BATON ROUGE, La.--(BUSINESS WIRE)--July 28, 2004--The Shaw Group
Inc. (NYSE: SGR) today announced that American Eagle Communities, LLC,
a joint venture owned 50 percent by Shaw Infrastructure, Inc. and 50
percent by CEI Investment Corp., was recently selected by the U.S.
Army to prepare the Community Development and Management Plan (CDMP)
for the privatization of housing units at three facilities in the
northeastern United States. Once finalized, the CDMP will serve as the
master plan for the development of enhanced residential communities at
Carlisle Barracks, in Pennsylvania, and Fort Monmouth and Picatinny
Arsenal, both in New Jersey. In total, the three locations are
expected to include approximately 780 housing units for military
personnel and their families and to be valued at over $150 million.
This Northeast region project is part of the Army's Residential
Communities Initiative (RCI), a plan to privatize and improve Army
family housing throughout the United States.
American Eagle Communities will work with Army representatives at
each location to develop the CDMP which will serve as the 50-year
business plan for the project. The CDMP will establish the phasing and
construction timeline as well as the design and approach to the
project at each location. Preparation of the CDMP is expected to take
about six months. Upon approval of the CDMP, American Eagle
Communities will begin an approximate four-year development program
that includes renovating and/or rebuilding all of the residences at
the three project locations.
Diana Severs Ferguson, President of Shaw Environmental and
Infrastructure, Inc., said, "This combined site award firmly
establishes Shaw as a trusted provider of privatization services to
the military and a major player in the overall infrastructure
privatization market. Our partnerships with CEI on previous military
housing privatization projects have been very successful and we are
pleased to work with them again to enhance the residential facilities
for the Army's personnel and their families at these three Northeast
Region locations."
Approximately $150 million in private sector financing will be
invested in the project during the initial four-year development phase
to renovate existing and construct new family housing at the three
installations. The plan will improve overall housing appearance and
functionality and weave natural and historical elements together as
part of the planned communities. Recreational spaces will be created
at each location which may include clubhouses, ancillary facilities
and other amenities to enrich the quality of life for the residents.
The proposed plan also includes a fifty-year operations and
maintenance agreement whereby American Eagle Communities will provide
comprehensive residential services, including interior, exterior and
grounds maintenance, for the residents at each of the project's sites.
American Eagle Communities will also construct and maintain roads and
infrastructure within the housing communities.
Headquartered in Meriden, Connecticut, CEI Investment is a
50-year-old, privately-held firm that has developed more than 35,000
homes across the United States. The company has extensive expertise in
the development and management of master-planned communities,
multi-family communities, as well as communities committed to
environmental preservation. CEI Investment has a remarkable tenant
satisfaction and retention rate within its managed developments, with
97 percent occupancy and an average tenant stay in excess of five
years. In addition, the ongoing commitment of CEI Investment to its
properties far exceeds industry standards, with CEI Investment
maintaining ownership and management of a majority of its developments
for more than 30 years.
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 emergency response markets. The Shaw
Group is also a vertically integrated provider of comprehensive
engineering, consulting, procurement, pipe fabrication, construction
and maintenance services to the power and process industries
worldwide. A Fortune 500 company with $3.3 billion in revenues in
2003, The Shaw Group debuted on the magazine's "America's Most Admired
Companies" list in 2004. Shaw 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. Additional information on The Shaw Group
is available 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 website under the heading "Forward-Looking Statements".
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 website at www.shawgrp.com.
CONTACT: The Shaw Group Inc.
Chris D. Sammons, 225-932-2546
SOURCE: The Shaw Group Inc.
