SGR Shaw Grp.

The Shaw Group Inc. (NYSE: SGR) announced today that the Nuclear Division of its Power Group and Westinghouse Electric Company, its AP1000 consortium partner, have been awarded an engineering, procurement and construction (EPC) contract by Progress Energy Florida Inc., a subsidiary of Progress Energy (NYSE: PGN) for two Westinghouse AP1000� nuclear units the utility plans to build at an undeveloped site in Levy County, Fla. The AP1000 units each have an electric generating capacity of 1,100 megawatts. �The decision by Progress Energy to proceed with an EPC contract is further proof that electric utilities support a nuclear renaissance that will provide ratepayers with safe, reliable and carbon-free generation of baseload electricity,� said J.M. Bernhard Jr., Shaw's chairman, president and chief executive officer. �This project is particularly important because it will enable Progress Energy to fulfill its commitment to retire older fossil-fired units in Florida and replace that generating capacity with environmentally friendly electricity produced by the world�s most advanced nuclear technology that will be supplied by two companies that have been leaders in the commercial nuclear power industry since its inception in the 1950s,� Mr. Bernhard said. The value of Shaw�s contract is undisclosed. In July, Progress Energy cleared its first regulatory hurdle when the Florida Public Service Commission unanimously approved Progress Energy�s �Determination of Need� petition. A decision on Progress Energy�s second regulatory filing, a Site Certification Application submitted to the Florida Department of Environmental Protection in June, is expected in 2009. Finally, a decision by the U.S. Nuclear Regulatory Commission on the utility�s combined Construction and Operating License application is expected by early 2012. The first AP1000 unit at Levy County is expected to be operational in 2016, pending the client obtaining the appropriate regulatory approvals. The second unit would begin commercial operation a year later. Portions of the AP1000 units will be assembled at a 600,000-square-foot module assembly fabrication that Shaw previously announced it will build in Lake Charles, La. The facility, which is being constructed on a 300-acre site at the Port of Lake Charles, will primarily produce structural, piping and equipment modules for AP1000 nuclear power plants. Shaw and Westinghouse currently are providing engineering, design, procurement and project management services for the nuclear island for four AP1000 units in China, and at least 14 new AP1000 units � including Levy County � are being planned by U.S. electric utilities, according to the Nuclear Regulatory Commission. Six of these units are now under contract. Shaw and Westinghouse have a long history in the nuclear industry that dates back to the design and construction of America�s first commercial nuclear power plant at Shippingport, Penn. The Shaw Group Inc. is a leading global provider of technology, engineering, procurement, construction, maintenance, fabrication, manufacturing, consulting, remediation and facilities management services for government and private sector clients in the energy, chemicals, environmental, infrastructure and emergency response markets. A Fortune 500 company with fiscal year 2008 annual revenues of $7 billion, Shaw is headquartered in Baton Rouge, La., and employs approximately 26,000 people at its offices and operations in North America, South America, Europe, the Middle East and the Asia-Pacific region. Shaw is the power sector industry leader according to Engineering News-Record's list of Top 500 Design Firms. For further information, please visit Shaw's Web site 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 Web site 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 Web site at www.shawgrp.com.