2,673.9

                                 Average Dayrates  (1) (2)
                     -------------------------------------------------
                                                   Twelve Months Ended
                          Three Months Ended           December 31,
                     ----------------------------- -------------------
International and
 U.S. Floater        December  September December
 Contract Drilling      31,       30,       31,
 Services Segment:     2003      2003      2002        2003      2002
                     --------- --------- --------- --------- ---------
  High-Specification
   Floaters:
    5th Generation
     Deepwater       $186,500  $176,600  $188,700  $182,800  $188,300
    Other Deepwater  $101,400  $112,500  $120,400  $109,900  $120,200
    Other High-
     Specification
     Floaters        $117,900  $117,200  $121,600  $118,200  $120,600
  Total High-
   Specification
   Floaters          $141,800  $142,200  $146,300  $143,000  $146,100
  Other Floaters      $60,600   $60,600   $76,800   $63,300   $76,400
  Jackups - Non-U.S.  $53,700   $54,400   $57,700   $55,600   $58,600
  Other Rigs          $45,200   $48,800   $36,200   $44,900   $42,100
Segment Total         $87,900   $89,000   $96,100   $89,400   $93,500

Gulf of Mexico
 Shallow and Inland
 Water Segment:
  Jackups and
   Submersibles       $25,800   $20,800   $21,700   $21,200   $21,600
  Inland Barges       $17,200   $16,900   $19,600   $17,000   $19,900
  Other               $20,700   $20,500   $19,400   $19,600   $20,800
Segment Total         $21,500   $19,300   $20,300   $19,200   $20,600

Total Mobile Offshore
 Drilling Fleet       $67,400   $67,000   $74,300   $67,200   $74,800

                                    Utilization (1) (2)
                     -------------------------------------------------
                                                   Twelve Months Ended
                          Three Months Ended          December 31,
                     ----------------------------- -------------------
International and
 U.S. Floater        December  September December
 Contract Drilling      31,       30,       31,
 Services Segment:     2003      2003      2002      2003      2002
                     --------- --------- --------- --------- ---------
  High-Specification
   Floaters:
    5th Generation
     Deepwater             91%       97%       96%       93%       89%
    Other Deepwater        69%       73%       96%       72%       87%
    Other High-
     Specification
     Floaters              74%       74%       75%       74%       75%
  Total High-
   Specification
   Floaters                78%       82%       93%       80%       86%
  Other Floaters           47%       51%       55%       50%       71%
  Jackups - Non-U.S.       81%       85%       83%       85%       85%
  Other Rigs               53%       49%       48%       45%       57%
Segment Total              68%       71%       74%       69%       78%

Gulf of Mexico
 Shallow and Inland
 Water Segment:
  Jackups and
   Submersibles            52%       54%       34%       45%       28%
  Inland Barges            40%       38%       44%       41%       39%
  Other                    24%       38%       27%       35%       37%
Segment Total              40%       44%       37%       41%       34%

Total Mobile Offshore
 Drilling Fleet            56%       59%       58%       57%       59%

(1) Certain reclassifications have been made to prior periods to
    conform to current quarter presentation.

(2) Average dayrates are defined as contract drilling revenue earned
    per revenue earning day and utilization is defined as the total
    actual number of revenue earning days as a percentage of the total
    number of calendar days in the period. Effective January 1, 2003,
    the calculation of average dayrates and utilization was changed to
    include all rigs based on contract drilling revenues. Prior
    periods have been restated to reflect the change.


