FOSTER WHEELER ANNOUNCES REGULATION FD DISCLOSURE

         HAMILTON, BERMUDA, July 31, 2002--Foster Wheeler Ltd. (NYSE:FWC)
announced that in response to a question raised during the company's earnings
conference call today, it was disclosed that under the terms of its proposed new
senior secured credit facility, which the company expects to consummate in
August 2002, the company will be required to continue to defer the dividend on
its FW Preferred Capital Trust I - 9% Preferred Securities.


                                      # # #


Notes to Editor:

1.   Foster Wheeler Ltd. is a global company offering, through its subsidiaries,
     a broad range of design, engineering, construction, manufacturing, project
     development and management, research, plant operation and environmental
     services. The corporation is based in Hamilton, Bermuda, and its
     operational headquarters are in Clinton, N.J. For more information about
     Foster Wheeler, visit our World Wide Web site at www.fwc.com.
                                                      -----------

2.   Safe Harbor Statement

     This news release contains forward-looking statements that are based on
     management's assumptions, expectations and projections about the various
     industries within which the Corporation operates. Such forward-looking
     statements by their nature involve a degree of risk and uncertainty. The
     corporation cautions that a variety of factors, including but not limited
     to the following, could cause business conditions and results to differ
     materially from what is contained in forward-looking statements: changes in
     the rate of economic growth in the United States and other major
     international economies, changes in investment by the energy, power and
     environmental industries, changes in regulatory environment, changes in
     project schedules, changes in trade, monetary and fiscal policies
     worldwide, currency fluctuations, outcomes of pending and future
     litigation, protection and validity of patents and other intellectual
     property rights, and increasing competition by foreign and domestic
     companies.

                                      # # #


MEDIA CONTACT:  Sherry Peske 908-730-4444
SHAREHOLDER CONTACT:  John Doyle 908-730-4270
OTHER INQUIRIES:  908-730-4000