DryShips Inc. Reports First Quarter 2007 Results


ATHENS, GREECE--(Marketwire - May 29, 2007) - DryShips Inc. (NASDAQ: DRYS), a global provider of marine transportation services for drybulk cargoes, today announced its unaudited financial and operating results for the first quarter ended March 31, 2007.

Financial Highlights

--  The Company reported Net Income of $66.4 million or $1.87 per share,
    for the first quarter of 2007.  Included in the first quarter results is a
    capital gain on the sale of three vessels of $30.5 million or $0.86 per
    share. Excluding this gain Net Income would amount to $35.9 million or
    $1.01 per share.
--  For the first quarter of 2007 the Company reported EBITDA, excluding
    vessel gains, of $63.5 million, which is the highest EBITDA excluding
    vessel gains reported in a single quarter since the Company's inception.
--  In April 2007 the Company declared and paid its eighth consecutive
    quarterly cash dividend of $0.20 per common share.
    
George Economou, the Company's Chairman and Chief Executive Officer of DryShips Inc., commented:

"We are pleased to report an exceptionally strong quarter with record EBITDA. These strong results reflect not only the continued improvement of the freight markets but also the consistent implementation of our strategy.

Our chartering policy has enabled us to take advantage of the prevailing robust freight rates. By entering a portion of our fleet into time charters of less than one year, while at the same time positioning the remainder of our fleet spot, we were able to benefit fully from the market's upside. As of today, 56% of our fleet days for the remaining three quarters of 2007 remain unfixed, providing DryShips with significant operating leverage.

We have also pursued our goal of fleet expansion and renewal, acting as a consolidator in the dry bulk industry and reaffirming our leadership position as the largest US listed dry bulk company in terms of fleet size and revenue. Our focus has been to dispose of older vessels and replace them with younger and larger vessels, thereby not only lowering our fleet's average age but also enhancing the quality and longevity of its earnings potential.

Since the beginning of our fleet renewal program in the fourth quarter of 2006, we have entered into agreements to acquire eleven vessels and dispose of eleven vessels, from which we expect to realize a gain of approximately $112.6 million or $3.17 per share. When the acquisitions and disposals already announced are concluded, our fleet will include 36 dry bulk carriers with a combined deadweight tonnage of approximately 3.0 million, and an average age of 8.5 years well below the industry average of about 12.6 years."

First Quarter 2007 Results

For the first quarter ended March 31, 2007, Net Revenues (Voyage Revenues less Voyage Expenses) amounted to $81.4 million as compared to $50.8 million for the first quarter ended March 31, 2006. Operating Income was $77.2 million for the quarter ended March 31, 2007, as compared to $24.1 million for the quarter ended March 31, 2006. Net Income for the first quarter ended March 31, 2007 was $66.4 million or $1.87 Earnings Per Share (EPS) calculated on 35.49 million weighted average basic and diluted shares outstanding as compared to $18.1 million or $0.60 Earnings Per Share (EPS) calculated on 30.35 million weighted average basic and diluted shares outstanding for the quarter ended March 31, 2006. EBITDA for the first quarter of 2007 was $94.0 million as compared to $38.0 million in the quarter ended March 31, 2006. (1)

An average of 32.1 vessels were owned and operated during the first quarter of 2007, earning an average Time Charter Equivalent, or TCE, rate of $28,930 per day as compared to an average of 27.0 vessels owned and operated during the first quarter of 2006 earning an average TCE rate of $21,324 per day.

Drydock Related Expenses

During the first quarter of 2007, one vessel was drydocked for a total direct cost of $0.5 million. Such costs are capitalized and amortized until the vessels' next drydock.

Capitalization

On March 31, 2007, debt to total capitalization (debt, net of deferred financing fees and stockholders equity) was 56.5% and net debt (total debt less cash and cash equivalents) to total capitalization was 55.5%.

As of March 31, 2007, the Company had a total liquidity of approximately $32.6 million.

