Shaw Joins Westinghouse and Mitsubishi ``AP1000 Consortium'' as Architect Engineer

Shaw Joins Westinghouse and Mitsubishi `` June 10, 2005 09:17 AM US Eastern Timezone

Shaw Joins Westinghouse and Mitsubishi ``AP1000 Consortium'' as Architect Engineer

BATON ROUGE, La.--(BUSINESS WIRE)--June 10, 2005--

Westinghouse/Mitsubishi/Shaw Consortium to Target New Nuclear Power Plant Opportunities in China


The Shaw Group Inc. (NYSE: SGR) today announced that its Shaw Stone & Webster unit has joined the Westinghouse Electric Company and Mitsubishi Heavy Industries (Tokyo Stock Exchange: MHI) "AP1000 Consortium". The AP1000 Consortium is currently proposing to provide the "Nuclear Island," including the AP1000 reactor and technology transfer, for four nuclear generating units in China where the demand for energy is growing rapidly.

Two of the nuclear units would be constructed in Sanmen, in the Zhejiang province near Qinshan, for China National Nuclear Corporation. The two remaining units would be built in Yangjiang, in the Guangdong province west of Hong Kong, for China Guangdong Nuclear Power Company. The scope of work for Shaw would include construction management, project planning and oversight, and a portion of the engineering and procurement functions. Shaw will provide piping modules and modularization expertise through its pipe fabrication facility in Nanjing, China. The AP1000 technology is the first Generation III+ reactor design to receive approval from the U.S. Government's Nuclear Regulatory Commission. Generation III+ is the U.S. Department of Energy's nomenclature for the new generation of competitive reactor designs that will follow the Generation III Advanced Light Water Reactors developed in the 1990s.

Shaw Stone & Webster and Westinghouse have a long history of working closely together beginning with the Shippingport Atomic Power Station, the first commercial nuclear-powered central electric-generating station in the United States to more recent advanced reactor design and licensing activities and power uprate projects for operating nuclear plants.

J.M. Bernhard, Jr., Chairman and Chief Executive Officer of Shaw, said, "As the premier maintenance provider for over one-third of the United States' nuclear facilities, and a key architect engineer involved in the design and construction of 17 of the nation's nuclear power plants, Shaw is uniquely qualified to participate in the AP1000 Consortium and assist China in achieving its energy goals. In addition to our broad range of nuclear expertise, Shaw is a recognized international leader in pipe fabrication and is the only fabricator certified by ASME to assemble piping systems for nuclear generating facilities. Our pipe shop in China can produce premier piping systems for the country's nuclear plants efficiently and cost-effectively."

Shaw has significant experience in China and Asia, having just completed a 600,000 metric tons-per-year ethylene plant for the BASF-YPC Integrated Petrochemical Site located in Nanjing. With over 20 million work-hours, the project achieved an exemplary safety record of zero lost time accidents. Additionally, Shaw is currently performing engineering and design services for Taiwan Power Company's Lungmen Nuclear Power Plant, Units 1 and 2. Shaw is also providing engineering support services to Korea Power Engineering Company, Inc. (KOPEC) for Shin-Kori 1 & 2 and Shin-Wolsong 1 & 2 nuclear plants in the Republic of Korea. The Company is currently performing construction and construction management services for the restart of the Browns Ferry Unit 1 nuclear power plant for the Tennessee Valley Authority.

Mr. Bernhard continued, "We are pleased to join Westinghouse and Mitsubishi to provide premier nuclear services and expertise to the People's Republic of China and other regions focused on providing a sustainable, clean source of energy to their citizens. We look forward to working with the AP1000 Consortium to bring world-class nuclear solutions to the global community."

Westinghouse Electric Company, wholly owned by BNFL plc of the United Kingdom, is the world's pioneering nuclear power company and is a leading supplier of nuclear plant projects and technologies to utilities throughout the world. Today, Westinghouse technology is the basis for approximately one-half of the world's operating nuclear plants.

Mitsubishi Heavy Industries, Ltd. (MHI), headquartered in Tokyo, Japan, is one of the world's leading heavy machinery manufacturers, with consolidated sales of 2,373 billion yen in fiscal 2003 (year ended March 31, 2004)."