CB&I Raises 2001 Earnings Expectations; Announces Fourth Quarter Conference Call and Webcast; Strong Cash Flow Performance Continues.

Business Editors

THE WOODLANDS, Texas--(BUSINESS WIRE)--Jan. 7, 2002

Chicago Bridge & Iron Company N.V. (NYSE:CBI) today announced that it expects earnings per share for the year 2001 will be higher than the current First Call consensus estimate of $1.64. Full-year 2001 earnings are now expected to be approximately $1.69 per share from continuing operations. The Company also reaffirmed previously issued guidance of $2.15 to $2.20 per share for 2002 earnings.

Gerald M. Glenn, CB&I's chairman, president and CEO, said, "Although we are still closing the books, based on our routine review of the financial performance of all our projects worldwide, we are reasonably confident that 2001 earnings per share from continuing operations excluding special charges will be about five cents above the guidance given in our third quarter conference call. Fourth quarter special charges are expected to be between $2 million and $3 million. In addition, our projects have continued to experience strong cash flow performance and, as a result, we expect to close the year with net debt down to about $40 million compared with approximately $95 million at year-end 2000.

"We are pleased that the investments CB&I has made over the last several years to improve project control and execution are paying off," Glenn added. "The anticipated increase in earnings we are announcing today is a direct result of these efforts."

Glenn continued by praising the efforts of CB&I's management team. "We appear to have the right people doing the right things with common objectives," he said. "Our expectations for the future will demand this same or even better performance."

CB&I will release its fourth quarter and full-year 2001 financial and operating results on Wednesday, Feb. 13, 2002, before the market opens. The Company will host a conference call at 10:00 a.m. Central time that morning to discuss results, review current and future business factors, and answer questions from participants.

CB&I's fourth quarter 2001 conference call will be broadcast live over the Internet. To listen to the call, go to the CB&I Web site (www.chicagobridge.com) and select the conference call link. Please log on to this Web address at least 15 minutes prior to the start of the call to register and to download and install any necessary audio software.

If you are unable to participate in the live call, a replay of the conference call will be available at the above Web address following the event. In addition, you may access a replay of the conference call by telephone at 402/280-9975, passcode 21673. Both the archived webcast and telephone replay will be available until the close of business Feb. 20, 2002.

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 what is expressed. 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 execution performance of contracts; the uncertain timing and the funding of new contract awards, and project cancellations and operating risks; cost overruns on fixed priced contracts; increased competition; fluctuating revenues resulting from a number of factors, including the cyclic 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, or lower than expected growth in the Company's other primary end markets; the Company's ability to integrate and successfully operate acquired businesses and the risks associated with those businesses; and the ultimate outcome or effect of the pending Federal Trade Commission proceeding on the Company's business, financial condition and results of operations. Additional factors which could cause actual results to differ from such forward-looking statements are set forth in Amendment No. 1 to the Company's Form S-3 Registration Statement filed with the SEC on Nov. 1, 2001. The Company does not undertake to update any forward-looking statements contained herein, whether as a result of new information, future events or otherwise.

CB&I is a global specialty engineering and construction company offering a complete package of design, engineering, fabrication, construction and maintenance services. Our products include hydrocarbon processing plants, LNG terminals and peak shaving plants, bulk liquid terminals, water storage and wastewater treatment facilities, and other steel structures and their associated systems. Information about CB&I is available at www.chicagobridge.com.