Environmental Elements Enters Agreement With B&W and Niro for Use of Activated Carbon Technology.

Business Editors

BARBERTON, Ohio--(BUSINESS WIRE)--Sept. 3, 2002

The Babcock & Wilcox Company (B&W) and Niro A/S announced today that they have reached an agreement with Environmental Elements Corp (EEC) for the use of Niro's Patented Activated Carbon Injection Process for mercury removal at two of its customers' plants.

The Niro patent, which is licensed to B&W, covers both dry and wet slurry feed injection of activated carbon in the spray dryer absorber process. In addition, the U.S. Patent & Trademark Office has certified the patent not only with the original claims intact but also with additional claims which further strengthen the patent's enforceability.

As part of the agreement, B&W and Niro will allow EEC's customers to utilize the patented process at the Onondaga County Resource and Recovery Facility and the Savannah Energy Systems Plant. Both plants utilize wet slurry feed injection of activated carbon. The agreement also covers the option to use the patented process on future units in return for EEC's payment of a specified use fee.

The process, which removes mercury from municipal solid waste incinerator off-gases through the introduction of activated carbon into the spray dryer absorption process, allows a plant to meet strict emissions regulations.

David L. Keller, Babcock & Wilcox president and chief operating officer, said, "We are pleased to have EEC utilize the mercury control process in conjunction with its emission control equipment. EEC's support of the patented technology further reinforces the applicability of Niro's patent in the marketplace. We will continue to pursue all entities that use the process without our permission."

Jean L. Peronard, Niro executive vice president, said, "We see this as yet another milestone we have passed in our efforts to make agreements with companies benefiting from our patents."

"EEC places a significant emphasis on providing the best solutions to our customers and we are glad to have the ability to offer our clients the Niro Mercury Control technology in conjunction with our gaseous and particulate control equipment," says EEC President and CEO John L. Sams. "We feel it represents the most cost effective and efficient method of controlling mercury and other pollutants from waste-to-energy applications."

Both Babcock & Wilcox and Niro market the equipment supply and licenses for the activated carbon patented process. The companies are leaders in providing pollution control solutions.

The Babcock & Wilcox Company is a subsidiary of McDermott International, Inc. (NYSE:MDR), a leading worldwide energy services company. McDermott subsidiaries manufacture steam-generating equipment, environmental equipment, and products for the U.S. government. They also provide engineering and construction services for the offshore oil and natural gas industries.

Niro A/S is based in Denmark. The company specializes in the design and supply of spray dryers, fluid bed dryers, membrane filtration, extraction, heating and cooling plants for processing liquid, particulate and solid materials. Worldwide the Niro Group of companies forms the P-division inside the German company GEA AG. The Niro Group consists of 55 companies and approximately 2,300 employees.

Environmental Elements Corporation is a solutions-oriented, global provider of innovative technology for plant services, air pollution control equipment and complementary products. The company serves a broad range of customers in the power generation, pulp and paper, waste-to-energy, rock products, metals and petrochemical industries.