Foster Wheeler Awarded Contract for World-Scale Refinery and Petrochemicals Complex in India.

HAMILTON, Bermuda -- Foster Wheeler Ltd. (Nasdaq: FWLT) announced today that two subsidiaries in its Global Engineering and Construction Group, Foster Wheeler Energy Limited and Foster Wheeler India Private Limited, have been awarded services contracts by Indian Oil Corporation Limited (IOCL) for the Paradip Refinery Project, which is expected to be one of the largest integrated refinery petrochemicals complexes in India. This world-scale facility, comprising a new export refinery and petrochemicals complex, will be built in Orissa State.

The terms of the contracts were not disclosed, and the projects will be included in the company's first-quarter 2007 bookings.

Foster Wheeler's scope includes the front-end engineering design (FEED), preparation of cost estimates and the overall project strategy, and supervision of early works on site up to financial investment decision for the refinery, which is expected in mid-2008.

The planned new refinery, with a crude processing capacity of 15 million tonnes per annum (TPA), will include a fluidized catalytic cracking unit, an aromatics complex and a polypropylene unit. The new complex will ultimately produce 700,000 TPA of polypropylene, 1.2 million TPA of paraxylene, 600,000 TPA of styrene monomer, along with 10.5 million TPA of refined petroleum products. This award also includes a detailed feasibility study for Phase 2 of the development, the Paradip Naphtha Cracker Project.

"Foster Wheeler is very pleased to be awarded this strategically important project," said Steve Davies, chairman and chief executive officer, Foster Wheeler Energy Limited. "This award reflects our in-depth expertise in refining and petrochemicals and in the successful integration of refining and petrochemicals production. We have been active in the Indian market for over seventy years and it remains a very important market for Foster Wheeler. We look forward to working with IOCL to deliver a high quality FEED which meets or exceeds our client's expectations."

Notes to Editors:

1. Foster Wheeler Ltd. is a global company offering, through its subsidiaries, a broad range of engineering, procurement, construction, manufacturing, project development and management, research and plant operation services. Foster Wheeler serves the refining, upstream oil and gas, LNG and gas-to-liquids, petrochemicals, chemicals, power, pharmaceuticals, biotechnology and healthcare industries. The corporation is based in Hamilton, Bermuda, and its operational headquarters are in Clinton, New Jersey, USA. For more information about Foster Wheeler, please visit our Web site at http://www.fwc.com.

2. Safe Harbor Statement

This press release may contain forward-looking statements that are based on the Company's assumptions, expectations and projections about Foster Wheeler and the various industries within which it operates. These include statements regarding the Company's expectation about revenues (including as expressed by its backlog), its liquidity, the outcome of litigation and legal proceedings and recoveries from customers for claims, and the costs of current and future asbestos claims and the amount and timing of related insurance recoveries. Such forward-looking statements by their nature involve a degree of risk and uncertainty. The Company cautions that a variety of factors, including but not limited to the factors described under Part II, Item 1A. "Risk Factors" in its most recent quarterly report on Form 10-Q, could cause business conditions and results to differ materially from what is contained in forward-looking statements: changes in the rate of economic growth in the United States and other major international economies; changes in investment by the power, oil and gas, pharmaceutical and chemical/petrochemical industries; changes in the financial condition of the Company's customers; changes in regulatory environment; changes in project design or schedules; contract cancellations; changes in the Company's estimates of costs to complete projects; changes in trade, monetary and fiscal policies worldwide; currency fluctuations; war and/or terrorist attacks on facilities either owned or where equipment or services are or may be provided; outcomes of pending and future litigation, including litigation regarding the Company's liability for damages and insurance coverage for asbestos exposure; protection and validity of the Company's patents and other intellectual property rights; increasing competition by foreign and domestic companies; compliance with the Company's debt covenants; recoverability of claims against the Company's customers and others by the Company and claims by third parties against the Company; and changes in estimates used in the Company's critical accounting policies. Other factors and assumptions not identified above were also involved in the formation of these forward-looking statements and the failure of such other assumptions to be realized, as well as other factors, may also cause actual results to differ materially from those projected. Most of these factors are difficult to predict accurately and are generally beyond the Company's control. You should consider the areas of risk described above in connection with any forward-looking statements that may be made by the Company. Foster Wheeler undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. You are advised, however, to consult any additional disclosures the Company makes in proxy statements, quarterly reports on Form 10-Q, annual reports on Form 10-K and current reports on Form 8-K filed with the Securities and Exchange Commission.