Shaw Awarded Basic Engineering Services for Ethylene Plant Expansion

BATON ROUGE, La. - Monday, February 14th 2011 [ME NewsWire]

(BUSINESS WIRE)-- The Shaw Group Inc. (NYSE: SHAW) today announced it has been awarded a contract by Qatar Petrochemical Company Ltd. Q.S.C. (QAPCO) to provide basic engineering services for the expansion of a 720 KTA ethylene plant in Mesaieed, Qatar. The project will provide the design needed for expanding the plant’s capacity by up to 25 percent.

“Shaw has provided services to QAPCO at this plant for nearly ten years. Most significantly, in 2002, we provided our proprietary technology and engineering for a successful, significant capacity expansion,” said Lou Pucher, president of Shaw’s Energy & Chemicals Group. “Our long relationship and experience puts Shaw in a unique position to best serve QAPCO in this new expansion endeavor.”

The undisclosed value of the basic engineering services contract will be included in Shaw's Energy & Chemicals segment's backlog of unfilled orders in the second quarter of fiscal year 2011.

An established leader in ethylene technology, Shaw has provided technology, design, engineering and/or construction for more than 120 plants. Current projects underway around the world include the following:

* In India, Shaw is providing proprietary technology and basic engineering for a new 450,000 tons per annum ethylene plant for GAIL (India) Limited.
* In Turkey, Shaw is providing engineering and procurement services for an ethylene plant capacity expansion of approximately 10 percent for Petkim Petrochemical Holding AS.
* In Singapore, Shaw is providing technology, engineering, procurement and construction services for a 1,000 KTA olefins recovery facility and a 220 megawatt power cogeneration unit for ExxonMobil Chemical.

In 2010, Shaw announced full commercial operation of a grassroots 1,320 KTA ethylene plant in Al-Jubail, Saudi Arabia, for Eastern Petrochemical Company (SHARQ).

The Shaw Group Inc. (NYSE:SHAW) is a leading global provider of engineering, construction, technology, fabrication, remediation and support services for clients in the energy, chemicals, environmental, infrastructure and emergency response industries. A Fortune 500 company with fiscal year 2010 annual revenues of $7 billion, Shaw has approximately 27,000 employees around the world and is the power sector industry leader according to Engineering News-Record’s list of Top 500 Design Firms. For more information, please visit Shaw’s website at www.shawgrp.com.

This press release contains forward-looking statements and information about our current and future prospects, operations and financial results, which are based on currently available information. Actual future results and financial performance could vary significantly from those anticipated in such statements.

Among the factors that could cause future events or transactions to differ from those we expect are those risks discussed in our Annual Report on Form 10-K for the fiscal year ended August 31, 2010, our Quarterly Reports on Form 10-Q for the quarters ended February 28, 2010, May 31, 2010 and November 30, 2010, and other reports filed with the Securities and Exchange Commission (SEC). Please read our “Risk Factors” and other cautionary statements contained in these filings. Our current expectations may not be realized as a result of, among other things:

* Changes in our clients’ financial conditions, including their capital spending;
* Our ability to obtain new contracts and meet our performance obligations;
* Client contract cancellations or modifications to contract scope;
* Worsening global economic conditions;
* Changes to the regulatory environment;
* Litigation or arbitration decisions;
* Failure to achieve projected backlog.

As a result of these risks and others, actual results could vary significantly from those anticipated in this press release, and our financial condition and results of operations could be materially adversely affected. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, the occurrence of certain events or otherwise.
Contacts

The Shaw Group Inc.

Gentry Brann,

225-987-7372

gentry.brann@shawgrp.com