Chitwood & Harley LLP Files Class Action Suit Charging The Shaw Group, Inc. With Securities Fraud.

ATLANTA -- Chitwood & Harley LLP announces that it has filed a securities fraud class action complaint in the United States District Court for the Eastern District of Louisiana against The Shaw Group, Inc. ("Shaw" or the "Company"), Tim Barfield Jr., J.M. Bernhard, Jr., Richard F. Gill and Robert Belk, on behalf of purchasers of Shaw common stock (NYSE: SGR) between October 19, 2000 and June 10, 2004, inclusive (the "Class Period"). A copy of the complaint is available from the court and will be posted on our website, www.classlaw.com for the next two months.

If you have questions about this case or wish to inquire about your rights in connection with this matter, you may contact us through our website, www.classlaw.com, by clicking on The Shaw Group, or by emailing or calling Nichole B. Adams, Esq. at [e-mail] or 1-888-873-3999, ext. 4873, who will, without obligation or cost, attempt to answer questions concerning this matter. You may also submit questions or transaction information to Chitwood & Harley online through our website, www.classlaw.com.

The Complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder. The Complaint alleges that during the Class Period, the Defendants issued a series of material misrepresentations to the market about the Company's financial outlook and results of operations. More specifically, the Complaint alleges that the Defendants artificially inflated the Company's reported revenues and earnings by improperly establishing and drawing on reserve accounts that were created in connection with a series of large acquisitions, including the acquisition of Stone & Webster Inc. and The IT Group. The Complaint further alleges that Defendants prematurely recognized revenue in violation of Shaw's own purported policies and Generally Accepted Accounting Principles, and that Defendants failed to disclose the extent to which Shaw was vulnerable to changes in power generation market conditions.

After the market closed on June 10, 2004, Shaw issued a news release and announced that on June 1, 2004, the Company had been notified that the SEC was conducting an informal inquiry and, with respect to the scope of the investigation, stated as follows:

The SEC has not advised the Company as to either the reason for the inquiry or its scope. However, the request for information appears to primarily relate to the purchase method of accounting for acquisitions, as presented in Shaw's Form 10-K for the fiscal year ended August 31, 2003.

On this news, Shaw's shares, which had closed at $12.28 on June 10, 2004, dropped to close at $10.05 on the next day of trading, on heavy volume.

Any member of the class who desires to be appointed lead plaintiff in the class action must file a motion with the Court no later than August 16, 2004 on their own or through counsel of their own choice. Class members must meet certain legal requirements to serve as a lead plaintiff. You may also choose to do nothing and remain an absent class member.

Chitwood & Harley LLP is a class action firm that concentrates its practice in representing victims of securities fraud and corporate mismanagement, as well as other complex litigation. Chitwood & Harley has been appointed lead counsel in major actions throughout the United States and has been instrumental in recovering billions of dollars on behalf of its clients. Clients and courts alike have praised the results achieved by Chitwood & Harley. Recently, the federal judge in In re BankAmerica Securities Litigation, which resulted in one of the highest recoveries ever in a private securities class action, commented favorably on counsel's performance stating: "Class members were well served by experienced attorneys who, through considerable time and effort, obtained a significant recovery for their clients," and, "(a)s the Court has remarked throughout this litigation, class counsel . . . have performed at exceptionally high levels, and all parties have been exceedingly well represented."