B&W Awarded Contract Extension for Palm Beach County Facility.

HOUSTON -- McDermott International, Inc. (NYSE:MDR) announced today that its subsidiary, The Babcock & Wilcox Company ("B&W"), has signed a 20-year contract extension to provide operations and management services to the Solid Waste Authority for Palm Beach County's waste-to-energy facility in West Palm Beach, Florida. The contract value for the first phase of the extension is in excess of $300 million and will be included in B&W's second quarter bookings.

Under the terms of the contract extension, which will take effect when the existing term ends in September 2009, B&W will operate and manage the North County Resource Recovery Facility for an additional 20-year term. This facility was designed to reduce the volume of the county's wastes, generate electricity, and maximize the recovery of aluminum and ferrous metals.

"This contract extension is confirmation of the strong relationship that B&W has with the Solid Waste Authority of Palm Beach County," said Brandon Bethards, President of B&W's Fossil Power Group. "We appreciate the trust they continue to place in our employees who operate the facility, and we are pleased to have an opportunity to extend our work at the plant."

The 40-acre facility processes more than 2,000 tons of household and municipal solid waste per day and is comprised of three operating plants: a refuse derived fuel ("RDF") plant, a combustion plant and a turbine generator plant. Waste processed at the facility is collected, sorted, separated from hazardous and oversize materials and shredded to produce combustible RDF and non-combustible residue. The RDF is then burned in a furnace to create steam, which is used to generate electricity for sale. Aluminum, ferrous and non-ferrous metals also are recovered from waste processed at the facility. B&W employs more than 150 workers at the facility, which features two B&W boilers as well as B&W electrostatic precipitators and dry scrubbers.

The Solid Waste Authority of Palm Beach County is a governmental agency responsible for providing an integrated solid waste management system for Palm Beach County, Florida. With approximately 400 employees, the Solid Waste Authority provides solid waste disposal and recycling services and programs to the county's 1.4 million residents and businesses.

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, the value, work scope, length, and timing associated with the North County Resource Recovery Facility. 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 annual report on Form 10-K for the year ended December 31, 2006 filed with the Securities and Exchange Commission.