Westinghouse / Shaw Consortium Selected for China Nuclear New Build Program

The Shaw Group Inc. (NYSE:SGR) announced today that the People's
Republic of China's State Nuclear Power Technology Company (SNPTC) has
selected the Westinghouse/Shaw Consortium and Westinghouse's AP1000
passive Generation III technology as the basis for four new nuclear
power plants to be constructed in China. The AP1000 Consortium will
begin working closely with SNPTC to negotiate final contract details
with implementation of the new build program expected to begin in
early 2007.

J.M. Bernhard, Jr., Chairman, President and Chief Executive
Officer of Shaw, said, "We are exceptionally pleased to be a part of
the AP1000 Consortium and with our role in supporting China's growing
energy needs with the safe, modular and economical AP1000 technology.
These first four "next generation" units will provide a sustainable
source of critically needed power generation for the citizens and the
government of the People's Republic of China and we are delighted to
be partnered with Westinghouse Electric Company in these significant
projects. This project also represents the beginning of a major
construction program for China to add at least 20,000 megawatts of
nuclear power over the next 15 years. We look forward to a long and
mutually beneficial relationship with our Chinese clients for these
and future nuclear units."

Richard F. Gill, Chairman of the Executive Committee and Interim
President of Shaw's Power Division, added, "It has been a tremendous
honor to work with President Chen Zhaobo and SNPTC on this most
important initiative. We thank them for the extremely professional and
courteous manner in which the negotiations for this selection have
been handled. We believe this venture will become a benchmark for
future projects and an example of how our countries can successfully
work together on very complex industrial projects. Shaw is committed
to upholding this spirit of collaboration and innovation as we work
together with the People's Republic of China to finalize contract
terms on these first four nuclear projects."

As part of the AP1000 Consortium, Shaw will provide engineering,
procurement, commissioning, and management services for the four
Chinese nuclear generation units. The projects are expected to spur
significant economic opportunity in China, as well as in the United
States with skilled engineering jobs being created in Shaw offices in
Massachusetts, New Jersey, North Carolina and Louisiana as a result.

Shaw is a pioneer in the nuclear services industry and has a
long-standing relationship with its partner, Westinghouse. Shaw and
Westinghouse collaborated to build the first commercial nuclear
generating plant in the United States at Shippingport, Pennsylvania in
the 1950s. Shaw has performed as architect-engineer on 17 domestic
nuclear units and is presently completing the construction restart of
Tennessee Valley Authority's Browns Ferry Unit #1 in Alabama, the
largest nuclear construction project currently underway in the western
hemisphere. Shaw is a leader in providing nuclear modifications and
maintenance services, with 40% of the nation's market share. The
company is certified by ASME to both engineer and fabricate piping
systems for nuclear power facilities. Shaw is also a 20% owner of
Westinghouse.

The selection of Westinghouse and Shaw to supply new nuclear
plants in China is the most recent in a series of positive
announcements regarding the AP1000 passive Generation III technology
and new nuclear construction. The AP1000 technology obtained Design
Certification from the United States Nuclear Regulatory Commission and
is the current technology selection for at least 12 proposed new units
in the United States. Westinghouse and Shaw are working closely to
support this proposed growth in the domestic nuclear power sector.

Westinghouse Electric Company is the world's pioneering nuclear
power company and is a leading supplier of nuclear plant products and
technologies to utilities throughout the world. Today, Westinghouse
technology forms the basis for approximately one-half of the world's
operating nuclear plants.

The Shaw Group Inc. is a leading global provider of engineering,
procurement, construction, technology, maintenance, fabrication,
manufacturing, consulting, remediation, and facilities management
services for government and private sector clients in the energy,
chemical, environmental, infrastructure and emergency response
markets. Shaw is also a leading provider of services to the U.S.
nuclear industry. Headquartered in Baton Rouge, Louisiana, with nearly
$5 billion in annual revenues, Shaw employs approximately 22,000
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 Shaw's website at www.shawgrp.com.

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