EXHIBIT 99.1

     CB&I Revises Second Quarter and Full-Year 2004 Expectations

    THE WOODLANDS, Texas--(BUSINESS WIRE)--June 4, 2004--CB&I
(NYSE:CBI) announced today that as a result of potentially
unrecoverable costs on two projects the Company is revising its
earnings expectations for the second quarter and full-year 2004.
    For these two projects, one of which is in Saudi Arabia and the
other in North America, the Company has increased its estimate in the
second quarter of all costs expected to be incurred to complete the
projects. In accordance with generally accepted accounting principles,
the revised estimate of costs expected to be incurred to complete the
projects will be recorded as a charge to earnings in the second
quarter. CB&I will pursue all avenues of recovery to recoup these
costs, but we cannot be certain of the total recovery of such costs.
    The project in Saudi Arabia is a complex job in a difficult
environment, which has recently reached an unanticipated level of
uncertainty and instability. Recent events in Saudi Arabia have caused
us to be less confident of full recovery of that project's expected
costs. On the North American project, a major contractor for CB&I
filed for bankruptcy and liquidation, and CB&I is completing this job
with our own forces, on an expedited basis, in order to ensure that
this significant client's requirements are met.
    CB&I is therefore revising its second quarter earnings
expectations to a range of $0.07 to $0.10 per diluted share from the
prior range of $0.36 to $0.39 per diluted share. Full-year 2004
earnings expectations have also been reduced to a range of $1.27 to
$1.32 per diluted share from the prior range of $1.57 to $1.62 per
diluted share.
    "After several years of consecutive quarters with results that
have met or exceeded expectations, it is certainly disappointing to
have to make this announcement, but we remain committed to full and
prompt disclosure of all material events which could impact the
company," said Gerald M. Glenn, CB&I's Chairman, President and CEO.
"We are taking every recourse available to recover our costs while
making certain that our clients' requirements are fully met. To add
some perspective here, CB&I has completed over two thousand successful
projects in the last several years, our end markets continue to gain
strength, our new business outlook is better than it has ever been,
and our confidence in our control systems, our team and our execution
model remains very high. Although events could happen that would
improve the outlook for the year, we are taking what we believe to be
a prudent and conservative approach in this situation."
    CB&I will host a brief conference call for investors at 9 a.m.
Central time (10 a.m. EDT) on Monday, June 7, 2004, to answer
questions specifically related to this news release. The call will be
broadcast live over the Internet. To access the webcast, go to
www.shareholder.com/cbi/medialist.cfm and select the conference call
link. Please log on to this Web site at least 15 minutes prior to the
start of the call to register and download and install any necessary
audio software. You may also access the webcast from the CB&I Web site
(www.CBIepc.com) by selecting "Event Calendar" under the "Investor
Relations" section on the home page.
    If you are unable to participate in the live call, the webcast of
the conference call will be available at the Web sites listed above
following the event. In addition, you may access a replay of the
conference call by telephone at 1-800-642-1687 (from within the U.S.)
or 1-706-645-9291 (from outside the U.S.), passcode 7931623. Both the
archived webcast and telephone replay will be available until close of
business June 14, 2004.
    Any statements made in this release that are not based on
historical fact are forward-looking statements and represent
management's best judgment as to what may occur in the future. The
actual outcome and results are not guaranteed, are subject to risks,
uncertainties and assumptions and may differ materially from what is
expressed. A variety of factors could cause business conditions and
results to differ materially from what is contained in the
forward-looking statements including, but not limited to, the
Company's ability to realize cost savings from its expected execution
performance of contracts; the uncertain timing and the funding of new
contract awards, and project cancellations and operating risks; cost
overruns on fixed priced contracts; changes in the costs of or
delivery schedule for components and materials; increased competition;
fluctuating revenues resulting from a number of factors, including the
cyclic nature of the individual markets in which the Company's
customers operate; lower than expected activity in the hydrocarbon
industry, demand from which is the largest component of the Company's
revenue, or lower than expected growth in the Company's other primary
end markets; political and economic conditions including, but not
limited to, war or conflict or civil unrest in countries in which we
operate; the Company's ability to integrate and successfully operate
acquired businesses and the risks associated with those businesses;
and the ultimate outcome or effect of the pending FTC proceeding on
the Company's business, financial condition and results of operations.
Additional factors which could cause actual results to differ from
such forward-looking statements are set forth in the Company's Form
10-K filed with the SEC for the year ended Dec. 31, 2003. The Company
does not undertake to update any forward-looking statements contained
herein, whether as a result of new information, future events or
otherwise.
    CB&I is one of the world's leading EPC companies, specializing in
lump-sum turnkey projects for customers that produce, process, store
and distribute the earth's natural resources. With more than 60
locations and approximately 10,000 employees throughout the world,
CB&I capitalizes on its global expertise and local knowledge to safely
and reliably deliver projects virtually anywhere. Information about
CB&I is available at www.CBIepc.com.

    CONTACT: CB&I, The Woodlands
             Media: Bruce Steimle, 832-513-1111
             or
             Analysts: Marty Spake, 832-513-1245