Foster Wheeler Awarded EPCm Contract for World-Scale LNG Project in Australia.

HAMILTON, Bermuda -- Foster Wheeler Ltd. (Nasdaq: FWLT) announced today that its Australian subsidiary Foster Wheeler (WA) Pty Ltd. has been awarded an engineering, procurement and construction management (EPCm) contract with Woodside Energy Ltd. (Operator) on behalf of the North West Shelf Venture following final investment approval by its six joint-venture participants to invest A$2 billion on a Phase V LNG expansion project to be built at Karratha, Western Australia. Foster Wheeler is leading a joint venture with WorleyParsons Services Pty Ltd. to execute this project, which involves the addition of a fifth liquefied natural gas (LNG) processing train with a production capacity of 4.2 million metric tonnes a year to the existing 11.7 mtpa LNG complex.

The contract value was not disclosed. The project will be included in the company's second-quarter bookings.

"This latest award reinforces our position in LNG, which is a core business for Foster Wheeler, and demonstrates Woodside's and its five international partners' confidence in our ability to meet their business objectives. We are delighted that the North West Shelf Venture has secured final investment approval for this project to proceed and for the full EPCm contract to be awarded," said Steve Davies, chairman and chief executive officer of Foster Wheeler Energy Limited. "We have been working with Woodside (NWSV Operator) for a number of months, finalizing the project definition and achieving an early start on engineering. This will allow us to maintain the scheduled start-up date of the fourth quarter of 2008.

"Foster Wheeler has proven experience in the project management, engineering and construction of complex, world-scale projects, including the construction of LNG liquefaction facilities and offsite pre-assembly. That, combined with our partner's local knowledge, creates a high-performing team, fully focused on delivering the North West Shelf Venture's objectives: a safe, successful, and high-quality facility."

Woodside's Director of North West Shelf Ventures, Jack Hamilton, said the expansion would bring significant economic and social benefits to the remote Pilbara region of Western Australia where its gas processing facilities are located, as well as Western Australia and Australia.

"Our plant will be one of the largest single LNG complexes in the Asia-Pacific region following expansion," Dr. Hamilton said.

"The Venture's latest investment follows last year's commissioning of a fourth LNG processing train and second trunkline and, combined, these major projects will have enabled the Venture to effectively double its LNG capacity in approximately four years."

The expansion project also includes an additional fractionation unit, acid gas recovery unit, boil-off gas compressor, two new gas turbine power generation units, a second loading berth and a new fuel gas system compressor. For additional information on the Phase V Expansion, please refer to Item 5 under Notes to Editors below.

Photo is available at : http://www.fwc.com/enewsroom/images/D2936391.JPG

Caption: Left to right: Mike Beaumont, director, operations, Foster Wheeler Energy Limited, Dr. Jack Hamilton, Woodside's director of North West Shelf Ventures, and Iain Ross, managing director, WorleyParsons Services Pty Ltd.

Notes to Editors:

1. Foster Wheeler (WA) Pty Ltd is a wholly owned subsidiary of Foster
    Wheeler Energy Limited of Reading, UK. Foster Wheeler Energy
    Limited is a subsidiary of Foster Wheeler Ltd.

2. Foster Wheeler Ltd. is a global company offering, through its
    subsidiaries, a broad range of design, engineering, 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, petrochemical,
    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, visit our Web site at
    www.fwc.com.

3. Safe Harbor Statement
    This news release contains forward-looking statements that are
    based on management's assumptions, expectations and projections
    about the Company and the various industries within which the
    Company operates. These include statements regarding our
    expectations regarding revenues (including as expressed by our
    backlog), 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 the heading "Business--Risk Factors of
    the Business" in the Company's most recent annual report on Form
    10-K/A and the following, could cause the Company's 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, chemical/petrochemical and environmental
    industries, changes in the financial condition of customers,
    changes in regulatory environment, changes in project design or
    schedules, contract cancellations, changes in estimates made by
    the Company 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 our
    liability for damages and insurance coverage for asbestos
    exposure, protection and validity of patents and other
    intellectual property rights, increasing competition by foreign
    and domestic companies, compliance with debt covenants,
    recoverability of claims against customers and others, changes in
    estimates used in 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 our control. You should
    consider the areas of risk described above in connection with any
    forward-looking statements that may be made by us.

4. The six equal North West Shelf Venture participants in the LNG
    Phase V Project are Woodside Energy Ltd. (16.67%) (Operator); BHP
    Billiton (North West Shelf) Pty Ltd (16.67%); BP Developments
    Australia Pty Ltd (16.67%); ChevronTexaco Australia Pty Ltd
    (16.67%); Japan Australia LNG (MIMI) Pty Ltd (16.67%); and Shell
    Development (Australia) Proprietary Limited (16.67%). CNOOC NWS
    Private Limited is also a member of the North West Shelf Venture
    but does not have an interest in North West Shelf Venture
    infrastructure.

5. Phase V Expansion

    Economic Benefits

    --  Western Australian and Australian communities will continue to
        reap the financial benefits of the North West Shelf Venture
        which has contributed more than A$4.95 billion in royalties
        over the past 20 years

    --  Annual royalties from the North West Shelf Venture will exceed
        A$800 million following full production from the Phase V
        expansion

    --  The Pilbara region, and in particular the Shire of Roebourne,
        in Western Australia will benefit from anticipated local
        spending associated with expansion of approximately A$220
        million (total) over the next three years

    --  At peak production, the Phase V project will raise overall
        Western Australian exports by at least A$1 billion per annum

    Key Components

    The expansion project includes:

    --  A fifth LNG processing train

    --  An acid gas removal unit, with a single absorber (solvent
        aMDEA)

    --  A fractionation unit

    --  A jetty spur and second loading berth, turning basin and
        approach channel

    --  Two power generators

    --  A demineralization water tank

    --  A boil-off gas compressor

    --  A fuel gas compressor

    --  Piping, electrical and instrument tie-ins

    --  Construction (and removal) of temporary facilities

    --  Construction of a new workshop and rotor store and,

    --  Reinforcement of the security gatehouse and visitors' center.

   Key Facts

    --  Major LNG customers

 - Japan:         Tokyo Electric, Tokyo Gas, Osaka Gas, Chubu
                  Electric Power, Chugoku Electric, Kansai Electric
                  Power, Kyushu Electric Power, Tohoku Electric Power,
                  Toho Gas, Shizuoka Gas

 - Korea:         Korea Gas Corporation

 - China:         The Guangdong Dapeng LNG Company Ltd

 - Spot cargoes:  Customers include Shell Eastern LNG, Korea, Spain,
                  United States

    --  LNG capacity

 - Trains 1, 2 and 3:     2.5 million tonnes a year each

 - Trains 4 and 5:        4.2 million tonnes a year each

 - Existing total:        11.7 million tonnes a year

 - Expanded total:        15.9 million tonnes a year

 - Export cargoes:        156 (2004)

 - Ships:                 9

    --  Estimated capital investment

 - Train 5 and associated infrastructure:         A$2 billion

 - Existing total North West Shelf Venture:       A$14 billion

    --  Train 5 construction work force (peak):   Up to 1500