Appointment of Interim CFO

The Board of Directors of DryShips has appointed Mr. George Economou, Chairman of the Board and Chief Executive Officer, to act as interim Chief Financial Officer of DryShips.

This follows the resignation of Mr. Gregory Zikos, Director and Chief Financial Officer who is leaving the Company to pursue other interests effective today. The Board has formed a committee to search for a permanent replacement.

Financing Activities

On April 5, 2007 the Company concluded a short-term bridge loan of $33 million with a related party in connection with the acquisition of the MV Primera. Following the disposal of the MV Shibumi on April 12, 2007, the facility was fully repaid.

On April 19, 2007 the Company entered into a bridge facility of up to $181 million with HSH Nordbank in connection with the acquisition of the MV Primera, MV Marbella, MV Bargara and MV Brisbane.

On May 23, 2007 the Company amended its existing credit facility with HSH Nordbank in order to:

(a)  increase the amount available under the existing credit facility by up
     to $181 million and
(b)  include a re-borrowing option for mandatory prepayment amounts due to
     sale of vessels of up to $ 200 million.
With the above amendments to the existing credit facility permanent financing has now been arranged for all of the announced acquisitions. At the same time all of the bridge facilities with HSH Norbank were repaid.

As of May 29, 2007, the Company had a total of $749.2 million in debt outstanding under its credit facility with HSH Nordbank with a total un-drawn amount of $117.5 million.

Fleet Developments

Vessels Acquired and Delivered

On April 11, 2007, the Company took delivery of the MV Primera, a 1998 built second-hand 72,495 dwt Panamax drybulk carrier, which it had agreed to acquire on December 15, 2006, for a purchase price of $38.0 million.

On April 27, 2007, the Company took delivery of the MV Marbella, a 2000 built second-hand 72,561 dwt Panamax drybulk carrier, which it had agreed to acquire on February 27, 2006, for a purchase price of $46.0 million.

On May 14, 2007, the Company took delivery of the MV Bargara, a 2002 built second-hand 74,832 dwt Panamax drybulk carrier, which it had agreed to acquire on April 11, 2007, for a purchase price of $49.0 million.

On May 23, 2007, the Company took delivery of the MV Brisbane, a 1995 built second-hand 151,066 dwt Capesize drybulk carrier, which it had agreed to acquire on January 10, 2007, for a purchase price of $60.0 million.

Vessels Sold and Delivered

On April 10, 2007, the MV Estepona, a 1994 built 70,003 dwt Panamax drybulk carrier was delivered to her new owners for a sales price of $36.7 million. The Company expects to realize a gain of $7.6 million to be recognized in the second quarter of 2007.

On April 12, 2007, the MV Shibumi, a 1984 built second-hand 166,058 dwt Capesize drybulk carrier was delivered to her new owners for a sales price of $24.6 million. The Company expects to realize a gain of $17.8 million to be recognized in the second quarter of 2007.

On May 9, 2007, the MV Delray, a 1994 built 70,029 dwt Panamax drybulk carrier was delivered to her new owners for a sales price of $36.7 million. The Company expects to realize a gain of $8.0 million to be recognized in the second quarter of 2007.

Vessel Acquisitions - To be Delivered

On November 23, 2006, the Company agreed to acquire the MV Ecola, a 1997 built second-hand 73,931 dwt Panamax drybulk carrier, delivery of which is expected during the third quarter of 2007, for a purchase price of $39.7 million.

On January 18, 2007, the Company agreed to acquire the MV Menorca, a 1997 built second-hand 71,685 dwt Panamax drybulk carrier, delivery of which is expected during the second quarter of 2007, for a purchase price of $41.0 million.

On March 23, 2007, the Company agreed to acquire the MV Heinrich Oldendorff, a 2001 built second-hand 73,925 dwt Panamax drybulk carrier, delivery of which is expected during the second quarter of 2007, for a purchase price of $49.0 million. Upon delivery to DryShips the vessel will commence a bareboat charter back to the seller for a period between 11 to 13 months at a daily bareboat charter rate of $28,000.

