J. Ray McDermott, S.A. ("J. Ray"), a subsidiary of McDermott International Inc. ("McDermott"), announced that its Morgan City, Louisiana fabrication facility has been awarded a contract for the construction of flues, ducts and reactor panels by The Babcock & Wilcox Company ("B&W"), also a McDermott subsidiary. The contract is in support of B&W's Kansas City Power & Light LaCygne #1 SCR project and is valued at approximately $4 million. Scheduled to begin in the first quarter of 2006, the contract requires J. Ray to procure structural steel materials and to fabricate, paint, load-out and ship to Kansas City: SCR system flues, ducts and reactor panels weighing approximately 2,500tons.