Shaw Announces Hiring of Dr. James Schlesinger as a Consultant

Business Wire, July 26, 2002

Business Editors & Energy Writers

BATON ROUGE, La.--(BUSINESS WIRE)--July 26, 2002

The Shaw Group Inc. (NYSE:SGR) ("Shaw" or "the Company") is pleased to announce that Dr. James R. Schlesinger has been retained as a senior advisor to Shaw Environmental & Infrastructure, Inc. (Shaw E & I). In this role, Dr. Schlesinger will provide expert advice and counsel to Shaw E & I on matters relating to government business development and strategic acquisitions and partnerships.

"I am extremely pleased that such a highly qualified and respected advisor has joined our Shaw team," stated T.A. Barfield, Jr., President of Shaw E & I. "Dr. Schlesinger has over 40 years of distinguished service to this country and will be a valuable asset to Shaw and its effort to move forward as a top competitor in the industry."

Dr. Schlesinger has a long and distinguished record of public service. He has served as Secretary of Energy, Secretary of Defense, Director of Central Intelligence, Chairman of the Atomic Energy Commission, and Assistant Director of the Office of Management and Budget (OMB). While at OMB, Dr. Schlesinger was instrumental in the creation of the Environmental Protection Agency. He was recently appointed by President Bush to serve as a member of the President's Homeland Security Advisory Council.

Dr. Schlesinger is currently the Chairman of the Board of Trustees of the MITRE Corporation, a Senior Advisor for Lehman Brothers, Counselor and Trustee of the Center for Strategic and International Studies and Chairman of the Executive Committee of the Nixon Center.

Dr. Schlesinger is the author of The Political Economy of National Security (1960), America at Century's End (1989), and numerous articles. He has been awarded eleven honorary doctorates. Dr. Schlesinger is the recipient of the National Security Medal as well as five departmental and agency medals. He is the winner of the Dwight D. Eisenhower Distinguished Service Medal, the George Catlett Marshall Medal, the H.H. Arnold Award, the Navy League's National Meritorious Citation, the Military Order of the World Wars Distinguished Service Award, the Jimmy Doolittle Award, the William Oliver Baker Award, and the Henry M. Jackson Award for Distinguished Public Service.

Dr. Schlesinger holds a Bachelor of Arts degree, a Master's degree, and a Ph.D. from Harvard University.

The Shaw Group Inc. is the world's only vertically-integrated provider of comprehensive engineering, procurement, pipe fabrication, construction and maintenance services to the power, process and environmental & infrastructure sectors. Shaw is headquartered in Baton Rouge, Louisiana, and currently has offices and operations in North America, South America, Europe, the Middle East and Asia-Pacific. Shaw employs more than 20,000 people annually. Additional information on The Shaw Group is available 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 Statement". 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.