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Bechtel Jacobs Company Receives Contract from U.S. DOE

OAK RIDGE, Tenn.--(BUSINESS WIRE)--Oct. 21, 2003--Jacobs Engineering Group Inc. (NYSE:JEC) announced today that Bechtel Jacobs Company, a Limited Liability Company (LLC) between Jacobs and Bechtel National, Inc., has received a new accelerated environmental cleanup contract from the U.S. Department of Energy (DOE) for work at various sites in Oak Ridge, Tenn.

Officials estimate the value of this 5-year, cost-plus-incentive-fee contract at $1.8 billion.

Under the accelerated cleanup approach, officials estimate that DOE will realize $1.4 billion in cost savings over the life of the Oak Ridge program. This approach is the result of a negotiated agreement reached in 2002 between the DOE, the U.S. Environmental Protection Agency, and the State of Tennessee to expedite cleanup and reduce health risks at the Oak Ridge site.

The contract outlines four major cleanup project areas, each with a specific schedule of results and associated incentive fees to ensure accountability. These include:

  • East Tennessee Technology Park, formerly known as the K-25 site: Completion of cleanup at this former gaseous diffusion plant site by September 30, 2008
  • Waste Disposition: Treatment and disposal of all legacy low-level waste and mixed low-level waste by September 30, 2005
  • Melton Valley, a former waste disposal and experimental reactor area of Oak Ridge National Laboratory: Completion of all cleanup work outlined in the Melton Valley Record of Decision near Oak Ridge National Laboratory by September 30, 2006
  • Balance of Program: Completion of all remaining cleanup projects, including the off-site Atomic City Auto Parks and David Witherspoon sites, by September 30, 2008

Bechtel Jacobs has been the cleanup contractor for DOE's Oak Ridge operations since signing a $2.5 billion management and integration contract in 1997.

Jacobs Engineering Group Inc. and Bechtel National, Inc., form Bechtel Jacobs Company LLC, which employs approximately 750 people in its Oak Ridge office and manages the cleanup program for DOE. Bechtel Jacobs subcontracts with other companies for most of the actual cleanup work as well as the treatment and disposal of wastes. Both companies are international engineering and construction firms with strong backgrounds in environmental remediation for government and private clients.

Jacobs, with over 35,000 employees and revenues approaching $5.0 billion, provides technical, professional, and construction services globally.

Any statements made in this release that are not based on historical fact are forward-looking statements. Any forward-looking statements made in this release represent management's best judgement as to what may occur in the future. However, Jacobs' actual outcome and results are not guaranteed and are subject to certain risks, uncertainties and assumptions ("Future Factors"), and may differ materially from what is expressed. For a description of Future Factors that could cause actual results to differ materially from such forward-looking statements, see the discussion under the section "Forward-Looking Statements" included in Management's Discussion and Analysis filed as part of Exhibit 13 to the Company's 2002 Annual Report on Form 10-K.

CONTACT: Jacobs Engineering Group Inc.
Sherry Sweitzer, 626-578-6992

SOURCE: Jacobs Engineering Group Inc.

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