MDR McDermott International Inc

McDermott International, Inc. (NYSE:MDR) ("McDermott") announced today that a subsidiary of J. Ray McDermott, S.A. ("J. Ray") was awarded a new contract from Saudi Aramco to supply 16 Production Deck Modules ("PDMs") for Saudi Arabia's offshore fields. "These 16 PDMs form part of Saudi Aramco's Maintain Potential program that aims to increase offshore production capacity," said Bob Deason, President and Chief Operating Officer of J. Ray. "In December of last year, we were awarded work by Saudi Aramco to build the corresponding 16 jackets, which once installed will support these production deck modules." J. Ray will carry out construction engineering, partial procurement, and fabrication of these modules at the company's Jebel Ali fabrication yard. Each PDM weighs an average of 450 metric tons. First steel will be cut for the modules in October 2006 while procurement and engineering is already underway. All installation work will be conducted by J. Ray. The first two decks are scheduled for installation by the middle of 2007, followed by 10 decks to be completed by the end of October 2007, with the remaining decks scheduled for installation by the middle of 2008. 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 of the Saudi Aramco PDM award. 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 and the Company's quarterly reports on Form 10-Q filed with the Securities and Exchange Commission.