Shaw Receives Notice of Schedule Adjustment for Progress Energy Florida Nuclear Project

The Shaw Group Inc. (NYSE: SGR) today announced it has received notice of an adjustment in the construction schedule for Progress Energy Florida’s planned nuclear project in Levy County, Fla.

Shaw and Westinghouse, its AP1000 Consortium partner, have an engineering, procurement and construction (EPC) agreement to build two AP1000™ nuclear power units for Progress Energy Florida.

Progress Energy Florida is adjusting the project schedule to reflect a determination by the Nuclear Regulatory Commission that the excavation and foundation preparation work will not be authorized until the combined operating license (COL) is issued for the plant. The site work originally was scheduled to be performed while the company sought the COL. Progress Energy Florida stated the shift in schedule will move the commercial operation dates for the two Levy units from the 2016-2018 time period by a minimum of 20 months.

“Shaw is continuing to provide field and engineering work in support of the licensing and permitting activities and will continue to work closely with Progress Energy Florida to develop a revised schedule for the project,” said J.M. Bernhard Jr., chairman, president and chief executive officer of Shaw. “We do not foresee any material adverse impact to our previously issued financial guidance for fiscal year 2009, nor do we believe this will impact Shaw’s other nuclear contracts as this schedule change is specific to the Levy project location. Progress Energy Florida has stated its commitment to the project, the AP1000 technology and to Shaw’s role providing EPC services moving forward.”

The Shaw Group Inc. is a leading global provider of technology, engineering, procurement, construction, maintenance, fabrication, manufacturing, consulting, remediation and facilities management services for government and private sector clients in the energy, chemicals, environmental, infrastructure and emergency response markets. A Fortune 500 company with fiscal year 2008 annual revenues of $7 billion, Shaw is headquartered in Baton Rouge, La., and employs approximately 26,000 people at its offices and operations in North America, South America, Europe, the Middle East and the Asia-Pacific region. Shaw is the power sector industry leader according to Engineering News-Record's list of Top 500 Design Firms. For further information, please visit Shaw's Web site at www.shawgrp.com.

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