Shaw Signs Letter of Intent with SABIC for Engineering and Construction of Butene and Aromatics Units in Saudi Arabia.

BATON ROUGE, La. -- The Shaw Group Inc. (NYSE:SGR) today announced that its Shaw Stone & Webster unit has signed a letter of intent with Saudi Basic Industries Corp. (SABIC) affiliate Yanbu National Petrochemical Company (YANSAB) to provide detailed engineering, procurement and construction for two new units, a butene plant and an aromatics plant. The new units will be located within SABIC's YANSAB petrochemical complex in Yanbu, Saudi Arabia. The butene and aromatics plants will have a designed annual capacity of 135,000 metric tons of butene and 250,000 metric tons of benzene, toluene and xylene mixtures, respectively. Engineering has begun and the YANSAB's plants are scheduled for completion in 2008. The value of the project was not disclosed.

J.M. Bernhard Jr., Chairman and Chief Executive Officer of Shaw said, "We are proud of our leadership position in the Middle East's growing petrochemical and polymers market, and are particularly pleased to continue our business relationship with SABIC on this important project, which is being led by our expert polymers team in Toronto, Ontario."

The Shaw Group Inc. is a leading global provider of technology, engineering, procurement, construction, maintenance, fabrication, manufacturing, consulting, remediation, and facilities management services for the energy, chemicals, environmental, infrastructure and emergency response markets. With over $3 billion in revenues, Shaw is headquartered in Baton Rouge, Louisiana, and employs approximately 22,000 people at its offices and operations in North America, South America, Europe, the Middle East and the Asia-Pacific region. For further information, please visit Shaw's website at www.shawgrp.com.

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