On March 26, 2007, the Company agreed to acquire the MV Majorca, a 2005 built second-hand 74,477 dwt Panamax drybulk carrier, delivery of which is expected during the second quarter of 2007, for a purchase price of $53.5 million.

On April 11, 2007, the Company agreed to acquire the MV Capitola, a 2001 built second-hand 74,832 dwt Panamax drybulk carrier, delivery of which is expected during the second quarter of 2007 for a purchase price of $49.0 million.

Vessel Disposals - To be Delivered

On March 2, 2007 the Company entered into an agreement to sell the MV Alona, a 2002 built, 48,640 dwt Handymax drybulk carrier for a sales price of $39.5 million with delivery to the new owners scheduled to take place during the second quarter of 2007. The Company expects to realize a gain of approximately $7.5 million which will be recognized in the second quarter of 2007.

On March 13, 2007, the Company entered into an agreement to sell the MV Lanikai, a 1988 built, 68,676 dwt Panamax drybulk carrier for a sales price of $26.1 million with delivery to the new owners scheduled to take place between the second and third quarter of 2007. The Company expects to realize a gain of approximately $9.0 million.

On March 26, 2007, the Company entered into an agreement to sell the MV Hille Oldendorff, a 2005 built 55,566 dwt Supramax drybulk carrier for a sales price of $50.5 million with delivery to the new owners scheduled to take place during the second quarter of 2007. The Company expects to realize a gain of approximately $12.8 million.

On March 26, 2007 the Company entered into an agreement to sell the MV Mostoles, a 1981 built 75,395 dwt Panamax drybulk carrier for sales price of $13.3 million with delivery to the new owners scheduled to take place during the second quarter of 2007. The Company expects to realize a gain of approximately $10.8 million.

Gains on Vessel Disposals

In fiscal year 2006, DryShips recognized an aggregate gain on vessel disposals of $8.6 million or $0.24 per share. In the first quarter of 2007 the Company recognized an aggregate gain on vessel disposals of $30.5 million or $ 0.86 per share. For the remainder of 2007 the Company expects to recognize capital gain of $73.5 million or $2.07 per share.

In total, since the beginning of its fleet renewal program in the fourth quarter of 2006, DryShips expects a total gain on vessel disposals of approximately $112.6 million or $ 3.17 per share.

When all these acquisitions and disposals are concluded, DryShips's fleet will include 36 drybulk carriers comprising 5 Capesize, 28 Panamax, 1 Handymax and 2 newbuilding Panamax vessels, with a combined deadweight tonnage of approximately 3.0 million, and an average age of 8.5 years.

Fleet Employment Developments

The Company has entered the MV Samsara, a 1996 built 150,393 dwt Capesize vessel, into a time charter for a period of between 7 and 9 months that commenced in February 2007 at a daily rate of $55,500.

The Company has entered the MV Netadola, a 1993 built 149,475 dwt Capesize vessel, into a time charter for a period of approximately between 7 and 9 months that commenced in February 2007 at a daily rate of $52,500.

The Company has entered the MV Ligari, a 2004 built 75,583 dwt Panamax vessel, into a time charter for a period of between 7 and 9 months that commenced in February 2007 at a daily rate of $31,550.

The Company has entered the MV Mendocino, a 2002 built 76,623 dwt Panamax vessel, into a time charter for a period of between 7 and 9 months that commenced in March 2007 at a daily rate of $37,500.

The Company has entered the MV Alona, a 2002 built 48,640 dwt Handymax vessel, into a time charter for a period of between 50 and 70 days that commenced in March 2007 at a daily rate of $28,700

The Company has entered the MV Ocean Crystal, a 1999 built 73,688 dwt Panamax vessel, into a time charter for a period of approximately between 6 to 8 months that commenced in March 2007 at a daily rate of $40,000.

