Ocean Rig UDW Inc. Announces Closing of the Full Settlement of the $120M Affiliate Loan

Ocean Rig UDW Inc.

(the "Company" or "Ocean Rig"), a global provider of offshore deepwater drilling services, announced today the closing of the previously disclosed agreement with Dryships Inc. ("Dryships") to settle the remaining outstanding balance of $80 million borrowed by Dryships under the Amended and Restated Exchangeable Promissory Note dated June 4, 2015 between the Company and Dryships (the "Note"). Definitive documentation including release letters has been executed, and Dryships has transferred 17,777,778 shares of Ocean Rig previously owned by Dryships to Ocean Rig as full payment of the outstanding balance under the Note. Following this transfer, Dryships' direct ownership in Ocean Rig is 40.4%.