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 to design and supply two spray dry absorber (SDA) units and associated equipment for Xcel Energy’s coal-fired Pawnee Generating Station in Brush, Colo.

The SDA systems are designed to control sulfur dioxide (SO 2) emissions from the single-unit, 544 megawatt plant. The contract scope also calls for B&W PGG to supply atomizers, a reagent preparation system, structural steel and commissioning of the project.

“B&W PGG has supplied Xcel Energy’s plants with several SDA systems in the past, and we are pleased to have been chosen again to meet Pawnee Generating Station’s environmental control needs,” said B&W PGG President and Chief Operating Officer Richard L. Killion. “B&W PGG has a diverse suite of technologies for the reduction of SO 2 and SO 3, nitrogen oxides, mercury, particulates and other emissions to assist our industrial and utility customers meet emissions limits.”

Material delivery is scheduled for 2013, with tie-in of the SDA units expected in the fall of 2014.

About B&W

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 12,700 people, in addition to approximately 10,400 joint venture employees. Learn more at www.babcock.com .

Cautionary Statement Regarding Forward Looking Statements

B&W cautions that this release contains forward-looking statements, including statements relating to the timing of the SDA contract for the Pawnee Generating Station. These forward-looking statements involve a number of risks and uncertainties, including, among other things, delays or other difficulties executing on 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 and subsequent 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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