Foster Wheeler Awarded Limited Notice to Proceed for Four Supercritical Circulating Fluidized-Bed Steam Generators in Korea

Foster Wheeler AG (Nasdaq: FWLT) announced today that a subsidiary of its Global Power Group has been given a limited notice to proceed (LNTP) by Hyundai Engineering and Construction for the design and supply of four supercritical circulating fluidized-bed (CFB) steam generators for the Samcheok Green Power project for Korea Southern Power Co., Ltd. (KOSPO), the owner and developer of the project.

The terms of the agreement were not disclosed, and the value of the LNTP will be included in the company’s second-quarter 2011 bookings. Foster Wheeler expects to finalize the contract and to receive full notice to proceed in June, at which time the full value of the contract would be booked. Commercial operation of the new steam generators is scheduled to begin in June 2015.

Foster Wheeler will design and supply four 550 MWe (gross megawatt electric) supercritical CFB steam generators and provide site advisory and commissioning services for the project. The CFB steam generators will be designed to burn coal mixed with biomass while meeting all environmental regulatory requirements.

"This project, the first Foster Wheeler supercritical CFB steam generators to be supplied into the Korean power market, represents a new era of green power generation for the future in Korea,” said Gary Nedelka, Chief Executive Officer of Foster Wheeler Global Power Group. "Our supercritical CFB technology combines the benefits of CFB combustion -- burning a wide range of solid fuels including biomass -- with the high efficiency of supercritical steam. The end result for the client is an extremely efficient, low-emission plant that operates with reduced levels of fuel consumption compared to conventional subcritical steam generators. We welcome this opportunity to provide KOSPO our quality product at a competitive price.”

Foster Wheeler AG is a global engineering and construction contractor and power equipment supplier delivering technically advanced, reliable facilities and equipment. The company employs approximately 12,000 talented professionals with specialized expertise dedicated to serving its clients through one of its two primary business groups. The company’s Global Engineering and Construction Group designs and constructs leading-edge processing facilities for the upstream oil and gas, LNG and gas-to-liquids, refining, chemicals and petrochemicals, power, mining and metals, environmental, pharmaceuticals, biotechnology and healthcare industries. The company’s Global Power Group is a world leader in combustion and steam generation technology that designs, manufactures and erects steam generating and auxiliary equipment for power stations and industrial facilities and also provides a wide range of aftermarket services. The company is based in Zug, Switzerland, and its operational headquarters office is in Geneva, Switzerland. For more information about Foster Wheeler, please visit our Web site at www.fwc.com.

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