The Company has entered the MV Alameda, a 2001 built 170,662 dwt Capesize vessel, into a time charter for a period of approximately between 9 to 11 months that commenced in April 2007 at a daily rate of $73,000.

The Company has entered the MV Waikiki, a 1995 built 75,473 dwt Panamax vessel, into a time charter for a period of approximately between 9 to 11 months that commenced in April 2007 at a daily rate of $36,750.

The Company has entered the MV Matira, a 1994 built 45,863 dwt Handysize vessel, into a time charter for a period of approximately between 6 to 8 months that commenced in April 2007 at a daily rate of $32,300.

The Company has entered the MV La Jolla, a 1997 built 72,126 dwt Panamax vessel, into a time charter for a period of between 5 and 7 months that commenced in April 2007 at a daily rate of $46,000.

The Company has entered the MV Lanzarote, a 1996 built 73,008 dwt Panamax vessel, into a time charter for a period of between 5 and 7 months that commenced in April 2007 at a daily rate of $43,750.

These time charters are expected to contribute between approximately $96.8 million and $124.3 million in time charter revenue over the course of their respective charters, during 2007. The lower figure corresponds to the minimum charter duration, and the higher figure corresponds to the maximum charter duration.

Taking into consideration the above charters about 56% of the total vessel operating days for remaining three quarters of 2007 remain unfixed.

Capital Expenditures

The Company expects to incur the following capital expenditures associated with vessel drydockings:

                                 Second      Third      Fourth
                                 quarter    quarter    quarter
                                  2007        2007       2007       2008
                                ---------- ---------- ---------- ----------
Number of vessels                        1          1          1          6
                                ---------- ---------- ---------- ----------
Expected cost in USD millions          0.4        0.4        0.3        4.8
                                ---------- ---------- ---------- ----------
Off-hire days                           16         16         15        123
                                ---------- ---------- ---------- ----------
Such costs are capitalized and amortized until the vessels' next drydock. The actual days and expenses in connection with vessel drydockings will vary based on the shipyard schedule, weather, condition of the vessel and other factors.

In addition the Company expects to incur expenses for peripheral supplies and other repair works while the vessels will be in drydock which will be included in Vessel Operating Expenses for the respective quarter.

Dividend Payment

In April 2007, DryShips declared and paid its eighth consecutive quarterly cash dividend of $0.20 per common share. Since the Company's IPO in February 2005, DryShips has paid total dividends of $1.60 per common share

As of May 29, 2007, the Company has a total of 35,490,097 shares of common stock outstanding.

Fleet Data

First Quarter 2007

Total TCE revenue increased during the first quarter of 2007 compared to the first quarter of 2006, primarily as a result of an increase in the average number of vessels operated, from an average of 27.0 vessels in the first quarter of 2006 to 32.1 vessels in the first quarter of 2007, and an increase in the daily average TCE rate in the first quarter of 2007 to $28,930 from $21,324 in the first quarter of 2006.

Vessel operating expenses increased to $13.8 million for the first quarter of 2007 compared to $10.5 million for the first quarter of 2006. The increase is mainly attributable to the increase in the number of vessels operated from an average of 27.0 vessels for the first quarter of 2006 to 32.1 vessels for the first quarter of 2007.

Depreciation and amortization increased to $16.9 million in the first quarter of 2007 compared to $13.8 million in the first quarter of 2006. This was a direct result of the increase in the Company's fleet from an average of 27.0 vessels in the first quarter of 2006 to an average of 32.1 vessels in the first quarter of 2007.

Management fees increased to $2.2 million in the first quarter of 2007 compared to $1.4 million in the first quarter of 2006 as a direct result of the increase in the number of fleet calendar days from 2,430 in the first quarter of 2006 to 2,887 in the first quarter of 2007 due to the growth of the fleet.

General and administrative expenses increased to $1.9 million in the first quarter of 2007 from $1.0 million in the first quarter of 2006 mainly due to the growth of the fleet.

