On February 5, 2009, Rowan Companies, Inc. (the "Company") and Steel Partners II, L.P. ("Steel") entered into a letter agreement (the "Agreement"), pursuant to which Steel has agreed not to seek to nominate any candidates to stand for election to the Board of Directors of the Company (the "Board") or engage in the solicitation of proxies with respect to the election or removal of directors or any other matter to be voted on at the Company's 2009 Annual Meeting of Stockholders (the "2009 Annual Meeting"). The Company has agreed to nominate a Steel designee for election to Class III of the Board for election at the 2009 Annual Meeting and to recommend the election and solicit proxies for the election of the Steel designee and three other nominees to be chosen by the Board. Immediately before such election, the Board will increase the size of the Board from 11 members to 12 members. Until after the Company's 2010 Annual Meeting of Stockholders, the Board will not increase the size of the Board in excess of 12 members and will not take any action that would cause the number of directors comprising Class I of the Board to change from four members. The parties agreed that either the Steel designee or John J. Quicke, a current director, will serve on the Audit Committee of the Board and the other will serve on the Compensation Committee of the Board, effective promptly following the 2009 Annual Meeting.

Additionally, the Company will reimburse Steel for its reasonable, documented, out-of-pocket expenses incurred in connection with Steel's intended nomination of directors and solicitation of proxies from the Company's stockholders at the 2009 Annual Meeting and the negotiation of the Agreement, in an aggregate amount not to exceed $25,000.

The Company will cease to have any obligations under the Agreement and Steel will cause the Steel designee to resign as a director if, at any time, Steel and certain of its affiliates cease at any time to beneficially own and have an economic interest in or representing, in the aggregate at least 5% of the total shares of common stock of the Company then outstanding.

The foregoing summary of the Agreement does not purport to be complete and is subject to, and qualified in its entirety by, the full text of the Agreement, which is attached as Exhibit 99.1, and incorporated herein by reference.

(d) Exhibits.

EXHIBIT
NUMBER                               EXHIBIT DESCRIPTION
99.1       Agreement dated February 5, 2009, between Rowan Companies, Inc. and
           Steel Partners II, L.P.
99.2       Press release dated February 9, 2009.