Washington Group International Nuclear Waste Contract Expanded To Accelerate Permanent Disposal Of Doe Waste Nationwide

July 7, 2003

BOISE, Idaho - Washington Group International, Inc. (NASDAQ: WGII) today announced that its Washington TRU Solutions subsidiary in Carlsbad, New Mexico, agreed to expanded work scope and financial incentives to accelerate cleanup of transuranic nuclear waste stored around the country at current and former United States Department of Energy nuclear-materials-production and research facilities.

Transuranic - or TRU - waste includes protective clothing, tools, and other material contaminated with manmade radioisotopes that are heavier than uranium.

Washington Group's previous responsibilities at the New Mexico site were focused on operating the nation's first deep geological nuclear waste repository, the Waste Isolation Pilot Plant (WIPP) near Carlsbad. The DOE-issued contract modification expands those responsibilities to include nationwide characterization of transuranic waste and coordination of the national transportation program to ship those wastes to the WIPP. The contract also incorporates new performance incentives for accelerated risk reduction, site clean up and accelerated waste treatment to prepare waste for disposal in the WIPP repository.

"Since the 1980s, we have managed the Waste Isolation Pilot Plant - through its design, construction, licensing, and operation - and are pleased the DOE has reinforced its confidence in us by adding these important national missions to our scope," said Stephen G. Hanks, Washington Group president and chief executive officer. "This new agreement is designed to expedite the environmental cleanup of DOE sites across the country while reducing the overall cost of the effort for the taxpayers. In return, the government has agreed to pay us incentives if we achieve those milestones."

The cost-reimbursable contract is valued at $474.5 million and runs through September 2005 with the potential for up to five additional years.

Washington TRU Solutions employs more than 600 people on the WIPP site that began operations in March 1999. Project facilities include excavated rooms 2,150 feet underground in an ancient and stable salt formation.

Washington Group International, Inc. provides the talent, innovation and proven performance to deliver integrated engineering, construction, and management solutions for businesses and governments worldwide.

With approximately 30,000 employees at work in over 40 states and more than 30 countries, the company provides premier science, engineering, construction, operations, program-management, and development services in 15 major markets.

Markets Served

Energy, consumer products, environmental, government, heavy civil, industrial, manufacturing, mining, nuclear services, facilities management, process, telecommunications, transportation, water resources, and weapons demilitarization.

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