BATON ROUGE, La., Jan 29, 2004 (BUSINESS WIRE) -- The Shaw Group Inc. (NYSE:SGR) today announced that its subsidiary, Stone & Webster Asia, Inc., has been awarded a seven-year contract with an estimated value of $18 million to provide engineering support services to Korea Power Engineering Company, Inc. (KOPEC) for Shin-Kori 1 & 2 and Shin-Wolsong 1 & 2 nuclear plants to be built in the Republic of Korea. Each of the four KOPEC units will generate 1,000 megawatts of electricity and will implement the Korean Standard Nuclear Plant pressurized water reactor design. Stone & Webster Asia will supply expert engineering support in the Republic of Korea. Technical engineering services will be provided by Stone & Webster's offices in the United States.

"We are pleased to have been selected for this landmark award, which further demonstrates our commitment to the design and construction of advanced nuclear plants worldwide," stated Michael P. Childers, President of Shaw's Engineering, Construction and Maintenance Division. "KOPEC is a premier nuclear company and is well-known internationally for its innovative design processes. We look forward to providing valuable technical support to our partners at KOPEC and to contributing to Korea's expanding energy infrastructure."

This newly awarded engineering services contract augments the portfolio of front-end services the Company has performed for the nuclear industry on a worldwide basis. Shaw is currently performing detailed engineering services for two, 1,350 megawatt nuclear power plants in Taiwan and has a long history of providing nuclear engineering and consulting services for facilities around the world including work in South Africa, Korea, Finland, Japan, United Kingdom, China, Russia, Ukraine, Germany, Spain, Italy and Bulgaria.

Scope of Maintenance Services Expanded to Include Spent Nuclear Fuel and Cask Handling

Shaw also announced that it has recently expanded the scope of its nuclear maintenance services to include spent nuclear fuel and cask handling. Shaw subsidiary Stone & Webster Construction, Inc. will be performing these services for the Sequoyah station under its newly expanded nuclear maintenance agreement with TVA. The new work includes the transfer of spent fuel into the fuel storage casks, the closure and sealing of the casks and the transport of the casks to a spent fuel storage facility, which was constructed by Stone & Webster.

"Combining this work with other ongoing activities being performed under the TVA maintenance and modification contract provides the opportunity to achieve significant cost savings and schedule efficiencies," said Childers. "We are proud of our preeminent position in the nuclear industry and we are continually seeking ways to expand the scope of our services for our nuclear clients around the world."

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 14,800 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.

SOURCE: The Shaw Group Inc.

The Shaw Group Inc., Baton Rouge
Laurie LaChiusa, 225-932-2500
www.shawgrp.com