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Transocean Inc. Reports Third Quarter 2005 Results

November 8, 2005

HOUSTON--(BUSINESS WIRE)--Nov. 8, 2005--Transocean Inc. (NYSE:RIG)today reported net income for the three months ended September 30,2005 of $170.4 million, or $0.50 per diluted share, on revenues of$762.6 million. The results compare to net income of $154.9 million,or $0.47 per diluted share, on revenues of $651.8 million for thethree months ended September 30, 2004. Net income for thecorresponding three months in 2004 included a gain relating to asecondary offering of TODCO shares of $129.4 million, or $0.39 perdiluted share.

For the nine months ended September 30, 2005, net income was$564.0 million, or $1.68 per diluted share, on revenues of $2,120.5million, compared to net income of $225.6 million, or $0.70 perdiluted share, on revenues of $1,937.0 million for the correspondingnine months in 2004. Net income for the nine months ended September30, 2005 included gains resulting from the sale of TODCO common stockin May and June of 2005 of $165.0 million, or $0.49 per diluted share,gains associated with the sale of the semisubmersible rig Sedco 600,the jackup rig Transocean Jupiter and Land Rig 34 of $27.9 million, or$0.08 per diluted share, and a loss on the early retirement of debt of$6.7 million, or $0.02 per diluted share. The results for thecomparable nine months in 2004 included the gain on the sale of thesemisubmersible rig Sedco 602 of $21.6 million, or $0.07 per dilutedshare, a loss on the early retirement of debt of $28.1 million, or$0.09 per diluted share, and items related to the divestiture of TODCOof $130.7 million, or $0.40 per diluted share.

Robert L. Long, President and Chief Executive Officer ofTransocean Inc., stated, \"The outlook for the offshore drillingindustry remains exceptionally strong with both floating rigs andjackup units experiencing improving demand. Dayrate levels reflect thetight supply and demand dynamics into the future, with the companyrecently establishing an industry high dayrate of $475,000 over athree-year duration for the Discoverer Spirit in the U.S. Gulf ofMexico. We have also seen significant dayrate increases for some ofour other floaters. Due to strong customer demand, we are increasinglyconfident that up to three of our currently idle floaters, thesemisubmersible rigs Transocean Prospect, Transocean Winner and C.Kirk Rhein, Jr. could be reactivated with anticipated contractcommencement dates during the second or third quarter of 2006. We haveannounced separately an agreement to upgrade a Sedco 700-seriessemisubmersible to deepwater drilling capacity and are also indiscussions with several operators regarding possible additionalupgrades to deepwater drilling capability of other semisubmersibles inour Other Floaters fleet. These other potential upgrades would besupported by firm contracts and require an estimated 24 months tocomplete at a cost of approximately $300 million per unit, dependingon final technical specifications and other factors.

\"Our industry is facing significant challenges as it copes with anunprecedented level of customer demand, the repair of mobile offshoredrilling units damaged by hurricanes in the U.S. Gulf of Mexico, agrowing shortage of qualified personnel and lengthening lead timesassociated with the delivery of critical rig components. In addition,industry costs, such as those for labor, rig maintenance andinsurance, are escalating. To meet these challenges, recruiting,training and developing our people will continue to be one of ourhighest priorities.\"

The company's fleet of 32 High-Specification Floaters continues toexperience strong customer demand throughout all operating regions.Due in part to the tightening capacity into 2007, operators areincreasingly committing to multiple-year contracts, as evidenced byrecent contract awards for the Deepwater Millennium, DiscovererSpirit, Deepwater Pathfinder, Discoverer Seven Seas, Transocean Arcticand Deepwater Expedition, each ranging from two to three years induration. At present, eight of the company's High-SpecificationFloaters have been awarded contracts with durations into 2010.Continued dayrate improvement remains evident with a recent contractsigning involving a Fifth-Generation Deepwater Floater at a high of$475,000, while recent dayrate discussions involving some OtherDeepwater Floaters range from $250,000 to $355,000. A total of 14High-Specification Floaters, including four Fifth-Generation DeepwaterFloaters, are expected to complete existing contract commitmentsbetween now and 2007, representing opportunities to contract these 14rigs at market dayrates prevailing at that time. At present,approximately 80% of the High-Specification Floater fleet is committedto contracts in 2006, including 92% of the Fifth-Generation DeepwaterFloater fleet while 59% is committed to contracts in 2007, including80% of the Fifth-Generation Deepwater Floater fleet.

