Foster Wheeler Awarded Major Refinery Project in the Kingdom of Bahrain.

HAMILTON, Bermuda -- Foster Wheeler Ltd. (Nasdaq: FWLT) announced today that its Milan-based subsidiary Foster Wheeler Italiana S.p.A. has been awarded an engineering, procurement and construction (EPC) contract by The Bahrain Petroleum Company B.S.C. (BAPCO) for a refinery gas desulfurization (RGD) project at its refinery located near Sitra, on the east coast of the Kingdom of Bahrain. BAPCO is wholly owned by the Government of the Kingdom of Bahrain. The value of the lump-sum turnkey contract is approximately $112 million and it will be included in Foster Wheeler's third-quarter 2005 bookings.

The RGD project is one of a number of projects which form part of BAPCO's planned $1 billion refinery upgrading program. The purpose of the RGD project is to remove sulfur from the refinery gas streams, treat all sour water to meet government environmental legislation and meet hydrogen sulfide specifications for selected streams where required, to allow export of the LPG-rich streams.

"We are very pleased that BAPCO has demonstrated confidence in our ability to deliver a successful project," said Umberto della Sala, chief executive officer of Foster Wheeler's Global Engineering and Construction Group. "In addition, this award represents an opportunity for Foster Wheeler to further expand its presence in the Middle East countries and demonstrates our ability to compete on a lump-sum turnkey basis in the region."

The project includes the installation of several new grassroots process plants, including a 220 tonnes per day sulfur recovery unit, a tail gas treating unit, two sour water stripping units, an olefinic gas treatment unit and low flow-off gas streams treatment. Foster Wheeler will also revamp the existing Diethanolamine unit and provide interconnections between other process and utilities units and the new facilities. Completion of the RGD project is scheduled for the fourth quarter of 2007.

Notes to Editors:

1. Foster Wheeler Italiana S.p.A. is a subsidiary of Foster Wheeler Continental Europe, wholly owned by Foster Wheeler Ltd. Based in Corsico (Milano) Italy, Foster Wheeler Continental Europe also manages Foster Wheeler Iberia, S.A., Foster Wheeler France (Paris), Foster Wheeler Bimas (Istanbul), Foster Wheeler Hellas (Athens), Steril Schweiz AG (Basel) and Foster Wheeler Chile (Santiago).

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.