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                                                                   EXHIBIT 99.1


        SHAW SELLS $377 MILLION ZERO COUPON LIQUID YIELD OPTION(TM) NOTES



Baton Rouge, Louisiana, April 26, 2001 - The Shaw Group Inc. (NYSE: SGR) ("Shaw"
or "the Company") announced today that it has entered into an agreement to issue
and sell on an overnight marketed basis $377 million of 20-year zero coupon
Liquid Yield Option(TM) Notes ("LYONs") in gross proceeds to Shaw. At closing,
the LYONs will be issued on an original issue discount basis of $639.23 per LYON
providing the holders with a yield to maturity of 2.25% per annum. The LYONs
will be convertible into Shaw common stock at a rate of 8.2988 shares for each
$1,000 face amount of LYONs or effectively at initial conversion price of $77.03
per share (or a 23.5% premium to Wednesday's closing price on the New York Stock
Exchange of $62.37). Under the terms of the LYONs, the conversion rate will not
be adjusted for the accrued original issued discount, but the conversion price
will, in effect, increase with the accretion of the discount on the LYONs.


Shaw may redeem the LYONs any time after five years and LYONs holders will have
the right to require Shaw to repurchase the LYONs on the third, fifth, tenth and
fifteenth anniversaries at the issue price plus the accrued original issue
discount. The placement is expected to result in net proceeds of approximately
$366 million to Shaw.


J.M. Bernhard, Jr., Shaw's Chairman, President and Chief Executive Officer,
commented on the issuance of the LYONs. "In selecting LYONs, we decided to
capitalize on the strong demand in the convertibles market as an opportunistic
borrowing and leverage our strong financial position with relatively inexpensive
capital at attractive terms while maintaining conservative financial ratios and



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a negative cost of carry. We believe it is advantageous to raise capital when
market conditions are favorable in anticipation of future opportunities, even
though we have no pressing need for the funds."

The LYONs and the shares of common stock into which they would be convertible
have not yet been registered under the Securities Act of 1933 and may not be
offered or sold in the United States absent registration or an applicable
exemption from registration requirements. Merrill Lynch & Co. acted as sole
manager for the LYONs.


The Shaw Group Inc. is the world's only vertically-integrated provider of
complete piping systems and comprehensive engineering, procurement and
construction services to the power generation industry. Shaw is the largest
supplier of fabricated piping systems in the United States and a leading
supplier worldwide, having installed piping systems in power plants with an
aggregate generation capacity in excess of 200,000 megawatts. While the majority
of Shaw's backlog is attributable to the power generation industry, the Company
also does work in the process industries, including petrochemical, chemical and
refining, and the environmental and infrastructure sector. The Company currently
has offices and operations in North America, South America, Europe, the Middle
East and Asia-Pacific; and has more than 13,000 employees.


The Private Securities Litigation Reform Act of 1995 provides a "safe harbor"
for certain forward-looking statements. The statements contained in this press
release that are not historical facts (including without limitation statements
to the effect that The Shaw Group Inc. (the "Company" or "Shaw") or its
management "believes," "expects," "anticipates," "plans," or other similar
expressions) 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 the control of the Company) and assumptions and are subject to
change based upon various factors, including but not limited to the following
risks and uncertainties: changes in the demand for and market acceptance of the
Company's products and services; changes in general economic conditions, and,
specifically, changes in the rate of economic growth in the United States and
other major international economies; the presence of competitors with greater
financial resources and the impact of competitive products, services and
pricing; the cyclical nature of the individual markets in which the Company's
customers operate; changes in investment by the energy, power and environmental
industries; the availability of qualified engineers and other




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professional staff needed to execute contracts; the uncertain timing of awards
and contracts; cost overruns on fixed, maximum or unit priced contracts; changes
in trade, monetary and fiscal policies worldwide; currency fluctuations; the
effect of the Company's policies, including but not limited to the amount and
rate of growth of Company expenses; the continued availability to the Company of
adequate funding sources; delays or difficulties in the production, delivery or
installation of products and the provision of services; the ability of the
Company to successfully integrate the operations of Stone & Webster,
Incorporated; the protection and validity of patents and other intellectual
property; and various legal, regulatory and litigation risks. Should one or more
of these risks or uncertainties materialize, or should any of the Company's
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. For a more detailed
discussion of some of the foregoing risks and uncertainties, see the Company's
filings with the Securities and Exchange Commission.