B&W Acquires Delta Power Services, LLC; Purchase Enhances Operation and Maintenance Offerings for Power Sector

LYNCHBURG, Va.--(BUSINESS WIRE)--The Babcock & Wilcox Company (B&W) has signed an agreement to purchase Delta Power Services, LLC (DPS) from Olympus Services, LLC, a company wholly owned by Olympus Holdings, LLC. The transaction is expected to close on August 1, 2008. Financial terms of the sale are not being disclosed.

Headquartered in Houston, Texas, DPS is the fourth-largest operation and maintenance (O&M) services provider for the U.S. power generation industry. It employs approximately 200 employees at nine gas, biomass or coal-fired power plants in Virginia, California, Texas, Florida, Michigan and Massachusetts.

“Our company has been actively engaged in the O&M business for more than 20 years and currently operates a waste-to-energy plant in West Palm Beach, Fla., and a cogeneration plant in Ebensburg, Pa.,” said John A. Fees, B&W Chief Executive Officer. “This strategic acquisition makes us a much stronger player in this growing business area and complements our current role in the fossil fuel and biomass markets. It also helps us to further diversify into the natural gas-fired power generation market.”

DPS will operate as a subsidiary of Babcock & Wilcox Power Generation Group, Inc. but will continue to use its name and associated brand. Its management team will remain in Houston.

The Babcock & Wilcox Company (B&W), a major operating group of McDermott International, Inc. (NYSE: MDR), is a leader in advanced energy technology innovation and service, primarily in nuclear and fossil power. Providing quality products and technical services to commercial and government customers, B&W is focused on issues such as energy efficiency, clean air, global market competitiveness, and safe and secure resolution for nuclear waste. B&W has locations worldwide and employs more than 20,000 people. The company is located on the Internet at www.babcock.com.

Babcock & Wilcox Power Generation Group, Inc. (B&W PGG) is a major operating unit of The Babcock & Wilcox Company. B&W PGG is a world leader in the power generation industry and designs, manufactures, services and constructs steam generating and environmental equipment for utilities and industries worldwide. It is located on the Internet at www.babcock.com.

Olympus Holdings, LLC, headquartered in Morristown, N.J., is an independent firm engaged through its various subsidiaries and affiliates in energy, commercial finance and entertainment. Wholly owned Olympus Power, together with its predecessor companies, has owned, operated or managed power projects with gross capacity in excess of 2,800 MW and has invested, with its partners, in excess of $1.5 billion of equity and debt in energy projects.