Activity levels for the company's Other Floaters, or mid-waterrigs, are expected to improve into 2007. Dayrates for these floaterscontinue to advance, especially in the U.K. sector of the North Sea,where a short-term contract was recently awarded to thesemisubmersible rig Sedco 714 at a dayrate of $250,000, up from aprevious dayrate of $200,000, and in the U.S. Gulf of Mexico, wherethe semisubmersible rig Falcon 100 was recently awarded a one-yearcontract at a dayrate of $180,000, up from $145,000 on a previouscontract. At present, approximately 59% and 22% of the Other Floatersfleet is contracted in 2006 and 2007, respectively.

The company's fleet of 25 Jackups continues to experience strongutilization, achieving 98% during the three months ended September 30,2005. Contract opportunities with expected 2006 commencements areexpanding in the Middle East, Southeast Asia and India. Some of thesecontract opportunities are for multiple-year contract durations withdayrates ranging from $85,000 to $130,000. At present, approximately58% and 18% of the Jackup fleet is contracted in 2006 and 2007,respectively.

An increase in revenues in the fourth quarter of 2005 due to theabove described trends is expected to be substantially offset byout-of-service time resulting from hurricane damage to thesemisubmersible rigs Deepwater Nautilus and Transocean Marianas. Thecombined impact on revenues and operating costs during the fourthquarter of 2005 from hurricane damage is expected to be between $40million and $50 million. Repair costs resulting from hurricane damage,along with planned upgrades and maintenance for the Sedco Energy,Trident 8 and Shelf Explorer and reactivation programs for thePeregrine I and at least one currently idle semisubmersible areexpected to result in higher fourth quarter 2005 operating andmaintenance expenses as compared to the reported level for the thirdquarter of 2005. The higher operating and maintenance expenses areexpected to more than offset any increase in revenues the companymight realize in the fourth quarter of 2005.

Operations Quarterly Review - Revenues for the three months endedSeptember 30, 2005 totaled $762.6 million, a 5% improvement fromrevenues of $727.4 million during the three months ended June 30,2005. The increase was due primarily to higher fleet activity anddayrates, with activity levels favorably impacted by improvedutilization on a number of rigs, including the semisubmersible rigsSedco Express, M.G. Hulme, Jr. and Transocean Legend, which spent timein shipyards during the previous three months in 2005 for plannedmaintenance or upgrades. Higher dayrates resulted in an average fleetdayrate of $107,100 compared to $103,100 during the three months endedJune 30, 2005. The revenue improvement was partially offset by fleetdowntime relating to shipyard programs for the semisubmersible rigSedco Energy, ahead of its two-year contract in Nigeria, and thedrillship Deepwater Navigator, combined with reduced revenues fromintegrated services activities in the North Sea.

Operating income before general and administrative expenses(1) andfield operating income (defined as revenues less operating andmaintenance expense) were $222.9 million and $322.8 million,respectively, for the three months ended September 30, 2005 andcompared favorably to $202.8 million and $288.5 million, respectively,for the three months ended June 30, 2005. The improved results weredue primarily to increased revenues resulting from higher activity anddayrates. Operating and maintenance expenses for the three monthsended September 30, 2005 were $439.8 million, which were essentiallyflat with the preceding three months in 2005. Expenses in the mostrecently completed quarter of $13 million associated with thereactivation of the drillship Peregrine I, ahead of its multiple-yearcontract in Brazil, and scheduled shipyard and maintenance programs onthe drillship Deepwater Navigator and the semisubmersible rig SedcoEnergy, as well as project expenses of $3.4 million relating tosemisubmersible rigs damaged by hurricanes in the U.S. Gulf of Mexico,were partially offset by lower expenses pertaining to reducedintegrated services activity. Average fleet utilization for the threemonths ended September 30, 2005 improved to 82%, up from 79% duringthe preceding three months in 2005, with improvements shown throughoutmost of the company's fleet.

