April 1, 2008

Power Sector Overview

2

Forward-Looking Statements

Statements contained in this presentation that are not historical facts may constitute forward-looking statements, including statements relating to future business and economic trends, and other items. The Company believes that its expectations are reasonable and are based on reasonable assumptions. However, such forward-looking statements by their nature involve risks and uncertainties. We caution that a variety of factors could cause the Company’s business and financial results to differ materially from those expressed or implied in the Company’s forward-looking statements. These factors include, but are not limited to: an economic downturn; changes in the Company’s book of business; the Company’s compliance with government contract procurement regulations; the Company’s leveraged position and ability to service its debt; restrictive covenants in the Company’s Credit Facility; the Company’s integration of the Washington Group International, Inc.; the Company’s ability to procure government contracts; the Company’s reliance on government appropriations; the ability of the government to unilaterally terminate the Company’s contracts; the Company’s ability to make accurate estimates and control costs; the Company’s and its partners’ ability to bid on, win, perform and renew contracts and projects; the Company’s dependence on subcontractors and suppliers; customer payment defaults; availability of bonding and insurance; environmental liabilities; liabilities for pending and future litigation; the impact of changes in regulations and laws; a decline in defense spending; industry competition; the Company’s ability to attract and retain key individuals; employee, agent and partner misconduct; risks associated with international operations; business activities in high security risk countries; third party software risks; terrorist and natural disaster risks; the Company’s relationships with its labor unions; the Company’s ability to protect its intellectual property rights; anti-takeover risks and other factors discussed more fully in the Company's Form 10-K for the year ended December 28, 2007, as well as in other reports filed from time to time with the Securities and Exchange Commission. These forward-looking statements represent only the Company’s current intentions, beliefs or expectations, and any forward-looking statement speaks only as of the date on which it was made. The Company assumes no obligation to revise or update any forward-looking statements.

3

Company Overview

• A leading engineering, procurement, construction and management services company

• Tier 1 U.S. Federal government services contractor

• #1 market share in DOE’s environmental management and closure

• Approximately 56,000 employees

• Largest staff of nuclear scientists and engineers in the industry

• Offices in more than 30 countries

4

Key Investment Highlights

• Positioned for Long-Term Growth­ Leadership in growth markets

• Power (fossil, nuclear); Infrastructure; Government Technical Services

­ Acquisition strategy and organic growth has created scale

• Business model focused on client relationships­ Growing book of business

• Increasing proportion of cost reimbursable type contracts

• Attractive Operating Profile­ Unique combination of engineering, procurement,

construction and management services­ Variable cost structure­ Diversified markets, clients, and geographies

• Financial Strength­ Strong cash flow generation­ Low Capex to support growth­ Proven ability to pay down debt and delever

balance sheet

5

$3.9$3.4

$0.1$0.3 $0.4 $0.8

$1.4

$2.2 $2.3 $2.4

$3.2

$4.2

$0.0

$1.0

$2.0

$3.0

$4.0

$5.0

$6.0

$7.0

$8.0

$9.0

$10.0

1990 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

(Rev

enue

s, $

Bn)

$9.0

(1) Ranking by ENR Magazine of engineering design services firms in the U.S. for the respective year.

Design MarketPosition (1) #17 #7 #6 #2 #1 #1 #1 #1 #1 #1 #1 NA

Successful Growth Strategy

Commercial / Industrial

Infrastructure/Public Sector

Transportation

PM/CM, Transit, Private Sector, International

Federal O&M

Proven Track Record of Integrating AcquisitionsWashington Group International

Construction, Power, DOE

6

Diversified Business Sector Portfolio

Federal

Infrastructure

Power

Industrial &Commercial

7

Comprehensive Service Offering

TechnicalConsulting

Engineering& Design Construction Facility

Start-upOperations &Maintenance

Shut-down &Decommission

ProjectDevelopment

ProjectManagement

Power Federal

Industrial & Commercial Infrastructure

8

Power Sector

9

Power Sector Heritage Companies

Morrison Knudsen Corporation

Formed November 2007

Westinghouse Government ServicesPurchased July 2000

Ebasco Services Selected AssetsAcquired 1993

United Engineers & ConstructorsAcquired 1969

Rust Engineering & ConstructionSelected AssetsAcquired 1996

Raytheon Engineers & Constructors

Stearns CatalyticAcquired 1986

Harbert ConstructionSelected Assets

Acquired 1993

Yeargin Construction Company, Inc.

