The Babcock & Wilcox Company (B&W) (NYSE:BWC) announced today that its subsidiary Babcock & Wilcox Canada Ltd. (B&W Canada) has been awarded a $107 million contract from SaskPower to engineer, manufacture, deliver and construct critical components for SaskPower's Boundary Dam Unit 3 in Estevan, Saskatchewan.

The boiler retrofit for Boundary Dam Unit 3 is an integral part of the plant's life extension and conversion to allow for the capture of carbon dioxide through SaskPower's Integrated Carbon Capture and Storage Demonstration Project. While a final decision on the carbon capture system component has been deferred until new federal emission control regulations are completed, B&W Canada will engineer and supply all heat transfer surfaces and a new combustion system with low-NOx technology to provide SaskPower's Boundary Dam with a 30-year life extension and improved plant performance.

"We are pleased to play a key role in a project that will not only extend the life of a very critical plant for power generation in Saskatchewan, but also provide a platform for a significant reduction in carbon emissions," said B&W Canada President Mike Lees. "We appreciate SaskPower's decision to choose B&W Canada for this important project."

The project is expected to be completed in August 2013.

About B&W

Headquartered in Charlotte, N.C., The Babcock & Wilcox Company is a leader in clean energy technology and services, primarily for the nuclear, fossil and renewable power markets, as well as a premier advanced technology and mission critical defense contractor. B&W has locations worldwide and employs approximately 12,000 people, in addition to approximately 10,000 joint venture employees. Learn more at www.babcock.com.

Cautionary Statement Regarding Forward Looking Statements

B&W cautions that this release contains forward-looking statements, including, without limitation, statements relating to the scope, timing and value of the SaskPower contract, as well as our expected emission reductions of the project. These forward-looking statements involve a number of risks and uncertainties, including, among other things, changes in the scope of the contract, including cancelation, and delays or other difficulties executing on our contracts in backlog. If one or more of these or other risks materialize, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see B&W's filings with the Securities and Exchange Commission, including its registration statement on Form 10, as amended. B&W cautions not to place undue reliance on these forward-looking statements, which speak only as of the date hereof, and undertakes no obligation to update or revise any forward-looking statement, except to the extent required by applicable law.