PRESS RELEASE: May 30, 2006

J.Ray McDermott Morgan City Facility Begins Building Two Casino Hull Modules for Harrah's Indiana Expansion Project

J. Ray McDermott, S.A. ("J. Ray"), a subsidiary of McDermott International Inc. (NYSE: MDR) ("McDermott"), announced today that it has begun fabrication of two specialty hull modules for Harrah's Entertainment at its Morgan City, Louisiana facility.  The hull modules are part of Harrah's "Horseshoe Hammond, Indiana Casino Expansion Project."

J. Ray cut first steel for the hull modules on May 8 and May 23. Each barge, when completed, will measure 276 feet long by 102 feet wide and 22 feet deep, weighing approximately 1,700 tons.  The hull modules will be combined with four others under construction elsewhere into a 564 foot long, 320 foot wide, and 22 foot deep casino vessel. Both hull modules are expected to be completed by first quarter 2007.

"J. Ray brings 50 years of offshore fabrication expertise to the casino barge project,' said Steve Becnel, Morgan City Fabrication General Manager.  "This is another example of our readiness to take on non-traditional opportunities and challenges.  One of our top priorities is to maintain employment levels for the talented and dedicated local craftspeople, who have made J. Ray's name synonymous with quality."

J. Ray's Morgan City Fabrication facility is proudly celebrating its 50^th Anniversary in 2006. Over the past five decades, it has been the construction site for some of the offshore industry's most significant projects. Continuous improvements and investments in infrastructure, along with a highly skilled and dedicated workforce, have enabled the facility to competitively and safely produce quality structures for the offshore oil and gas industry.

J. Ray McDermott, S.A, is a leading provider of solutions for offshore field development worldwide. McDermott International Inc. is a leading worldwide energy services company. McDermott's subsidiaries provide engineering, fabrication, installation, procurement, research, manufacturing, environmental systems, project management and facilities management services to a variety of customers in the power and energy industries, including the U.S. Department of Energy.

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For more information, please contact:

Louise Denly
Director, Public Relations
J. Ray McDermott, Inc.
Houston, TX
(281) 870-5000
E-Mail:ldenly@mcdermott.com
www.mcdermott.com