Shaw Awarded Contracts by Southern Company to Provide Construction Services and Boiler Maintenance at Southern's Alabama Power Company Gorgas Steam Plant

Business Wire, Oct 30, 2006

BATON ROUGE, La. -- The Shaw Group Inc. (NYSE: SGR) today announced that its Shaw Stone & Webster business unit has been awarded two individual contracts by Southern Company to provide certain construction services and boiler maintenance services at Southern's Alabama Power Company Gorgas Steam Plant in Parrish, Alabama. Shaw will provide construction labor services to install flue gas desulphurization (FGD) equipment, or "scrubbers," on three power generating units. Shaw will also perform boiler maintenance services to support the associated outages with supervision and craft labor. The projects, which are scheduled to be completed in the fourth quarter of 2008, have a total estimated value of approximately $100 million.

J.M. Bernhard, Jr., Chairman and Chief Executive Officer of Shaw, said, "We are very pleased to have been selected by Southern Company to provide construction and maintenance services at the Gorgas Steam Plant. Southern Company has established itself as a leader in providing efficient electrical power in an environmentally responsible way and we are honored to work with them on this important air emissions project."

About Southern Company

With 4.3 million customers and more than 41,000 megawatts of generating capacity, Atlanta-based Southern Company (NYSE: SO) is the premier energy company serving the Southeast, one of America's fastest-growing regions. A leading U.S. producer of electricity, Southern Company owns electric utilities in four states and a growing competitive generation company, as well as fiber optics and wireless communications. Southern Company brands are known for excellent customer service, high reliability and retail electric prices that are significantly below the national average. Southern Company has received the highest ranking in customer satisfaction among U.S. electric service providers for seven consecutive years by the American Customer Satisfaction Index (ACSI). Visit our Web site at www.southerncompany.com.

About The Shaw Group

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, chemical, environmental, infrastructure and emergency response markets. Headquartered in Baton Rouge, Louisiana, with over $4 billion in annual revenues, Shaw employs approximately 22,000 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 website at www.shawgrp.com.

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