BATON ROUGE, La.--(BUSINESS WIRE)--Nov. 21, 2003--The Shaw Group
Inc. (NYSE:SGR) ("Shaw" or "the Company") announced today that it has
entered into an agreement to purchase Energy Delivery Services, Inc.
("EDS"), a business unit of Duke Energy headquartered in Charlotte,
North Carolina, for $22.5 million. EDS, a provider of design,
engineering, procurement, construction and maintenance services for
electrical transmission and distribution systems primarily in North
America, will become a wholly-owned subsidiary of The Shaw Group Inc.
and will be closely affiliated with Shaw subsidiary, Shaw Power
Technologies, Inc. (Shaw PTI).
"Adding 100 years of energy delivery experience gives us the
opportunity to provide a full line of services to electric generating,
and transmission and distribution companies focused on maximizing the
efficiency of their systems," said J.M. Bernhard, Jr., Chairman and
CEO of The Shaw Group Inc. "As our organization expands its structure
to provide integrated services in all segments of our business, we're
thrilled to augment our portfolio with a company like EDS. This move
also strengthens our relationship with Duke Energy, one of the
foremost energy companies in the world."
EDS provides competitive, high quality services for Duke Power
Company and other utility clients to design, install, upgrade and
maintain power transmission and distribution systems. For Duke Power,
EDS assists in maintaining, a 12,700-mile transmission system, 66,200
miles of primary distribution lines and 2,000 substations throughout a
22,000-square-mile service area. Shaw intends to maintain EDS'
headquarters in Charlotte, North Carolina.
William F. Quinn, President of Shaw PTI commented, "This deal
allows Shaw to enhance its position in the electric transmission and
distribution business beyond our current offerings of power systems
consulting, software, education and advanced technology solutions.
Now, we'll combine our strengths to develop a full-service,
multi-faceted energy delivery services business."
For over 30 years, Shaw PTI has specialized in power systems
analysis including world-class diagnostic capabilities and is
recognized as a global leader in electrical engineering consulting
services, software products, educational programs and technology. Shaw
PTI software can also identify transmission constraints and ways to
isolate faulted networks that maintain systems stability. Shaw PTI
diagnostic technologies and network operations-related software are
installed in the majority of electric utilities worldwide.
"Merging our diagnostic and monitoring technologies with EDS'
transmission grid engineering, construction and maintenance services
is a natural progression and a winning combination," said Quinn. "By
integrating the capabilities of Shaw PTI and EDS, we will be uniquely
equipped to not only identify areas that are capacity-constrained but
subsequently design and implement feasible solutions for our clients."
"We're committed to EDS' existing customers, including Duke Power
and we look forward to seizing fresh opportunities in the growing
energy delivery marketplace," concluded Quinn.
Duke Energy is a diversified multinational energy company with an
integrated network of energy assets and expertise. The company manages
a dynamic portfolio of natural gas and electric supply, delivery and
trading businesses - meeting the energy needs of customers throughout
North America and in key markets around the world. Duke Energy,
headquartered in Charlotte, N.C., is a Fortune 500 company traded on
the New York Stock Exchange under the symbol DUK. More information
about the company is available on the Internet at:
The Shaw Group Inc. is a leading provider of consulting,
engineering, construction, remediation and facilities management
services to government and private sector clients in the
environmental, infrastructure and homeland security markets. Shaw is
also a vertically integrated provider of comprehensive engineering,
consulting, procurement, pipe fabrication, construction and
maintenance services to the power and process industries worldwide.
The Company is headquartered in Baton Rouge, Louisiana and employs
approximately 14,800 people at its offices and operations in North
America, South America, Europe, the Middle East and the Asia-Pacific
region. Additional information on The Shaw Group is available at
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.