Fluor wins SRS contract ($4B)

[Rennhack]

http://money.cnn.com/news/newsfeeds/articles/newstex/AFX-0013-22173196.htm


NEW YORK, Jan. 10, 2008 (Thomson Financial delivered by Newstex) -- Savannah River Nuclear Solutions (OTCBB:NSOL) LLC, a team led by Fluor Corp. (NYSE:FLR) , Thursday won a five-year Department of Energy contract worth $4 billion for managing and operating the department's Savannah River site.

There are additional five one-year renewal options on the contract worth another $4 billion.

The Savannah River site focuses on supporting and maintaining the nuclear weapons stockpile as well as processing and storing nuclear materials in support of U.S. nuclear non-proliferation efforts.

Work performed at the site consists of environmental management and cleanup.

Savannah River Nuclear Solutions also includes Northrop Grumman Corp. (NYSE:NOC) , Honeywell International Inc. (NYSE:HON) and Lockheed Martin Corp. (NYSE:LMT)

Fluor shares rose 6.1% to $145.94.

Link to Fluor's site, where they announce it:

http://investor.fluor.com/phoenix.zhtml?c=124955&p=irol-newsArticle_print&ID=1095082&highlight=

Corporate News ReleaseFluor-Led Team Wins Five-Year $4 Billion Management and Operations Contract at Savannah River Site
Fluor, Northrop Grumman, Honeywell and Lockheed Martin Comprise Winning Team

IRVING, Texas--(BUSINESS WIRE)--Jan. 10, 2008--Fluor Corporation (NYSE: FLR) announced today that Savannah River Nuclear Solutions, LLC, a Fluor-led team, won a U.S. Department of Energy (DOE) contract at the Savannah River Site near Aiken, S.C. The estimated $4 billion contract is for managing and operating at the Site over a five-year period. Additionally, there are five, one-year renewal options bringing the potential total contract value to $8 billion.

The DOE's Savannah River Site focuses on supporting and maintaining the nuclear-weapons stockpile as well as processing and storing nuclear materials in support of U.S. nuclear non-proliferation efforts. Work performed at the Site includes environmental management and the cleanup of legacy materials, facilities, and wastes left over from the Cold War. The Savannah River National Laboratory, a federally-funded research and development center, is also located at the Site.

Savannah River Nuclear Solutions LLC (SRNS) was formed by Fluor Corporation (NYSE: FLR) with team members Northrop Grumman (NYSE: NOC), Honeywell (NYSE: HON) and Lockheed Martin (NYSE: LMT). Key personnel from each company comprise the SRNS senior management team, under the leadership of president and chief executive officer Chuck Munns. Munns formerly served as a vice admiral in the U.S. Navy, where he was responsible for the U.S. Submarine Force worldwide.

"Fluor has a long track record of achieving significant milestones and maintaining exemplary safety records within the DOE Complex," said Alan Boeckmann, Fluor Corporation's chairman and chief executive officer. "Now, we will leverage all that Fluor has to offer to support the DOE's mission and deliver safe, on-time, on-budget performance at Savannah River."

"This win is a significant accomplishment for our team. We are confident that our combined visions, knowledge and expertise will enable us to meet the DOE's expectations, as well as those of the Site employees and the neighboring South Carolina and Georgia communities," said John Hopkins, group executive for Fluor Corporation. "The team looks forward to turning the Savannah River Site and Savannah River National Lab into catalysts for job growth and commercial innovation in the region."

"The Savannah River Site's long and distinguished history and reputation for safe and effective nuclear operations and environmental management is highly regarded worldwide," said Chuck Munns, president and CEO of SRNS. "We will honor that heritage and work to create an even more exciting future for our employees, our customers and for the community. It is a future that includes a safe, open and efficient workplace, a renewed and revitalized focus on our people, continuous process improvements and leveraging the vital research from the world-class Savannah River National Laboratory."

Since 1996, Fluor has worked as a DOE prime contractor at the Hanford Site in Washington State. Fluor Hanford and its 3,600 employees manage several major activities including dismantling former nuclear processing facilities, cleaning up the Site's contaminated groundwater, maintaining the Site's infrastructure, and operating the Volpentest HAMMER Training & Education Center. From 1992 to 2006, Fluor executed nuclear cleanup work at the DOE's Fernald Site near Cincinnati, Ohio. The project was originally estimated to take as much as 27 years to complete at a cost of $12.2 billion. Fluor Fernald completed the cleanup years ahead of schedule and billions of dollars under projected budget.

About Savannah River Nuclear Solutions

Following a 90-day transition period, SRNS will be responsible for management and operating at the DOE's Savannah River Site with a workforce of approximately 6,200 employees. Headquartered in Aiken, S.C., SRNS is a limited liability company formed by defense, energy, technology and manufacturing industry leaders Fluor, Northrop Grumman and Honeywell. For additional information, visit www.savannahrivernuclearsolutions.com.

About Fluor

Fluor Corporation (NYSE: FLR) provides services on a global basis in the fields of engineering, procurement, construction, operations, and maintenance and project management. Headquartered in Irving, Texas, Fluor is a FORTUNE 500 company with revenues of $14.1 billion in 2006. For more information, visit www.fluor.com.

(FLRG)

CONTACT: Fluor Corporation
Media Relations
Keith Stephens, 469-398-7624
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Brian Mershon, 469-398-7621
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Investor Relations
Ken Lockwood, 469-398-7220
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Jason Landkamer, 469-398-7222

SOURCE: Fluor Corporation