WGII Washington Grp. International (MM)

BOISE, Idaho and AIKEN, S.C., March 5 /PRNewswire-FirstCall/ -- The U.S. Department of Energy (DOE) and the Washington Savannah River Company (WSRC) -- a subsidiary of Washington Group International -- agreed on a contract extension for management and operation of DOE's Savannah River Site through June 30, 2008. WSRC has been the management and operating contractor at the site since 1989. The Savannah River Site, a 310-square-mile site located near Aiken, S.C., primarily conducts missions for DOE's Office of Environmental Management and for the National Nuclear Security Administration. The contract also includes management of the Savannah River National Laboratory, DOE's lead laboratory for environmental research and development. "For more than 18 years, Washington Group International has had an excellent record of safe and successful operation at the Savannah River Site, and we're extremely pleased that the DOE and the National Nuclear Security Administration continue to show confidence in us," said E. Preston Rahe, Jr., president of the company's Energy & Environment Business Unit. "The Savannah River Site is one of the most diverse operations in the DOE system, and our work there has allowed Washington Group International and our partners to demonstrate and develop a broad range of technical and management capability. We have a tremendous group of employees there, and we look forward to continuing our record of superior performance on these programs." The total contract value during the 18-month extension period, retroactive to January 1, 2007, is estimated to be $2.3 billion depending on final federal budgets. Washington Group International (NASDAQ:WGII) is the lead contractor on the WSRC team that includes four other fee-sharing partners. With Washington Group's agency accounting, revenue from this contract will only include the fee for managing this work. The fee could vary depending on the company's ability to achieve certain contract milestones. The contract also contains a provision that could allow for a further extension for up to six months. WSRC and its partners employ approximately 8,900 people at the Savannah River Site. In addition, Washington Group employs more than 500 people at Washington Safety Management Solutions (WSMS), the largest nuclear licensing and safety consulting business in the world. WSMS is a wholly owned subsidiary of Washington Group founded 10 years ago to provide specialized risk analysis services to other DOE sites and clients around the world. Washington Group International (NASDAQ:WGII) provides the talent, innovation, and proven performance to deliver integrated engineering, construction, and management solutions for businesses and governments worldwide. Headquartered in Boise, Idaho, with more than $3 billion in annual revenue, the company has approximately 25,000 people at work around the world providing solutions in power, environmental management, defense, oil and gas processing, mining, industrial facilities, transportation and water resources. For more information, visit http://www.wgint.com/. This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are identified by the use of forward-looking terminology such as may, will, could, should, expect, anticipate, intend, plan, estimate, or continue or the negative thereof or other variations thereof. Each forward-looking statement, including, without limitation, any financial guidance, speaks only as of the date on which it is made, and Washington Group undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which it is made or to reflect the occurrence of anticipated or unanticipated events or circumstances. The forward-looking statements are necessarily based on assumptions and estimates of management and are inherently subject to various risks and uncertainties. Actual results may vary materially as a result of changes or developments in social, economic, business, market, legal, and regulatory circumstances or conditions, both domestically and globally, as well as due to actions by customers, clients, suppliers, business partners, or government bodies. Performance is subject to numerous factors, including demand for new power generation and for modification of existing power facilities, public sector funding, demand for extractive resources, capital spending plans of customers, and spending levels and priorities of the U.S., state and other governments. Results may also vary as a result of difficulties or delays experienced in the execution of contracts or implementation of strategic initiatives. For additional risks and uncertainties impacting the forward-looking statements contained in this news release, please see "Note Regarding Forward-Looking Information" and "Item 1A. Risk Factors" in Washington Group's annual report on Form 10-K for fiscal year 2006. DATASOURCE: Washington Group International CONTACT: Media, Jerry Holloway or Laurie Spiegelberg, +1-208-386-5255, or Investors, Earl Ward, +1-208-386-5698, all of Washington Group International Web site: http://www.wgint.com/

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