McDermott Subsidiary Introduces Scalable, Practical Nuclear Energy

B&W mPower Generation III++ Reactor; Letter of Intent Received from TVA
HOUSTON--(Business Wire)--
McDermott International, Inc. (NYSE:MDR), announced today that its subsidiary,
The Babcock & Wilcox Company ("B&W"), intends to develop and deploy a North
American-manufactured, scalable nuclear reactor relying upon more than 50 years
of its 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 will
represent 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.

This new reactor will incorporate important design and operational attributes
that should 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 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 is expected to be manufactured in existing B&W
facilities in North America and then rail-shipped to the power plants`
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.

"As we reviewed the best way to align 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. "We have
attracted substantial customer interest 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 base load power."

B&W has notified the NRC of its intent to submit an application for design
certification of the reactor in 2011. A global team of potential customers has
been assembled to support the development of the reactor to ensure 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.

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.

McDermott is an engineering and construction company, with specialty
manufacturing and service capabilities, focused on energy infrastructure.
McDermott`s customers are predominantly utilities and other power generators,
major and national oil companies, and the United States Government. With its
global operations, McDermott operates in over 20 countries with more than 25,000
employees, and can be found on the internet at www.mcdermott.com.

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 and the anticipated design, capabilities and benefits
of that reactor. 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 mPower reactor may be adversely affected or
delayed through the regulatory compliance process or by changes in the global
economy or in the energy industry which 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, McDermott
expressly disclaims any obligation to update those statements.

McDermott International, Inc.
Investor Relations & Corporate Communications:
Jay Roueche or Robby Bellamy, 281-870-5011
www.mcdermott.com

Copyright Business Wire 2009