TODCO Tax Sharing Agreement - The company reported $10.1 millionin the third quarter of 2005 related to the recognition of incomeunder the tax sharing agreement with TODCO. The TODCO tax sharingagreement provides that TODCO will pay Transocean as it utilizespre-IPO tax benefits from net operating losses and similar items. Thisincome is recognized when TODCO files its income tax return. Theamount recognized in the third quarter of 2005 and reflected in\"Other, net\" in the company's condensed consolidated statements ofoperations relates to TODCO's filing of its 2004 U.S. federal incometax return.

Conference Call Information

Transocean will conduct a teleconference call at 10:00 a.m. ET onNovember 8, 2005. To participate, dial 303-262-2050 approximately fiveto 10 minutes prior to the scheduled start time of the call.

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

A telephonic replay of the conference call should be availableafter 1:00 p.m. ET on November 8 and can be accessed by dialing303-590-3000 and referring to the passcode 11041313. Also, a replaywill be available through the Internet and can be accessed by visitingeither of the above-referenced Worldwide Web addresses.

Forward-Looking Disclaimer

Statements regarding fundamental business outlook, duration ofcurrent demand cycle, contract backlog, rig demand, timing, cost andimpact of rig reactivations, major upgrades, revenues, costs, results,contract duration, contract opportunities, repair costs, impact ofstorm damage, personnel matters, opportunities for the company,dayrates, as well as any other statements that are not historicalfacts in this release, are forward-looking statements that involvecertain risks, uncertainties and assumptions. These include but arenot limited to operating hazards and delays, risks associated withinternational operations, effect of strike and other labor relationsissues, effect of fire, future financial results, actions by customersand other third parties, the future price of oil and gas and otherfactors detailed in the company's most recent Form 10-K and otherfilings with the Securities and Exchange Commission. Should one ormore of these risks or uncertainties materialize, or should underlyingassumptions prove incorrect, actual results may vary materially fromthose indicated.

Transocean Inc. is the world's largest offshore drillingcontractor with a fleet of 92 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 32High-Specification Floaters (semisubmersibles and drillships), 24Other Floaters, 25 Jackup Rigs and other assets utilized in thesupport of offshore drilling activities worldwide. With a currentequity market capitalization in excess of $19 billion, TransoceanInc.'s ordinary shares are traded on the New York Stock Exchange underthe symbol \"RIG.\"

