McDermott International, Inc. Announces 2002 Second Quarter Results and Revised 2002 Guidance and Developments in Negotiations Relating to B&W Chapter 11 Proceedings.

Business Editors & Energy Writers

NEW ORLEANS--(BUSINESS WIRE)--Aug. 7, 2002

McDermott International, Inc. (NYSE:MDR) ("McDermott" or "the Company") today reported a net loss of $234.2 million, or $3.80 loss per diluted share, for the second quarter of 2002, compared to net income of $8.0 million, or $0.13 income per diluted share, for the second quarter of 2001. The 2002 second quarter financial results include:

-- McDermott would assign all its equity in B&W to one or more trusts to be created for the benefit of all the asbestos claimants and certain other claimants. -- McDermott and all its subsidiaries would assign, transfer or otherwise make available their rights to all applicable insurance proceeds to the trusts. -- McDermott would issue 4.75 million shares of restricted common stock to the trusts. The resale of the shares would be subject to certain limitations, in order to provide for an orderly means of selling the shares to the public. Certain sales by the trusts would also be subject to a McDermott right of first refusal. If any of the shares issued to the trusts are still held by the trusts after three years, and to the extent those shares could not have been sold in the market at a price greater than or equal to $19.00 per share (based on quoted market prices), taking into account the restrictions on sale and any waivers of those restrictions that may be granted by McDermott from time to time, McDermott would effectively guarantee that those shares would have a value of $19.00 per...

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