• Shaw Also Makes Long-term Commitment to Maintain World Headquarters in Louisiana

BATON ROUGE, La.--(BUSINESS WIRE)--Aug. 26, 2008--A state-of-the-art module fabrication and assembly facility will be built in Lake Charles, La., by a newly formed joint venture created by The Shaw Group Inc. (NYSE: SGR) and Westinghouse Electric Company, L.L.C. Shaw's Fabrication & Manufacturing Group will serve as managing member of the new joint venture, named Global Modular Solutions, L.L.C.

"After an extensive search of potential sites, the Port of Lake Charles was chosen because of its deep water access, its proximity to other important modes of transportation and the availability of a skilled workforce. The state of Louisiana also offered a very competitive incentive package that will help us continue to create value for our shareholders," said J.M. Bernhard Jr., Shaw's chairman, president and chief executive officer. "Westinghouse Electric, the world-renowned pioneer in nuclear energy, is a natural fit as a strategic partner on this important project."

Shaw will construct the approximately 600,000-square-foot module fabrication facility on a 300-acre site at the Port of Lake Charles. As the premier structural steel fabricator and the largest pipe fabricator in the United States, Shaw's new module fabrication facility will primarily produce structural, piping and equipment modules for new nuclear power plants utilizing the Westinghouse AP1000(TM) technology, the world's safest and most economical commercial nuclear power technology.

Westinghouse's AP1000 design incorporates modern modular construction techniques that result in a shortened construction schedule and reduced capital costs for new nuclear power plants. Based on current estimated requirements for these modules, the facility will employ 1,400 workers or more at full capacity.

Employment opportunities with Shaw are available by visiting www.shawgrp.com/careers. Workers specifically interested in opportunities with Global Modular Solutions, L.L.C. can either visit Shaw's Web site or an employment office will be open at the Port of Lake Charles within 90 days.

The new module fabrication facility will utilize industry-leading technologies and Shaw's proprietary operations management systems, which are currently in use at other Shaw fabrication and manufacturing facilities. The new facility is scheduled to be operational in the late summer of 2009.

Louisiana Governor Bobby Jindal and Department of Economic Development Secretary Stephen Moret led an aggressive team of state and local leaders in a highly competitive contest to bring this project to Louisiana.

Concurrent with announcing the new module fabrication facility, Shaw also announced it reached an incentive package agreement with the state of Louisiana that will ensure its corporate headquarters will remain in Baton Rouge and its statewide payroll will increase over the next 15 years.

Commenting on Shaw's agreement with the state of Louisiana, Mr. Bernhard said, "It was 21 years ago when Shaw began as a small pipe fabrication company, and today it is one of the world's leading power contractors. We are prouder than ever to call Louisiana home and to build a module facility that positions our state to be on the leading edge of the nuclear renaissance. Shaw appreciates the leadership of Governor Jindal and Secretary Moret on behalf of the state of Louisiana in their support of the company's continued growth and success."

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 2008 revenues expected to exceed $7 billion, Shaw is headquartered in Baton Rouge, La., and employs approximately 27,000 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 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.

CONTACT: The Shaw Group Inc.
Media Contact:
Sean Clancy, 225-987-7129
or
Financial Contact:
Chris Sammons, 225-932-2546

SOURCE: The Shaw Group Inc.