FOR IMMEDIATE RELEASE

Babcock & Wilcox Canada's Unionized Workforce in Melville Ratifies New Collective Agreement

Cambridge, ON: June 26, 2006 In a ratification vote held on Monday June 19, 2006, the unionized employees in B&W Canada’s plant in Melville, Saskatchewan voted 68% in favour of the terms of a newly negotiated collective agreement.

Representatives of the International Brotherhood of Boilermakers, Iron Ship Builders, Blacksmiths, Forgers & Helpers Lodge # 555 held meetings with the Company in May and June. A tentative agreement between the negotiating committees was reached on Thursday, June 15, 2006. Terms of the new agreement come into effect on July 1, 2006, and the new agreement remains in force to June 30, 2009.

"We're very pleased that the negotiations have been successfully concluded," said Roy Kendall, B&W Canada’s Director of Human Resources. "Congratulations to the negotiating committees for their hard work and commitment to reaching an agreement. We can now look ahead to continuing to meet our customers' expectations for quality products from this highly skilled and dedicated workforce."

Babcock & Wilcox Canada serves North American electric utility and industrial markets and the global nuclear utility market, with manufacturing facilities in Cambridge, Ontario, and Melville, Saskatchewan. B&W Canada is a wholly-owned subsidiary of The Babcock & Wilcox Company in Barberton, Ohio, which is an operating unit of McDermott International, Inc. The Babcock & Wilcox Company is located on the Internet at www.babcock.com.

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Media Contacts:

Yvette Amor
Manager, PR & Communications
Babcock & Wilcox Canada
(519) 621-2130 ext. 2416
YAmor@babcock.com