BATON ROUGE, La.--(BUSINESS WIRE)--Oct. 6, 2003--The Shaw Group
Inc. (NYSE:SGR) ("Shaw" or "the Company") announced today that it has
agreed upon terms for the settlement of claims related to the
cancellation of the LSP-Pike Energy, LLC ("Pike") power plant project
in Mississippi. Shaw, through its subsidiary Stone & Webster, Inc.,
was the engineering, procurement and construction (EPC) contractor on
the Pike project which was not completed. The Company has been in
litigation with Pike, its parent NRG Energy, Inc. ("NRG"), and NRG's
parent, Xcel Energy Inc. ("Xcel"), since October 2002. The litigation
will be dismissed as a result of this settlement, which is subject to
final bankruptcy court approval.
Although the precise terms were not disclosed, included in the
consideration under the proposed settlement Shaw will receive an
allowed claim in a fixed amount of $35 million in the pending
bankruptcy case of NRG. Shaw will also retain ownership of the
materials and equipment to which it asserts title from the Pike
project, excluding the turbines, as well as ownership of the project
site.
"All of the parties have been working diligently for several weeks
to complete a settlement of the ongoing litigation matters related to
the Pike project. We have made great strides in reducing our exposure
on this project and in improving our relationship with NRG, as well as
with Xcel," stated J.M. Bernhard, Jr., Shaw's Chairman and Chief
Executive Officer.
The Shaw Group Inc. is a leading global provider of engineering,
procurement, construction, maintenance, fabrication, manufacturing,
consulting, remediation, and facilities management services for
government and private sector clients in the power, process,
environmental, infrastructure and homeland defense markets. The
Company is headquartered in Baton Rouge, Louisiana and employs
approximately 17,000 people at its offices and operations in North
America, South America, Europe, the Middle East and the Asia-Pacific
region. For further information, please visit the Company's website 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.
CONTACT: The Shaw Group Inc., Baton Rouge
Laurie LaChiusa, 225-932-2500
SOURCE: The Shaw Group Inc.
