CB&I Announces Second Quarter 2007 Results.

Company Raises 2007 Earnings Guidance

THE WOODLANDS, Texas -- CB&I (NYSE:CBI) today reported net income of $26.1 million, or $0.27 per diluted share, for the second quarter 2007 compared with $32.6 million, or $0.33 per diluted share, for the second quarter 2006.

Revenue for the second quarter was $1.0 billion, up 36 percent from $744.2 million in the second quarter of 2006, reflecting double digit growth in each of the company's reporting segments.

"In the first half of 2007, CB&I posted solid gains in new awards and revenues," said Philip K. Asherman, President and CEO. "Overall performance has been good across our geographic segments. However, labor issues on two U.K. projects in our Europe/ Africa/ Middle East segment, and on our last significant pre-Katrina project in North America, which is now complete, diluted our margins for the quarter. Looking forward, we are confident that CB&I will continue to capitalize on the very strong energy market. Based on anticipated new awards, projected revenue growth and a return to expected margin levels, we are raising our guidance for the year."

CB&I raised its full year 2007 guidance for earnings, revenue and new awards. The company anticipates that earnings per share will be in the range of $1.50 - $1.65, with revenue of $4.0 - $4.3 billion and new awards of $5.5 - $6.0 billion.

New awards were $2.0 billion for the second quarter and $4.1 billion for the first half, bringing CB&I's backlog to $6.8 billion. Key projects booked in the quarter include a Chilean LNG regasification terminal and the Isle of Grain LNG expansion project in the U.K.

In the first half of the year, CB&I returned $39 million to its stockholders through stock repurchases and cash dividends, repurchasing approximately 976,000 shares of common stock for $30.9 million. The company continued to invest in its infrastructure spending $49.4 million on capital expenditures for the first half of 2007. Cash and cash equivalents increased to $661 million as of June 30, 2007, up from $619 million at year-end 2006.

Second Quarter Conference Call

CB&I will host a conference call August 1, 2007 at 10 a.m. CDT to discuss financial results. The webcast will be available at www.shareholder.com/cbi/medialist.cfm or at www.CBI.com Investor Relations / Presentations & Webcasts.

About CB&I

CB&I executes more than 500 projects each year and is one of the world's leading engineering, procurement and construction (EPC) companies, specializing in projects for customers that produce, process, store and distribute the world's natural resources. With more than 60 locations and approximately 14,000 employees throughout the world, CB&I capitalizes on its global expertise and local knowledge to safely and reliably deliver projects virtually anywhere. Information about CB&I is available at www.CBI.com.

Any statements made in this release that are not based on historical fact are forward-looking statements and represent management's best judgment as to what may occur in the future. The actual outcome and results are not guaranteed, are subject to risks, uncertainties and assumptions, and may differ materially from those expressed or implied by any forward-looking statements. A variety of factors could cause business conditions and results to differ materially from what is contained in the forward-looking statements including, but not limited to, the Company's ability to realize cost savings from its expected performance of contracts; the uncertain timing and funding of new contract awards, and project cancellations and operating risks; cost overruns on fixed price, target price or similar contracts whether as the result of improper estimates or otherwise; risks associated with percentage-of-completion accounting; the Company's ability to settle or negotiate unapproved change orders and claims; changes in the costs or availability of, or delivery schedule for, equipment, components, materials, labor or subcontractors; adverse impacts from weather conditions may affect the Company's performance and timeliness of completion, which could lead to increased costs and affect the costs or availability of, or delivery schedule for, equipment, components, materials, labor or subcontractors; increased competition; fluctuating revenue resulting from a number of factors, including the cyclical nature of the individual markets in which the Company's customers operate; lower than expected activity in the hydrocarbon industry, demand from which is the largest component of the Company's revenue; lower than expected growth in the Company's primary end markets, including but not limited to LNG and refining and related processes; risks inherent in acquisitions and the Company's ability to obtain financing for proposed acquisitions; the Company's ability to integrate and successfully operate acquired businesses and the risks associated with those businesses; adverse outcomes of pending claims or litigation or the possibility of new claims or litigation, including but not limited to pending securities class action litigation, and the potential effect on the Company's business, financial condition and results of operations; the ultimate outcome or effect of the pending Federal Trade Commission order on the Company's business, financial condition and results of operations; lack of necessary liquidity to finance expenditures prior to the receipt of payment for the performance of contracts and to provide bid and performance bonds and letters of credit securing the Company's obligations under its bids and contracts; proposed and actual revisions to U.S. and non-U.S. tax laws, and interpretation of said laws, and U.S. tax treaties with non-U.S. countries (including The Netherlands), that seek to increase income taxes payable; political and economic conditions including, but not limited to, war, conflict or civil or economic unrest in countries in which the Company operates; and a downturn or disruption in the economy in general. Additional factors which could cause actual results to differ materially from such forward-looking statements are described under "Risk Factors" as set forth in the Company's Form 10-K filed with the SEC for the year ended Dec. 31, 2006. The Company does not undertake to update any forward-looking statements contained herein, whether as a result of new information, future events or otherwise.

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