B&W Introduces Scalable, Practical Nuclear Energy

B&W mPower Generation III++ Reactor to Be Built in North America Based on Proven
Technology
WASHINGTON--(Business Wire)--
The Babcock & Wilcox Company (B&W) plans to deploy a North
American-manufactured, scalable nuclear reactor using its unique history of more
than 50 years of continuous reactor engineering and manufacturing. The B&W
mPower reactor design is a passively safe Advanced Light Water Reactor (ALWR)
with a below-ground containment structure. This optimized ALWR represents true
Generation III++ nuclear technology that B&W believes can be certified,
manufactured and operated within today`s existing U.S. regulatory, industrial
supply chain and utility operational infrastructure. B&W is a subsidiary of
McDermott International, Inc.

The new reactor will incorporate important design and operational attributes
that will make it attractive for both existing nuclear operating utilities as
well as other customers seeking to diversify their power generation portfolio.

* The scalable nature of nuclear plants built around the B&W mPower reactor
would provide customers with practical power increments of 125 MWe to meet local
energy needs within power grid and plant site constraints.
* B&W expects the use of proven ALWR design features, together with a passive
safety philosophy, to minimize plant licensing challenges, enhance safety
performance and contribute to reliable plant operation.
* The Nuclear Steam Supply System (NSSS) would be manufactured in existing B&W
facilities in North America and then rail-shipped to construction sites.
* The planned five-year operating cycle without refueling is intended to provide
a low-cost approach to plant operations.
* Nuclear security and near-term management of used fuel would be improved
through the underground containment design that accommodates storage of fuel for
the planned 60-year life of the reactor.

"When we started looking at the best way to match up B&W`s nuclear
manufacturing, engineering and licensing expertise with the emerging needs of
the commercial nuclear renaissance, it was clear that we could lead the
scalable, modular reactor field," said Brandon Bethards, Chief Executive Officer
of B&W. "As it comes to market, we believe this product will further enhance
B&W`s value to our customers."

B&W has formed a new business unit, B&W Modular Nuclear Energy, LLC, to lead the
development, licensing and delivery of B&W mPower reactor projects. Christofer
Mowry has been named President and Chief Executive Officer of B&W Modular
Nuclear Energy, LLC. "Several technical and manufacturing innovations make this
reactor a potential game-changer for the global clean energy market," said
Mowry. "We have attracted substantial customer involvement as we progress
through important product configuration decisions. We believe this reactor will
offer a practical, affordable near-term solution to the world`s growing demand
for the clean, zero-emission operations base load power necessary to support the
emergence of renewable energy solutions. This program has the potential to lead
to more high-value engineering and manufacturing activity in our country,
particularly at our facilities in Virginia, Ohio and Indiana, and also at our
subsidiary in Canada."

B&W has notified the NRC of its intent to submit an application for design
certification of the reactor in 2011. The company has also assembled a global
team of potential future customers to support the development of the reactor to
make sure it meets customer and regulatory requirements in North America, Europe
and elsewhere. A Letter of Intent has been received from Tennessee Valley
Authority (TVA) to begin the process of evaluating a potential lead plant site
for the B&W mPower reactor. A Memorandum of Understanding has been signed by
B&W, TVA and a consortium of regional municipal and cooperative utilities to
explore the construction of a fleet of B&W mPower reactors to meet the
consortium`s need to diversify its power generation assets.

About B&W

The Babcock & Wilcox Company (B&W), a major operating subsidiary of McDermott
International, Inc., is a leader in advanced energy technology innovation and
service, primarily in nuclear and fossil power. Providing quality products and
technical services to commercial and government customers, B&W is focused on
issues such as energy efficiency, clean air, global market competitiveness, and
safe and secure resolution for nuclear waste. B&W has locations worldwide and
employs more than 20,000 people. Visit us on the web at www.babcock.com.

Cautionary Statement Regarding Forward Looking Statements

This press release contains forward-looking statements, including statements
relating to our plans (and timing involved with those plans) to develop a
scalable nuclear reactor, the anticipated design, capabilities and benefits of
that reactor and our belief that the reactor may be game-changing. These
statements are subject to numerous risks and uncertainties that could cause
actual outcomes and results to be materially different from those projected or
anticipated, including the risk that the development or licensing of the B&W
mPower reactor may be adversely affected or delayed through the regulatory
process or that changes in the global economy or in the energy industry may
adversely affect the demand for such a reactor. The forward-looking statements
contained in this press release speak only as of the date of this release and,
except as required by law, we expressly disclaim any obligation to update those
statements.

The Babcock & Wilcox Company
Jud Simmons, 434-522-6462
hjsimmons@babcock.com

Copyright Business Wire 2009