Foster Wheeler to Supply BFB Retrofit in Sweden.

HAMILTON, Bermuda -- Foster Wheeler Ltd. (OTCBB: FWHLF) announced today that its Swedish subsidiary in the Foster Wheeler Global Power Group has been awarded a contract to supply a biomass-fired bubbling fluidized bed (BFB) retrofit to Stora Enso Hylte AB. The retrofitted boiler produces steam and electricity for the Hylte pulp and paper mill in Hyltebruk in southern Sweden.

The total investment cost of the project is approximately $51 million (EUR40 million). The Foster Wheeler contract value was not disclosed. The project will be included in the company's second-quarter 2005 bookings.

"Foster Wheeler is delighted to be awarded this contract by Stora Enso Hylte AB. Our partnership goes back many years. Foster Wheeler supplied a 49 MWth CFB boiler to the Hylte mill in 1982, and it is still in daily operation," said Bernard H. Cherry, president and chief executive officer, Foster Wheeler Global Power Group. "The project concept, including several special technical solutions, was actively developed by Foster Wheeler and Hylte experts, resulting in this project."

The contract includes a BFB boiler retrofit to the existing Axon-oven/natural gas-fired boiler (90 t/h, 63 bar, 450 degrees C, 69 MWth), internal fuel feeding, necessary new auxiliary equipment, electrical motors and field instruments, erection and commissioning. The primary goals for the retrofit are to enable firing of sludges in addition to drier biomass, control of fouling and corrosion and control of emissions. The main fuels for the boiler will be de-inking sludge, biosludge, demolition wood and bark. Work on the project will start immediately, and the plant is scheduled for handing over to the customer in May 2006.

Stora Enso is an integrated paper, packaging and forest products company producing publication and fine papers, packaging boards and wood products. The company serves its mainly business-to-business customers in Europe, North America and Asia.

Notes to Editors:

1. 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.

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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 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, implementation of our restructuring plan, 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.