DryShips Reductions and Charters

DryShips Inc. (NASDAQ: DRYS), a global provider of marine transportation services for drybulk cargoes and off-shore contract drilling oil services, announced on Jan. 29 that:

The company has entered into an agreement to cancel the previously announced acquisition of the 2005 built Panamax drybulk carrier M/V Maple Valley for a purchase price of $61m from an unrelated third party. In view of market conditions and following negotiations, the company and the seller have mutually agreed to cancel the Memorandum of Agreement to acquire the M/V Maple Valley in consideration of a payment of $8m to the seller and the seller’s retention of the $6.1m deposit that was previously paid. This cancellation will further reduce DryShips’ 2009 capital expenditures by $46.9m. The London arbitration and the New York proceeding between the seller and the company are both being discontinued.

The company also announced that it has entered into a time charter for the M/V Alameda, its only remaining unfixed spot based Capesize drybulk carrier. The M/V Alameda will be chartered at a gross rate of $21,000 per day for a period of approximately two years. The charter is expected to commence during late February or early March 2009. The M/V Alameda is a 170,662 dwt Capesize drybulk carrier built in 2001.

DryShips Inc., based in Greece, is an owner and operator of drybulk carriers that operate worldwide. As of the day of this release, DryShips owns a fleet of 43 drybulk carriers in the water comprising seven Capesize, 29 Panamax, two Supramax and five newbuilding drybulk vessels with a combined deadweight tonnage of approximately 3.9 million tons, 2 ultra deep water semi-submersible drilling rigs and 2 ultra deep water newbuilding drillships.