MDR McDermott International Inc

McDermott International, Inc. (�McDermott�) (NYSE: MDR) announced today that a subsidiary of The Babcock & Wilcox Company (�B&W�) has been awarded a contract to downblend over 12 metric tons of highly enriched uranium (�HEU�) into low enriched uranium (�LEU�) at its Erwin, Tennessee facility.

Working under prime contractor WesDyne International, LLC and in support of the National Nuclear Security Administration�s (�NNSA�) nonproliferation initiative to reduce HEU stockpiles around the world, B&W�s subsidiary will fulfill the downblending portion of the contract, which also includes transportation, storage and other activities to be performed by WesDyne.

Downblending is the process whereby HEU is processed to reduce its concentration of Uranium-235 to levels suitable for use in commercial power plants. The resulting LEU is no longer suitable for use in nuclear weapons and can be used for peaceful purposes, including assurance of fuel supply to utilities participating in the MOX program for the disposition of surplus weapons plutonium. The downblending and processing of HEU, as well as other materials, for commercial reactor applications is an ongoing business and core competency of B&W.

The contract period of performance is anticipated by NNSA to be up to nine years, although the downblending portion is expected to be complete within four years.

�B&W and its subsidiaries have enjoyed strong partnerships with the NNSA and other commercial companies in HEU downblending for a number of years,� noted B&W Nuclear Operations Group President Winfred Nash. �We�re looking forward to completing another installment in this essential project, and we anticipate additional opportunities in the future.� B&W successfully completed a 50-metric ton downblending project in 2006. Additionally, its subsidiary, Nuclear Fuel Services, Inc. which was acquired late last year, was previously awarded a contract to downblend over 17 metric tons of HEU in 2007.

McDermott is an engineering and construction company, with specialty manufacturing and service capabilities, focused on energy infrastructure. McDermott�s customers are predominantly utilities and other power generators, major and national oil companies, and the United States Government. With its global operations, McDermott operates in over 20 countries with more than 25,000 employees, and can be found on the internet at www.mcdermott.com.

In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott International, Inc. cautions that statements in this press release which are forward-looking and provide other than historical information involve risks and uncertainties that may impact McDermott�s actual results of operations. The forward-looking statements in this press release include, among other things, the expected scope and timing associated with the downblending contract and expectations for additional downblending work in the future. Although McDermott�s management believes that the expectations reflected in those forward-looking statements are reasonable, McDermott can give no assurance that those expectations will prove to have been correct. Those statements are made based on various underlying assumptions and are subject to numerous uncertainties and risks, including without limitation, changes in project design or schedules, contract cancellations, change orders and other modifications, competitive or customer changes, and difficulties executing on the project. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see McDermott�s annual report on Form 10-K for the year ended December 31, 2008, and subsequent quarterly reports on Form 10-Q, filed with the Securities and Exchange Commission.

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