PRESS RELEASE: June 20, 2006

J. Ray McDermott Returns to New Orleans

J. Ray McDermott, S.A. ("J. Ray"), a subsidiary of McDermott International Inc., announced today that it has reopened its Engineering office in New Orleans, LA ("NOLA"). The return to NOLA comes nearly ten months (294 days) after Hurricane Katrina forced the evacuation of J. Ray employees to temporary offices in Amelia, Louisiana and Houston, Texas.

J. Ray's new NOLA office is located on the 12th floor of 1340 Poydras Street (formerly the Amoco Building). The office has an initial staff of 27 employees, including 22 engineers, with room to expand over time to 37 employees.

"We are pleased to be back in New Orleans and committed to building our future in Louisiana, " said Bob Deason, President and Chief Operating Officer of J. Ray. "The Engineering office in New Orleans is a key part of J. Ray's strategic plan, providing invaluable support to our local customers, our operations the Morgan City fabrications facility and our projects at other facilities around the globe."

"J. Ray McDermott has a long history in Louisiana," said Louisiana's Economic Development Secretary Michael J. Olivier. "The reopening of their engineering office in New Orleans furthers their commitment to Louisiana as we rebuild, taking Louisiana forward."

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.

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For more information, please contact:

Louise Denly
Director, Public Relations
J. Ray McDermott, Inc.
Houston, TX
(281) 870-5000
E-Mail:ldenly@mcdermott.com
www.mcdermott.com