Acquired 1986

Jackson & Moreland

Acquired 1964

Gibbs & HillSelected Assets

Acquired 1993

Purchased March 1999

Formed July 2000

Washington Group International Acquired June 1999

Washington Division URS Division

Dames and Moore

Radian Walk Haydel

Woodward-Clyde

Acquired November 1997

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FacilityStart-up

Operations &Maintenance

Shut-down &Decommission

TechnicalConsulting

Engineering& Design ConstructionProject

DevelopmentProject

Management

Life Cycle Power Fossil • Nuclear

Planning and Consulting• General planning• Siting and licensing, environmental permittingGrassroots Development• Engineering and construction, startup• Transmission and distributionOperations• Expansion, retrofit, and modification• Operations and maintenanceClosure• Decontamination and decommissioning

11

New Generation

Power SectorMajor Markets

• Coal-fired power plants— Conventional— Circulating fluidized bed— Gasification (IGCC)

• Combustion turbine plants

— Combined cycle— Simple cycle

• Nuclear— Boiling Water— Pressurized Water

• Clean air retrofits— Sulfur oxides, nitrous

oxides, particulates, mercury

• Modifications• Maintenance• Component replacement

— Steam generators— Pressurizers— Reactor vessel heads

• Fossil and Nuclear• Transmission &

Distribution• Studies• Licensing• Consulting• Engineering• Construction Management• Utility Management• Outsourcing / Seconding

Modification Services Technical Services

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Power Sector

Every region of the world

North America184,100 MW

Middle East / Africa2,400 MW

Asia / Pacific37,000 MW

Europe8,000 MW

Latin America20,600 MW

Designed and / or constructed 250,000 MW worldwide

Every segment of the life cycle

Every major nuclear or fossil technology

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• One of the largest power generation contractors with over 250,000 MW installed capacity worldwide

• Full in-house service capability from conceptual engineering through turnkey construction

• Matured and experienced with a legacy of power generation experience of more than 100 years

• Alliances, services, and outsourcing agreements (DTE, Reliant, TVA, NRG)—repeat, long-term business relationships

Power Attributes of Success

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Major Competitors (Power)

• Bechtel­ Fossil new generation

­ Nuclear new generation

­ Nuclear steam generator replacement

• Fluor­ Fossil new generation

• Shaw­ Fossil new generation

­ Air quality control systems

­ Nuclear new generation

• Black & Veatch (engineering with construction teaming)

­ Fossil new generation

­ Transmission & distribution

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Solid Client Base

Representative Clients:

Allegheny Energy

Alliant Energy

Constellation Energy

Detroit Edison

Suncor Energy

TVA

We Energies

Representative Clients:

Entergy

Exelon

Pacific Gas & Electric

FPL

GEH

LES

PSEG

Fossil Nuclear

16

Business Model

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Business Model

• Customer Base­ Regulated, deregulated utilities, independent power producers, OEMs,

industrial generators, financial investors, government entities­ United States focus, with selected projects in world regions where the

company has established platforms• Roles

­ Bundled services as EPC contractor, Program Manager­ Professional services­ Relationship-based, focused on repeat business

• Markets­ New fossil and nuclear generation­ Major modifications (clean air retrofits, steam generator replacements)­ Transmission, distribution, substations, SCADA­ Technological neutrality

• Attractive Risk Profile

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Commercial Approach

• Spectrum of options• The risk extremes are “turnkey” and “cost plus”• The cost extremes are “turnkey” and “target price”• The control extremes are “turnkey” and “cost plus”• Owner chooses optimal cost/risk/control allocation

Owner’s Contingency

$

Risk Allocation

Cost Plus

minmax

Owner’s RiskContractor’s Risk

maxmin

Target PriceFirm Fixed Pricethrough Mechanical Completion

Base Project Cost

Project TIC

Contractor’sContingency & Margin

Turnkey

19

Representative Projects

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We EnergiesPort Washington Generating Station

Location: Port Washington, WisconsinSize: 545 MW each (1,090 MW total)Major Equipment:• 4 GE FR7FA Combustion Turbines• 4 Alstom HRSGs• 2 GE Steam Turbine• DCS – Emerson Ovations SystemScope:• Turnkey―Engineering, Procurement, and ConstructionCompletion Date: Block 2, Phase 1: August 2005

