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Lehigh Heavy Forge and B&W Joined by Pennsylvania Governor Tom Corbett in Announcing Supply Agreement for B&W mPower™ Reactor Forgings

Companies Lead Nuclear Manufacturing Renaissance in U.S.

BETHLEHEM, Pa.--(BUSINESS WIRE)--Nov. 28, 2012-- Lehigh Heavy Forge Corporation and The Babcock & Wilcox Company (B&W) (NYSE:BWC) were joined by Pennsylvania Governor Tom Corbett today in announcing a supply agreement for B&W mPower™ small modular reactor (SMR) forgings.

Under terms of the agreement, Lehigh Heavy Forge and B&W plan to jointly participate in the fabrication and qualification of large forgings for nuclear reactor components which are intended to be used in the manufacture of B&W mPower SMRs.

Prototype and standard forgings would be manufactured at Lehigh Heavy Forge’s Bethlehem facility as B&W moves into the component manufacturing phase of its program. The B&W-Lehigh team will be working to revitalize the United States manufacturing infrastructure needed to supply heavy forgings for the commercial nuclear power industry after a national capability gap of more than three decades.

Lehigh Heavy Forge will use the process of manufacturing prototype B&W mPower forgings to seek a Material Organization Quality System accreditation with ASME for future heavy component manufacturing. Lehigh Heavy Forge also has plans to make additional facility upgrades to support future B&W mPower reactor manufacturing needs.

Governor Tom Corbett said, “For some time now I have used a simple equation to help explain moments like this. Energy equals jobs. These small modular reactors promise to take us farther down the road to energy independence while creating new jobs and sustaining old ones right here in Pennsylvania.”

“We have been making significant capital investments in our facilities as we get ready for what we believe will be a strong push for small modular reactor heavy components,” stated James J. Romeo, President of Lehigh Heavy Forge. “We look forward to using our unique capabilities and demonstrated experience to be a significant contributor to the B&W mPower reactor’s successful deployment.”

Christofer M. Mowry, President of Babcock & Wilcox mPower, Inc., said, “As we move forward with plans to deploy the B&W mPower reactor, one of our commitments is to use U.S.-based suppliers. American manufacturing is at the heart of the history of both our companies, and we are proud to have Lehigh Heavy Forge join the mPower America effort in bringing small modular reactor manufacturing expertise back to the U.S.”

“Cooperation between the United Steelworkers Union and Lehigh Heavy Forge has been key to Lehigh Heavy Forge’s success, and we look forward to continued growth and American jobs associated with the mPower program,” said United Steelworkers of America Local 2599 President, Jerry Green.

B&W recently was selected as the winner of the U.S. Department of Energy’s Small Modular Reactor Licensing Technical Support Program. The funding B&W will receive under the program will support the development of its B&W mPower reactor technology and help the Company maintain its position as the global leader in SMR development.

B&W and its affiliates also have executed 150 Memoranda of Understanding with B&W mPower reactor suppliers in 36 states. These represent the first wave of B&W domestic supplier engagements that would expand U.S. supply base capabilities and supplement B&W’s existing group of nuclear suppliers. As anticipated market opportunities mature, these business relationship agreements are expected to evolve into domestic strategic supplier agreements establishing capacity and pricing terms for future B&W mPower SMR projects.

About Lehigh Heavy Forge Corporation

A subsidiary of WHEMCO Inc (Pittsburgh, PA), Lehigh Heavy Forge Corporation in Bethlehem, PA operates the largest open die forging press in the Western Hemisphere and is the last super heavy forging operation in the United States. The forging facility, a leader in open die forging since 1887, is a key supplier of high quality product to a variety of markets including nuclear energy, power generation, rolling mill, custom open die, capital goods, hydroelectric, shipbuilding, and defense.

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 plans, commitments, expectations and beliefs expressed regarding SMR technology, the B&W mPower reactor, SMR market opportunities and the evolution of our supplier relationships. These forward-looking statements involve a number of risks and uncertainties, including, among other things, our inability to finance B&W mPower research and development efforts and adverse changes in the demand for or competitiveness of nuclear power. If one or more of these or other risks materialize, actual results may vary materially from those expressed. 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 reports on Form 10-K and 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 of this release, and undertakes no obligation to update or revise any forward-looking statement, except to the extent required by applicable law.

Source: The Babcock & Wilcox Company

B&W Media Contact:
Aimee Mills, Communications Manager, 434-841-8541
Investor Contact:
Jenny Apker, Vice President and Investor Relations, 704-625-4937
Lehigh Heavy Forge Media Contact:
Allan Robertson, Vice President Marketing and Sales, 610-332-8112

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding The Babcock & Wilcox Company's business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report or Form 10-K for the most recently ended fiscal year.