(1) For a reconciliation of segment operating income before general    and administrative expense to field operating income, see the    accompanying schedule titled Non-GAAP Financial Measures and    Reconciliations - Operating Income (Loss ) Before General and    Administrative Expense to Field Operating Income by Segment.                   TRANSOCEAN INC. AND SUBSIDIARIES            CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS                 (In millions, except per share data)                              (Unaudited)                             Three Months Ended    Nine Months Ended                                September 30,         September 30,                             -------------------   -------------------                               2005      2004        2005      2004                             --------- ---------   --------- ---------Operating Revenues  Contract drilling revenues   $735.6    $607.1    $2,018.3  $1,789.5  Other revenues                 27.0      44.7       102.2     147.5----------------------------------------------------------------------                                762.6     651.8     2,120.5   1,937.0----------------------------------------------------------------------Costs and Expenses  Operating and maintenance     439.8     432.9     1,267.3   1,251.5  Depreciation                  102.1     133.9       304.0     398.4  General and administrative     19.4      15.2        55.5      44.3----------------------------------------------------------------------                                561.3     582.0     1,626.8   1,694.2----------------------------------------------------------------------Gain from sale of assets, net     2.2       1.3        37.9      28.9----------------------------------------------------------------------Operating Income                203.5      71.1       531.6     271.7----------------------------------------------------------------------Other Income (Expense), net  Equity in earnings of   unconsolidated affiliates      1.8       1.7         8.3       7.7  Interest income                 5.2       2.5        14.0       6.5  Interest expense              (24.5)    (42.6)      (87.4)   (132.6)  Gain from TODCO Stock Sales       -     129.4       165.0     168.8  Loss on retirement of debt     (0.6)        -        (7.3)    (28.1)  Other, net                      9.7       0.1         5.6       0.4----------------------------------------------------------------------                                 (8.4)     91.1        98.2      22.7----------------------------------------------------------------------Income Before Income Taxes and Minority Interest          195.1     162.2       629.8     294.4Income Tax Expense               24.7       6.3        65.8      74.2Minority Interest                   -       1.0           -      (5.4)----------------------------------------------------------------------Net Income                     $170.4    $154.9      $564.0    $225.6======================================================================Earnings Per Share   Basic                        $0.52     $0.48       $1.73     $0.70   Diluted                      $0.50     $0.47 (1)   $1.68     $0.70======================================================================Weighted Average Shares Outstanding   Basic                        328.9     320.9       326.2     320.7----------------------------------------------------------------------   Diluted                      340.8     330.5       338.5     324.4----------------------------------------------------------------------(1) As a result of EITF 04-08, \"The Effect of Contingently Convertible    Instruments on Diluted Earnings Per Share,\" which was effective    for reporting periods ending after December 15, 2004, the diluted    earnings per share for the three months ended September 30, 2004    have been restated.                   TRANSOCEAN INC. AND SUBSIDIARIES                 CONDENSED CONSOLIDATED BALANCE SHEETS                   (In millions, except share data)                                           September 30, December 31,                                               2005          2004                                           ------------- -------------                                            (Unaudited)                  ASSETSCash and Cash Equivalents                        $596.8        $451.3Accounts Receivable, net of allowance for doubtful accounts of $18.0 and $16.8 at September 30, 2005 and December 31, 2004, respectively                                     596.5         442.0Materials and Supplies, net of allowance for obsolescence of $18.5 and $20.3 at September 30, 2005 and December 31, 2004, respectively                                     155.2         144.7Deferred Income Taxes, net                         19.9          19.0Other Current Assets                               36.3          52.1----------------------------------------------------------------------   Total Current Assets                         1,404.7       1,109.1----------------------------------------------------------------------Property and Equipment                          9,802.6       9,732.9Less Accumulated Depreciation                   2,983.6       2,727.7----------------------------------------------------------------------   