MDR McDermott International Inc

McDermott International, Inc. (NYSE:MDR) (�McDermott�) announced today that a subsidiary of J. Ray McDermott, S.A. (�J. Ray�) was recently awarded a sub-sea pipeline installation project by Lukoil-Nizhnevolzhskneft, LLC (Lukoil), a subsidiary of OJSC LUKOIL Oil Company, for the Yuri Korchagin field which is located 180 kilometers outside Astrakhan city in the Russian sector of the Caspian Sea. �For more than 20 years J. Ray has undertaken a number of projects in the Caspian Sea and in Russian waters,� said Bob Deason, President and Chief Operating Officer of J. Ray. �The volume of construction work in Russia�s oil and gas sector is gathering pace and we are proud to be working with Lukoil on this world-class project.� J. Ray will install a 58 kilometer 12� oil pipeline which will connect the ice-resistant fixed platform No.1 (LSP-1) to a single point mooring south of the Yuri Korchagin field. Under the contract J. Ray will also provide design engineering, procurement, installation and testing of the sub-sea pipeline, with project support from J. Ray�s facilities in Azerbaijan and the United Arab Emirates. 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 Lukoil�s sub-sea installation project. 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.