B&W to Provide Environmental Control Equipment for Wyoming 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 engineer, procure and construct wet flue gas desulfurization ("WFGD") systems and related equipment for two boilers at PacifiCorp's Naughton power plant near Kemmerer, Wyoming.

B&W's scope includes the design, supply and erection of two sodium carbonate-based flue gas scrubbing systems, interconnecting ductwork, booster fans, a water softening system, waste water treatment and facilities for sodium reagent delivery.

"Our experience and expertise, combined with an excellent track record on previous projects and a knowledgeable team, helped us win this important job," said Richard L. Killion, President and Chief Operating Officer of Babcock & Wilcox Power Generation Group. "We appreciate the trust that PacifiCorp has put in us for the work at Naughton."

Engineering for the project is already underway. Material delivery is scheduled for the fourth quarter of 2010. Naughton Unit 2's WFGD system is expected to be operational in the fourth quarter of 2011, with Unit 1's new system to follow in the second quarter of 2012.

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 Naughton power plant 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, 2008, and subsequent quarterly reports on Form 10-Q, filed with the Securities and Exchange Commission.