Property and Equipment, net                  6,819.0       7,005.2----------------------------------------------------------------------Goodwill                                        2,254.9       2,251.9Investments in and Advances to Unconsolidated Affiliates                          6.4         109.2Deferred Income Taxes                              60.9          43.8Other Assets                                      226.7         239.1----------------------------------------------------------------------   Total Assets                               $10,772.6     $10,758.3======================================================================   LIABILITIES AND SHAREHOLDERS' EQUITYAccounts Payable                                 $200.8        $180.8Accrued Income Taxes                               38.1          17.1Debt Due Within One Year                          400.0          19.4Other Current Liabilities                         266.6         213.0----------------------------------------------------------------------   Total Current Liabilities                      905.5         430.3----------------------------------------------------------------------Long-Term Debt                                  1,197.7       2,462.1Deferred Income Taxes, net                        144.9         124.1Other Long-Term Liabilities                       322.7         345.2----------------------------------------------------------------------   Total Long-Term Liabilities                  1,665.3       2,931.4----------------------------------------------------------------------Commitments and ContingenciesMinority Interest                                   4.1           4.0Preference 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, 330,077,072 and 321,533,998 shares issued and outstanding at September 30, 2005 and December 31, 2004, respectively                    3.3           3.2Additional Paid-in Capital                     10,935.4      10,695.8Accumulated Other Comprehensive Loss              (23.0)        (24.4)Retained Deficit                               (2,718.0)     (3,282.0)----------------------------------------------------------------------   Total Shareholders' Equity                   8,197.7       7,392.6----------------------------------------------------------------------   Total Liabilities and Shareholders'    Equity                                    $10,772.6     $10,758.3======================================================================                   TRANSOCEAN INC. AND SUBSIDIARIES            CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS                             (In millions)                              (Unaudited)                               Three Months Ended   Nine Months Ended                                  September 30,       September 30,                               ------------------- -------------------                                 2005      2004      2005      2004                               --------- --------- --------- ---------Cash Flows from Operating Activities  Net income                     $170.4    $154.9    $564.0    $225.6  Adjustments to reconcile net   income to net cash provided   by operating activities    Depreciation                  102.1     133.9     304.0     398.4    Stock-based compensation     expense                        6.2       4.2      12.1      17.7    Deferred income taxes          (8.8)     (7.6)     (6.6)     20.4    Equity in earnings of     unconsolidated affiliates     (1.8)     (1.7)     (8.3)     (7.7)    Net (gain)/loss from     disposal of assets            (0.7)      1.4     (34.2)    (23.6)    Gain from TODCO Stock Sales       -    (129.4)   (165.0)   (168.8)    Loss on retirement of debt      0.6         -       7.3      28.1    Amortization of debt-     related     discounts/premiums, fair     value adjustments and     issue costs, net              (0.8)     (5.1)     (6.3)    (17.6)    Deferred income, net          (22.0)      1.0      (9.9)     15.1    Deferred expenses, net         18.0      (5.8)     27.1     (18.5)    Tax benefit from exercise     of options to purchase and     vesting of ordinary shares     under stock-based     compensation plans            15.2         -      20.1         -    Other long-term liabilities     5.5      (1.5)     18.0       5.4    Other, net                    (15.6)      3.7     (16.9)     (0.6)    Changes in operating assets     and liabilities       Accounts receivable        (27.1)      8.6    (146.7)    (23.2)       Accounts payable and        other current        liabilities                14.5      61.0      85.6      61.1       Income taxes        receivable/payable, net   (20.1)      3.4     (13.0)      5.4       Other current assets         2.0       5.0     (18.1)    (10.6)----------------------------------------------------------------------Net Cash Provided by Operating Activities                       237.6     226.0     613.2     506.6-----------------------------------------=========--------------------Cash Flows from Investing Activities  Capital expenditures            (35.3)    (45.1)   (144.9)    (99.8)  Proceeds from disposal of   assets, net                      2.3       4.3      62.8      46.3  Proceeds from TODCO Stock   Sales, net                         -     269.9     271.9     425.6  