Key questions and answers from the third quarter earnings call conducted by McDermott International Inc. on November 8, 2007.

Andy Kaplowitz (Lehman Brothers): Is it just a few projects that tend to get pushed out and we should not read into it for the rest of your business?

Bruce Wilkinson: It is more prevalent on the marine business than the fabrication side. In the latter part of the projects, where they move to the marine side, is where we are balancing before the Secunda acquisition.

Andy Kaplowitz (Lehman Brothers): What is your assessment of the B&W business going forward?

Bruce Wilkinson: Looking back over the last 18 months, we missed that target range twice. We still think it needs improvement and we are working with a business that was operating in a bankruptcy mode for six years, now being integrated into a larger enterprise with the nuclear operations.

We seem to have done better in some quarters than others, and we will improve the bottom line of the business through a combination of good project execution and achieving some G&A efficiencies through the combined business that we have created.

Andy Kaplowitz (Lehman Brothers): On commercial nuclear opportunities, now that we are starting to see some combined operating licenses get submitted, are you seeing more activity in that area?

Bruce Wilkinson: We still have work to do and we are getting ourselves positioned for our entry points. We have not lost any orders yet, because it has not started in full bore.

Jamie Cook (Credit Suisse): Is a margin above the 6 to 8% range on a normalized basis achievable assuming the markets hold together?

Bruce Wilkinson: We are exploring working backwards at different margin levels to see what we have to take out and where we have to get it in order to be successful, but we are not accepting that 6 to 8 is the inevitable high water mark.

Jamie Cook (Credit Suisse): The G&A on the oil and gas side was much higher relative to last year. Besides Secunda, was there anything else that we need to be aware of?

Mike Taff:About $2 million to $3 million of additional depreciation related to the Secunda acquisition and then we also had an abnormality where we had a civic asset that was specifically related to a project that was written off over in the Asia Pacific area, amounting to $7 million.

John Rogers (D.A. Davidson): On the oil and gas side, what are the current utilization rates?

Mike Taff: We were running our fabrication as compared to our standard costing at about 151% of standard. And on the marine side, our vessels were working about 143% of their standard costing.

John Rogers (D.A. Davidson): Do you have capacity to put at the market in Asia and the Middle East?

Mike Taff: If you look at our bids outstanding, the majority of those would be in those two hot markets.

Joe Agular (Johnson Rice): Is the $6 billion of focus projects, outside of the $3 billion bids you have standing?

Mike Taff: Yes, it is outside the bids.

Joe Agular (Johnson Rice): Any mega projects in there or just a lot of similar size wins?

Bruce Wilkinson: There are a number of big ones. It is very much the Mid East and Asia, where the center of this universe has moved to. And when you look a little further out, you have to think in terms where we think we are nearing the tail end of the long lull of the Gulf of Mexico.