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1 DRYSHIPS INC. REPORTS FINANCIAL AND OPERATING RESULTS FOR THE FOURTH QUARTER OF 2018

February 28, 2019, Athens, Greece, DryShips Inc. (NASDAQ:DRYS) (“DryShips” or the “Company”), a diversified owner and operator of ocean going cargo vessels, today announced its unaudited financial and operating results for the quarter ended December 31, 2018. Fourth Quarter 2018 Financial Highlights -For the fourth quarter of 2018, the Company reported net income of $5.8 million, or $0.06basic and diluted earnings per share. Included in the fourth quarter of 2018 results are: Losses from the sale of vessels to unaffiliated buyers and vessel impairments totaling $0.6 million, or $0.01 per share. Vessel dry-docking costs of $1.4 million, or $0.02 per share Excluding the above, the Company’s net results would have amounted to net income of $7.8 million, or $0.09 earnings per share. -The Company reported Adjusted EBITDA of $19.4 million for the fourth quarter of 2018.(1)Recent Developments Common Stock Repurchase Program As of February 28, 2019, the Company has repurchased a total of 6,523,854 shares of its common stock for an aggregate amount of $37.3 million, including commissions, pursuant to its previously announced new stock repurchase program under which the Company may repurchase up to $50.0 million of its outstanding common shares until October 29, 2019. Under its old $50.0 million stock repurchase program, which was completed in full on October 5, 2018, the Company had also repurchased a total of 10,864,227 shares of its common stock for an aggregate amount of $50.2 million, including commissions. The Company currently has outstanding 86,886,627 shares of common stock. (1)Adjusted EBITDA is a non-U.S. GAAP measure; please see later in this press release for reconciliation to net income / (loss).2 Fleet List The table below describes the Company’s fleet as of February 28, 2019: Year Gross rate Redelivery Built DWT Per day Earliest Latest Drybulk fleet Newcastlemax: Bacon 2013 205,170 T/C Index Linked Sep-19 Oct-19 Conquistador* 2016 209,090 T/C Index Linked N/A N/A Huahine 2013 206,037 T/C Index Linked Sep-19 Oct-19 Judd 2015 205,796 T/C Index Linked Sep-19 Oct-19 Marini* 2014 205,854 T/C Index Linked Oct-19 Dec-19 Morandi 2013 205,854 T/C Index Linked Aug-19 Sep-19 Pink Sands* 2016 208,931 T/C Index Linked N/A N/A Xanadu* 2017 208,827 T/C Index Linked N/A N/A Kamsarmax: Castellani 2014 82,129 Spot N/A N/A Kelly 2017 81,300 Spot N/A N/A Matisse 2014 81,128 Spot N/A N/A Nasaka 2014 81,918 Spot N/A N/A Valadon 2014 81,198 Spot N/A N/A Panamax:Catalina 2005 74,432 Spot N/A N/A Levanto 2001 73,925 Spot N/A N/A Ligari 2004 75,583 Spot N/A N/A Majorca 2005 74,477 Spot N/A N/A Rapallo 2009 75,123 Spot N/A N/A Raraka 2012 76,037 Spot N/A N/A Tanker fleet Very Large Crude Carrier: Shiraga 2011 320,105 Spot N/A N/A Suezmax: Marfa 2017 159,513 Spot N/A N/A Samsara** 2017 159,855 $18,000 Base rate plus profit share Mar.-22 May-25 Aframax: Balla 2017 113,293 Spot N/A N/A Botafogo 2010 106,892 Spot N/A N/A Stamos 2012 115,666 Spot N/A N/A 3 Offshore Supply fleet Platform Supply Vessels: Crescendo 2012 1,457 Laid up N/A N/A Colorado2012 1,430 Laid up N/A N/A Oil Spill Recovery Vessels: Indigo2013 1,401 Laid up N/A N/A Jacaranda2012 1,360 Laid up N/A N/A Emblem2012 1,363 Laid up N/A N/A Jubilee 2012 1,317 Laid up N/A N/A * The vessel is time chartered by TMS Dry Ltd., an entity that may be deemed to be beneficially owned by our Company’s Chairman and CEO. ** The vessel is time chartered by Cecilia Shipholdings Limited, an entity that may be deemed to be beneficially owned by our Company’s Chairman and CEO. 4 Drybulk, Tanker and Gas Carrier Segments Summary Operating Data (unaudited)(U.S. Dollars in thousands, except average daily results) (1) Average number of vessels is the number of vessels that constituted the Company’sfleet for the relevant period, as measured by the sum of the number of days each vessel was a part of the Company’s 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 in the Company’s possession for the relevant period net of off-hire days associ-ated with drydockings or special or intermediate surveys and laid-up days. (3) Calendar days are the total number of days the vessels were in the Company’s possession for the relevant period including off-hire days associated with drydockings or special or intermediate surveys and laid-up days. (4) Fleet utilization is the percentage of time that the Company’s 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. The Company’smethod of calculating TCE is consistent with industry standards and is determined by dividing voyage revenues (net of voyage expenses) by voy-age days for the relevant time period. Voyage expenses primarily consist of port, canal and fuel costs that are unique to a particular voyage and are paid by the charterer under a time charter contract, as well as commissions. TCE revenues, a non-U.S. GAAP measure, provides additional mean-ingful information in conjunction with revenues from the Company’s vessels, the most directly comparable U.S. GAAP measure, because it assists the Company’s management in making decisions regarding the deployment and use of its vessels and in evaluating their financial perfor-mance. TCE is also 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. Please see below for a reconciliation of TCE rates to voyage revenues.