THE SHAW GROUP

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The Shaw Group Announces Financial Results for Second Quarter Fiscal 2005

BATON ROUGE, La., Apr 04, 2005 (BUSINESS WIRE) -- The Shaw Group Inc. (NYSE:SGR) today announced financial results for its second fiscal quarter. Net income from continuing operations for the second quarter of fiscal 2005 was $9.7 million, or $0.15 per diluted share. In comparison, for the three months ended February 28, 2004, Shaw reported net income from continuing operations of $2.5 million, or $0.04 per diluted share. For the second quarter of fiscal 2005, revenues were $763.5 million compared to $689.1 million in the prior year's second quarter.

Shaw's backlog totaled $5.1 billion at February 28, 2005, with approximately $2.4 billion, or 46% of the backlog expected to be converted during the next 12 months. Approximately $2.6 billion, or 50%, of the backlog is in environmental the and infrastructure sector, primarily contracts with Federal government agencies and commercial entities; approximately $1.8 billion, or 35%, of the backlog is comprised of projects for energy industry customers, primarily nuclear and fossil fuel power plants; and approximately $0.7 billion, or 13%, related to projects for chemical process industry facilities.

J.M Bernhard, Jr., Chairman and Chief Executive Officer of Shaw, said, "We are pleased to report positive financial and operational results for the fourth consecutive quarter, with net income from continuing operations of $0.15 per diluted share and positive net cash from operations of $18.3 million. This solid improvement is a direct result of our continued focus on project execution and improved efficiencies and a marked increase in activity related to the recovering energy and chemical markets. While our total backlog is sequentially lower this quarter, we have seen strong momentum in preliminary engineering and design work for our energy and chemical industry clients, especially in power generation and chemical process sectors. We are also pleased with the steady growth of our maintenance backlog and our strong position in the federal services marketplace in the environmental and infrastructure sector."

The Shaw Group Inc. is a leading global provider of technology, engineering, procurement, construction, maintenance, fabrication, manufacturing, consulting, remediation, and facilities management services for government and private sector clients in the energy, chemicals, environmental, infrastructure and emergency response markets. A Fortune 1000 Company, The Shaw Group is headquartered in Baton Rouge, Louisiana, and employs approximately 19,500 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.

Forward-Looking Statements - 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.

REVENUE AND BACKLOG BY INDUSTRY AND GEOGRAPHY
                          Revenue by Industry
               (Second Quarter Ended February 28, 2005)
 Environmental & Infrastructure               $   267.9 million    35%
 Energy                                           316.3 million    41
 Chemicals                                        165.3 million    22
 Other Industries                                  14.1 million     2
                                              -----------------  -----
       Total                                  $   763.5 million   100%
                         Revenue by Geography
               (Second Quarter Ended February 28, 2005)
 United States                                $   641.5 million    84%
 Asia/Pacific Rim                                  58.4 million     8
 Middle East                                       21.6 million     3
 Canada                                            18.9 million     2
 Europe                                            13.1 million     2
 South America & Mexico                             5.2 million     1
 Other                                              4.8 million     -
                                              -----------------  -----
       Total                                  $   763.5 million   100%
                          Backlog by Industry
                       (As of February 28, 2005)
 Environmental & Infrastructure                $2,565.1 million    50%
 Energy
   Nuclear Power                                  980.6 million    20
   Fossil Fuel                                    740.4 million    15
   Other Power                                     91.7 million     2
 Chemicals                                        676.5 million    13
 Other Industries                                  40.6 million     1
                                              -----------------  -----
       Total                                   $5,094.9 million   100%
                         Backlog by Geography
                       (As of February 28, 2005)
 Domestic                                      $4,256.4 million    84%
 International                                    838.5 million    16
                                              -----------------  -----
       Total                                   $5,094.9 million   100%
                 THE SHAW GROUP INC. AND SUBSIDIARIES
            CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                              (Unaudited)
           (Dollars in thousands, except per share amounts)
                                                 Three Months Ended
                                                 February 28 and 29,
                                               -----------------------
                                                  2005        2004
                                               ----------- -----------
Revenues                                         $763,460    $689,061
Cost of revenues                                  693,386     628,593
                                               ----------- -----------
    Gross profit                                   70,074      60,468
General and administrative expenses                49,085      44,878
                                               ----------- -----------
Operating income (loss)                            20,989      15,590
Interest expense                                   (9,747)     (9,118)
Interest income                                     1,416         456
Loss on LYONs repurchase                               --         (56)
Foreign currency transaction losses, net           (1,044)     (2,593)
Other income (expense), net                         2,367         162
                                               ----------- -----------
                                                   (7,008)    (11,149)
Income (loss) before income taxes, minority
 interest, earnings from unconsolidated
 entities and loss from discontinued operations    13,981       4,441
Provision (benefit) for income taxes                4,885       1,506
                                               ----------- -----------
Income (loss) before minority interest,
 earnings from unconsolidated entities and loss
 from discontinued operations                       9,096       2,935
Minority interest, net of income taxes             (1,398)       (171)
Earnings (loss) from unconsolidated entities,
 net of income taxes                                2,002        (276)
                                               ----------- -----------
Income (loss) from continuing operations            9,700       2,488
Loss from discontinued operations, net of
 income taxes                                         (52)       (291)
                                               ----------- -----------
Net income (loss)                                  $9,648      $2,197
                                               =========== ===========
Net income (loss) per common share:
    Basic:
        Income (loss) from continuing
         operations                                 $0.15       $0.04
        Loss from discontinued operations, net
         of income taxes                               --          --
                                               ----------- -----------
        Net income (loss)                           $0.15       $0.04
                                               =========== ===========
    Diluted:
        Income (loss) from continuing
         operations                                 $0.15       $0.04
        Loss from discontinued operations, net
         of income taxes                               --          --
                                               ----------- -----------
        Net income (loss)                           $0.15       $0.04
                                               =========== ===========

SOURCE: The Shaw Group Inc.

The Shaw Group Inc.
Chris D. Sammons
225-932-2546

"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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