Babcock & Wilcox Awarded Environmental Equipment Contract

McDermott International, Inc. (NYSE:MDR) announced today
that its subsidiary, The Babcock & Wilcox Company ("B&W"), has been
awarded a contract valued in excess of $70 million to supply and
construct wet flue gas desulfurization (WFGD) systems at Detroit
Edison's Monroe Power Plant in Monroe, Michigan.
   The Monroe plant, one of the largest coal-fired plants in the
U.S., is operated by Detroit Edison, a subsidiary of DTE Energy. B&W
will design and install the sulfur dioxide (SO2)-reducing equipment,
also known as scrubbers, on the plant's Units 3 and 4, which are each
825 megawatt pulverized coal-fired boilers originally supplied by B&W
in 1973. The plant burns a blend of Powder River Basin and Central
Appalachian coals.
   "DTE Energy is well known for its service to customers and
commitment to the environment," said David L. Keller, B&W president
and chief operating officer. "We are proud to team with the Monroe
plant and provide our state-of-the-art scrubber technology to help
them reduce SO2 and mercury emissions."
   The contract calls for the supply of two wet scrubbers, common
reagent preparation system and common dewatering systems, along with
the construction of all supplied equipment.
   Design and engineering for the two WFGD systems are currently
underway at B&W's headquarters in Barberton, Ohio. Babcock & Wilcox
Construction Co., Inc., a B&W subsidiary, will erect the equipment.
Unit 4 is scheduled to be completed by 2008, and Unit 3 in 2009.
   Detroit Edison is an investor-owned electric utility serving 2.2
million customers in Southeastern Michigan and a subsidiary of DTE
Energy (NYSE:DTE), a Detroit-based diversified energy company involved
in the development and management of energy-related businesses and
services nationwide. Information about DTE Energy is available at
www.dteenergy.com.
   The Babcock & Wilcox Company is a subsidiary of McDermott
International, Inc., 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.
   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, timing and the value of
the Detroit Edison Monroe plant 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 filings with the Securities and Exchange Commission
including its annual report on Form 10-K for the year ended December
31, 2005.