The Shaw Group Inc. Expands Position in Energy Services Sector; Company Completes Acquisition of Bagwell Brothers, Inc

Business Wire, July 29, 1998

BATON ROUGE, La.--(BUSINESS WIRE)--July 29, 1998-- The Shaw Group Inc. (NYSE: SGR) ("Shaw") announced today that it has completed the acquisition of all of the outstanding shares of common stock of Bagwell Brothers, Inc. ("Bagwell"). Bagwell, which will operate as a wholly-owned subsidiary of Shaw, is a fabrication and construction company based in Delcambre, Louisiana that has served the offshore energy industry for over 15 years. Shaw's total consideration paid for the acquisition amounted to 645,000 shares of its common stock and $1.6 million in cash.

Bagwell specializes in the fabrication and construction of offshore modules, top-sides, heliports, vessels and offshore platforms, as well as the management of offshore construction and maintenance work. Bagwell had annual revenues of approximately $32 million for its most recent fiscal year.

J.M. Bernhard, Jr., Shaw's Chairman, President and Chief Executive Officer, stated, "We welcome Bagwell as an integral part of Shaw's team, representing a major advance into the offshore energy industry. This acquisition offers significant upside potential as we combine Shaw's strength and resources with Bagwell's capabilities. Similar to the notable growth experienced by Shaw's construction companies, it is our goal to rapidly expand the offshore energy business both domestically and internationally."

Coleman Bagwell, Executive Vice President of Bagwell Brothers, Inc., stated, "We are proud to become a part of The Shaw Group team, enhancing our capabilities and opportunities to handle larger projects and better service our customers on both the domestic and international levels."

The Shaw Group Inc. is a leading supplier of piping systems and provider of industrial construction and maintenance services primarily for the electric power, chemical, petrochemical and oil and gas processing industries worldwide. Shaw is committed to being a "Total Piping Resource" for the energy industry by offering comprehensive design and engineering services, piping system fabrication, manufacturing and sale of specialty pipe fittings, design and manufacture of pipe support systems and on-site installation. The Company has facilities in California, Louisiana, New Hampshire, New Jersey, Oklahoma, South Carolina, Texas, Utah, Virginia, Australia, Canada, Derby, U.K. and Venezuela, as well as a joint-venture facility in Manama, Bahrain. For its fiscal year ended August 31, 1997, the Company generated $338.4 million in revenues and $14.0 million in net income.

The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for certain forward-looking statements. The statements contained in this press release that are not historical facts 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. Actual results may differ from those projected in the forward-looking statements. These forward-looking statements involve significant risks and uncertainties (some of which are beyond the control of the Company) and are subject to change based upon various factors, including but not limited to the following risks and uncertainties: changes in the demand for and market acceptance of the Company's products, and in general economic conditions; the presence of competitors with greater financial resources and the impact of competitive products and pricing; the effect of the Company's policies, including the amount and rate of growth of Company expenses; the continued availability to the Company of adequate funding sources; delays or difficulties in the production, delivery or installation of products; and various legal, regulatory and litigation risks. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as the result of new information, future events or otherwise. For a more detailed discussion of some of the foregoing risks and uncertainties, see the Company's filings with the Securities and Exchange Commission.

    CONTACT:  The Shaw Group Inc., Baton Rouge
               Edward L. Pagano or Christine R. Noel, 504/296-1140