THE Todco

HOUSTON, May 15 /PRNewswire-FirstCall/ -- TODCO (NYSE:THE) (the "Company") today announced that its jackup rig, THE 256, incurred damage during a fire on board the rig in a Galveston, Texas shipyard. All personnel on the rig were safely evacuated and the fire has been extinguished. The rig, a 250 foot mat slot type unit, was being reactivated for a one-year term contract and was anticipated to start operating in July 2006. The Company has not yet determined the full extent of the fire damage, projected repair costs, necessary time to repair the rig or indemnities from the shipyard and their insurance underwriters. The rig could be substantially delayed from its anticipated July 2006 start date. The rig has a net book value of approximately $2.6 million and is insured for $16.0 million as a cold-stacked rig. The deductible for rig damage is approximately $1.9 million in the event of a partial loss and zero in the event of a total loss. The Company is self-insured for 30% of all losses above the applicable deductible. Statements regarding the damage to our THE 256 as well as any other statements that are not historical facts in this release are forward-looking statements within the meaning of U.S. securities laws and involve certain risks, uncertainties and assumptions. These include, but are not limited to, the nature and extent of damage, estimated time to repair, projected repair costs, recoveries from the shipyard and their insurance underwriters and other factors detailed in TODCO's 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. TODCO is a leading provider of contract oil and gas drilling services with the largest rig fleet in the shallow water of the U.S. Gulf of Mexico and along the U.S. Gulf Coast. TODCO's common stock is traded on the New York Stock Exchange under the symbol "THE". For more information about TODCO please visit our website at http://www.theoffshoredrillingcompany.com/ . DATASOURCE: TODCO CONTACT: Dale W. Wilhelm, Vice President & CFO of TODCO, +1-713-278-6014 Web site: http://www.theoffshoredrillingcompany.com/

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