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Transocean Announces Redemption of Its Zero Coupon Convertible Debentures Due May 2020 and Its 1.5 Percent Convertible Debentures Due 2021

October 19, 2007

HOUSTON--(BUSINESS WIRE)--Oct. 19, 2007--Transocean Inc.(NYSE:RIG) today announced that it has called its Zero CouponConvertible Debentures due May 2020 and its 1.5 percent ConvertibleDebentures due 2021 for redemption on November 15, 2007. Theredemption price is $710.29 per $1,000 principal amount of the ZeroCoupon Convertible Debentures and $1,000 (plus accrued and unpaidinterest) per $1,000 principal amount of the 1.5 percent ConvertibleDebentures. The Zero Coupon Convertible Debentures and the 1.5 percentConvertible Debentures are convertible into ordinary shares at a rateof 8.1566 and 13.8627, respectively. The right of a holder of adebenture to convert the debenture into ordinary shares will terminateat the close of business on November 14, 2007 in the case of the ZeroCoupon Convertible Debentures and on November 9, 2007 in the case ofthe 1.5 percent Convertible Debentures. If all holders convert beforethe redemption date, we expect to issue 5,756,702 ordinary shares uponconversion based on the debentures outstanding as of September 30,2007. The aggregate face value of the debentures was $426 million asof September 30, 2007, and the cost to redeem the debentures isexpected to be approximately $421 million, including accrued andunpaid interest, assuming none of the debentures are converted.Transocean expects to recognize a loss on retirement of the notesduring the fourth quarter of 2007 of approximately $5 million andplans to use existing cash balances and borrowings under our existingrevolving credit facility to fund the redemption.

Statements regarding estimated cost, loss on retirement andfunding of the redemption, as well as any other statements that arenot historical facts in this release are forward-looking statementsthat involve certain risks, uncertainties and assumptions. Theseinclude but are not limited to the adequacy of sources of liquidityand factors detailed in Transocean's filings with the Securities andExchange Commission. Should one or more of these risks oruncertainties materialize, or should underlying assumptions proveincorrect, actual results may vary materially from those indicated.

Transocean Inc. is the world's largest offshore drillingcontractor with a fleet of 82 mobile offshore drilling units. Thecompany's mobile offshore drilling fleet, consisting of a large numberof high-specification deepwater and harsh environment drilling units,is considered one of the most modern and versatile in the world due toits emphasis on technically demanding segments of the offshoredrilling business. The company's fleet consists of 34High-Specification Floaters (semisubmersibles and drillships), 19Other Floaters, 25 Jackups and other assets utilized in the support ofoffshore drilling activities worldwide. With a current equity marketcapitalization in excess of $33 billion, Transocean Inc.'s ordinaryshares are traded on the New York Stock Exchange under the symbol\"RIG.\"

CONTACT: Transocean Inc., Houston
Analyst Contact:
Gregory S. Panagos, 713-232-7551
or
Media Contact:
Guy A. Cantwell, 713-232-7647

SOURCE: Transocean Inc.