MDR McDermott International Inc

McDermott International, Inc. (NYSE:MDR) ("McDermott" or the "Company") announced today that its subsidiary, BWX Technologies, Inc. ("BWXT"), has received notification by the Department of Energy's ("DOE") National Nuclear Security Administration ("NNSA") that BWXT's contracts at Pantex Plant (Amarillo, Texas) and Y-12 National Security Complex (Oak Ridge, Tenn.) will both be extended through 2010. The budgets associated with the contract extensions are expected to be a combined total of approximately $5.9 billion. BWXT has managed and operated within the NNSA Nuclear Weapons Complex since 2000. "We are pleased to be awarded these significant extensions," said John A. Fees, BWXT President and Chief Operating Officer. "They exemplify recognition by our customer of the accomplishments we have achieved as DOE contractors at Pantex and Y-12. Over the course of the past five years, we have developed a strong working relationship with the NNSA and have demonstrated our core competencies for safe, secure and cost-effective management and operations critical to our national defense. We intend to continue to earn this trust each and every day of this extension period." The Y-12 facility focuses on the production and refurbishment of weapons components, storage of nuclear material and preventing the spread of weapons of mass destruction. Pantex is charged with maintaining the safety, security and reliability of the nation's nuclear weapons stockpile. Headquartered in Lynchburg, Va., and employing more than 11,000 people nationwide, BWXT is the nation's premier manager of complex high-consequence nuclear and national security operations. BWXT has a long history in nuclear manufacturing and operations at both DOE and privately owned and operated Nuclear Regulatory Commission sites. A supplier of nuclear products and services to the U.S. government and commercial clients for over 50 years, BWXT has unparalleled experience in nuclear safeguards and security and has been recognized as a model by the DOE. McDermott International, Inc. is a leading worldwide energy services company. The Company's subsidiaries provide engineering, fabrication, installation, procurement, research, manufacturing, environmental systems, project management and facility management services to a variety of customers in the energy and power industries, including the U.S. Department of Energy. Additional information on McDermott can be obtained at www.mcdermott.com. In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott International, Inc. cautions that statements in this press release which are forward-looking and provide other than historical information involve risks and uncertainties that may impact McDermott's actual results of operations. The forward-looking statements in this press release include, among other things, statements about the proposed term and budgets and execution objectives associated with the contract extensions. Although McDermott's management believes that the expectations reflected in those forward-looking statements are reasonable, McDermott can give no assurance that those expectations will prove to have been correct. Those statements are made based on various underlying assumptions and are subject to numerous uncertainties and risks, including, but not limited to, risks that the extension may not be completed on the terms we have described. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these risk factors, please see McDermott's annual report for the year ended Dec. 31, 2004, and its 2005 quarterly reports filed with the Securities and Exchange Commission.