BWXT and Battelle Energy Alliance Members Win Idaho National Laboratory Contract.

NEW ORLEANS -- McDermott International, Inc. (NYSE:MDR) ("McDermott") announced today that the U.S. Department of Energy ("DOE") has awarded the Battelle Energy Alliance ("BEA"), of which BWX Technologies, Inc. ("BWXT") is a member, a contract valued at $6.5 billion to operate the Idaho National Laboratory ("INL") in eastern Idaho. The new contract has a base term of ten years with the option for an additional five years. The Laboratory has been designated as the DOE's hub for the development of advanced nuclear power technologies.

In addition to BWXT, the BEA team is composed of Battelle -- the prime contractor, Washington Group International, the Electric Power Research Institute and an alliance of university collaborators. The national university consortium, to be led by Massachusetts Institute of Technology (MIT), also includes such nuclear engineering universities as New Mexico, North Carolina State, Ohio State and Oregon State, in addition to a regional collaboration with major Idaho institutions of higher learning -- Boise State, Idaho State and the University of Idaho.

"BWXT is excited to continue its long-term relationship with the Idaho National Laboratory, especially in this critical time period, when our efforts can contribute so much to the future success of the Lab and the future of nuclear energy," said John Fees, president & chief operating officer of BWXT. "We are committed to working closely with the team members, the Lab employees and the community to achieve the vision that the Department of Energy has developed with congressional and industry leaders."

BWXT's involvement at INL dates back over 50 years with design activities for the Navy's Advanced Test Reactor (ATR) facility. In 1991, the Army selected BWXT to manage and operate the Specific Manufacturing Capability facility producing depleted uranium armor and ordnance for the U.S. Army. In 1994, BWXT joined the Lockheed Martin team providing management services for Idaho Nuclear Technology Engineering Center (INTEC), the Protective Services Directorate and the Applied Engineering and Development Laboratory (AEDL). Since 1999, INL has been operated for the DOE by Bechtel BWXT Idaho, LLC.

BWXT, a wholly owned and operated subsidiary of McDermott, is headquartered in Lynchburg, Va., and supplies nuclear operations services and products to the U.S. government and commercial clients. With more than 11,000 employees nationwide, BWXT manages complex, high-consequence nuclear and national security production facilities and is a principal supplier of nuclear components and advanced energy products.

McDermott International, Inc. is a leading worldwide energy services company. The Company's subsidiaries provide engineering, fabrication, installation, procurement, research, manufacturing, environmental systems, project management and facility management services to a variety of customers in the energy and power industries, including the U.S. Department of Energy. Additional information on McDermott can be obtained 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, statements about the proposed term and value associated with the Idaho National Laboratory contract awarded by the Department of Energy. 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. 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 for the year ended Dec. 31, 2003, and its 2004 quarterly reports filed with the Securities and Exchange Commission.