Shaw (SHAW) 8-K Shaw Group Announces Record Earnings and Backlog for the Third Quarter Fiscal 2007

Exhibit 99.1

INVESTOR CONTACT:
Chris Sammons (225) 932-2546

MEDIA CONTACT:
Sean Clancy (225) 987-7129

SHAW GROUP ANNOUNCES RECORD EARNINGS AND BACKLOG
FOR THE THIRD QUARTER FISCAL 2007

• Diluted earnings per share rise to $0.67

• Backlog totals $13.3 billion

• Operating cash flow remains strong

     Baton Rouge, La., October 10, 2007 — The Shaw Group Inc. (NYSE: SGR) today reported record net income for the three months ended May 31, 2007, of $54.6 million, or $0.67 per diluted share. The reported results include $5.7 million of net income, or $0.07 per diluted share, related to Shaw’s investment in the Westinghouse segment. Excluding the Westinghouse segment, net income was $48.9 million, or $0.60 per diluted share.

     Earnings before interest expense, income taxes, depreciation and amortization (EBITDA) for the third quarter of 2007 with the Westinghouse segment was $92.2 million, and $74.2 million excluding the Westinghouse segment. In comparison for the three months ended May 31, 2006, which was prior to the Westinghouse investment, Shaw reported a net loss before interest expense, taxes, depreciation and amortization of $15.7 million and a net loss of $16.7 million, or $0.21 per diluted share.

     Third quarter operating cash flow totaled $131 million, bringing the nine months’ operating cash flow to $285 million. Revenues for third quarter 2007 were $1.6 billion, compared to $1.2 billion in the corresponding 2006 period.

     Shaw’s backlog of unfilled orders at May 31, 2007, was a record $13.3 billion, up from approximately $8 billion at May 31, 2006. Approximately $5.6 billion, or 42 percent, of the backlog is expected to be converted to revenues during the next 12 months. Shaw also expects its backlog to grow to approximately $14.3 billion at August 31, 2007.

     “Our business segments experienced strong revenue and profit growth compared to 2006, with the exception of the Environmental & Infrastructure Group, which executed significant amounts of disaster relief and emergency response services in 2006,” said J.M. Bernhard Jr., Shaw’s chairman, president and chief executive officer. “Our solid results were fueled by continued strength in the global markets for power generation capacity and petrochemicals processing.

     “Our record backlog positions us well for fiscal 2008 and we believe the global markets we serve will remain strong throughout the year,” said Bernhard. “Our operating segments are well positioned to benefit from this continued global economic expansion and we continue to believe there will be significant long-term growth in the developing nuclear power markets.

     “By filing our third quarter 10-Q with the SEC, we are ‘current’ with the reporting of our fiscal 2007 financial results,” Bernhard said. “Brian K. Ferraioli assumed the responsibility of chief financial officer today, and together with our entire financial reporting team, will continue improving our financial reporting processes.”

     A conference call to discuss the company’s third quarter fiscal 2007 financial results will be held today, October 10, 2007, at 9:00 a.m. Eastern Time (8:00 a.m. Central Time). During that call, the company also intends to discuss guidance for fourth quarter fiscal 2007 as well as for fiscal 2008. A slide presentation outlining the third quarter fiscal 2007 earnings will be posted on the Investor Relations page of the Shaw Web site (www.shawgrp.com) approximately one hour before the conference call. A live audio webcast of the conference call will be available on the Investor Relations page of the company’s Web site atwww.shawgrp.com. A replay of the webcast will be available via the Company’s Web site approximately one hour after the call has been completed. Interested individuals may also access a replay by dialing 800-633-8284 and using the reservation number: 2135-2483.

Calculation of EBITDA

     The Shaw Group Inc. defines EBITDA as earnings before interest expense, income taxes, depreciation and amortization. EBITDA is an important financial measure used by The Shaw Group Inc. to assess performance. Although it is calculated using components derived from our GAAP financial statements, EBITDA itself is not a GAAP measure. A table reconciling EBITDA to its most directly comparable GAAP measure is included in the summarized financial information included in this release. Calculations of EBITDA should not be viewed as a substitute for calculations under GAAP, including cash flow from operations, operating income and net income. In addition, EBITDA calculations by one company may not be comparable to EBITDA calculations made by another company.

