HOUSTON--(BUSINESS WIRE)--Sept. 27, 2004--J. Ray McDermott, S.A. ("J. Ray"), a subsidiary of McDermott International Inc. ("McDermott") (NYSE:MDR), announced today that its McDermott Caspian Contractors Inc. ("MCCI") subsidiary was awarded three new projects from the Azerbaijan International Operating Company ("AIOC") for a combined value of approximately $390 million.

The first project is for the pipeline installation for the Phase 2 development of the Azeri, Chirag and deepwater portion of the Gunashli (ACG) field, in the Azerbaijan sector of the Caspian Sea. Contracts of this type are typically valued at $160 million. The second project awarded, valued at approximately $140 million, is for the fabrication, assembly, hook-up and commissioning of the Drilling, Utilities and Quarters (DUQ) integrated deck for the Phase 3 development of the ACG field. Part of the work scope will be performed by the MCCI Joint Venture with Baku Deep Water Jacket Factory. The third project awarded is for the installation of infield pipelines and subsea water injection facilities for the ACG development Phase 3, valued at approximately $90 million.

"These awards will utilize MCCI's experience in the region and with previous AIOC projects," said Bob Deason, president and chief operating officer of J. Ray. "We're very pleased that MCCI will continue to serve an important role in AIOC's development plans."

In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release, which are forward-looking and provide other than historical information, involve risks and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include statements regarding the new project awards; including the approximate value of the contracts. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous uncertainties and risks. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these risk factors, please see McDermott's annual report for the year ended December 31, 2003 and its 2004 quarterly reports filed with the Securities and Exchange Commission.

J. Ray McDermott, S.A, is a leading provider of solutions for offshore field development worldwide. McDermott International Inc. is a leading worldwide energy services company. McDermott's subsidiaries provide engineering, fabrication, installation, procurement, research, manufacturing, environmental systems, project management and facilities management services to a variety of customers in the power and energy industries, including the U.S. Department of Energy.

    CONTACT: McDermott International Inc., Houston
             Jay Roueche, 281-870-5462
             jroueche@mcdermott.com

    SOURCE: McDermott International Inc.