BWX Technologies and Bechtel Team Wins DOE Contract.

NEW ORLEANS--(BUSINESS WIRE)--June 7, 1999--

BWX Technologies, Inc., a unit of McDermott International, Inc. (NYSE: MDR), and Bechtel National, Inc., have been awarded the management and operations contract for the U.S. Department of Energy's Idaho National Engineering and Environmental Laboratory (INEEL) located in Southeastern Idaho. The contract begins October 1 and will run until September 30, 2004.

"We are pleased that the Department of Energy (DOE) is confident in the Bechtel-BWXT team's ability to complete the environmental cleanup program at INEEL and to bring new missions to this national center of engineering and scientific research," said R. E. Tetrault, chairman and chief executive officer of McDermott. "This is a particularly important win for McDermott and BWXT. It not only expands our role at INEEL but also supports our strategy to grow the scope and size of BWXT and our government operations."

The INEEL is a science-based, applied engineering and environmental laboratory, which couples scientific quality, engineering systems, and business management expertise to execute multi-program missions for the DOE. The site is an 890-square-mile complex located in the eastern part of the state 23 miles west of Idaho Falls. The initial award is a five-year $3 billion contract with an additional five-year option totaling up to $6 billion.

The Bechtel B&W Idaho team also includes the Inland Northwest Research Alliance (INRA), a seven-university alliance with extensive and nationally recognized capabilities in research, workforce education and training, educational outreach, commercialization and technology transfer. INRA consists of the University of Idaho, Idaho State University, Boise State University, Utah State University, Montana State University, the University of Montana, and Washington State University.

Since 1991, when BWXT was awarded a management and operations contract for the Specific Manufacturing Capability facility at INEEL, the company's involvement has grown to include DOE sites and contracts at Mound Laboratories in Ohio, Rocky Flats Environmental Technology Site in Colorado, the Yucca Mountain site in Nevada, Strategic Petroleum Reserves in Louisiana and Texas, and the Hanford (Washington) and Savannah River (South Carolina) sites. This growth has established a significant business for BWXT that continues to expand.

McDermott International, Inc. is a leading worldwide energy services company. The company and its subsidiaries manufacture steam-generating equipment, environmental equipment, and products for the U.S. government. They also provide engineering and construction services for industrial, utility, and hydrocarbon processing facilities, and to the offshore oil and natural gas industry.