The Babcock & Wilcox Company (B&W) (NYSE: BWC) announced today that its subsidiary Babcock & Wilcox Power Generation Group, Inc. (B&W PGG) has been awarded a contract worth $54 million to design and supply two wet flue gas desulfurization (FGD) units and related components for Northern Indiana Public Service Company’s (NIPSCO) R.M. Schahfer Generating Station in Wheatfield, Ind.

The FGD units will be used to control sulfur dioxide (SO 2) emissions from Schahfer’s 465 megawatt (MW) Unit 14 and 515 MW Unit 15 coal-fired utility boilers.

“As the North American leader in SO 2 emissions control technology with more than 40 years of FGD experience, B&W PGG is pleased to support NIPSCO in meeting its environmental upgrade needs,” said B&W PGG President and Chief Operating Officer Richard L. Killion.

Interest in flue gas desulfurization equipment for coal-fired power plants has increased in the last two years. “New federal emissions enforcements and regulations appear to have re-invigorated FGD customers, and B&W PGG is actively pursuing several important, large projects in which its technologies align with the regulatory needs of utility customers,” Killion said.

Engineering work will be performed in B&W PGG’s Barberton, Ohio, offices, with start-up of Schahfer Unit 14 scheduled for fall 2013 and Unit 15 in fall 2015. Installation work for the project will be supported by Indiana-based craft labor.

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 .

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 value, to the extent value may be viewed as an indicator of future revenues, scope and timing of the NIPSCO contract. These forward-looking statements involve a number of risks and uncertainties, including, among other things, delays or other difficulties executing on our contracts in backlog and adverse changes affecting FGD customers. 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 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.

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