(6) Daily vessel operating expenses, which includes crew costs, provisions, deck and engine stores, lubricating oil, insurance, maintenance and repairs including dry-docking costs, is calculated by dividing vessel operating expenses by fleet calendar days net of laid-up days for the relevant time period. Drybulk Three Months Ended December 31, Year Ended December 31, 2017 2018 2017 2018 Average number of vessels(1)22.0 17.1 18.1 19.2 Total voyage days for vessels(2)1,952 1,553 6,534 6,947 Total calendar days for vessels(3)2,022 1,576 6,604 7,024 Fleet utilization(4)96.5% 98.5% 98.9% 98.9% Time charter equivalent(5)$11,410 $14,023 $8,544 $12,405 Vessel operating expenses (daily)(6)$6,385 $5,907 $6,061 $6,343 Tanker Three Months Ended December 31, Year Ended December 31, 2017 2018 2017 2018 Average number of vessels(1)4.0 5.2 2.5 4.6 Total voyage days for vessels(2)368 478 911 1,685 Total calendar days for vessels(3)368 478 911 1,685 Fleet utilization(4)100% 100% 100% 100% Time charter equivalent(5)$17,003 $27,981 $13,216 $20,715 Vessel operating expenses (daily)(6)$7,745 $7,479 $9,693 $7,536 Gas Carrier Three Months Ended December 31, Year Ended December 31, 2017 2018 2017 2018 Average number of vessels(1)2.6 1.3 1.0 3.3 Total voyage days for vessels(2)241 115 355 1,197 Total calendar days for vessels(3)241 115 355 1,197 Fleet utilization(4)100% 100% 100% 100% Time charter equivalent(5)$28,058 $27,339 $27,994 $27,883 Vessel operating expenses (daily)(6)$13,220 $10,087 $16,183 $8,611 5 Drybulk, Tanker and Gas Carrier Segments Summary Operating Data (unaudited) - continued(In thousands of U.S. dollars, except for TCE rate, which is expressed in U.S. Dollars, and voyage days) Drybulk Three Months Ended December 31, Year Ended December 31, 2017 2018 2017 2018 Voyage revenues $ 25,808 $ 24,475 $ 65,724 $ 94,369 Voyage expenses (3,536) (2,698) (9,900) (8,190) Time charter equivalent revenues $ 22,272 $ 21,777 $ 55,824 $ 86,179 Total voyage days for fleet 1,952 1,553 6,534 6,947 Time charter equivalent (TCE) $ 11,410 $ 14,023 $ 8,544 $ 12,405 Tanker Three Months Ended December 31, Year Ended December 31, 2017 2018 2017 2018 Voyage revenues $ 9,786 $ 21,497 $ 20,858 $ 57,004 Voyage expenses (3,529) (8,122) (8,818) (22,100) Time charter equivalent revenues $ 6,257 $ 13,375 $ 12,040 $ 34,904 Total voyage days for fleet 368 478 911 1,685 Time charter equivalent (TCE) $ 17,003 $ 27,981 $ 13,216 $ 20,715 Gas Carrier Three Months Ended December 31, Year Ended December 31, 2017 2018 2017 2018 Voyage revenues $ 7,000 $ 3,290 $ 10,316 $ 34,762 Voyage expenses (238) (146) (378) (1,386) Time charter equivalent revenues $ 6,762 $ 3,144 $ 9,938 $ 33,376 Total voyage days for fleet 241 115 355 1,197 Time charter equivalent (TCE) $ 28,058 $ 27,339 $ 27,994 $ 27,883 6 DryShips Inc. Financial StatementsUnaudited Condensed Consolidated Statements of Operations (Expressed in Thousands of U.S. Dollars except for share and per share data)Three Months Ended December 31, Year Ended December 31, 2017 2018 2017 2018 REVENUES:Voyage revenues $ 42,593 $ 49,262 $ 100,716 $ 186,135 42,593 49,262 100,716 186,135 EXPENSES: Voyage expenses 7,308 10,966 19,704 31,676 Vessel operating expenses 19,19214,235 60,260 68,391 Depreciation 6,334 6,202 14,966 25,881 Impairment loss,(gain)/loss from sale of vessels and other (4,425) 585 (4,125) (9,623) General and administrative expenses 7,334 6,314 30,972 28,314 Other, net - (86) (12) 853 Operating income/(loss) 6,850 11,046 (21,049) 40,643 OTHER EXPENSES: Interest and finance costs, net of interest income (5,029) (5,346) (13,342) (18,946) Loss on private placement - - (7,600) - Other, net (32) 128 (553) 83 Total other expenses, net (5,061) (5,218) (21,495) (18,863) Net income/(loss) 1,789 5,828 (42,544) 21,780 Net income/(loss) attributable to DryShips Inc. common stockholders 1,789 5,828 (39,739) 21,780 Earnings/(Losses) per common share, basic and diluted $ 0.02 $ 0.06 $ (1.13) $ 0.22 Weighted average number of shares, basic and diluted 103,088,937 91,050,308 35,225,784 98,113,545 7 DryShips Inc. Unaudited Condensed Consolidated Balance Sheets (Expressed in Thousands of