DryShips Inc. Announces Exercise of Over-allotment Option by Underwriter and Closes Offering of $460 Million Convertible Senior Notes

Athens, Greece, November 25, 2009 – DryShips Inc. (NASDAQ: DRYS) (the “Company” or “Dryships”), a global provider of marine transportation services for drybulk cargoes and offshore contract drilling oil services, today announced that in connection with its previouslyannounced offering of $400 million aggregate principal amount of convertible senior notes due 2014, the underwriter has exercised in full its over-allotment option granted by the Company and has purchased an additional $60 million aggregate principal amount of convertible notes on the same terms on which the $400 million convertible were sold to the underwriter. The Company also announced that the closing of the convertible notes offering and the over-allotment option took place simultaneously today. Accordingly, $460 million in aggregate principal amount of convertible notes have been sold by the Company to the underwriter, resulting in aggregate net proceeds to the Company of approximately $448 million. Deutsche Bank Securities Inc. acted as the sole book-running manager for the offering.

Concurrently with the offering of the convertible notes, the Company delivered 26.1 million shares of its common stock to Deutsche Bank AG, London Branch (“Deutsche Bank AG”) pursuant to a share lending agreement. Deutsche Bank AG or its affiliates intend to sell shares of the Company’s common stock that they are entitled to borrow from the Company under the share lending agreement.

These shares were offered in an underwritten offering registered under the Securities Act of 1933, as amended, pursuant to the Company’s existing shelf registration statement in order to facilitate hedging transactions undertaken by the purchasers of the convertible notes. The Company did not receive any of the proceeds from this sale of common stock but received a nominal lending fee from Deutsche Bank AG under the share lending agreement.

This announcement does not constitute an offer to sell or the solicitation of an offer to buy the convertible notes, common stock or any other securities, nor will there be any sale of convertible notes, common stock or any other securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

The convertible notes and the common stock are being offered only by means of a prospectus, forming a part of the Company’s shelf registration statement, related prospectus supplements and other related documents. You may obtain these documents for free by visiting EDGAR on the Securities and Exchange Commission website at www.sec.gov. Alternatively, copies may be obtained from Deutsche Bank Securities Inc., Attention: Prospectus Department, 100 Plaza One, Jersey City, NJ 07311 or at 800-503-4611. Before you invest, you should read the prospectus supplements and accompanying base prospectus along with other documents that the Company has filed with the Securities and Exchange Commission for more complete information about the Company and these offerings.

About DryShips Inc.

DryShips Inc., based in Greece, is an owner and operator of drybulk carriers and offshore deep water drilling rigs that operate worldwide. As of the day of this release, DryShips owns a fleet of 39 drybulk carriers comprising 7 Capesize, 30 Panamax and 2 Supramax, with a combined deadweight tonnage of over 3.4 million tons, 2 ultra deep water semisubmersible drilling rigs and 4 ultra deep water newbuilding drillships.

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

DryShips Inc.