The Babcock & Wilcox Company (B&W) (NYSE:BWC) announced today that Generation mPower LLC (GmP), a majority-owned subsidiary of Babcock & Wilcox Nuclear Energy, Inc., has signed a letter of intent with the Tennessee Valley Authority (TVA) that defines the project plans and associated conditions for designing, licensing and constructing up to six B&W mPower small modular reactors (SMRs) at TVA's Clinch River site in Roane County, Tenn. The project is expected to include joint development and pursuit of a construction permit from the Nuclear Regulatory Commission (NRC). The project would also include engineering, procurement and construction (EPC) activities leading to receipt of an operating license from the NRC, assuming certain preconditions are met.

GmP is a company formed by affiliates of B&W and Bechtel Power Corporation to design, license and build the world's first commercially viable Generation III++ small modular nuclear power plant based on B&W mPower SMR technology.

Christofer Mowry, Chairman of GmP and President of Babcock & Wilcox Nuclear Energy, Inc., said, "We believe the energy industry needs the complementary skills of a capable, integrated nuclear supplier team and an experienced nuclear operating utility to successfully deploy the game-changing clean energy solution that B&W mPower represents. Together, TVA and GmP can meet this challenge and capture the promise of SMRs. We have a common interest in seeking to successfully deploy this advanced nuclear reactor, which is based on substantially proven technology, by the end of this decade."

Bill McCollum, TVA's Chief Operating Officer, said, "We recognize the unique benefits that small modular reactor technology can present to the nuclear industry in the areas of economics and safety. Successful deployment of small reactor technology will increase the options available for clean, reliable and safe power generation."

GmP remains on track to deploy the first B&W mPower reactor by 2020 at TVA's Clinch River site. The B&W mPower Integrated System Test facility in Virginia is expected to begin a three-year project later this summer to collect data to verify the reactor design and safety performance in support of licensing activities. TVA plans to submit a Construction Permit Application to the NRC in 2012, and GmP plans to submit a Design Certification Application to the NRC in 2013.

"We have been working with TVA for some time to evaluate the technical and regulatory requirements associated with constructing B&W mPower SMRs at its Clinch River site," said Ali Azad, GmP President and Chief Executive Officer.

The letter of intent specifies the division of responsibilities between GmP and TVA for the preparation and NRC review of a construction permit application. The letter also describes the timing of the project's activities for successful completion of major EPC milestones.

About The Babcock & Wilcox Company

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.

About Generation mPower LLC

Generation mPower is a limited liability company formed by affiliates of B&W and Bechtel that offers a turnkey solution for the design, licensing and deployment of nuclear power plants based on the B&W mPower small modular reactor. Learn more at www.generationmpower.com.

About Bechtel

Bechtel is among the most respected engineering, procurement, and construction companies in the world. It stands apart for its ability to get the job done- no matter how big, how complex, or how remote. Bechtel is built upon time-tested values of excellence and integrity. The reliability of its performance, the enduring quality of its projects, the strength of its ethics, and the seriousness of its commitment to safety and sustainability, are evident in everything it does. For more information about Bechtel visit www.bechtel.com.

About Tennessee Valley Authority

The Tennessee Valley Authority, a corporation owned by the U.S. government, provides electricity for 9 million people in parts of seven southeastern states at prices below the national average. TVA, which receives no taxpayer money and makes no profits, also provides flood control, navigation and land management for the Tennessee River system and assists utilities and state and local governments with economic development.

Cautionary Statement Regarding Forward Looking Statements

B&W cautions that statements in this release that are not historical fact may constitute forward-looking statements, including statements relating to the expected scope of the B&W mPower reactor project and the planned activities and associated timeframe surrounding deployment of the B&W mPower reactor. These forward-looking statements involve a number of risks and uncertainties, including, among other things, difficulties obtaining proper regulatory approvals for the B&W mPower reactor, adverse changes in the nuclear industry, delays or other difficulties experienced in the design, procurement and construction activities. If 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 annual report on Form 10-K for the year ended December 31, 2010, as supplemented by its quarterly reports on Form 10-Q. 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.