Baton Rouge, L.A, United States

The Shaw Group Inc. (NYSE:SGR) has announced that its Shaw Stone & Webster unit has signed a letter of intent with Saudi Basic Industries Corp. (SABIC) affiliate Yanbu National Petrochemical Company (YANSAB) to provide detailed engineering, procurement and construction for two new units, a butene plant and an aromatics plant. The new units will be located within SABIC's YANSAB petrochemical complex in Yanbu, Saudi Arabia. The butene and aromatics plants will have a designed annual capacity of 135,000 metric tons of butene and 250,000 metric tons of benzene, toluene and xylene mixtures, respectively. Engineering has begun and the YANSAB's plants are scheduled for completion in 2008. The value of the project was not disclosed.

J.M. Bernhard Jr., Chairman and Chief Executive Officer of Shaw said, "We are proud of our leadership position in the Middle East's growing petrochemical and polymers market, and are particularly pleased to continue our business relationship with SABIC on this important project, which is being led by our expert polymers team in Toronto, Ontario."

The Shaw Group Inc. is a leading global provider of technology, engineering, procurement, construction, maintenance, fabrication, manufacturing, consulting, remediation, and facilities management services for the energy, chemicals, environmental, infrastructure and emergency response markets. With over $3 billion in revenues, Shaw is headquartered in Baton Rouge, Louisiana, and 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.

The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for certain forward-looking statements. The statements contained herein that are not historical facts (including without limitation statements to the effect that the Company or its management "believes," "expects," "anticipates," "plans," or other similar expressions) and statements related to revenues, earnings, backlog, or other financial information or results are forward-looking statements based on the Company's current expectations and beliefs concerning future developments and their potential effects on the Company. There can be no assurance that future developments affecting the Company will be those anticipated by the Company. These forward-looking statements involve significant risks and uncertainties (some of which are beyond our control) and assumptions and are subject to change based upon various factors. Should one or more of such risks or uncertainties materialize, or should any of our assumptions prove incorrect, actual results may vary in material respects from those projected in the forward-looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. A description of some of the risks and uncertainties that could cause actual results to differ materially from such forward-looking statements can be found in the Company's reports and registration statements filed with the Securities and Exchange Commission, including its Form 10-K and Form 10-Q reports, and on the Company's website under the heading "Forward-Looking Statements". These documents are also available from the Securities and Exchange Commission or from the Investor Relations department of Shaw. For more information on the company and announcements it makes from time to time on a regional basis visit our website at www.shawgrp.com.

CONTACT: The Shaw Group Inc. Vice President, Investor Relations & Corporate Communications Chris D. Sammons 225-932-2546

Source: Business Wire (Business Wire India)

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