Foster Wheeler-Led JV Wins Saudi Aramco Khurais EPC Contract; Largest Crude Increment Program Ever to Be Carried out by Saudi Aramco Takes a Major Step Forward.

HAMILTON, Bermuda -- Foster Wheeler Ltd. (Nasdaq: FWLT) announced today that a joint venture led by Foster Wheeler Energy Limited, part of the Global Engineering and Construction Group, with Korea's Hyundai Engineering and Construction Co., Ltd., has been awarded a lump-sum turnkey engineering, procurement and construction contract by Saudi Aramco for the Khurais Gas Facility, part of the Khurais Central Processing Facility in the Kingdom of Saudi Arabia.

The Foster Wheeler contract value was not disclosed and will be included in the company's third-quarter 2006 bookings.

The Khurais Gas Facility is one of the main contract packages that make up the Khurais Crude Increment Program, which aims to deliver 1.2 million barrels per day (b/d) of Arabian light crude by 2009. This program is the largest project to be developed under Saudi Aramco's expansion program aimed at increasing oil production by the end of the decade and is one of the most important oil projects in the world today.

"This is a very important win for Foster Wheeler," said Steve Davies, chairman and chief executive officer of Foster Wheeler Energy Limited. "This award further demonstrates our commitment to, and our growing strength, in the upstream oil and gas sector, a strategically important business for Foster Wheeler. It also further demonstrates Saudi Aramco's confidence in our ability to meet their objectives for this project, based on our proven performance on the front-end design for the entire Khurais development, and on our performance on Saudi Aramco's previous major oil and gas developments, such as Haradh and Qatif. We have consistently met or exceeded Saudi Aramco's safety, quality, schedule and cost targets and, together with Hyundai, our joint venture partner for Khurais, are fully committed to delivering the same best-in-class performance for this project."

"This program is one of the largest industrial projects being undertaken in the world today and is the largest crude increment program undertaken in the history of Saudi Aramco. This program is challenging because of the scope and complexity of the facilities, the extensive and diverse work locations and the short timescales involved," commented Mr. A. A. Al-Ajmi, vice president, project management, Saudi Aramco. "We are confident that the Foster Wheeler and Hyundai joint venture has the skills and track record to manage this challenge and to deliver a world-class gas plant."

The Khurais Crude Increment Program covers three oil fields: Khurais, Abu Jifan and Mazlij. The Khurais Gas Facility will be designed to process the sour associated gas produced from the three oilfields into a natural gas liquid product and a dry, single-phase sour shipping gas. The plant will process a total of 563 million standard cubic feet per day of sour associated gas and 70,000 b/d of hydrocarbon condensate.

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, 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.