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 $26 million contract to design and supply two spray dry absorber (SDA) systems for Consumers Energy’s D.E. Karn power plant in Hampton Township, Mich.

The SDA systems, also known as dry scrubbers, will be used to reduce sulfur dioxide (SO 2) emissions from the Karn plant’s two 275 megawatt coal-fired boilers. B&W PGG will also supply a lime preparation system and two recycle ash systems for the plant.

“B&W PGG offers customers comprehensive, industry-leading SO 2 control technology options,” said B&W PGG President and Chief Operating Officer Richard L. Killion. “The SDA system chosen by Consumers Energy will help them meet their emissions reduction targets in a reliable and efficient manner.”

Engineering is underway at the company’s Barberton, Ohio operations. The first unit is scheduled for operation in spring 2014, with the second unit to follow in fall 2014.

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 .

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 SDA systems contract. These forward-looking statements involve a number of risks and uncertainties, including, among other things, delays, changes or other difficulties executing the contract. 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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