EXHIBIT 99.1
[THE SHAW GROUP LOGO APPEARS HERE]
FOR IMMEDIATE RELEASE
CONTACT: Laurie LaChiusa
Vice President
Investor Relations
& Corporate Communications
225.932.2500
THE SHAW GROUP AGREES TO PURCHASE ENERGY DELIVERY SERVICES, INC.
FROM DUKE ENERGY
ACQUISITION TO EXPAND SHAW'S ELECTRIC TRANSMISSION AND DISTRIBUTION CAPABILITIES
Baton Rouge, Louisiana, November 21, 2003 - The Shaw Group Inc. (NYSE: SGR)
("Shaw" or "the Company") announced today that it has entered into an agreement
to purchase Energy Delivery Services, Inc. ("EDS"), a business unit of Duke
Energy headquartered in Charlotte, North Carolina, for $22.5 million. EDS, a
provider of design, engineering, procurement, construction and maintenance
services for electrical transmission and distribution systems primarily in North
America, will become a wholly-owned subsidiary of The Shaw Group Inc. and will
be closely affiliated with Shaw subsidiary, Shaw Power Technologies, Inc. (Shaw
PTI).
"Adding 100 years of energy delivery experience gives us the opportunity to
provide a full line of services to electric generating, and transmission and
distribution companies focused on maximizing the efficiency of their systems,"
said J.M. Bernhard, Jr., Chairman and CEO of The Shaw Group Inc. "As our
organization expands its structure to provide integrated services in all
segments of our business, we're thrilled to augment our portfolio with a company
like EDS. This move also strengthens our relationship with Duke Energy, one of
the foremost energy companies in the world."
EDS provides competitive, high quality services for Duke Power Company and
other utility clients to design, install, upgrade and maintain power
transmission and distribution systems. For Duke Power, EDS assists in
maintaining, a 12,700-mile transmission system, 66,200 miles of primary
distribution lines and 2,000 substations throughout a 22,000-square-mile service
area. Shaw intends to maintain EDS' headquarters in Charlotte, North Carolina.
William F. Quinn, President of Shaw PTI commented, "This deal allows Shaw
to enhance its position in the electric transmission and distribution business
beyond our current offerings of power systems consulting, software, education
and advanced technology solutions. Now, we'll combine our strengths to develop a
full-service, multi-faceted energy delivery services business."
For over 30 years, Shaw PTI has specialized in power systems analysis
including world-class diagnostic capabilities and is recognized as a global
leader in electrical engineering consulting services, software products,
educational programs and technology. Shaw PTI software can also identify
transmission constraints and ways to isolate faulted networks that maintain
systems stability. Shaw PTI diagnostic technologies and network
operations-related software are installed in the majority of electric utilities
worldwide.
"Merging our diagnostic and monitoring technologies with EDS' transmission
grid engineering, construction and maintenance services is a natural progression
and a winning combination," said Quinn. "By integrating the capabilities of Shaw
PTI and EDS, we will be uniquely equipped to not only identify areas that are
capacity-constrained but subsequently design and implement feasible solutions
for our clients."
"We're committed to EDS' existing customers, including Duke Power and we
look forward to seizing fresh opportunities in the growing energy delivery
marketplace," concluded Quinn.
Duke Energy is a diversified multinational energy company with an
integrated network of energy assets and expertise. The company manages a dynamic
portfolio of natural gas and electric supply, delivery and trading businesses -
meeting the energy needs of customers throughout North America and in key
markets around the world. Duke Energy, headquartered in Charlotte, N.C., is a
Fortune 500 company traded on the New York Stock Exchange under the symbol DUK.
More information about the company is available on the Internet at:
www.duke-energy.com.
The Shaw Group Inc. is a leading provider of consulting, engineering,
construction, remediation and facilities management services to government and
private sector clients in the environmental, infrastructure and homeland
security markets. Shaw is also a vertically integrated provider of comprehensive
engineering, consulting, procurement, pipe fabrication, construction and
maintenance services to the power and process industries worldwide. The Company
is headquartered in Baton Rouge, Louisiana and employs approximately 14,800
people at its offices and operations in North America, South America, Europe,
the Middle East and the Asia-Pacific region. Additional information on The Shaw
Group is available at www.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 its Form 10-K and Form 10-Q reports, and on the Company's website
under the heading "Forward Looking Statement". 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 website
at www.shawgrp.com.
###