FOSTER WHEELER TO CLOSE
                        DANSVILLE MANUFACTURING FACILITY

         HAMILTON, BERMUDA, December 4, 2002--Foster Wheeler Ltd. (NYSE:FWC)
announced today that its subsidiary Foster Wheeler Energy Corporation would
close the Dansville, New York, manufacturing facility. The closure is necessary
because of continued financial losses at the plant, the inability to reduce
future operating cost, and the decline in business conditions in the energy
sector.
         The Company will begin curtailing operations immediately with an
anticipated closure date of February 2003.
         As previously reported, this closure will result in a charge of
approximately $6 million. In accordance with the provisions of SFAS 146,
"Accounting for Costs Associated with Exit or Disposal Activities,"
approximately $4.7 million of this amount will be recorded during the fourth
quarter 2002, and the remainder will be recorded during the first half of 2003.
         The company is notifying the workforce, union and government agencies
in accordance with "The Worker Adjustment and Retraining Notification Act". In
addition, management will work with the New York State Department of Labor and
related agencies to provide employees with outplacement services.

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Notes to Editors:

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 domiciled in Bermuda, and its operational
     headquarters are in Clinton, N.J. For more information about Foster
     Wheeler, visit our 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

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     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, increasing competition by foreign and domestic companies,
     changes in financial markets, and the outcome of cash-generation
     initiatives.


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     12-04-02
     Media Contact:              Sherry Peske                 908-730-4444
     Investor Relations:         John A. Doyle, Jr.           908-730-4270
     Other Inquiries:                                         908-730-4000