BATON ROUGE, La., Jun 2, 2003 (BUSINESS WIRE) -- The Shaw Group Inc. (NYSE:SGR) ("Shaw" or "the Company") today announced that its subsidiary, Shaw Environmental, Inc., has been selected by the U.S. Army Corps of Engineers (USACE) Omaha District to execute its Indefinite Delivery/Indefinite Quantity (ID/IQ) Fixed Price Remediation Insured (FPRI) Environmental Remediation Services Contract. The contract, to be executed under the Shaw Insured Environmental Liability Distribution (SHIELD(sm)) Program, has a basic performance period of three years, and one option period of two years with a program ceiling of $200 million.

The contract will be implemented through sole-source negotiated task orders in locations nationwide, including Puerto Rico and the Virgin Islands. Work under this contract will include achieving regulatory closure through environmental remediation, including construction and engineering services. The task orders will be performed for a fixed price to the government, with insurance in place to protect the Company against cost overruns and other risks. The Department of Defense has stated that it intends to increase its use of this type of contracting vehicle for much of its upcoming environmental services work.

"Our selection by the Omaha District demonstrates our strength in the rapidly emerging fixed price and insured remediation market as part of our SHIELD(sm) Program. It also allows us to continue our strong working relationship with the USACE," stated Tim Barfield, President of Shaw Environmental & Infrastructure, Inc.

The Shaw Group Inc. is a leading global provider of comprehensive services to the power, process, and environmental and infrastructure industries. Shaw is a vertically-integrated provider of comprehensive engineering, procurement, pipe fabrication, construction and maintenance services to the power and process industries. Shaw is also a leader in the environmental, infrastructure and homeland defense markets providing consulting, engineering, construction, remediation and facilities management services to governmental and commercial customers. 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 further information, please visit our 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 we site at www.shawgrp.com.

SOURCE: The Shaw Group Inc.

The Shaw Group Inc., Baton Rouge
Laurie LaChiusa, 225/932-2500

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