J. Ray McDermott Awarded East India Oilfield Contract.

Utilizing worldwide resources to provide rapid response on EPCI project

HOUSTON -- McDermott International, Inc. (NYSE:MDR) ("McDermott") announced today subsidiaries of J. Ray McDermott, S.A. ("J. Ray") were awarded the KG-D6 field development project by Reliance Industries Limited to supply and install a 12,000 metric ton ("MT") control riser platform.

"It's an honor for us to have been selected for this major initiative contributing to the development of India's offshore oilfields," said Bob Deason, President & Chief Operating Officer of J. Ray. "J. Ray's business with Reliance dates back to the early 1990s, and we are pleased to continue the relationship by working together on the ambitious KG-D6 project."

J. Ray will utilize its resources from around the world. Facilities in Jebel Ali, UAE, Houston, Texas and Morgan City, Louisiana will collaborate to perform the schedule-driven project. From first steel cut to project completion is expected to take approximately 18 months, with hook-up and pre-commissioning to complete by the end of the first quarter of 2008.

Detailed design and engineering will be conducted by J. Ray's engineering division in Houston, with procurement handled through J. Ray's Houston and Jebel Ali offices for the supply of the platform.

"Due to the completion timeline, we have split the construction work scope between two fabrication yards," continued Deason. "Our Morgan City facility will handle the fabrication of the jacket weighing approximately 7,500 MT, while the 4,700 MT topside plus 4,500 MT of piles and appurtenances will be built at Jebel Ali."

By the third quarter of 2007, the jacket from Morgan City will be loaded on to a fast transport vessel destined for India. All installation work will be carried out by J. Ray's in-house marine fleet.

McDermott International, Inc. is a leading worldwide energy services company. McDermott subsidiaries provide engineering, construction, installation, procurement, research, manufacturing, environmental systems, project management and facility management services to a variety of customers in the power and energy industries, including the U.S. Department of Energy. Additional information on McDermott can be obtained at www.mcdermott.com.

In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott International, Inc. cautions that statements in this press release which are forward-looking and provide other than historical information involve risks and uncertainties that may impact McDermott's actual results of operations. The forward-looking statements in this press release include, among other things, the work scope and timing of Reliance Industries Limited's KG-D6 field development project and Lukoil's sub-sea installation project. Although McDermott's management believes that the expectations reflected in those forward-looking statements are reasonable, McDermott can give no assurance that those expectations will prove to have been correct. Those statements are made based on various underlying assumptions and are subject to numerous uncertainties and risks, including without limitation change orders and other modifications to contracts. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these risk factors, please see McDermott's annual report on Form 10-K for the year ended December 31, 2005 and the Company's quarterly reports on Form 10-Q filed with the Securities and Exchange Commission.