First Quarter 2007

(Dollars in thousands, except         Three Months ended Three Months Ended
Average Daily Results - unaudited)       March 31, 2007    March 31, 2006
                                        ----------------  ----------------
Average number of vessels (1)                       32.1                27
Total voyage days for fleet (2)                    2,813             2,381
Total calendar days for fleet (3)                  2,887             2,430
Fleet Utilization (4)                               97.4%             98.0%
Time charter equivalent (5)                       28,930            21,324
Capesize                                          39,605            33,768
Panamax                                           27,825            19,698
Handymax                                          21,605            15,063
Vessel operating expenses (daily) (6)              4,776             4,318
Management fees (daily)                              760               594
General and administrative expenses
 (daily) (7)                                         654               399
Total vessel operating expenses (daily)
 (8)                                               6,190             5,311


(1) Average number of vessels is the number of vessels that constituted our
fleet for the relevant period, as measured by the sum of the number of days
each vessel was a part of our fleet during the period divided by the number
of calendar days in that period.
(2) Total voyage days for fleet are the total days the vessels were owned
by us for the relevant period net of off hire days associated with major
repairs, drydockings or special or intermediate surveys.
(3) Calendar days are the total days the vessels were owned by us for the
relevant period including off hire days associated with major repairs,
drydockings or special or intermediate surveys.
(4) Fleet utilization is the percentage of time that our vessels were
available for revenue generating voyage days, and is determined by dividing
voyage days by fleet calendar days for the relevant period.
(5) Time charter equivalent, or TCE, is a measure of the average daily
revenue performance of a vessel on a per voyage basis. Our method of
calculating TCE is consistent with industry standards and is determined by
dividing voyage revenues (net of voyage expenses) by voyage days for therelevant time period. Voyage expenses primarily consist of port, canal and
fuel costs that are unique to a particular voyage, which would otherwise be
paid by the charterer under a time charter contract, as well as
commissions. TCE is a standard shipping industry performance measure used
primarily to compare period-to-period changes in a shipping company's
performance despite changes in the mix of charter types (i.e., spot
charters, time charters and bareboat charters) under which the vessels may
be employed between the periods.
(6) Daily vessel operating expenses, which includes crew costs, provisions,
deck and engine stores, lubricating oil, insurance, maintenance and repairs
is calculated by dividing vessel operating expenses by fleet calendar days
for the relevant time period.
(7) Daily general and administrative expense is calculated by dividing
general and administrative expense by fleet calendar days for the relevant
time period
(8) Total vessel operating expenses, or TVOE, is a measurement of our total
expenses associated with operating our vessels. TVOE is the sum of vessel
operating expenses, management fees and general and administrative
expenses. Daily TVOE is calculated by dividing TVOE by fleet calendar days
for the relevant time period.
TCE Rates:

The following table reflects the calculation of our TCE rates for the periods then ended:

(Dollars in thousands)            Three Months Ended   Three Months Ended
                                    March 31, 2007       March 31, 2006
                                  -------------------  -------------------

Voyage revenues                                86,650               54,809
Voyage expenses                                (5,270)              (4,036)

                                  -------------------  -------------------
Time Charter equivalent revenues               81,380               50,773
                                  ===================  ===================

Total voyage days for fleet                     2,813                2,381

Time charter equivalent (TCE)
 rate                                          28,930               21,324
DryShips Inc. Fleet

As at March 31, 2007, the Company's fleet excluding newbuildings consisted of 32 vessels.

