Nabors' Hurricane Rita Preliminary Damage Assessment

Nabors Industries Ltd. (AMEX:NBR), today announced theresults of its preliminary assessment of damage incurred duringHurricane Rita. Nabors had a number of rigs in the immediate path ofthe hurricane. The Company has confirmed that all rigs on varioussites on the Outer Continental Shelf are in place and appear to havesustained little or no damage, although personnel have not yet beenable to board most of the rigs to complete detailed assessments. TheCompany's deep drilling barge rig 300, which was operating in inlandwaters just east of Cameron, Louisiana was submerged but remained onstation and sustained water damage to the electrical, power, mud pumpand other systems. The rig will be moved to a shipyard as soon aspossible for repairs and the Company hopes to have it back in servicewithin weeks.

Nabors also had five Jackup rigs in Sabine Pass with at least twosustaining damage; a cursory inspection of the other rigs indicateslittle to no damage. The Dolphin 111 had windows in the pilot houseand quarters blown out, resulting in water damage to control systemsand the quarters. The mast on Jackup rig 54 was blown over but theCompany has a substitute mast available and should be able to returnthe rig to service in a few weeks as well. There is a possibility thatsome damage was been incurred to components of other rigs stored at ayard proximate to the Port of New Iberia that incurred flooding, butour nearby offices are dry and still functioning.

Nabors land operations had nearly forty rigs proximate the storm'spath and has determined that all but one are without any significantdamage. The remaining rig, Rig 409 located in Jefferson County Texas,remains inaccessible. However, prior to the storm Nabors had removedall of the engines, mud pumps and electrical distribution equipmentfrom the site and lowered the mast. Although the full extent of anyeconomic loss net of insurance still is not known, Nabors does notexpect it to have any material adverse effect on its operating resultsor financial position.

The Nabors companies own and operate almost 600 land drilling andapproximately 875 land workover and well-servicing rigs worldwide.Offshore, Nabors operates 43 platform rigs, 19 jack-up units and threebarge rigs in the United States and multiple international markets.Nabors markets 28 marine transportation and supply vessels, primarilyin the U.S. Gulf of Mexico. In addition, Nabors manufactures topdrives and drilling instrumentation systems and provides comprehensiveoilfield hauling, engineering, civil construction, logistics andfacilities maintenance, and project management services. Naborsparticipates in most of the significant oil, gas and geothermalmarkets in the world.

The information above includes forward-looking statements withinthe meaning of the Securities Act of 1933 and the Securities ExchangeAct of 1934. Such forward-looking statements are subject to certainrisks and uncertainties, as disclosed by Nabors from time to time inits filings with the Securities and Exchange Commission. As a resultof these factors, Nabors actual results may differ materially fromthose indicated or implied by such forward-looking statements. Forfurther information, please contact Dennis A. Smith, Director ofCorporate Development of Nabors Corporate Services, Inc. at281-775-8038. To request Investor Materials, call our corporateheadquarters in Hamilton, Bermuda at 441-292-1510 or via email atdan.mclachlin@nabors.com.