The Babcock & Wilcox Company Receives Scrubber Contract for Xcel Energy's Comanche Plant

McDermott International, Inc. (NYSE:MDR) ("McDermott")
announced today that its subsidiary, The Babcock & Wilcox Company
("B&W"), has received a contract from Xcel Energy for engineering,
materials and start-up commissioning of three dry flue gas
desulfurization ("FGD") units at its Comanche Power Station in Pueblo,
Colo. The plant is managed by Public Service Company of Colorado, one
of four operating units of Xcel Energy.
   Work will be completed on Comanche Units 1, 2 and 3. Units 1 and 2
are existing 350-megawatt boilers, the latter supplied by B&W in 1975,
while Unit 3 is a new 816-megawatt boiler. B&W will supply the FGD
systems, commonly called scrubbers, for each unit including mercury
removal sorbent injection systems, ash recycle systems, flue work and
structural steel, as well as a common pebble-lime unloading and
storage system and a common lime-slaking system. A pulse jet fabric
filter and induced draft fans will also be supplied for Unit 3. In
addition, Babcock & Wilcox Construction Co., Inc. will provide
construction services.
   "We are extremely pleased to have been chosen to provide B&W's
proven environmental systems to this important customer," said David
L. Keller, President and Chief Operating Officer of B&W. "The award
speaks well of the confidence Xcel has in both the B&W team and our
technology."
   Engineering for the project is underway at B&W's Barberton
headquarters, and materials are scheduled for delivery in 2006.
Start-up of Unit 2 is slated for January 2008, and Units 1 and 3 are
scheduled for start-up later in 2008 and 2009, respectively.
   Xcel Energy - doing business in Colorado as Public Service Co. of
Colorado - is a major U.S. electricity and natural gas company with
regulated operations in 10 Western and Midwestern states. Xcel Energy
provides a comprehensive portfolio of energy-related products and
services to 3.3 million electricity customers and 1.8 million natural
gas customers through its regulated operating companies. In terms of
customers, it is the fourth-largest combination natural gas and
electricity company in the nation. Company headquarters are located in
Minneapolis. More information is available at www.xcelenergy.com.

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   About the Company

   McDermott International, Inc. is a leading worldwide energy
services company. The Company's subsidiaries provide engineering,
fabrication, installation, procurement, research, manufacturing,
environmental systems, project management and facility management
services to a variety of customers in the power and energy industries,
including the U.S. Department of Energy.