FWLT (MM)

Foster Wheeler Ltd. (Nasdaq: FWLT) announced today that its Milan-based subsidiary Foster Wheeler Italiana S.p.A. has been awarded an engineering, procurement and construction (EPC) contract for the addition of a second processing line at Lomellina Energia's existing waste-to-energy plant at Parona, Italy. Foster Wheeler Italiana S.p.A. owns 39 percent of Lomellina Energia S.r.l. Foster Wheeler will undertake basic design, detailed engineering, materials supply, construction and erection works, commissioning and start-up on a lump-sum turnkey basis. The contract value exceeds US$130 million (110 million Euros), and will be included in Foster Wheeler's third-quarter 2005 bookings. "This new investment will be primarily financed through a limited-recourse project financing by Lomellina Energia, with the balance of the investment being provided by the shareholders of Lomellina Energia," said Gianfranco Brustia, director, Power Division, and vice president, Foster Wheeler Italiana S.p.A. "Foster Wheeler also designed, built, started up and operates, with partners, the original plant, which has been in commercial operation since October 1, 2000. This was the first waste-to-energy project in Italy developed by a private company with project financing." The existing plant, the first installation of its kind in Europe, is an integrated facility for recyclable materials recovery and refuse derived fuel (RDF) production, composting and electricity generation. It processes 200,000 tons per year of municipal solid waste (MSW), converting approximately 60 percent of the MSW into RDF, which is then combusted, generating 15 MWe of electric power. This expansion project will allow the plant to process an additional 180,000 tons per year of RDF, producing an additional 19 MWe of power, which will be sold to the Italian national grid under a long-term power purchase agreement with GRTN (the Italian National Grid operator). As part of its scope, Foster Wheeler will also design and supply a circulating fluidized-bed (CFB) boiler, based on its proprietary "Compact" technology developed by its Global Power Group. This CFB technology was selected to burn RDF and to produce steam for the generation of electricity because of its excellent environmental performance. Foster Wheeler's overall scope also includes a steam turbine and generator, a steam condenser, flue gas treatment, upgrading of the existing waste pre-treatment system and auxiliary facilities. Early activities on the project started in February 2005. Commercial operation is scheduled for September 2007. Notes to Editors: 1. Foster Wheeler Italiana S.p.A., headquartered in Milan, is a subsidiary of Foster Wheeler Continental Europe S.r.l., which is wholly owned by Foster Wheeler Ltd. 2. Foster Wheeler Ltd. is a global company offering, through its subsidiaries, a broad range of design, engineering, construction, manufacturing, project development and management, research and plant operation services. Foster Wheeler serves the refining, upstream oil and gas, LNG and gas-to-liquids, petrochemical, chemicals, power, pharmaceuticals, biotechnology and healthcare industries. The corporation is based in Hamilton, Bermuda, and its operational headquarters are in Clinton, New Jersey, USA. For more information about Foster Wheeler, visit our Web site at www.fwc.com. 3. Safe Harbor Statement This news release contains forward-looking statements that are based on management's assumptions, expectations and projections about the Company and the various industries within which the Company operates. These include statements regarding our expectations regarding revenues (including as expressed by our backlog), liquidity, the outcome of litigation and legal proceedings and recoveries from customers for claims and the costs of current and future asbestos claims and the amount and timing of related insurance recoveries. Such forward-looking statements by their nature involve a degree of risk and uncertainty. The Company cautions that a variety of factors, including but not limited to the factors described under the heading "Business--Risk Factors of the Business" in the Company's most recent annual report on Form 10-K/A and the following, could cause the Company's business conditions and results to differ materially from what is contained in forward-looking statements: changes in the rate of economic growth in the United States and other major international economies, changes in investment by the power, oil and gas, pharmaceutical, chemical/petrochemical and environmental industries, changes in the financial condition of customers, changes in regulatory environment, changes in project design or schedules, contract cancellations, changes in estimates made by the Company of costs to complete projects, changes in trade, monetary and fiscal policies worldwide, currency fluctuations, war and/or terrorist attacks on facilities either owned or where equipment or services are or may be provided, outcomes of pending and future litigation, including litigation regarding our liability for damages and insurance coverage for asbestos exposure, protection and validity of patents and other intellectual property rights, increasing competition by foreign and domestic companies, compliance with debt covenants, recoverability of claims against customers and others, changes in estimates used in critical accounting policies. Other factors and assumptions not identified above were also involved in the formation of these forward-looking statements and the failure of such other assumptions to be realized, as well as other factors, may also cause actual results to differ materially from those projected. Most of these factors are difficult to predict accurately and are generally beyond our control. You should consider the areas of risk described above in connection with any forward-looking statements that may be made by us.