MDR McDermott International Inc

McDermott International, Inc. (�McDermott�) (NYSE:MDR) announced today that an affiliate of its subsidiary, The Babcock & Wilcox Company (�B&W�), has entered into a definitive agreement to acquire Nuclear Fuel Services, Inc. (�NFS�), a provider of specialty nuclear fuels and related services. This acquisition strengthens B&W�s nuclear manufacturing and service business for government and commercial markets. NFS is a leader in the conversion of Cold War-era government stockpiles of highly enriched uranium into commercial nuclear reactor fuel. The company also operates a fuel production facility to support America�s fleet of nuclear-powered submarines and aircraft carriers. It has approximately 700 employees and owns and operates a nuclear fuel fabrication facility licensed by the U.S. Nuclear Regulatory Commission in Erwin, Tennessee. �NFS is a great addition to the B&W portfolio, complementing the nuclear products and services we currently provide,� said John A. Fees, President and Chief Executive Officer of The Babcock & Wilcox Company. �B&W and NFS have been major contributors in both the government and commercial nuclear industries for the past five decades. This acquisition better aligns both companies in delivering the future applications of nuclear energy.� The transaction is contingent upon obtaining regulatory approvals and satisfying other closing conditions. The transaction is expected to be completed by the end of 2008. McDermott is an engineering and construction company, with specialty manufacturing and service capabilities, focused on energy infrastructure. McDermott�s customers are predominantly utilities and other power generators, major and national oil companies, and the United States Government. With its global operations, McDermott operates in over 20 countries with more than 20,000 employees. In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this release that are forward-looking and provide other than historical information involve risks and uncertainties that may impact the actual results realized from the proposed acquisition. The forward-looking statements in this release include statements regarding the timing for closing the transaction and expected benefits from this acquisition. Those statements are made based on various underlying assumptions and are subject to numerous uncertainties and risks, including, without limitation, difficulties in integrating NFS with B&W�s operations and delays or other difficulties in satisfying closing conditions, including the receipt of regulatory approvals.