Block 1, Phase 2: Mid-2008Unique Features/Challenges:• OSHA VPP Construction Star status (highest level available)• Over 2,000,000 hours worked without days-away injury• The new Port Washington Plant is located on existing Coal Fired Power Station• For aesthetics and permitting reasons, portions of the existing buildings are incorporated into the new

plant design• SCR for NOX Control• Existing Circulating Water Tunnel was adapted for the new plant• Extensive noise control equipment used in CT air intakes and HRSG stacks to meet city sound level

requirementsAwards:• Power Engineering’s Best Gas-Fired Project, 2005• Port Washington Chamber of Commerce Business of the Year, 2007

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Salt River ProjectSpringerville Unit 4 Coal-Fired Power Plant

Location: Springerville, ArizonaSize: 400 MW Major Equipment:• Boiler (Foster Wheeler)• Steam Turbine Generator (Mitsubishi) • SCR (Alstom)• Dry FGD System (Alstom)• Baghouse (Alstom)Scope:• Engineering, design, procurement support and

construction managementCompletion Date: December 2009Unique Features/Challenges:• Tight site due to existing Unit 3, Railroad Tracks, and existing U/G Systems• Short Engineering and Construction Schedule• Existing Pipe Rack splits construction for FGD area from Boiler Area • Supplier Market Limitations• Lack of and accuracy of As-Built drawings from Unit 3

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Detroit Edison—FGD ProjectsMonroe Units 3 & 4

Location: Monroe, Michigan Size: 2 x 750 MW Major Equipment:• Limestone Forced Oxidation System (B&W)• Two new axial flow Booster Fans per unit (Howden)• New chimney with FRP liners (Hamon Custodis)• New reagent storage, material handling and

preparation system• Gypsum dewatering facility• Gypsum material conveying and storage silos• Wastewater Treatment Plant (US Filter)Scope:• Engineering, Procurement, Construction, and StartupCompletion Dates:• Unit 4—2009, Unit 3—2010• Tie-in outage 6 weeksUnique Features/Challenges:• Major relocations (ash pipe racks, transmission lines, buildings, U/G utilities)• Modularization of ductwork sections for barge delivery • Units 1–4 Common Limestone Preparation and Gypsum Disposal Systems• Stebbins Tile Absorbers • 120-day on-site limestone storage• Barge delivery of limestone and offtake of gypsum• 84% Mercury removal guarantee

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AmerenUE Callaway Nuclear Power Plant Unit 1

Location: Fulton, MissouriSize: 1200 MWMajor Equipment:• Standardized Nuclear Unit Power Plant System• Westinghouse Four-Loop Pressurized

Water Reactor• General Electric Turbine GeneratorScope:• Engineering, Project Management, Licensing, Training,

and Construction to support steam generator replacementCompletion Date: November 2005 Unique Features/Challenges:• Work completed in record breaking time: 63 days, 13 hours• Installing large components―each generator is 68 feet tall, 17 feet diameter at widest part, and

weighs 372 tons―in complex environment• Remote location required building/upgrading existing infrastructure• Close to perfect fit of all 4 generators to reactor cooling system, high quality large bore secondary

welding, and zero foreign material exclusion issueAwards/Records:• Platts Global Energy Award, ENR/McGraw-Hill Construction Energy Construction Project

of the Year, 2006• Set 3 world records for a Westinghouse system

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Louisiana Energy ServicesNational Enrichment Facility

Location: Eunice, New Mexico

Scope:

• Construction, Construction Management, and Procurement

Completion Date: August 2011

Unique Features/Challenges:

• First new nuclear civil construction in last 25 years

• Largest grassroots new nuclear construction project in the US today

• First new nuclear facility in US licensed under the NRC’s new one-step licensing process

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Tennessee Valley AuthorityFlue Gas Desulfurization (FGD) System

Location: Paradise, Kentucky, and other locations

Scope:

• Engineering, design, procurement, construction/construction management

Unique Features/Challenges:

• URS-MHI (Mitsubishi Heavy Industries) joint venture for FGD projects using MHI DCFS technology

• $1.5 Bn 10-year FGD scrubber program since 2002 for TVA’s series of FGD projects

• In 2007, completed the design and installation of a scrubber for TVA’s 1,050 MW plant in Paradise, KY (we believe this FGD scrubber is the largest in the world)

26

Power Market Outlook

27

Major Power Market Issues

• Shape and form of upcoming CO2 legislation­ Impact of a democratic Congress

• CO2 emissions prices and tradability­ Will the price support investing in carbon capture and storage technology?

