B&W Awarded Boiler and Environmental Equipment Contract from Basin Electric.

HOUSTON -- McDermott International, Inc. (NYSE:MDR) ("McDermott") announced today that its subsidiary, The Babcock & Wilcox Company ("B&W"), has received a contract from Basin Electric Power Cooperative for the engineering, material supply, construction, and commissioning of a 420-megawatt Radiant boiler and selective catalytic reduction system at the Dry Fork Generating Station, located in northeast Wyoming. The value associated with this contract was included in McDermott's backlog at September 30, 2007.

The project is designed to increase system capacity to meet the growing demand for electric power from Basin Electric's 125-member systems in Wyoming and eight other states. The new unit will be fueled with Powder River Basin coal and will feature B&W's AireJet[TM] burner technology, its latest low-nitrogen oxides design.

"More than 60 percent of this customer's coal-fired generating capacity is powered by B&W boilers," said Brandon C. Bethards, President of B&W's Fossil Power Group. "There is an excellent, long-standing relationship between B&W and Basin Electric, and we are mindful of the trust they place in us to provide a quality product. We're extremely proud that our proven technology will help Basin Electric to continue to provide excellent service to its customers and help safeguard the environment."

Engineering for the project is underway at B&W's headquarters in Barberton, Ohio. B&W will procure the majority of pressure part materials from Babcock & Wilcox Beijing Company, Ltd., B&W's joint venture fabrication facility in China. Construction services will be provided by B&W's Babcock & Wilcox Construction Co., Inc. subsidiary. First fire of the equipment is scheduled for mid-February 2011, and substantial completion is slated for mid-May 2011, though schedule acceleration options are being analyzed.

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 Basin Electric Power Cooperative contract. 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 potential change orders to, other potential modifications to, and difficulty in executing the 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.