CB&I Acquires Petrofac's U.S. EPC Business; Acquisition Will Expand EPC Capabilities in Hydrocarbon Processing Industry.

Energy Editors/Business Editors

THE WOODLANDS, Texas--(BUSINESS WIRE)--April 29, 2003

CB&I (NYSE:CBI) has acquired certain assets of Petrofac Inc., the U.S. subsidiary of Petrofac Limited, an engineering, procurement and construction (EPC) company serving the hydrocarbon processing industry. Terms of the transaction were not disclosed. The acquisition is expected to be immediately accretive in 2003.

Based in Tyler, Texas, Petrofac has more than 20 years of worldwide experience in executing turnkey projects for the oil refining, oil production, gas treating and petrochemical industries. Its core competencies include conceptual design, process engineering, procurement and logistics, modular design and fabrication, construction and commissioning, and project management. Petrofac currently has around 300 employees working in its administrative and engineering offices and fabrication plant in Tyler.

"CB&I's ongoing success in acquiring new process-related business worldwide has led to the need to expand our capacity to handle our growing volume of EPC work," said Gerald M. Glenn, CB&I's Chairman, President and CEO. "The acquisition of Petrofac's U.S. EPC business is a tailor-made solution, providing us with an experienced corps of engineering, fabrication and construction professionals who can be rapidly assimilated into our operations. We're excited about the value this combination will provide to our customers and shareholders."

Petrofac's U.S. EPC operations will be fully integrated into CB&I's Process and Technology group (Howe-Baker), significantly expanding the Company's capacity to engineer, fabricate and install EPC projects for customers in key growing end markets. The acquisition of Petrofac will bring new customers and expertise in certain technical areas. The Company expects to achieve significant synergies and cost savings as a result of the transaction by leveraging CB&I's existing management structure and administrative processes.

In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, CB&I cautions that statements in this press release which are forward looking and which provide other than historical information involve risks, uncertainties and assumptions, and the actual outcome and results may differ materially from what is expressed. A variety of factors could cause business conditions to differ from what is expressed in the forward-looking statements. Please see CB&I's Report on Form 10-K for the year ended Dec. 31, 2002, for a more complete discussion of these risk factors.

CB&I is a global specialty engineering, procurement and construction company serving customers in several primary end markets, including hydrocarbon refining, natural gas, water and the energy sector in general. We offer a complete package of design, engineering, fabrication, procurement, construction and maintenance services. Our projects include hydrocarbon processing plants, LNG terminals and peak shaving plants, bulk liquid terminals, water storage and treatment facilities, and other steel structures and their associated systems. Information about CB&I is available at www.chicagobridge.com.