Foster Wheeler Awarded Contract For $16.8 Million Project in South Africa.

Business Editors

HAMILTON, Bermuda & CLINTON, N.J.--(BUSINESS WIRE)--June 12, 2001

Foster Wheeler Ltd.'s (NYSE:FWC) subsidiary, Foster Wheeler South Africa (Pty) Limited, has been awarded an engineering, procurement and construction (EPC) contract by Mossgas (Pty) Limited, the state-owned gas-to-liquids producer, for a new $16.8 million low aromatics distillate plant in South Africa.

The plant, which will be built on Mossgas' existing premises at Mossel Bay, will produce 70,000 tons of environmentally friendly low aromatic diesel and kerosene per annum for the export market.

The project will consist of a low aromatic distillate production facility and new tanks at the Mossgas refinery as well as at Mossgas' Voorbaai tank farm. A 2 km subsea pipeline from the tank farm will transport products to the company's existing conventional buoy mooring for loading into tank ships.

Foster Wheeler's scope of work covers the detailed engineering and design, based on the licensor package provided by the Institut Francais du Petrole for the low aromatics distillate plant, and a basic engineering package provided by Mossgas for the storage tanks and sub-sea pipeline. Foster Wheeler will be responsible for the procurement of all equipment and materials associated with the new plant, and also for overall management of the project. The work will be executed in Foster Wheeler South Africa's offices in Midrand.

The low aromatic products are expected to command substantial premiums over the local fuel price of diesel and kerosene. The American and European markets for drilling fluids, solvents, specialty chemicals and indoor heating and lighting will be targeted initially.

Mark Meyer, Managing Director of Foster Wheeler South Africa (Pty) Limited, said: "This contract further consolidates Foster Wheeler's ability in EPC management services. We are very pleased to be working with Mossgas on such a beneficial project, which is expected to earn South Africa foreign exchange up to US$30 million per year."

Work on the project, which is scheduled to go into production in October 2002, has already commenced.

Notes to Editors:

1. Foster Wheeler Ltd.

Foster Wheeler Ltd. is a global company offering, through its

subsidiaries, a broad range of design, engineering,

construction, manufacturing, project development and

management, research, plant operations and environmental

services. The Corporation's operational headquarters are

in Clinton, N.J. For more information about Foster

Wheeler, visit our World-Wide Web site at www.fwc.com.

2. Mossgas (Pty) Limited

Mossgas produces synthetic motor fuels and associated products

from offshore natural gas found approximately 85km - 120km

south/south-west of Mossel Bay. Its motor fuels are supplied

to the local oil companies, which market the products under

their own brand names in large parts of the Western, Eastern

and Northern Cape provinces. The company saves the country

more than R2 billion a year in foreign exchange through the

import replacement of the equivalent of 45,000 barrels of

crude oil a day. It produces 7% of the country's liquid fuel

needs. Mossgas has been in full production since January 1993

and has to date produced more than 12,2 billion litres (76,4

million) barrels of finished products. Website:

www.mossgas.com