SaskPower, B&W Canada Announce $26 Million Contract At Melville

Released on February 10, 2003

SaskPower and Babcock & Wilcox Canada (B&W) have once again partnered on a major contract that will see more boiler fabrication work completed at B&W Canada's Melville, Saskatchewan facility. Officials from the Government of Saskatchewan, B&W Canada, SaskPower, and local government gathered in Melville today to celebrate the agreement and tour the facility.

The $26-million (CDN) contract is to supply and install components as part of the $80 million rebuild of the coal-fired Unit 6 boiler at SaskPower's Boundary Dam Power Station in Estevan, Saskatchewan. In addition to the on-site construction hours, the project will generate more than 23,000 shop hours for B&W Canada's manufacturing facilities. The majority of the work will be completed in the Melville facility, with the remainder in Cambridge, Ontario. In addition, over 140,000 construction person-hours will be executed at the Boundary Dam site between April and June 2003. The project is to be completed by July 2003.

"This project and this partnership bring significant economic benefits to Melville, Estevan and Saskatchewan worth a total of $18 million," Government Relations Minister Ron Osika said, on behalf of Crown Investments Corporation Minister Maynard Sonntag. "The longstanding relationship SaskPower has developed with B&W Canada has led to Saskatchewan jobs and the location of a state of the art facility in Saskatchewan that now exports the highest quality product to the rest of Canada and beyond."

Since 1994, B&W Canada has successfully executed all the major boiler upgrades at SaskPower's coal-fired generating stations. "Maximizing Saskatchewan content in these projects by utilizing B&W Canada's Melville facility has created a win-win arrangement for both the company and the province of Saskatchewan," Babcock & Wilcox Canada President Richard Reimels said. "The relatively short time frame, limited boiler access, and restricted work space present challenges in executing this work but we are drawing on a lot of experience and are confident in our approach."

SaskPower operates 15 generating facilities with an installed capacity of 3050 MW; including three coal-fired thermal stations, seven hydro stations, four natural gas peaking stations and the Cypress Wind Power Facility. Additional information can be found at www.saskpower.com.

B&W Canada serves North American electric utility and industrial markets and the global nuclear utility market. Based in Cambridge, Ontario, it is a wholly-owned subsidiary of The Babcock & Wilcox Company in Barberton, Ohio, which is an operating unit of McDermott International, Inc. (NYSE:MDR). The Babcock & Wilcox Company is located on the Internet at www.babcock.com.

-30-

For More Information, Contact:

Larry Christie SaskPower Regina Phone: (306)566-3167 Email: lchristie@saskpower.com Cell: (306)536-2886

Chris Sellers Babcock & Wilcox Canada Cambridge, ON Phone: (519)621-2130