Johnson to Step Up as J. Ray McDermott' New President, CEO

McDermott announced that Stephen M. Johnson, the Company's current President and Chief Operating Officer, has been appointed President and Chief Executive Officer of J. Ray McDermott, S.A. ("J. Ray"), effective January 1, 2010. He succeeds Robert A. Deason, who, as previously announced, will retire at the end of the year.

Separately, McDermott announced today that it plans to separate its operating subsidiaries, The Babcock & Wilcox Company ("B&W") and J. Ray, into two independent, publicly traded companies. Following completion of the separation, McDermott intends to be renamed J. Ray McDermott, S.A., and McDermott shareholders will own 100 percent of two separate companies: B&W and J. Ray. Mr. Johnson will continue to serve as President and CEO of the newly independent J. Ray and will join the company's Board of Directors.

"Steve is the right leader for J. Ray at this transformational time," said John A. Fees, Chief Executive Officer of McDermott. "He has a deep knowledge of our industry, a strong track record of success and the leadership skills to excel as J. Ray's President and CEO. We are confident that under his guidance, J. Ray will continue to succeed as a leading engineering and construction company focused on offshore oil and gas projects."

"I am delighted to take on this new role," said Mr. Johnson. "During my time at McDermott, I have seen first hand the focus and dedication of our employees, and I look forward to continuing to work with them, the leadership team and the Board in the years to come. This is an exciting time for J. Ray and, I believe, as a standalone, public company, we will be well positioned to drive growth through the expected future upswing in the offshore oil and gas industry."

J. Ray continues to operate with the same successful management team, and welcomes the new leadership of Mr. Johnson. With sound financial strength, J. Ray's business fundamentals are unchanged: focusing on providing innovative engineering, strong procurement services, modern fabrication facilities and a flexible, capable fleet to serve customers worldwide for conventional projects, floating facilities, and subsea infrastructure. Its primary focus continues to be on successfully executing projects and making investments that continuously improve its ability to meet customer and market needs.

Mr. Fees added, "J. Ray's accomplishments under Bob Deason's leadership have been extraordinary. J. Ray achieved new records in terms of revenues, operating income and backlog, which together are indicative of the improved quality of service that J. Ray provided to its clients under Bob's tenure. On behalf of the Board, our employees and management team, we thank Bob for all his efforts and wish him a long and fulfilling retirement."

Mr. Deason stated, "It has been an honor and a privilege to lead J. Ray these past six years. J. Ray's committed employees have been the key driver of our success, and I am grateful for having had the opportunity to know and work alongside them. Having worked closely with Steve, I am confident J. Ray is in good hands under his leadership."

Mr. Johnson has served as President and Chief Operating Officer of McDermott since April 2009, with the primary responsibility for directing the day-to-day operations of the Company and its operating subsidiaries, including J. Ray. He has over 35 years of experience in the engineering and construction industry. Previously, Mr. Johnson served as Senior Executive Vice President and Member, Office of the Chairman at Washington Group International ("WGI"), prior to its sale to URS Corporation. In this role, he was an integral member of the WGI-team responsible for that company’s overall strategic direction, operations and financial results. Prior to joining WGI in 2001, Mr. Johnson spent 28 years with Fluor Corporation. Mr. Johnson earned a Bachelor of Science degree in engineering from Texas A&M University in 1973, and is a licensed Professional Engineer in the state of Texas. He also completed executive education in management and finance at Duke University.