B&W Subsidiary Awarded Boiler Refurbishment Contract at Indonesia Power Plant.

HOUSTON -- McDermott International, Inc. ("McDermott") (NYSE: MDR) announced today that a subsidiary of The Babcock & Wilcox Company ("B&W"), has been awarded a contract to refurbish two B&W Radiant Tower-type boilers at the Suralaya Steam Power Plant on Java Island, Indonesia.

B&W will redesign and supply superheater and reheater surface, low NOx combustion systems, pulverizer performance enhancements, and other boiler upgrade equipment.

The contract was signed with Marubeni Corporation, the prime contractor on the Suralaya rehabilitation project. The Suralaya plant is owned by Indonesia's government-run utility company, Perusahaan Listrik Negara, which is overhauling the 3,400-megawatt ("MW") coal-fired power plant to extend its life, improve its efficiency and reduce emissions.

Suralaya's Units 1 and 2, currently 400 MW each, were originally supplied by B&W in the early 1980s. The upgrades will increase the capacity of each unit to 440 MW.

"B&W is known for its commitment to designing and delivering high-quality steam generating and pollution control systems for customers around the world," said Richard L. Killion, President and Chief Operating Officer of Babcock & Wilcox Power Generation Group. "We have nearly 5,000 MW of installed capacity in Indonesia, and B&W designed and supplied all seven original boilers and accessory components for the Suralaya plant. We're pleased to have been selected for this new project and appreciate the continued confidence the customer has in our ability to meet their needs."

Engineering is underway at B&W's Barberton, Ohio, headquarters and material delivery is expected in late 2009 and early 2010. P.T. Babcock & Wilcox Asia, a wholly owned subsidiary of B&W, will provide services during boiler installation, commissioning and testing. Unit 1 is scheduled to go online in the fall of 2010, followed by Unit 2 several months later.

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 25,000 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 expected scope and timing associated with the Suralaya project. 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, changes in project design or schedules, contract cancellations, change orders and other modifications, and difficulties executing on the project. 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 and other risk factors, please see McDermott's annual report on Form 10-K for the year ended December 31, 2007, and subsequent quarterly reports on Form 10-Q, filed with the Securities and Exchange Commission.