     The Shaw Group Inc. is a leading global provider of engineering, procurement, construction, technology, 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, La., with nearly $5 billion in annual revenues, Shaw employs approximately 23,000 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 Web site atwww.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 itsForm 10-K andForm 10-Q reports, and on the Company’s Web site under the heading “Forward-Looking Statements.” 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 atwww.shawgrp.com.

# # #

THE SHAW GROUP INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per share amounts)

	Three Months Ended May 31,						Nine Months Ended May 31,
	2007			2006			2007			2006
Revenues	$	1,601,436		$	1,226,784		$	4,080,347		$	3,601,077
Cost of revenues		1,465,940			1,192,869			3,827,521			3,361,165
Gross profit		135,496			33,915			252,826			239,912
General and administrative expenses		68,455			52,248			204,073			162,052
Operating income (loss)		67,041			(18,333	)		48,753			77,860
Interest expense		(3,079	)		(4,897	)		(10,859	)		(13,261	)
Interest expense on Japanese Yen-denominated bonds including accretion and amortization		(8,543	)		—			(21,992	)		—
Interest income		3,006			794			7,896			4,273
Foreign currency translation gains on Japanese Yen-denominated bonds, net		15,457			—			18,448			—
Other foreign currency translation gains (losses), net		(301	)		(1,735	)		(5,007	)		(918	)
Other income (expense), net		384			589			(1,019	)		(291	)
		6,924			(5,249	)		(12,533	)		(10,197	)
Income (loss) before income taxes, minority interest, earnings (losses) from unconsolidated entities and loss from and impairment of discontinued operations		73,965			(23,582	)		36,220			67,663
Provision (benefit) for income taxes		15,707			(12,238	)		18,013			19,151
Income (loss) before minority interest, earnings (losses) from unconsolidated entities and loss from and impairment of discontinued operations		58,258			(11,344	)		18,207			48,512
Minority interest		(4,357	)		(4,207	)		(12,868	)		(10,154	)
Income from 20% Investment in Westinghouse, net of income taxes		1,625			—			1,457			—
Earnings (losses) from unconsolidated entities, net of income taxes		(787	)		(463	)		(25,596	)		674
Income (loss) from continuing operations		54,739			(16,014	)		(18,800	)		39,032
Loss from and impairment of discontinued operations, net of income taxes		(121	)		(659	)		(3,156	)		(1,154	)
Net income (loss)	$	54,618		$	(16,673	)	$	(21,956	)	$	37,878
Net income (loss) per common share:
Basic:
Income (loss) from continuing operations	$	0.68		$	(0.20	)	$	(0.24	)	$	0.49
Loss from and impairment of discontinued operations, net of income taxes		(0.00	)		(0.01	)		(0.04	)		(0.01	)
Net income (loss)	$	0.68		$	(0.21	)	$	(0.28	)	$	0.48
Diluted:
Income (loss) from continuing operations	$	0.67		$	(0.20	)	$	(0.24	)	$	0.48
Loss from and impairment of discontinued operations, net of income taxes		(0.00	)		(0.01	)		(0.04	)		(0.01	)
Net income (loss)	$	0.67		$	(0.21	)	$	(0.28	)	$	0.47

THE SHAW GROUP INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except per share amounts)

	May 31, 2007
	(Unaudited)	August 31, 2006
ASSETS

        Current assets:        Cash and cash equivalents $179,963  $154,837 Restricted and escrowed cash  38,178   43,409 Accounts receivable, including retainage, net  707,485   740,920 Inventories  153,187   101,337 Costs and estimated earnings in excess of billings on uncompleted contracts, including claims  403,048   455,819 Deferred income taxes  95,476   83,085 Prepaid expenses and other current assets  47,867   99,253        Total current assets  1,625,204   1,678,660 Investments in and advances to unconsolidated entities, joint ventures and limited partnerships  40,182   52,048 Investment in Westinghouse  1,093,478   — Property and equipment, less accumulated depreciation of $190,541 at May 31, 2007 and $166,220 at August 31, 2006  198,188   175,431 Goodwill  512,360   506,592 Other assets  141,114   116,403          $3,610,526  $2,529,134        LIABILITIES AND SHAREHOLDERS’ EQUITY

