MDR McDermott International Inc

McDermott International, Inc. (NYSE:MDR) (�McDermott� or the �Company�) announced that it has not received any notices from TXU Corporation (�TXU�) pursuant to today�s announcement that TXU has agreed to be acquired. However, prior to the acquisition news, TXU had given notice to McDermott�s subsidiary, The Babcock & Wilcox Company (�B&W�), to suspend performance on five of the eight projects in Texas for the design and supply of supercritical coal-fired boilers and selective catalytic reduction systems. A notice of suspension is a client-initiated directive to wind down and suspend all work on the affected units until a notice of resumption or termination is issued. These suspended projects will remain in McDermott�s backlog until TXU provides further notice. For the suspended units, the contract(s) require that TXU compensate B&W for all work performed to date and for all costs associated with the suspension, storage and resumption. Also, under the terms of the contract, B&W is permitted to file claims for contract changes in all terms, including price and schedule should work resume. In the event of termination, the contract(s) provide for recovery of costs and a reasonable profit. B&W is continuing to perform on the remaining unsuspended units. �We read TXU�s press release this morning and their comments regarding reducing the number of plants. However, B&W has not received any official word today from TXU related to either the suspended units or the other three,� said Bruce W. Wilkinson, Chairman and Chief Executive Officer of McDermott. �B&W is a clear industry leader in improving emissions associated with the power generation market, including carbon capture technology,� continued Wilkinson. �Regardless of the potential change in TXU�s ownership or the status of these projects, we expect TXU will remain a valued customer.� McDermott International, Inc. is a leading worldwide energy services company. McDermott�s subsidiaries provide engineering, construction, 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.