Cleco Signs EPC Contract with Shaw; Utility proposing 600-megawatt clean-coal unit.

PINEVILLE, La. -- Cleco Corp. (NYSE:CNL) announced today its utility subsidiary, Cleco Power LLC, has signed an engineering, procurement and construction (EPC) contract with Shaw Constructors, Inc. a subsidiary of The Shaw Group Inc. (NYSE:SGR).

"Even though our company is focused on restoring power in the aftermath of Hurricane Katrina, we have never deviated from our plan to develop this project," said Michael Madison, president and CEO of Cleco Corp. "Our state needs the infusion of the projected 1,200 construction jobs and nearly 80 permanent good-paying jobs, and our customers will realize much needed relief from forecasted higher natural gas prices."

The EPC contract will cover the engineering and construction of Cleco Power's proposed 600-megawatt unit designed to use circulating fluidized-bed technology, which is recognized as clean-coal technology by the United States Department of Energy. The new unit will be located at Cleco's Rodemacher Power Station near Boyce. It is scheduled to be completed by mid-2009 at a total projected cost of $1 billion.

"We have achieved a major milestone in the development of this facility by signing this contract with Shaw," said Madison. "While we still must obtain approvals from the Louisiana Public Service Commission and environmental permits from the Louisiana Department of Environmental Quality before we can begin construction, we continue to move forward on the design and contracting phases of the project. We are pleased to have a Louisiana company help us with the planning, engineering and construction of the project."

Cleco's proposed facility will be capable of using a variety of solid fuels, including petroleum coke, a by-product of the oil refining industry, which is available in Louisiana.

"We understand our customers' need for affordable and stable electric power prices," said Madison. "This unit will expand our generation fuel mix, which will help lower our customers' fuel cost."

Cleco Corp. is an energy services company headquartered in Pineville, La. It operates a regulated electric utility company that serves about 265,000 customers across Louisiana. Cleco also operates a wholesale energy business that has more than 1,300 megawatts of generating capacity. For more information about Cleco, visit www.cleco.com.

The Shaw Group Inc. is a leading global provider of technology, engineering, procurement, construction, maintenance, fabrication, manufacturing, consulting, remediation, and facilities management services for government and private sector clients in the energy, chemical, environmental, infrastructure and emergency response markets. Headquartered in Baton Rouge, Louisiana, with over $3 billion in annual revenues, Shaw employs approximately 18,000 people at its offices and operations in North America, South America, Europe, the Middle East and the Asia-Pacific region. The Company was recently named to Fortune magazine's annual list of "America's Most Admired Companies" for the second consecutive year. For further information, please visit Shaw's website at www.shawgrp.com.

This news release contains forward-looking statements about future results and circumstances with respect to which there are many risks and uncertainties, including receipt of the necessary approvals of the Louisiana Public Service Commission and the Louisiana Department of Environmental Quality, state and federal legislative and regulatory initiatives, and the other risks and uncertainties more fully described in the Company's latest Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Actual results may differ materially from those indicated in such forward-looking statements.