During the three month period ended March 31, 2007, the Company operated the following types of vessels:

                                Capesize    Panamax   Handymax     Total
                                ---------  ---------  ---------  ---------
Average number of vessels
 during period                       4.51      24.57       3.00      32.08
Number of vessels at end of
 period                              5.00      24.00       3.00      32.00
Dwt at end of period              808,649  1,750,473    150,069  2,709,191
DWT as percentage of total
 fleet                              29.85%     64.61%      5.54%    100.00%

Financial Statements

Income Statement

The following are DryShips Inc.'s Condensed Income Statements for the three month periods ended March 31, 2007 and March 31, 2006:

(Dollars in thousands, except per
 share data and                      Three Months Ended  Three Months Ended
Average Daily Results - unaudited)      March 31, 2007     March 31, 2006
                                      -----------------  -----------------
                                          Unaudited          Unaudited
INCOME STATEMENT DATA

Voyage revenues                       $          86,650  $          54,809
Voyage expenses                                   5,270              4,036

Vessel operating expenses                        13,789             10,492
Depreciation and amortization                    16,854             13,766
Gain on sale of vessels                         (30,497)
Management fees                                   2,196              1,444
General and administrative                        1,888                969

                                      -----------------  -----------------
Operating Income                                 77,150             24,102
                                      -----------------  -----------------

Interest and finance costs, net                 (10,748)            (6,109)
Other, net                                           (1)               121

                                      -----------------  -----------------
NET INCOME                            $          66,401  $          18,114
                                      =================  =================

Basic and fully diluted earnings per
 share                                $            1.87  $            0.60
                                      =================  =================
Weighted average basic and diluted
 shares outstanding                          35,490,097         30,350,000
                                      -----------------  -----------------
Balance Sheet

The following are DryShips Inc.'s Balance Sheets as at March 31, 2007 and December 31, 2006:

                                                     As at        As at
                                                    March 31,  December 31,
(Dollars in thousands)                                2007        2006
                                                  ------------ ------------
BALANCE SHEET DATA                                 Unaudited    Unaudited
ASSETS
CURRENT ASSETS:
Cash and cash equivalents                                6,088        2,537
Restricted cash                                          6,471        6,614
Accounts receivables - trade, net                        5,784        3,187
Insurance claims                                         4,689          671
Due from related parties                                 3,059        3,353
Inventories                                              2,719        2,571
Financial instruments                                      786          985
Prepaid charter revenue                                      -        1,335
Prepayments and other                                    4,869        5,568
Vessel held for sale                                    29,331            -
                                                  ------------ ------------
      Total current assets                              63,796       26,821
                                                  ------------ ------------
FIXED ASSETS:
Advances for vessels under construction and
 acquisitions                                           46,350       27,380
Vessels-net                                          1,063,251    1,084,924
                                                  ------------ ------------
      Total fixed assets                             1,109,601    1,112,304
                                                  ------------ ------------
Deferred charges, net                                    4,799        6,200
Restricted cash                                         20,000       20,000
Other non current assets                                 2,727        2,848
                                                  ------------ ------------
      Total assets                                   1,200,923    1,168,173
                                                  ============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Current portion of long-term debt                      125,691       71,412
Accounts payable                                         9,229       11,423
Due to related parties                                      15       25,086
Accrued liabilities                                      6,348        6,326
Deferred revenue                                        10,018       12,270
Financial instruments                                    1,320        2,625
Other current liabilities                                  202          202
                                                  ------------ ------------
      Total current liabilities                        152,823      129,344
                                                  ------------ ------------
Long-term debt, net of current portion                 537,331      587,330
                                                  ------------ ------------
Other non-current liabilities                              574          607
                                                  ------------ ------------
STOCKHOLDERS' EQUITY
Capital stock                                              355          355
Additional paid-in capital                             327,446      327,446
Retained earnings                                      182,394      123,091
                                                  ------------ ------------
      Total Stockholders' equity                       510,195      450,892
                                                  ------------ ------------
      Total liabilities and stockholders' equity     1,200,923    1,168,173
                                                  ============ ============
EBITDA Reconciliation

DryShips Inc. considers EBITDA to represent net income before interest, taxes, depreciation and amortization. EBITDA does not represent and should not be considered as an alternative to net income or cash flow from operations, as determined by United States generally accepted accounting principles, or U.S. GAAP, and our calculation of EBITDA may not be comparable to that reported by other companies. EBITDA is included herein because it is a basis upon which the Company assesses its liquidity position, it is used by our lenders as a measure of our compliance with certain loan covenants and because the Company believes that it presents useful information to investors regarding a company's ability to service and/or incur indebtedness.

