Foster Wheeler Receives Full Release on Longview Power Project

Foster Wheeler Ltd. has announced that a subsidiary within its Global Power Group has received a full release to proceed on its contract from Longview Power, LLC ("Longview") for the design and supply of a supercritical once-through pulverized-coal (PC) steam generator for Longview's coal-fired generating facility located in Monongalia County, West Virginia. Longview is a 100 percent-owned subsidiary of GenPower Holdings, L.P., which is jointly owned by GenPower, LLC and First Reserve Corporation. The Longview plant will be one of the largest private investments in the history of West Virginia. Foster Wheeler announced the receipt of a limited notice to proceed on January 30, 2007.

This full notice to proceed authorizes Foster Wheeler to execute the entire scope of the project as defined by the contract. The total contract value of approximately $200 million will be included in Foster Wheeler's first-quarter 2007 bookings.

The contract calls for Foster Wheeler to provide Longview with a 695 (net) megawatt electric (MWe) state-of-the-art PC steam generator utilizing Siemens advanced BENSON vertical tube supercritical steam technology.

"We congratulate GenPower and First Reserve on reaching this important milestone," said Gary Nedelka, chief executive officer of Foster Wheeler North America Corp. "We look forward to delivering a successful project that meets the growing power demands of the region in an environmentally responsible manner."

"We are very pleased that the project has achieved this milestone and that we are finally able to release Foster Wheeler's full execution team to support this very important project in the state of West Virginia," said Bob Place, CEO of GenPower Holdings.

GenPower specializes in the development of electrical generation plants. GenPower was formed by power industry veterans who have extensive experience in power project development, finance, construction and operations. To date, GenPower and members of its management team have successfully developed and built an 800 MW mine-mouth coal plant in Australia; financed, built and operated four biomass facilities in New England; and have worked on coal and hydro plant developments in India and Turkey. GenPower has also successfully developed over 1,800 MW of natural gas-fired combined-cycle electric generation facilities in the U.S.

First Reserve Corporation is the oldest and largest private equity firm specializing in the energy industry. Founded in 1983, First Reserve was the first private equity investment firm to actively pursue building a broadly diversified global investment portfolio of companies involved in the various sectors of the energy industry. Since 1992, First Reserve has raised over $12.7 billion for its buyout-focused funds. Throughout its 24-year history, the strong franchise that the firm has developed by investing exclusively in companies involved in the energy industry has served as a competitive advantage for First Reserve.

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Posted 07/03/07

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