MDR McDermott International Inc

McDermott International, Inc. (NYSE:MDR) (�McDermott�) announced today that a subsidiary of The Babcock & Wilcox Company (�B&W�) has been awarded a contract by Jacobs Canada Inc., as agent for Fort Hills Energy LP (�Fort Hills�), to supply four modularized boilers and auxiliary equipment. These units will provide utility steam for cogeneration at the Fort Hills� mine and are scheduled to be delivered by April 2010. �We look forward to growing our relationship with Fort Hills and to increasing our role as a major supplier of steam-producing equipment in the Canadian Oil Sands. This contract demonstrates our ability to develop products to meet the specific challenges of the Alberta marketplace, including environmental requirements, construction resource supply, equipment performance, and reliability,� said Brandon Bethards, President of B&W�s Power Generation Group. Fort Hills Energy L.P. is the owner of the Fort Hills Oil Sands Project which includes the Fort Hills Mine and the proposed Sturgeon Upgrader. Fort Hills Energy L.P. is comprised of three limited partners: Petro-Canada, UTS Energy Corporation and Teck Cominco Limited, as well as general partner Fort Hills Energy Corporation. Petro-Canada Oil Sands Inc., a wholly owned subsidiary of Petro-Canada, is the contract operator of the Fort Hills Oil Sands Project. 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 25,000 employees, and can be found on the internet 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, work scope and timing associated with the Fort Hills Energy contract. 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 potential change orders to, other potential modifications to, and difficulty in executing the 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, 2007 filed with the Securities and Exchange Commission.