U.S. Dollars except for share data) December 31, 2017 December 31, 2018 ASSETS Cash, cash equivalents, including restricted cash (current and non-current) $ 30,226 $ 156,881 Other current and non-current assets 123,713 99,092 Advances for vessels under construction 31,898 - Vessels, net 749,088 755,332 Total assets 934,925 1,011,305 LIABILITIES AND STOCKHOLDERS’ EQUITY Total debt and finance lease liabilities 216,969 362,047 Total other liabilities 10,920 11,529 Total stockholders’ equity 707,036 637,729 Total liabilities and stockholders’ equity $ 934,925 $ 1,011,305 SHARE COUNT DATA Common stock issued 104,274,708 104,274,708 Less: Treasury stock - (17,042,680) Common stock issued and outstanding 104,274,708 87,232,028 8 Adjusted EBITDA ReconciliationAdjusted EBITDA represents earnings before interest, taxes, depreciation and amortization, vessel sales and impair-ments and certain other non-cash items as described below. Adjusted 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, and the Company’s calculation of adjusted EBITDA may not be comparable to that reported by other companies. Adjusted EBITDA is included herein because it is a basis upon which the Company measures its operations. Adjusted EBITDA is also used by the Company’s lenders as a credit metric and the Compa-ny believes that it presents useful information to investors regarding a company’s ability to service and/or incur indebt-edness. The following table reconciles net income / (loss) to Adjusted EBITDA: (Expressed in Thousands of U.S. Dollars) Three Months Ended December 31, Year Ended December 31, 2017 2018 2017 2018 Net income/(loss) $ 1,789 $ 5,828 $ (42,544) $ 21,780 Add: Net interest expense 5,029 5,346 13,342 18,946 Add: Depreciation 6,334 6,202 14,966 25,881 Add: Dry-dockings 1,113 1,392 1,113 5,301 Add: Impairment loss, (gain)/loss from sale of vessel and other (4,425) 585 (4,125) (9,623) Add: Loss on private placement - - 7,600 - Add: Write-off of capitalized expenses - - - 470 Add: Income taxes 71 2 152 6 Adjusted EBITDA $ 9,911 $ 19,355 $ (9,496) $ 62,761 About DryShips Inc. The Company is a diversified owner and operator of ocean going cargo vessels that operate worldwide. As of February 28, 2019, the Company operates a fleet of 31 vessels comprising of (i) 6 Panamax drybulk vessels; (ii) 8 Newcastlemax drybulk vessels; (iii) 5 Kamsarmax drybulk vessels; (iv) 1 Very Large Crude Carrier; (v) 3 Aframax tankers; (vi) 2 Su-ezmax tankers; and (vii) 6 Offshore Support Vessels, including 2 Platform Supply and 4 Oil Spill Recovery Vessels. DryShips’ common stock is listed on the NASDAQ Capital Market where it trades under the symbol “DRYS.” Visit the Company’s website at www.dryships.com Forward-Looking Statement Matters discussed in this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. The Company desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with such safe harbor legislation. Forward-looking statements reflect the Company’s current views with respect to future events and financial perfor-mance 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. 9 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 the Company’s records and other data available from third parties. Although the Company believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncer-tainties and contingencies which are difficult or impossible to predict and are beyond the Company’s control, the Company cannot assure you that it will achieve or accomplish these expectations, beliefs or projections. Important factors that, in the Company’s 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 charter rates, utilization of vessels and vessel values, failure of a seller or shipyard to deliver one or more vessels, failure of a buyer to accept delivery of a vessel, the Company’s inability to procure acquisition financ-ing, default by one or more charterers of the Company’s ships, changes in demand for drybulk, oil or natural gas com-modities, changes in demand that may affect attitudes of time charterers, scheduled and unscheduled drydockings, changes in the Company’s voyage and operating expenses, including bunker prices, dry-docking and insurance costs, changes in governmental rules and regulations, changes in the Company’s relationships with the lenders under its debt agreements, potential liability from pending or future litigation, domestic and international political conditions, poten-tial disruption of shipping routes due to accidents, international hostilities and political events or acts by terrorists. Risks and uncertainties are further described in reports filed by DryShips with the U.S. Securities and Exchange Com-mission, including the Company’s most recently filed Annual Report on Form 20-F.

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