Babcock & Wilcox Awarded Environmental Equipment Contract.

HOUSTON -- McDermott International, Inc. (NYSE:MDR) announced today that its subsidiary, The Babcock & Wilcox Company ("B&W"), has been awarded a contract valued in excess of $70 million to supply and construct wet flue gas desulfurization (WFGD) systems at Detroit Edison's Monroe Power Plant in Monroe, Michigan.

The Monroe plant, one of the largest coal-fired plants in the U.S., is operated by Detroit Edison, a subsidiary of DTE Energy. B&W will design and install the sulfur dioxide (SO2)-reducing equipment, also known as scrubbers, on the plant's Units 3 and 4, which are each 825 megawatt pulverized coal-fired boilers originally supplied by B&W in 1973. The plant burns a blend of Powder River Basin and Central Appalachian coals.

"DTE Energy is well known for its service to customers and commitment to the environment," said David L. Keller, B&W president and chief operating officer. "We are proud to team with the Monroe plant and provide our state-of-the-art scrubber technology to help them reduce SO2 and mercury emissions."

The contract calls for the supply of two wet scrubbers, common reagent preparation system and common dewatering systems, along with the construction of all supplied equipment.

Design and engineering for the two WFGD systems are currently underway at B&W's headquarters in Barberton, Ohio. Babcock & Wilcox Construction Co., Inc., a B&W subsidiary, will erect the equipment. Unit 4 is scheduled to be completed by 2008, and Unit 3 in 2009.

Detroit Edison is an investor-owned electric utility serving 2.2 million customers in Southeastern Michigan and a subsidiary of DTE Energy (NYSE:DTE), a Detroit-based diversified energy company involved in the development and management of energy-related businesses and services nationwide. Information about DTE Energy is available at www.dteenergy.com.

The Babcock & Wilcox Company is a subsidiary of McDermott International, Inc., a leading worldwide energy services company. McDermott's subsidiaries provide engineering, construction, 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, the work scope, timing and the value of the Detroit Edison Monroe 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 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 filings with the Securities and Exchange Commission including its annual report on Form 10-K for the year ended December 31, 2005.