DryShips Inc. Announces Details of Partial Spin Off of Ocean Rig Udw Inc.

News Release DryShips Inc. September 23, 2011

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ATHENS, GREECE – September 22, 2011 - DryShips Inc. (NASDAQ: DRYS)
(the “Company” or
“DryShips”), a global provider of marine transportation services
for drybulk and petroleum cargoes and
off-shore contract drilling oil services, today announced the
details of the partial spin off of Ocean Rig
UDW Inc. Based on 408,394,836 common shares outstanding as of the
record date of September 21,
2011, DryShips will distribute 2,967,359 common shares of Ocean
Rig UDW on a pro rata basis, or
0.007266 common shares of Ocean Rig UDW for every one share of
common stock of DryShips. The
distribution date for the partial spin off is October 5, 2011.
Ocean Rig UDW common shares began trading on a “when issued” basis
on the Nasdaq Global Select
Market under the ticker symbol “ORIGV” on September 19, 2011 and
it is expected that Ocean Rig
UDW common shares will begin “regular way” trading on the Nasdaq
Global Select Market on
October 6, 2011.
As previously announced, fractional shares of Ocean Rig UDW common
stock will not be distributed
to DryShips’ shareholders. Instead, fractional shares of Ocean Rig
UDW will be aggregated and sold
in the open market, with the net proceeds distributed pro rata in
the form of cash payments to
DryShips’ shareholders who would otherwise be entitled to receive
a fractional share of Ocean Rig
UDW common stock.
No action or payment is required by DryShips’ shareholders to
receive shares of Ocean Rig UDW
common stock. An Information Statement containing details
regarding the distribution of the Ocean
Rig UDW common stock will be mailed to DryShips’ shareholders
prior to the distribution date.
Investors are encouraged to consult with their financial advisers
regarding the specific implications of
buying or selling DryShips common stock after the ex-dividend date
of September 19, 2011.
The distribution of shares of Ocean Rig UDW common stock or cash
in lieu thereof in the partial spinoff
will be characterized as a taxable dividend for United States
federal income tax purposes. The
amount of the dividend for such tax purposes will be equal to the
sum of (x) the fair market value of
Ocean Rig UDW Shares received by a U.S. Holder; and (y) any cash
payment in lieu of fractional
shares paid to a U.S. Holder. You should treat the effective date
of the partial spin-off, which is the
distribution date of October 5, 2011, as the date of the dividend.
DryShips shareholders are urged to
consult with their tax advisors with respect to the U.S. federal,
state, local and foreign tax
consequences of the partial spin-off.
About DryShips
DryShips Inc. is an owner of drybulk carriers and tankers that
operate worldwide. Through its majority
owned subsidiary, Ocean Rig UDW Inc., DryShips owns and operates 9
offshore ultra deepwater
drilling units, comprising of 2 ultra deepwater semisubmersible
drilling rigs and 7 ultra deepwater
drillships, 4 of which remain to be delivered to Ocean Rig during
2011 and 2013. DryShips owns a
fleet of 35 drybulk carriers (including newbuildings), comprising
7 Capesize, 26 Panamax and 2
Supramax, with a combined deadweight tonnage of over 3.3 million
tons, and 12 tankers (including
newbuildings), comprising 6 Suezmax and 6 Aframax, with a combined
deadweight tonnage of over
1.6 million tons.
DryShips’ common stock is listed on the NASDAQ Global Select
Market where it trades under the
symbol “DRYS.”</DIV></BODY></HTML>