B&W Awarded Contract to Supply and Construct Environmental Control Equipment

  
    
  
  
    
      McDermott International, Inc. (NYSE:MDR) announced today that its 
      subsidiary, The Babcock & Wilcox Company (“B&W”), 
      has received a contract for engineering, materials, construction, 
      start-up and commissioning of environmental equipment at Allegheny Energy’s 
      Fort Martin Power Station near Maidsville, West Virginia. This contract 
      will be included in B&W’s second-quarter 
      2007 bookings.
    
    
      For its share of the plant’s total $550 
      million project, B&W will perform work on Fort Martin’s 
      two 550-megawatt supercritical coal-fired boilers -- Unit 1, started up 
      in 1967, and Unit 2, originally supplied by B&W in 1968. B&W will supply 
      wet flue-gas desulfurization (“WFGD”) 
      systems, commonly called scrubbers, for each unit including absorber 
      areas and a common reagent preparation and dewatering system.
    
    
      B&W’s advanced WFGD systems operate by 
      mixing a limestone slurry (reagent) with flue gas generated from the 
      combustion of fossil fuel in large steam generators. B&W’s 
      WFGD system features include B&W’s 
      uniquely designed absorber module and B&W’s 
      patented flue gas distribution tray, which in combination are capable of 
      achieving greater than 95 percent sulfur dioxide (“SO2”) 
      removal from plant emissions.
    
    
      “B&W has a long-standing reputation as a 
      leader in generating proven, reliable environmental solutions for the 
      power industry,” said Brandon C. Bethards, 
      president of B&W’s Fossil Power Group. “We’ve 
      had a presence at the Fort Martin plant from its beginning, and this new 
      order represents this customer’s continued 
      trust in B&W’s technology and 
      capabilities.”
    
    
      Engineering for the project is underway at B&W’s 
      Barberton headquarters. Mechanical completion of the units is slated for 
      early spring of 2009, with start-up scheduled for the early fall of 2009.
    
    
      B&W is also performing similar work at Allegheny Energy’s 
      Hatfield’s Ferry Power Station, located in 
      Masontown, Pennsylvania. The WFGD systems being installed on Hatfield’s 
      Ferry’s three units are on schedule for 
      completion in fall 2008.
    
    
      Headquartered in Greensburg, Pennsylvania, Allegheny Energy is an 
      investor-owned electric utility with total annual revenues of over $3 
      billion and more than 4,000 employees. The company owns and operates 
      generating facilities and delivers low-cost, reliable electric service 
      to over 1.5 million customers in Pennsylvania, West Virginia, Maryland 
      and Virginia. For more information, visit our Web site at www.alleghenyenergy.com.
    
    
      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, 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 Martin Power Station 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, 2006 filed 
      with the Securities and Exchange Commission.