                   Transocean Inc. and Subsidiaries
            Non-GAAP Financial Measures and Reconciliations
  Adjusted Income (Loss) and Earnings (Loss) Per Share Reconciliation
                           (in US$ millions)

                                QTD       YTD       QTD        YTD
                             12/31/03  12/31/03   12/31/02   12/31/02
                             --------- --------- ---------- ----------

Adjusted Income

Net income (loss) as
 reported                        $5.5     $19.2  $(2,780.7) $(3,731.9)
  Add back:
    After-tax loss on early
     retirement of debt             -      13.8          -          -
    After-tax loss on
     impairment of certain
     long-lived assets              -      12.6        6.2       33.5
    After-tax impairment of
     note receivable from
     Delta Towing LLC               -      13.8          -          -
    Favorable resolution of
     a non-U.S. income tax
     liability                      -     (14.6)         -          -
    Tax benefit from the
     restructuring of non-
     U.S operations                 -         -          -     (175.7)
    After-tax initial public
     offering costs                 -       8.8          -          -
    After-tax impairment of
     goodwill                       -         -    2,876.0    4,239.7
    After-tax restructuring
     of Nigeria benefit
     plans                       17.4      17.4          -          -
                             --------- --------- ---------- ----------
Net income as adjusted          $22.9     $71.0     $101.5     $365.6
                             --------- --------- ---------- ----------

Diluted Earnings Per Share:

Net income (loss) as
 reported                       $0.02     $0.06     $(8.71)   $(11.69)
  Add back:
    After-tax loss on early
     retirement of debt             -      0.04          -          -
    After-tax loss on
     impairment of certain
     long-lived assets              -      0.04       0.02       0.10
    After-tax impairment of
     note receivable from
     Delta Towing LLC               -      0.04          -          -
    Favorable resolution of
     a non-U.S. income tax
     liability                      -     (0.04)         -          -
    Tax benefit from the
     restructuring of non-
     U.S operations                 -         -          -      (0.55)
    After-tax initial public
     offering costs                 -      0.03          -
    After-tax impairment of
     goodwill                       -         -       9.01      13.29
    After-tax restructuring
     of Nigeria benefit
     plans                       0.05      0.05          -          -
                             --------- --------- ---------- ----------
Net income as adjusted          $0.07     $0.22      $0.32      $1.15
                             --------- --------- ---------- ----------


                   Transocean Inc. and Subsidiaries
            Non-GAAP Financial Measures and Reconciliations
                           (in US$ millions)

                                     For the Quarter Ended
                         ---------------------------------------------
                          December 31,    September 30,  December 31,
                              2003            2003           2002
                         --------------- --------------- -------------

Operating Income (Loss)
 Before General and
 Administrative Expenses
 to Field Operating
 Income (Loss) by
 Segment Reconciliation

  International and U.S.
   Floater Contract
   Drilling Services
   Segment
    Operating income
     (loss) before
     general and
     administrative
     expense                      $75.4          $118.9     $(2,309.8)
    Add
     back:  Depreciation          104.1           103.9         103.1
            Impairment
             loss on
             goodwill                 -               -       2,494.1
            Impairment
             loss on
             long-lived
             assets                   -               -           8.3
            (Gain) loss
             from sale
             of assets,
             net                   (2.5)           (0.8)          0.1
                         --------------- --------------- -------------
    Field operating
     income                      $177.0          $222.0        $295.8
                         --------------- --------------- -------------

  Gulf of Mexico Shallow
   and Inland Water
   Segment
    Operating loss
     before general and
     administrative
     expense                     $(14.6)         $(24.9)      $(403.5)
    Add
     back:  Depreciation           23.0            22.9          23.1
            Impairment
             loss on
             goodwill                 -               -         381.9
            Impairment
             loss on
             long-lived
             assets                (0.3)              -           1.1
            Gain from
             sale of
             assets, net           (0.4)           (0.1)         (0.3)
                         --------------- --------------- -------------
    Field operating
     income (loss)                 $7.7           $(2.1)         $2.3
                         --------------- --------------- -------------


    CONTACT: Transocean Inc., Houston
             Analyst Contact:
             Jeffrey L. Chastain, 713-232-7551
             or
             Media Contact:
             Guy A. Cantwell, 713-232-7647

    SOURCE: Transocean Inc.