The following table reconciles net cash from operating activities to EBITDA:

(Dollars in thousands)                               Three Months Ended                                                    March 31,    March 31,
                                                      2007         2006

Net cash provided by operating activities              42,609       26,512
Net increase in current assets                          5,770        1,245

Net decrease in current liabilities, excluding
 current portion of long term debt                      1,860        1,382

Gain on Sale of Vessels                                30,497            -
Amortization of deferred/prepaid charter revenue        1,299          361
Recognition/Amortization of free lubricants
 benefit                                                   33          (40)
Change in fair value of derivatives                     1,106        1,705

Net interest expense                                   10,748        6,109

Amortization of deferred financing costs included
 in net interest expense                                 (439)        (121)
Payments for dry-docking costs                            520          836
                                                  -----------  -----------
EBITDA                                                 94,003       37,989
                                                  ===========  ===========
Fleet List

The table below describes in detail our fleet development and current employment profile as of May 29, 2007:

                                                      Gross Rate     Redel-
                Year                      Current                    ivery
                Built     DWT     Type  Employment  per Day Earliest Latest
Capesize:
Manasota         2004   171,061 Capesize        TC $  55,000 Aug-07 Nov-07
Alameda          2001   170,269 Capesize        TC $  73,000 Jan-08 Mar-08
Samsara          1996   150,393 Capesize        TC $  55,500 Sep-07 Nov-07
Netadola         1993   149,475 Capesize        TC $  52,500 Sep-07 Nov-07
Brisbane         1995   151,066 Capesize      Spot $  83,500 Prompt Prompt
                  9.0   792,264        5
Panamax:
Ligari           2004    75,583  Panamax        TC $  31,550 Sep-07 Nov-07
Padre            2004    73,601  Panamax        TC $  30,000 Sep-07 Nov-07
Maganari         2001    75,941  Panamax        TC $  18,400 Apr-08 Jul-08
Coronado         2000    75,706  Panamax        TC $  18,500 Prompt Jun-07
Ocean Crystal    1999    73,688  Panamax        TC $  40,000 Sep-07 Nov-07
Xanadu           1999    72,270  Panamax        TC $  18,500 Prompt Jun-07
Lanzarote        1996    73,008  Panamax        TC $  43,750 Sep-07 Nov-07
Iguana           1996    70,349  Panamax        TC $  28,000 Sep-07 Nov-07
Formentera       1996    70,002  Panamax        TC $  18,000 Prompt Jul-07
Waikiki          1995    75,473  Panamax        TC $  36,750 Jan-08 Mar-08
Mendocino        2002    76,623  Panamax        TC $  37,500 Oct-07 Dec-07
La Jolla         1997    72,126  Panamax        TC $  46,000 Oct-07 Dec-07
Sonoma           2001    74,786  Panamax Baumarine $  42,911
Toro             1995    73,034  Panamax Baumarine $  41,362
Lacerta          1994    71,862  Panamax Baumarine $  41,668
Lanikai          1988    68,676  Panamax Baumarine $  38,378
Tonga            1984    66,798  Panamax Baumarine $  33,897
Mostoles         1981    75,395  Panamax      Spot $  41,500 Prompt Prompt
Primera          1998    72,495  Panamax      Spot $  40,500 Prompt Prompt
Redondo          2000    74,716  Panamax      Spot $  31,250 Prompt Prompt
Marbella         2000    72,561  Panamax      Spot $  35,500 Prompt Prompt
Bargara          2002    74,832  Panamax      Spot $  47,150 Prompt Prompt
Catalina         2005    74,432  Panamax      Spot $  44,750 Prompt Prompt
Solana           1995    75,100  Panamax      Spot $  40,100 Prompt Prompt
Paragon          1995    71,259  Panamax      Spot $  44,800 Prompt Prompt
                  9.8 1,830,316       25
Handymax:
Alona            2002    48,640 Handymax        TC $  28,700 Prompt Jun-07
Matira           1994    45,863 Handymax        TC $  32,300 Oct-07 Dec-07
Hille Oldendorff 2005    55,566 Handymax        BB $  20,020 Prompt Jun-07
                  6.3   150,069        3

