Shaw Extends Waiver under Its Amended Credit Agreement

As previously reported, due to the significance of The Shaw Group Inc.’s (NYSE: SGR) 20% investment in Westinghouse to its financial statements, Shaw was required to file a Current Report on Form 8-K with the Securities and Exchange Commission (SEC), including the audited financial statements of Westinghouse for the fiscal years ended March 31, 2006 and 2005, by January 3, 2007. However, because of a number of factors, as previously disclosed in Shaw’s SEC filings, Shaw has been unable to meet the requirement to file the Westinghouse financial statements. Shaw had previously obtained a waiver from this filing requirement under its Amended Credit Agreement which was effective through today. Shaw expects to complete the filing of necessary audited financial statements of Westinghouse within the next 30 days; however, because of the complexity of the filing and the multiple parties involved, Shaw has requested and been granted a second waiver period up to 90 days, which is expected to allow for any unforeseen circumstances. The second waiver is effective today. The Shaw Group Inc. is a leading global provider of engineering, procurement, construction, technology, maintenance, fabrication, manufacturing, consulting, remediation, and facilities management services for government and private sector clients in the energy, chemical, environmental, infrastructure and emergency response markets. Headquartered in Baton Rouge, Louisiana, with nearly $5 billion in annual revenues, Shaw employs approximately 21,000 people at its offices and operations in North America, South America, Europe, the Middle East and the Asia-Pacific region. For further information, please visit Shaw's website 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 Statements”. 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.