Babcock & Wilcox Wins $80 Million Power Plant Contract.

NEW ORLEANS--(BUSINESS WIRE)--Oct. 5, 1998--The Babcock & Wilcox Company (B&W), a unit of McDermott International, Inc. (NYSE:MDR), has been selected by Southern Indiana Gas & Electric (SIGECO) to supply turnkey engineering, procurement and construction (EPC) services for a $90 million power plant to be built in Mt. Vernon, Indiana. B&W's portion of the contract, valued at approximately $80 million, includes a 100 MWe B&W circulating fluidized bed (CFB) boiler and state-of-the-art environmental control technologies. In addition, B&W will operate and maintain the facility for an undefined period following start-up.

The plant will produce power for SIGECO's power grid as well as process steam for industrial customers in the area. It will be designed to burn high-sulfur bituminous coal and a variety of other fuels.

B&W's scope will be manufactured in the United States, Canada and abroad. The new facility is scheduled for start up approximately 28 months from full release of the project.

SIGECO, the primary subsidiary of SIGCORP, Inc., serves approximately 123,000 electric and 107,000 natural gas customers in 10 Southwest Indiana counties.

The Babcock & Wilcox Company is an operating unit of McDermott International, Inc., a leading worldwide energy services company. McDermott 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 industries.