B&W Positioned for $960 Million in New Defense Contracts

HOUSTON --- McDermott International, Inc. announced today that its subsidiary, The Babcock & Wilcox Company, has received a new award for the manufacture of nuclear components in support of U.S. defense programs. Under this award, the contracts for 2008 are valued in excess of $230 million. These are the initial contracts under a negotiated set of orders that, if executed, would total more than $960 million between 2008 and 2010.>> These awards are in addition to a $1.7 billion series of contracts that B&W previously announced for 2007 to 2009. If the future orders are placed, the total value of the awards for the period of 2007 through 2010 would be approximately $2.7 billion.>> The contracts employ a multiple-award approach over a number of years. This system is designed to give the U.S. government cost predictability while providing B&W with additional financial incentives based on performance.>> This multiple-award system provides additional opportunities to load level our manufacturing facilities to improve efficiency and scheduling activities, said John A. Fees, Chief Executive Officer of McDermott International. Both parties will benefit from improved efficiencies to control cost and schedule. All of us at McDermott are proud of our work for the government, and we look forward to continuing to provide products of the highest quality.>> The work that is funded by these contracts is conducted by B&Ws subsidiary, Nuclear Operations Group, Inc. Headquartered in Lynchburg, Virginia, the Nuclear Operations Groups other locations include Barberton, Ohio; Mount Vernon, Indiana; and Euclid, Ohio.