MDR McDermott International Inc

McDermott International, Inc. (NYSE:MDR) ("McDermott") announced today that its subsidiary, The Babcock & Wilcox Company ("B&W"), has received a contract from Allegheny Energy for engineering, materials, construction, start-up and commissioning of wet flue gas desulfurization ("FGD") units at the Hatfield's Ferry Power Station, located in Masontown, Pennsylvania. Work will be completed on Hatfield's Ferry Units 1, 2 and 3, all 576-megawatt boilers originally supplied by B&W in 1969, 1970 and 1971, respectively. B&W will supply the FGD systems, commonly called scrubbers, for each unit including absorber areas and a common reagent preparation and dewatering system. Construction services will be provided by B&W's Babcock & Wilcox Construction Co., Inc. subsidiary. "B&W continues to be a leading provider of reliable, value-added environmental solutions for utilities across North America, and we are extremely pleased to once again work with Allegheny Energy at these plants," said David L. Keller, President and Chief Operating Officer of B&W. "This is a significant award and it demonstrates confidence in our technology and our ability to successfully complete projects. It also cements our already strong presence in this important market." Engineering for the project is underway at B&W's Barberton headquarters. The expected completion date is 2009. Headquartered in Greensburg, Pa., Allegheny Energy is an investor-owned utility consisting of two major businesses. Allegheny Energy Supply owns and operates electric generating facilities, and Allegheny Power delivers low-cost, reliable electric service to customers in Pennsylvania, West Virginia, Maryland, and Virginia. For more information, visit www.alleghenyenergy.com. McDermott International, Inc. is a leading worldwide energy services company. McDermott subsidiaries provide engineering, construction, installation, procurement, research, manufacturing, environmental systems, project management and facility management services to a variety of customers in the power and energy 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, the work scope and timing associated with the Hatfield's Ferry projects referenced above. 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 without limitation change orders and other modifications to contracts. 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 on Form 10-K for the year ended December 31, 2005 filed with the Securities and Exchange Commission.