Bechtel/Sinopec Engineering/Foster Wheeler Consortium Implements $4.3 Billion Petrochemicals Project in Southern China.

Business Editors

HAMILTON, Bermuda--(BUSINESS WIRE)--May 28, 2003

Foster Wheeler Ltd. (NYSE: FWC) announced today that BSF, a consortium of Bechtel Petroleum & Chemical of the United States, Sinopec Engineering Inc. (SEI) of China, and Foster Wheeler Energy Limited of the UK, has been appointed as the project management contractor by CNOOC and Shell Petrochemicals Company Ltd. (CSPC) for the implementation phase of a world-scale, $4.3 billion petrochemicals complex in China's Guangdong province.

The award follows BSF's successful completion of the project's 17-month definition phase.

The CSPC Nanhai Petrochemicals Project is the largest Sino-foreign investment in China to date. Located in Daya Bay, Huizhou Municipality of Guangdong province, the grassroots project will involve the construction of an ethylene cracker with a capacity of 800,000 tonnes per annum (tpa), together with other process units, power generation, utilities and infrastructure. The complex will produce styrene monomer, propylene oxide, ethylene glycol, polypropylene, low-density polyethylene, linear low-density polyethylene / high-density polyethylene. In total, the complex will produce some 2.3 million tpa of products primarily for the Guangdong province and the high consumption areas of China's coastal economic zones. The complex is scheduled to start operations at the end of 2005.

As project management contractor, BSF will be responsible for managing the implementation phase of the project on behalf of CSPC. This includes the management of the EPC and EP contracts, performing the EPC of a significant part of the general facilities, off-sites and utilities and the management of all site integration and interfaces.

"Bechtel has a solid record of success in China and we are proud of the work done on the Nanhai project so far," said Bill Dudley, president of Bechtel Petroleum & Chemical. "We're pleased to bring our experience of major construction in China and extensive global industry experience to the implementation phase of the project."

Liu Jiaming, president of Sinopec Engineering Inc., said, " SEI will cherish this opportunity collaborating with Bechtel and Foster Wheeler to provide services to CSPC and will continue to bring the highest quality of service to this world-class petrochemicals complex in terms of HSE, PRC's experiences and sustainable development."

"Foster Wheeler is delighted to bring our extensive experience and project management skills to this challenging project, and to contribute to the successful development of this world-scale petrochemical complex," said Ian Bill, chairman and chief executive of Foster Wheeler Energy Limited.

Notes to Editors:

1. About Bechtel

Bechtel is a global engineering-construction organization that provides premier technical, management, and directly related services to develop, manage, engineer, build, and operate installations for customers worldwide. Founded in 1898 and with its headquarters in San Francisco, USA, Bechtel has been active in the People's Republic of China since 1979. Bechtel has completed more than 80 projects in China and has permanent offices in Beijing, Shanghai, Taipei and Hong Kong. Bechtel China received a construction license in China in December 1994, making it the first American/Western company to obtain such a license. Bechtel's Petroleum and Chemical arm is based in Houston, Texas, USA.

2. About Sinopec Engineering Inc. (SEI)

Having completed over 450 refinery and petrochemical process units in the last 30 years, SEI is the premier Chinese professional engineering and construction corporation for refinery and petrochemical complexes. SEI, directly under China Petrochemical Corporation, has considerable experience in project management, engineering, procurement, installation and commissioning for various refinery and petrochemical plants in China. As a member of the BSF consortium, SEI brings 'hands-on' experience related to the execution of petrochemical plants.

3. About Foster Wheeler

Foster Wheeler Ltd. is a global company offering, through its subsidiaries, a broad range of design, engineering, construction, manufacturing, project development and management, research and plant operation services. The corporation is domiciled in Bermuda, and its operational headquarters are in Clinton, N.J. For more information about Foster Wheeler, visit our Web site at www.fwc.com.

4. Safe Harbor Statement

This news release contains forward-looking statements about contracts, financial terms and customer relations that are based on management's assumptions, expectations and projections. Such forward-looking statements are inherently uncertain and could be affected by changes in our customer's financial condition, changes in project design or schedule, contract cancellations and interest rate and currency fluctuations, and war and/or terrorist attacks on facilities either owned or where equipment or services are or may be provided.