        Current liabilities:        Accounts payable $491,312  $483,002 Accrued liabilities  315,389   211,162 Advanced billings and billings in excess of costs and estimated earnings on uncompleted contracts  415,577   316,674 Contract liability adjustments  840   3,361 Deferred revenue  5,104   14,772 Current maturities of long-term debt  8,790   2,456 Short-term revolving lines of credit  2,838   5,526 Short term debt  3,106   1,895 Current portion of obligations under capital leases  2,194   1,811        Total current liabilities  1,245,150   1,040,659 Revolving line of credit  —   145,517 Long-term debt, less current maturities  8,566   24,584 Japanese Yen-denominated long-term bonds secured by Investment in Westinghouse, net  1,033,914   — Obligations under capital leases, less current portion  2,226   3,433 Deferred income taxes  15,333   18,664 Interest rate swap contract on Japanese Yen-denominated bonds  1,335   — Other liabilities  41,752   39,662 Minority interest  19,766   13,408 Shareholders’ equity        Preferred Stock, no par value, 20,000,000 shares authorized; no shares issued and outstanding  —   — Common Stock, no par value, 86,676,410 and 85,866,727 shares issued, respectively; and 81,171,629 and 80,475,928 shares outstanding, respectively  1,097,875   1,074,106 Retained earnings  274,006   295,962 Accumulated other comprehensive loss  (24,831)  (25,363)Treasury stock, 5,504,781 shares and 5,390,799 shares, respectively  (104,566)  (101,498)       Total shareholders’ equity  1,242,484   1,243,207          $3,610,526  $2,529,134        

REVENUES BY GEOGRAPHY
(In millions)

Three Months Ended May 31,	2007		%			2006		%
United States	$	1,266.5		79		$	1,062.0		87
Asia/Pacific Rim		62.0		4			45.5		4
Middle East		214.0		14			95.7		8
Canada		4.6		—			3.8		—
Europe		47.1		3			11.2		1
South America and Mexico		5.1		—			6.4		—
Other		2.1		—			2.2		—
Total revenues	$	1,601.4		100	%	$	1,226.8		100	%

Nine Months Ended May 31,	2007		%			2006		%
United States	$	3,252.8		80		$	3,237.1		90
Asia/Pacific Rim		161.9		4			123.1		4
Middle East		514.0		13			167.4		5
Canada		11.3		—			10.5		—
Europe		116.7		3			41.9		1
South America and Mexico		14.8		—			13.0		—
Other		8.8		—			8.1		—
Total revenues	$	4,080.3		100	%	$	3,601.1		100	%

BACKLOG BY SEGMENT
(In millions)

	May 31,					August 31,
	2007		%			2006		%
Fossil and Nuclear	$	5,549.1		42		$	3,238.4		35
E&I		2,740.9		21			2,765.1		30
E&C		2,457.1		18			1,412.3		16
Maintenance		1,880.1		14			1,250.9		14
F&M		701.4		5			408.9		5
Total backlog	$	13,328.6		100	%	$	9,075.6		100	%

REVENUES AND GROSS PROFIT BY SEGMENT
(In thousands, except percentages)

	Three Months Ended						Nine Months Ended
	May 31,						May 31,
	2007			2006			2007			2006
Revenues
Fossil and Nuclear	$	441,424		$	180,213		$	1,046,184		$	589,816
E&I		381,146			513,419			1,079,831			1,700,478
E&C		293,267			163,615			753,589			387,638
Maintenance		363,197			296,448			867,596			702,186
F&M		122,402			73,089			333,147			220,959
Total revenues	$	1,601,436		$	1,226,784		$	4,080,347		$	3,601,077
Gross profit
Fossil and Nuclear	$	33,838		$	(54,569	)	$	36,581		$	(20,308	)
E&I		29,038			45,577			66,647			168,807
E&C		25,160			14,682			55,713			15,677
Maintenance		16,917			10,625			13,417			30,780
F&M		30,543			17,600			80,468			44,956
Total gross profit	$	135,496		$	33,915		$	252,826		$	239,912
Gross profit percentage
Fossil aned Nuclear		7.7	%		(30.3	%)		3.5	%		(3.4	%)
E&I		7.6	%		8.9	%		6.2	%		9.9	%
E&C		8.6	%		9.0	%		7.4	%		4.0	%
Maintenance		4.7	%		3.6	%		1.5	%		4.4	%
F&M		25.0	%		24.1	%		24.2	%		20.3	%
Total gross profit percentage		8.5	%		2.8	%		6.2	%		6.7	%

The Company believes it is important that we discuss our operating results excluding the Investment in Westinghouse segment. We acquired a 20% interest in Westinghouse in October 2006. We have classified the Investment in Westinghouse as a separate operating segment. The majority of the activity related to this segment will be recorded below the operating income line. During the quarter, we have recorded interest expense as well as other significant non-cash charges related to the investment. We believe that presenting our financial results excluding the Investment in Westinghouse segment is important to investors and management to order to demonstrate the profitability of our other segments as well as to point out certain non-cash charges related to this investment.

