News Release

BATON ROUGE, La.--(BUSINESS WIRE)--Sept. 4, 2001--The Shaw Group Inc. (NYSE: SGR) ("Shaw" or "the Company") today announced that its subsidiary, Stone & Webster, Inc., as part of a joint venture, was awarded a five-year contract from Exelon Nuclear. Stone & Webster will provide construction, maintenance and modification services for Exelon's ten nuclear generating stations, consisting of 17 operating units, located in Illinois, Pennsylvania and New Jersey. Stone & Webster will perform this work under an existing joint venture with Newberg-Perini, a division of Perini Corporation. Work under the contract is expected to begin immediately.

"This award clearly confirms Exelon's confidence in our ability to support its nuclear services program," stated Richard F. Gill, Shaw's Chief Operating Officer and President of Stone & Webster. "Additionally, we are expanding our leading position in the nuclear industry as Exelon's nuclear plants represent 16 percent of the entire domestic operating nuclear power fleet. With our engineering, construction, maintenance and modification expertise, and Stone & Webster's historic strength in the nuclear industry, we have positioned ourselves to capitalize on the many opportunities in this market."

"The team of Stone & Webster and Newberg-Perini brings extensive experience to Exelon Nuclear from both a local and nationwide perspective," said Exelon Nuclear President and Chief Nuclear Officer, Oliver D. Kingsley, Jr. "Applying their expertise fleet-wide will provide both financial and operational benefits for us. Using a single contractor at all stations for maintenance and modification work will help streamline Exelon Nuclear operations and standardize our refueling program fleet-wide."

A major provider of nuclear services in the United States, Stone & Webster, Inc. has furnished operations and support to more than 90 percent of the nation's nuclear facilities and is the domestic leader in the supply of multi-station contract maintenance.

The Shaw Group Inc. is the world's only vertically integrated provider of complete piping systems and comprehensive engineering, procurement and construction services to the power generation industry. Shaw is the largest supplier of fabricated piping systems in the United States and a leading supplier worldwide, having installed piping systems in power plants with an aggregate generation capacity in excess of 200,000 megawatts. While the majority of Shaw's backlog is attributable to the power generation industry, the Company also does work in the process industries, including petrochemical, chemical and refining, and the environmental and infrastructure sector. The Company currently has offices and operations in North America, South America, Europe, the Middle East and Asia-Pacific; and has more than 13,000 employees. For more information on The Shaw Group, please visit the Company's website at www.shawgrp.com.

Exelon Corporation is one of the nation's largest electric utilities with approximately five million customers and more than $12 billion in annual revenues. The company has one of the industry's largest portfolios of electricity generation capacity, with a nationwide reach and strong positions in the Midwest and Mid-Atlantic. Exelon distributes electricity and gas to approximately five million customers in Illinois and Pennsylvania. The company also has holdings in such competitive businesses as energy, infrastructure services, energy services and telecommunications. Exelon is headquartered in Chicago and trades on the NYSE under the ticker EXC.

The statements contained in this release that are not historical facts are forward-looking statements based on the Company's current expectations and beliefs concerning future developments and their potential effects on the Company. There can be no assurance that future developments affecting the Company will be those anticipated by the Company. These forward-looking statements involve significant risks and uncertainties (some of which are beyond our control) and assumptions and are subject to change based upon various factors. Should one or more of such risks or uncertainties materialize, or should any of our assumptions prove incorrect, actual results may vary in material respects from those projected in the forward-looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. A description of some of the risks and uncertainties that could cause actual results to differ materially from such forward-looking statements can be found in the Company's reports and registration statements filed with the Securities and Exchange Commission, including its Form 10-K and Form 10-Q, and on the Company's web-site at www.shawgrp.com under the heading "Forward Looking Statement". These documents are available from the Securities and Exchange Commission or from the Investor Relations department of Shaw.

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