Newbuildings:
TBN              2009    75,000  Panamax
TBN              2010    75,000  Panamax
                        150,000        2

Total Fleet       9.4 2,922,649       35


1. For spot vessels the TCE rate is for the current voyage
2. For vessels trading in the Baumarine pool the TCE rate is the Pool's
   estimate for earnings in the month of May
3. The MV Maganari has been fixed in direct continuation at $18,400 per day
   for 12 months
4. The MV Hille Oldendorff is employed under a bareboat charter
5. The quoted rates are not indications of future earnings and the Company
   gives no assurance or guarantee of future rates.
Conference Call and Webcast: May 30, 2007, at 9 a.m. EDT

DryShips' management team will host a conference call on Wednesday, May 30, 2007, at 9 a.m., Eastern Daylight Saving Time (EDT) to discuss the Company's financial results for the first quarter 2007.

Conference Call details:

Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1(866) 819-7111 (from the US), 0(800)953-0329 (from the UK) or +(44) 1452 542 301 (from outside the US). Please quote "DryShips."

In case of any problem with the above numbers, please dial 1(866) 223 0615 (from the US), 0(800) 694-1503 (from the UK) or +(44) 1452 586-513 (from outside the US). Quote "DryShips."

A replay of the conference call will be available until June 6th, 2007.

The United States replay number is 1(866) 247 4222; the international replay number is (0(800) 953-1533; from the UK or (+44) 1452-550 000 and the access code required for the replay is: 2133051#.

Slides and audio webcast:

There will also be a simultaneous live webcast over the Internet, through the DryShips, Inc. website (www.dryships.com). Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.

About DryShips, Inc.

DryShips Inc., is an international provider of drybulk carriers. Headquartered in Athens, Greece, DryShips owns and operates a fleet of 35 drybulk carriers comprising 5 Capesize, 25 Panamax, 3 Handymax and 2 newbuilding Panamax vessels, with a combined deadweight tonnage of approximately 2.9 million.

DryShips Inc.'s common stock is listed on NASDAQ Global Market where it trades under the symbol "DRYS."

Visit our website at www.dryships.com

Forward-Looking Statement

Matters discussed in this release may constitute forward-looking statements. Forward-looking statements reflect our current views with respect to future events and financial performance and may include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts.

The forward-looking statements in this release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, management's examination of historical operating trends, data contained in our records and other data available from third parties. Although DryShips Inc. believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, DryShips Inc. cannot assure you that it will achieve or accomplish these expectations, beliefs or projections.

Important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the strength of world economies and currencies, general market conditions, including changes in charterhire rates and vessel values, changes in demand that may affect attitudes of time charterers to scheduled and unscheduled drydocking, changes in DryShips Inc.'s operating expenses, including bunker prices, dry-docking and insurance costs, or actions taken by regulatory authorities, potential liability from pending or future litigation, domestic and international political conditions, potential disruption of shipping routes due to accidents and political events or acts by terrorists.

Risks and uncertainties are further described in reports filed by DryShips Inc. with the US Securities and Exchange Commission.

(1) Please see later in this release for a reconciliation of EBITDA to net cash provided by Operating activities.

Contact Information: Investor Relations / Media: Nicolas Bornozis Capital Link, Inc. (New York) Tel. 212-661-7566 E-mail: nbornozis@capitallink.com