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Shaw Selected By Petrobras to Provide Proprietary Technology, Engineering and Technical Services for Major Ethylene Plant in Brazil

October 27, 2008

The Shaw Group Inc. (NYSE: SGR) announced today that its Energy & Chemicals Group has been awarded contracts by Petroleo Brasileiro S.A. (Petrobras) to provide its proprietary ethylene technology, including its Ultra Selective Conversion (USC(R)) furnace equipment, basic engineering and technical services for a 1,000 KTA ethylene plant in Brazil. Shaw also will provide similar services for the recovery section of a petrochemical fluidized catalytic cracking (FCC) unit, in which the converter section uses Petrobras’ FCC Plus technology.

The ethylene plant and petrochemical FCC unit are part of the development of the Rio de Janeiro Petrochemical Complex (COMPERJ), which is expected to increase Brazil’s heavy oil refining capacity and help meet the increasing global demand for petrochemicals. The value of Shaw’s contracts, which was included in the company’s previously announced backlog of unfilled orders, was not disclosed.

“We will draw upon our 67 years of global olefins experience and know-how to expand our presence in Brazil as we support Petrobras in its development of COMPERJ – the largest industrial undertaking in the history of Petrobras and Brazil,” said Lou Pucher, president of Shaw’s Energy & Chemicals Group.

The ethylene plant award follows Shaw’s work with Cenpes, the Research and Development Center of Petrobras, to develop the preliminary design for the petrochemical FCC unit that will produce 470 KTA propylene and 280 KTA ethylene.

The ethylene plant and petrochemical FCC unit will utilize Shaw’s patented liquids cracking olefins recovery and contaminant removal technologies to produce, recover and purify primarily polymer grade ethylene, propylene and butadiene that will be consumed in the downstream derivative units of the COMPERJ complex.

An established leader in ethylene technology, Shaw has provided technology, design, engineering and/or construction for more than 120 plants with a worldwide reputation for exceptionally high operational reliability, rapid start-up and superior performance. Since 1990, Shaw technology has been selected for 35 percent of the world’s ethylene capacity increases. Currently, Shaw is providing technology and EPC services for several other major olefins projects worldwide.

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 annual 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. 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.




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