FWLT (MM)

Foster Wheeler Ltd. (NASDAQ: FWLT) announced today that its Milan-based subsidiary Foster Wheeler Italiana S.p.A., part of its Global Engineering and Construction Group, has been awarded a contract by ERG Raffinerie Mediterranee (ERGMED) for engineering, procurement assistance and construction management services for the expansion of the integrated gasification combined cycle (IGCC) complex at ERGMED�s Priolo refinery in Sicily. The terms of the contract award, which were included in Foster Wheeler�s fourth-quarter 2006 bookings, were not disclosed. Foster Wheeler, in a joint venture, designed and built the original IGCC plant, which transforms refinery residues into synthesis gas, which is burned to produce more than 550 megawatts of electricity. Completed in 2000, this was the first IGCC plant in the world to use asphalt as a feedstock, and has since demonstrated excellent reliability and performance. As part of the expansion of the IGCC complex, a third gasifier will be added. The new gasifier will use gasification technology licensed by General Electric, which company acquired the Texaco technology used in the two existing gasifiers. Associated facilities will be added to the existing gasifiers and new pressure swing absorption and membrane packages will be installed in order to produce 20,000 nominal cubic meters per hour of hydrogen. With the addition of the third train, the total gasification capacity will be 146.5 tonnes per hour. The project is expected to reach mechanical completion by the second quarter of 2009. �We are extremely pleased to be awarded this project,� said Marco Moresco, chief executive officer of Foster Wheeler�s Italian operating unit. �This award allows us to continue to build on our excellent and long-standing relationship with ERG and to consolidate our position as a leading player in gasification technology and IGCC plant design.� �We have awarded this important project, a key investment for the ERG Group, to Foster Wheeler because its expertise in gasification technology and its management capabilities are renowned worldwide,� said Prof. Giuseppe Gatti, president, ERG Power & Gas. Notes to Editors: 1. Foster Wheeler Ltd. is a global company offering, through its subsidiaries, a broad range of engineering, procurement, 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, petrochemicals, 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, please visit our Web site at http://www.fwc.com. 2. Safe Harbor Statement This press release may contain forward-looking statements that are based on the Company�s assumptions, expectations and projections about Foster Wheeler and the various industries within which it operates. These include statements regarding the Company�s expectation about revenues (including as expressed by its backlog), its 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 Part I, Item 1A. �Risk Factors� in its most recent annual report on Form 10-K, could cause 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 oil and gas, oil refining, chemical/petrochemical and power industries; changes in the financial condition of the Company�s customers; changes in regulatory environment; changes in project design or schedules; contract cancellations; changes in the Company�s estimates 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; interruptions to shipping lanes or other methods of transport; outcomes of pending and future litigation, including litigation regarding the Company�s liability for damages and insurance coverage for asbestos exposure; protection and validity of the Company�s patents and other intellectual property rights; increasing competition by foreign and domestic companies; compliance with the Company�s debt covenants; recoverability of claims against the Company�s customers and others by the Company and claims by third parties against the Company; and changes in estimates used in the Company�s 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 the Company�s control. You should consider the areas of risk described above in connection with any forward-looking statements that may be made by the Company. The Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. You are advised, however, to consult any additional disclosures the Company makes in proxy statements, quarterly reports on Form 10-Q, annual reports on Form 10-K and current reports on Form 8-K filed with the Securities and Exchange Commission.