Joint ventures and other   investments, net                   -       4.3       4.5       9.0-----------------------------------------=========--------------------Net Cash Provided by (Used in) Investing Activities             (33.0)    233.4     194.3     381.1----------------------------------------------------------------------Cash Flows from Financing Activities  Repayments on revolving   credit agreement                   -         -         -    (200.0)  Repayments on other debt   instruments                   (592.4)    (11.8)   (880.2)   (407.0)  Net proceeds from issuance of   ordinary shares under stock-   based compensation plans        36.7       5.0     196.1      20.0  Proceeds from issuance of   ordinary shares upon   exercise of warrants             6.0         -      10.6         -  Decrease in cash dedicated to   debt service                       -         -      12.0         -  Other, net                       (0.6)      1.1      (0.5)      1.1----------------------------------------------------------------------Net Cash Used in Financing Activities                      (550.3)     (5.7)   (662.0)   (585.9)----------------------------------------------------------------------Net Increase (Decrease) in Cash and Cash Equivalents            (345.7)    453.7     145.5     301.8----------------------------------------------------------------------Cash and Cash Equivalents at Beginning of Period              942.5     322.1     451.3     474.0----------------------------------------------------------------------Cash and Cash Equivalents at End of Period                   $596.8    $775.8    $596.8    $775.8======================================================================                            Transocean Inc.                      Fleet Operating Statistics                             Operating Revenues ($ Millions) (1)                      ------------------------------------------------                                                     Nine Months Ended                           Three Months Ended          September 30,                      ----------------------------- ------------------Transocean Drilling   Sept. 30, June 30,  Sept. 30, Segment:               2005      2005      2004      2005      2004                      --------- --------- --------- --------- --------Contract Drilling Revenues    High-Specification     Floaters:        Fifth-         Generation         Deepwater         Floaters       $220.9    $213.8    $192.8    $627.0    $590.3        Other         Deepwater         Floaters       $161.8    $145.7    $112.5    $432.8    $323.9        Other High-         Specification         Floaters        $60.8     $56.0     $34.2    $167.0     $96.3    Total High-     Specification     Floaters           $443.5    $415.5    $339.5  $1,226.8  $1,010.5    Other Floaters      $136.1    $114.2     $67.0    $338.5    $196.0    Jackups             $133.2    $128.3    $101.4    $387.9    $309.5    Other Rigs           $22.8     $24.1     $20.1     $65.1     $64.1Subtotal                $735.6    $682.1    $528.0  $2,018.3  $1,580.1Other Revenues    Client     Reimbursable     Revenues            $19.8     $25.0     $17.6     $63.7     $55.6    Integrated     Services and     Other                $7.2     $20.3     $13.1     $38.5     $53.7Subtotal                 $27.0     $45.3     $30.7    $102.2    $109.3Segment Total           $762.6    $727.4    $558.7  $2,120.5  $1,689.4TODCO Segment (3)Contract Drilling Revenues                   $-        $-     $79.1        $-    $209.4Other Revenues    Client     Reimbursable     Revenues               $-        $-      $5.6        $-     $16.2    Delta Towing and     Other                  $-        $-      $8.4        $-     $22.0Subtotal                    $-        $-     $14.0        $-     $38.2Segment Total               $-        $-     $93.1        $-    $247.6Total Company           $762.6    $727.4    $651.8  $2,120.5  $1,937.0                                Average Dayrates  (1) (2) (4)                      ------------------------------------------------                                                     Nine Months Ended                           Three Months Ended          September 30,                      ----------------------------- ------------------Transocean Drilling   Sept. 30, June 30,  Sept. 30, Segment:               2005      2005      2004      2005      2004                      --------- --------- --------- --------- --------    High-Specification     Floaters:        Fifth-         Generation         Deepwater         Floaters     $197,100  $197,100  $193,400  $192,300  $187,600        Other         Deepwater         Floaters     $141,700  $132,700  $103,900  $133,300  $104,200        Other High-         Specification         Floaters     $166,300  $170,500  $111,200  $163,400  $113,800    Total High-     Specification     Floaters         $168,800  $165,500  $142,200  $163,000  $142,300    Other Floaters     $90,400   $82,400   $65,400   $82,000   $64,400    Jackups            $58,900   $58,200   $52,500   $58,200   $52,200    Other Rigs         $48,000   $47,000   $44,700   $47,000   $44,100Segment Total         $107,100  $103,100   $91,100  $102,400   $90,200TODCO Segment (3)           $-        $-   $27,300        $-   $26,400Total Drilling Fleet  $107,100  $103,100   $69,800  $102,400   $70,300                                    Utilization (1) (2) (4)                          --------------------------------------------                                                          Nine Months                                                             Ended                               Three Months Ended        September 30,                          ----------------------------- --------------Transocean Drilling       Sept. 30, June 30,  Sept. 30, Segment:                   2005      2005      2004      2005   2004                          --------- -------- ---------- ------- ------    High-Specification     Floaters:        Fifth-Generation         Deepwater         Floaters               94%      92%        83%     92%    88%        Other Deepwater         Floaters               83%      80%        78%     79%    76%        Other High-         Specification         Floaters               99%      90%        84%     94%    77%    Total High-     Specification     Floaters                   89%      86%        81%     86%    81%    Other Floaters              68%      63%        45%     63%    44%    Jackups                     98%      94%        81%     96%    83%    Other Rigs                  51%      57%        44%     51%    48%Segment Total                   82%      79%        67%     79%    68%TODCO Segment  (3)               -        -         45%      -     41%Total Drilling Fleet            82%      79%        58%     79%    56%(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 in the period. A revenue earning day is    defined as a day for which a rig earns dayrate after commencement    of operations. Utilization is defined as the total actual number    of revenue earning days in the period as a percentage of the total    number of calendar days in the period.(3) TODCO was deconsolidated effective December 17, 2004.(4) Excludes a drillship engaged in scientific geological coring    activities, the Joides Resolution, that is owned by a joint    venture in which we have a 50 percent interest and is accounted    for under the equity method of accounting.                   Transocean Inc. and Subsidiaries           Non-GAAP Financial Measures and Reconciliations  Operating Income (Loss) Before General and Administrative Expense                 to Field Operating Income by Segment                          (in US$ millions)                           Three Months Ended       Nine Months Ended                       --------------------------- -------------------                       September  June   September                          30,      30,      30,       September 30,                         2005     2005     2004      2005      2004                       --------- ------- --------- --------- ---------Transocean Drilling Segment  Operating revenue      $762.6  $727.4    $558.7  $2,120.5  $1,689.4  Operating and   maintenance expense    439.8   438.9     360.5   1,267.3   1,031.8  Depreciation            102.1   101.2     110.0     304.0     326.4  Gain from sale of   assets, net             (2.2)  (15.5)     (0.5)    (37.9)    (23.5)                       --------- ------- --------- --------- --------- Operating income  before general and  administrative  expense                 222.9   202.8      88.7     587.1     354.7Add back: Depreciation    102.1   101.2     110.0     304.0     326.4          Gain from           sale of           assets, net     (2.2)  (15.5)     (0.5)    (37.9)    (23.5)                       --------- ------- --------- --------- ---------  Field operating   income                $322.8  $288.5    $198.2    $853.2    $657.6                       --------- ------- --------- --------- ---------TODCO Segment (1)  Operating revenue          $-      $-     $93.1        $-    $247.6  Operating and   maintenance expense   (2)                        -       -      72.4         -     219.7  Depreciation                -       -      23.9         -      72.0  Gain from sale of   assets, net                -       -      (0.8)        -      (5.4)                       --------- ------- --------- --------- --------- Operating income  (loss) before  general and  administrative  expense                     -       -      (2.4)        -     (38.7)Add back: Depreciation        -       -      23.9         -      72.0          Gain from           sale of           assets, net        -       -      (0.8)        -      (5.4)                       --------- ------- --------- --------- --------- Field operating  income                     $-      $-     $20.7        $-     $27.9                       --------- ------- --------- --------- ---------(1) Amounts are representative of TODCO's results through December 16,    2004. TODCO was deconsolidated effective December 17, 2004 in    connection with the December offering and conversion of the    Company's remaining TODCO Class B common stock to Class A common.(2) Q3 04 and YTD 04 include $6.9 million and $26.3 million,    respectively, of operating and maintenance expense that TODCO    classified as general and administrative expense.
    CONTACT: Transocean Inc., Houston             Analyst Contact: Jeffrey L. Chastain, 713-232-7551             or             Media Contact: Guy A. Cantwell, 713-232-7647    SOURCE: Transocean Inc.