Foster Wheeler awarded circulating fluidized-bed boiler by Kaukaan Voima Oy, Finland

HAMILTON, BERMUDA, May 8, 2007 -- Foster Wheeler Ltd. announced that its Finnish subsidiary Foster Wheeler Energia Oy, part of its Global Power Group, has been awarded a contract by Kaukaan Voima Oy Helsinki, Finland for a 385 MWth circulating fluidized-bed (CFB) boiler island to be located in Lappeenranta in eastern Finland. The new biomass power plant will supply process steam and electricity to adjacent UPM-Kymmene Corporation's pulp and paper mill, as well as district heat and electricity to Lappeenrannan Energia.

Foster Wheeler has received a full notice to proceed on this contract, which will be included in Foster Wheeler's second-quarter 2007 bookings. The terms of the contract were not disclosed.

Foster Wheeler will design and supply the 385 thermal megawatt CFB boiler and auxiliary equipment, including a feed water system, flue gas cleaning system and the boiler house, and will carry out the erection and commissioning of the boiler island. The boiler will be designed to burn biomass or a combination of biomass and peat. Commercial operation of the new boiler is scheduled for spring 2010.

"This is a significant win for Foster Wheeler," said James E. Stone, president and chief executive officer, Foster Wheeler Energia Oy. "This project, which is the largest biomass-fired CFB ever awarded to Foster Wheeler, reflects Kaukaan Voima Oy's confidence in Foster Wheeler as a supplier of state-of-the-art CFB boilers and is another example of Foster Wheeler's commitment to supply technologically advanced and cost-effective solutions to our customers."

"The new power plant, to be built in Lappeenranta, is a continuation in UPM's long term strategy to utilize biomass efficiently. The fuels used at the new power plant will be biomass-based side products from the site and residues from forest harvesting," states Anja Silvennoinen, vice president, energy, UPM.

Kaukaan Voima is owned by Pohjolan Voima Oy (PVO) and Lappeenrannan Energia Oy. Pohjolan Voima is a privately owned group of companies in the energy sector, which produces electricity and heat for its shareholders in Finland. Lappeenrannan Energia Oy is a municipal energy company owned by the City of Lappeenranta.

Foster Wheeler Ltd. is a global company offering, through its subsidiaries, a broad range of engineering, procurement, construction, manufacturing, project development and management, research and plant operation services.

###