EXHIBIT 99.1

         THE SHAW GROUP INC. SIGNS ASSET PURCHASE AGREEMENT TO PURCHASE
             SUBSTANTIALLY ALL OF THE ASSETS OF THE IT GROUP, INC.

Baton Rouge, Louisiana, January 25, 2002 - The Shaw Group Inc. (NYSE: SGR)
("Shaw" or "the Company") announced today that it has signed a definitive Asset
Purchase Agreement with The IT Group, Inc. Shaw and The IT Group had previously
announced on January 16, 2002 that they had signed a letter of intent. Under
terms of the definitive agreement, Shaw will purchase substantially all of the
assets and businesses of The IT Group for approximately $105 million and the
assumption of certain liabilities. Up to 50% of the purchase price is payable in
Shaw stock at either party's option. Shaw's agreement to purchase The IT Group
is subject to bankruptcy court approval, and also approvals under the
Hart-Scott-Rodino Act.

In addition, the U.S. Bankruptcy court has approved Shaw's plan to provide a
secured revolving debtor-in-possession ("DIP") credit facility of up to $55
million. The credit facility will provide The IT Group with liquidity for
operation of its businesses until the asset sale is finalized.

The Court has set a hearing for February 12, 2002 to approve bidding procedures
for the receipt of qualified bids. Shaw currently contemplates that, absent a
superior competing proposal, the transaction with Shaw will be completed before
the end of March.

The IT Group is a leading provider of diversified, value-added consulting,
engineering and construction, remediation and facilities management services.
Through its diverse group of specialized companies, with domestic and
international offices, its clients take advantage of extensive expertise to meet
their global environmental needs. The IT Group's broad range of services
includes the identification of contaminants in soil, air, and water and the
subsequent design




and execution of remedial solutions. These services are provided through several
principal business lines including, Government Services, Commercial Engineering
and Construction, Solid Waste, Real Estate Restoration and Consulting.

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. For additional
information on The Shaw Group, please visit the Company's web site 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 web-site
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 web site
at www.shawgrp.com.