THE SHAW GROUP

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The Shaw Group Inc. Announces Increases in Sales and Earnings for the Second Quarter of Fiscal 2002
BATON ROUGE, La., Apr 15, 2002 (BUSINESS WIRE) -- The Shaw Group Inc. (NYSE:SGR) ("Shaw" or "the Company") today announced an 81% increase in earnings to $21.3 million, or $0.51 per diluted share, for the second quarter ended February 28, 2002. This compares to earnings before an extraordinary item of $11.8 million, or $0.28 per diluted share, for the three months ended February 28, 2001. The Company also announced an increase in sales for the second quarter of fiscal 2002 to $566.2 million, representing a 66% increase over the prior year's second quarter sales of $340.3 million.

Shaw's backlog at February 28, 2002 totaled $4.5 billion, with approximately 86% relating to projects for the domestic market. This represents an increase of over 42% compared to the $3.1 billion backlog reported at February 28, 2001. The Company anticipates that approximately 60% of its backlog will be worked off during the next 12 months.

"Our results for the first six months of fiscal 2002 position us for another record year," stated J. M. Bernhard, Jr., Shaw's Chairman, President and Chief Executive Officer. "Our backlog remains firm, and upon the successful completion of the acquisition of The IT Group, we look forward to a major expansion into the environmental, infrastructure and homeland security sector that will diversify our business and bring even greater certainty to our growth going forward."

For the six months ended February 28, 2002, the Company reported a 68% increase in earnings to $40.3 million, or $0.95 per diluted share. This compares to earnings before an extraordinary item of $24.0 million, or $0.58 per diluted share, for the six months ended February 28, 2001. Sales for the six months ended February 28, 2002 increased 34% to $1.0 billion, compared to $759.0 million in sales for the six months ended February 28, 2001.

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 additional information on The Shaw Group, please visit the Company's web site at www.shawgrp.com.

The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for certain forward-looking statements. The statements contained herein that are not historical facts (including without limitation statements to the effect that the Company or its management "believes," "expects," "anticipates," "plans," or other similar expressions) and statements related to revenues, earnings, backlog, or other financial information or results 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, reports and on the Company's web-site under the heading "Forward Looking Statement". These documents are also available from the Securities and Exchange Commission or from the Investor Relations department of Shaw. For more information on the company and announcements it makes from time to time on a regional basis visit our web site at www.shawgrp.com.

                          The Shaw Group Inc.
                   Consolidated Statements of Income
               (In thousands, except per share amounts)
                             Three Months Ended   Six Months Ended
                                February 28,         February 28,
                             ------------------  --------------------
                               2002      2001       2002       2001
                             --------  --------  ----------  --------
Income:
 Sales                       $566,227  $340,283  $1,019,836  $759,040
 Cost of sales                498,485   286,765     889,384   641,454
                             --------  --------  ----------  --------
   Gross profit                67,742    53,518     130,452   117,586
General and administrative
 expenses                      33,026    29,451      63,934    63,653
Goodwill amortization            --       4,040        --       7,876
                             --------  --------  ----------  --------
   Total general and
    administration expenses    33,026    33,491      63,934    71,529
                             --------  --------  ----------  --------
Operating income               34,716    20,027      66,518    46,057
Interest expense               (5,431)   (1,169)    (11,236)   (7,801)
Interest income                 2,399       467       5,421     1,058
Other income, net                  77       111         444       170
                             --------  --------  ----------  --------
                               (2,955)     (591)     (5,371)   (6,573)
                             --------  --------  ----------  --------
Income before income taxes,
 earnings (losses) from
 unconsolidated entities,
 and extraordinary item        31,761    19,436      61,147    39,484
Provision for income taxes     11,434     7,518      22,019    15,319
                             --------  --------  ----------  --------
Income before earnings
 (losses) from
 unconsolidated entities
 and extraordinary item        20,327    11,918      39,128    24,165
Earnings (losses) from
 unconsolidated entities,
 net of taxes                   1,013       (98)      1,164      (184)
                             --------  --------  ----------  --------
Income before extraordinary
 item                          21,340    11,820      40,292    23,981
Extraordinary item for
 early extinguishment of
 debt, net of taxes              --        (203)       --        (203)
                             --------  --------  ----------  --------
Net Income                    $21,340   $11,617     $40,292   $23,778
                             ========  ========  ==========  ========
Basic income per
 common share:
 Net income available to
  common shareholders         $21,340   $11,617     $40,292   $23,778
                             ========  ========  ==========  ========
 Number of shares              40,299    40,615      40,610    39,287
                             ========  ========  ==========  ========
 Net income per common share    $0.53     $0.29       $0.99     $0.61
                             ========  ========  ==========  ========
Diluted income per
 common share:
 Net income available to
  common shareholders         $21,340   $11,617     $40,292   $23,778
 Interest on convertible
  debt, net of taxes            2,652      --         5,284      --
                             --------  --------  ----------  --------
 Net income for diluted
  computation                 $23,992   $11,617     $45,576   $23,778
                             ========  ========  ==========  ========
 Number of shares              47,455    42,186      47,994    41,056
                             ========  ========  ==========  ========
 Diluted earnings per
  common share                  $0.51     $0.28       $0.95     $0.58
                             ========  ========  ==========  ========
              SALES AND BACKLOG BY INDUSTRY AND GEOGRAPHY
                           Sales by Industry
                           -----------------
               (Second Quarter Ended February 28, 2002)
Power Generation                     $423.7 million            (75%)
Process Industries                    $67.6 million            (12%)
Other Industries                      $39.6 million             (7%)
Environmental & Infrastructure        $35.3 million             (6%)
                                     --------------            -----
Total                                $566.2 million           (100%)
                          Sales by Geography
                          ------------------
               (Second Quarter Ended February 28, 2002)
United States                        $454.5 million            (80%)
Asia/Pacific Rim                      $44.2 million             (8%)
Other North America                   $27.3 million             (5%)
Europe                                $24.0 million             (4%)
South America                          $8.3 million             (1%)
Other                                  $5.4 million             (1%)
Middle East                            $2.5 million             (1%)
                                     --------------            -----
Total                                $566.2 million           (100%)
                          Backlog by Industry
                        (At February 28, 2002)
Power Generation                   $3,424.7 million            (77%)
Process Industries                   $592.6 million            (13%)
Environmental & Infrastructure       $323.3 million             (7%)
Other Industries                     $137.6 million             (3%)
                                   ----------------            -----
Total                              $4,478.2 million           (100%)
                         Backlog by Geography
                        (At February 28, 2002)
Domestic                           $3,850.1 million            (86%)
International                        $628.1 million            (14%)
                                   ----------------            -----
Total                              $4,478.2 million           (100%)
CONTACT:          The Shaw Group Inc., Baton Rouge
                  Christine N. Mollere, 225/932-2500
                  www.shawgrp.com
URL:              http://www.businesswire.com
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Copyright (C) 2002 Business Wire.  All rights reserved.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding SHAW GROUP INC's business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report or Form 10-K for the most recently ended fiscal year.


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