BATON ROUGE, La., Mar 16, 2003 (BUSINESS WIRE) -- The Shaw Group Inc. (NYSE:
SGR) ("Shaw" or "the Company") today announced that it has notified PG&E;
National Energy Group, Inc. ("NEG") and its lenders that Shaw has terminated two
engineering, procurement and construction contracts (the "Contracts" or the
"Projects") with NEG's subsidiaries Covert Generating LLC ("Covert") and
Harquahala Generating LLC ("Harquahala").
Shaw is continuing discussions with NEG and its lenders towards a mutually
agreeable resolution of contract issues surrounding the Projects. At this time,
Shaw plans to continue to work on the Projects while in discussions. Shaw has
elected to terminate the Contracts in order to preserve, and better enable Shaw
to assert, certain legal rights under the Contracts.
Shaw placed Covert and Harquahala in default under the Contracts on October 16,
2002. Since that time, the Company has continued to work on the Contracts while
seeking assurances of payment from NEG. To that end, the Company filed suit on
December 13, 2002 in U.S. District Court in Delaware. The Company has dismissed
the lawsuit, and NEG has returned to Shaw approximately $50 million of letters
of credit.
The Shaw Group Inc. offers a broad range of services to clients in the
environmental and infrastructure, power and process industries worldwide. The
Company is a leading provider of consulting, engineering, construction,
remediation and facilities management services to the environmental,
infrastructure and homeland security markets. The Company is also a
vertically-integrated provider of comprehensive engineering, consulting,
procurement, pipe fabrication, construction and maintenance services to the
power and process industries. The Company is headquartered in Baton Rouge,
Louisiana with offices and operations in North America, South America, Europe,
the Middle East and the Asia-Pacific region and employs approximately 17,000
people. For more information please visit our website at www.shawgrp.com .
For more information, please contact Christine Mollere, Vice President of
Corporate Communications at 225-932-2500.
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.
CONTACT: The Shaw Group Inc., Baton Rouge
Christine Mollere, 225/932-2500
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