The Shaw Group Inc.
Reconciliation of Shaw Consolidated Results to Shaw Excluding Investment in
Westinghouse Segment for the three months ended May 31, 2007
(in millions, except per share data)

	Q3 FY 2007
	Quarter ended May 31, 2007
							Actuals
				Westinghouse			Excluding
	As Reported			Segment			Westinghouse
Revenues	$	1,601.4		$	0.0		$	1,601.4
Cost of revenues		1,465.9			0.0			1,465.9
Gross profit		135.5			0.0			135.5
General and administrative expenses		68.5			0.1			68.4
Operating income (loss)		67.0			(0.1	)		67.1
Interest expense		(3.1	)		0.0			(3.1	)
Interest expense on JPY-denominated bonds including accretion and amortization		(8.5	)		(8.5	)		0.0
Interest income		3.0			0.0			3.0
Foreign currency translation gains (losses) on JPY-denominated bonds, net		15.4			15.4			0.0
Other foreign currency transaction gains (losses), net		(0.3	)		0.0			(0.3	)
Other income (expense), net		0.4			0.0			0.4
		6.9			6.9			0.0
Income (loss) before income taxes, minority interest, earnings (losses) from unconsolidated entities and loss from and impairment of discontinued operations		73.9			6.8			67.1
Provision (benefit) for income taxes		15.7			2.7			13.0
Income (loss) before minority interest, earnings (losses) from unconsolidated entities and loss from and impairment of discontinued operations		58.2			4.1			54.1
Minority interest		(4.3	)		0.0			(4.3	)
Income from 20% Investment in Westinghouse, net of income taxes		1.6			1.6			0.0
Earnings (losses) from unconsolidated entities, net of income taxes		(0.8	)		0.0			(0.8	)
Income (loss) from continuing operations		54.7			5.7			49.0
Loss from and impairment of discontinued operations, net of income taxes		(0.1	)		0.0			(0.1	)
Net income (loss)	$	54.6		$	5.7		$	48.9
Net income (loss) per common share:
Basic income (loss) per common share	$	0.68		$	0.07		$	0.61
Diluted income (loss) per common share	$	0.67		$	0.07		$	0.60
Weighted average shares outstanding:
Basic:		80.1			80.1			80.1
Diluted:		81.9			81.9			81.9

The Shaw Group Inc. defines EBITDA as earnings before interest expense, income taxes, depreciation and amortization. EBITDA is an important financial measure used by The Shaw Group Inc. to assess performance. Although it is calculated using components derived from our GAAP financial statements, EBITDA itself is not a GAAP measure. The following table reflects the Company’s calculation of EBITDA and EBITDA percentage. Calculations of EBITDA should not be viewed as a substitute for calculations under GAAP, including cash flow from operations, operating income and net income. In addition, EBITDA calculations by one company may not be comparable to EBITDA calculations made by another company.

	Q3 FY 2007								Q3 FY 2006
				Westinghouse		Actuals Excluding
(in millions)	As Reported			Segment		Westinghouse			Actuals
Net Income (Loss)	$	54.6		$	5.7	$	48.9		$	(16.7	)
Interest Expense		11.6			8.5		3.1			4.9
Depreciation and Amortization		10.1			—		10.1			8.3
Provision for Income Taxes		15.7			2.7		13.0			(12.2	)
Income Taxes on Unconsolidated Subs		0.3			1.1		(0.8	)		0.2
Income Taxes on Discontinued Ops		(0.1	)		—		(0.1	)		(0.2	)
EBITDA	$	92.2		$	18.0	$	74.2		$	(15.7	)
Revenue		1,601.4			N/A		1,601.4			1,227.0
EBITDA %		5.8	%		N/A		4.6	%		-1.3	%