Shaw Announces Joint Venture with Alinda Capital Partners

The Shaw Group Inc.'s wholly-owned subsidiary, Shaw Capital, Inc., and Alinda Capital Partners LLC (Alinda), a privately-held investment firm, have agreed to jointly pursue development of certain yet to be identified energy, transportation, infrastructure, water, wastewater, and related projects through Shaw Infrastructure Investments LLC, a newly created joint venture.

Shaw Infrastructure Investments LLC combines Alinda's depth of capital resources and infrastructure investing experience with Shaw's project development, engineering, construction, maintenance, and fabrication and manufacturing expertise to pursue acquisitions of operating assets; expansions and retrofitting of existing assets; and construction of new assets. Targeted assets will possess or demonstrate a potential for steady, growing and predictable cash flow; a strategic competitive advantage; and limited commodity or merchant risk. Shaw's traditional lines of business may deliver technical solutions to facilitate each project's success.

J.M. Bernhard, Jr., chairman, president and chief executive officer of Shaw, said, "Our joint venture with Alinda is a strategic step for Shaw as it looks to provide customers with a single source for solutions. Shaw has achieved superior growth as a vertically-integrated service provider and now, through this venture with Alinda, we may also provide our customers with access to investment capital to complement Shaw's world class capabilities in project development, engineering, construction, maintenance, and fabrication and manufacturing. This venture also provides Shaw opportunities to grow its own asset value and further prosper as a Fortune 500 company."

Alinda's Managing Partner, Chris Beale, said, "We are excited to be able to join with Shaw in a series of diversified investment opportunities. Shaw is a recognized leader in providing comprehensive services to communities, companies, and governments, and we are pleased that we will be investing alongside Shaw to help maintain and improve the infrastructure that is critical to the well being of our communities and the efficient functioning of businesses and governmental authorities."

Alinda Capital Partners LLC is a privately-held investment firm specialising in investments in infrastructure assets. It manages the $3 billion Alinda Infrastructure Fund, an institutional fund which has a long-term investment horizon. To date, the fund has invested in the Detroit-Windsor Tunnel in Michigan, four toll bridges in Alabama, natural gas distribution utilities in Colorado, Nebraska and Wyoming, and water tanks in Canada.

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Posted 28/06/07

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