B&W and Thermax Form Indian Joint Venture

McDermott International, Inc. (NYSE:MDR) ("McDermott”), announced today that one of its subsidiaries, Babcock & Wilcox Power Generation Group, Inc. ("B&W”) and Indian energy-environment solutions provider Thermax Ltd. have formed a joint venture to build highly efficient subcritical and supercritical boilers and pulverizers for the Indian utility boiler market.

The new joint venture company will have its headquarters at Pune in the Maharashtra State of India. Under the terms of the agreement, B&W will also license its technology to the joint venture company for subcritical boilers 300 megawatts (MW) and larger, supercritical boilers and coal pulverizers. The joint venture will have the full capability to engineer, manufacture and manage large power projects for the Indian power sector. As part of the agreement, the partners will also construct a new pressure parts fabrication facility in India.

"B&W and Thermax have successfully worked together on other joint ventures and licensing agreements for more than two decades,” said Richard L. Killion, President and Chief Operating Officer of Babcock & Wilcox Power Generation Group. "This agreement augments our presence and profile in the global marketplace and presents a substantial opportunity to continue the growth of our business in India and around the world.”

The joint venture is being established at a critical time when India’s ambitious growth plans, coupled with the country’s dependence on coal-fired power plants, present a tremendous opportunity to participate in a robust power market. The initiative combines B&W’s long history of proven state-of-the-art power generation technology and world class project management capabilities with Thermax’s expertise of integrating energy and environmental solutions in the Indian market. B&W will own a 49 percent share of the joint venture while Thermax will have 51 percent ownership.

"Our joint venture with Thermax is an important element of B&W’s deeper engagement with India as part of our clean energy initiative,” said Brandon C. Bethards, Chief Executive Officer of The Babcock & Wilcox Company. "Together, with ongoing discussions regarding joint deployment of the modular B&W mPower^TM reactor, this partnership in India will bring further innovation to the region’s growing energy markets.”

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.