• U.S. / world economy­ New power generation market correlates with GDP over long term

• International Politics­ Russia-Europe energy relations; Iran and world oil prices; world trade talks

• Fuel prices and availability­ Will enough natural gas be available?­ Supply of uranium for nuclear renaissance

• Resource constraints and competition­ Cost of new employees; limits on growth

• Commodity pricing­ May reduce number of viable projects, and pose a threat to long-term contracts

• Public opinion­ Anti-nuclear, anti-coal, and pro-regulated markets

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Power Market View: Fossil

Long-Term Trends• Demand for energy slows, but rebuilds in middle years

• Coal projects facing hurdles due to global warming backlash

• New nuclear plants not planned to come online until 2014-2015 at the earliest

• Natural gas-fired plants will fill the gap due to short schedules and low CAPEX

• CAIR/CAMR-driven AQCS market will continue to drive investment past 2010, with the potential for a second wave driven by CO2 legislation

• Renewable energy will remain minor competitor

Market Characteristics• Contracts range from EPC to services-only

• Diverse technological expertise required to meet clients’desire for fuel diversity

• Clients risk-averse and desire price certainty

• Global procurement ability essential to compete

Uncertainties• Progress of IGCC technology may shift market

• Commodity cost volatility (e.g. steel, copper)

• Market’s fuel of choice:­ Carbon dioxide legislation

­ Natural gas prices

­ Success of nuclear new build projects

• Form of carbon dioxide regulations, if any, may affect the market’s technology of choice:

­ Cap-and-trade vs. carbon tax

­ Offsets (tree-planting)

­ Existing technology, e.g. Areva/ALSTOM’s system

­ Other technology

U.S. Fossil Capacity Additions by Technology Type (MW)Source: Platts Power Outlook Research Service, February 2008

0

2000

4000

6000

8000

10000

12000

2006 2007 2008 2009 2010 2011

Coal Combined Cycle Gas Simple Cycle Gas

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Power Market View: Nuclear

Long-Term Trends• Streamlined licensing process should reduce risk of

project delays and encourage investment

• New reactor technologies are more cost competitive

• Tailwind from global warming controversy will enhance public support of new nuclear generation

• Cooperative labor stance toward new nuclear generation will help ensure adequate labor supply

• Recent real monetary commitments for new units is encouraging for market development

• Declining market opportunity remains for component replacement to extend life of old units

Market Characteristics• Engineering services during planning period

• Emerging GEN III+ technologies will dominate

• Multi-stage value chain offers opportunities for vertical integration

• Client focus on cost certainty in contracts

• Global procurement ability essential to compete

Uncertainties• Construction process under new license regulatory

requirements (URS Corporation currently working through this successfully on LES)

• Major component and commodity price/availability

• Full funding not yet committed for any major project

• Fuel pricing and supply

• Spent fuel disposal

• Political backlash around new generation sites

• Commodity cost volatility (e.g. steel, copper)

• Labor supply

U.S. Applications for Nuclear Power Uprates & New Plants

02468

10121416

2004 2005 2006 2007 2008 2009 2010

Power uprate approvals Applications for new plants Actual Expected

Source: Nuclear Regulatory Commission, January 2008

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Key Strategic Priorities

• Maintain strong presence in clean air market

• Increase pursuit of U.S. fossil new generation

• Grow position in new nuclear generation

• Expand international market around existing platforms

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State of the Nuclear Market

32

A Rich Nuclear Heritage Company

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US Nuclear Experience

Diablo CanyonDiablo Canyon

IndianPoint

IndianPoint

Fort CalhounFort Calhoun

Comanche PeakComanche Peak

Waterford St.Lucie

Crystal RiverCrystal River

RobinsonRobinson

Brunswick

Harris 1Harris 1

J.A. FitzpatrickJ.A. FitzpatrickSeabrook

Engineer of Record

Watts BarWatts Bar

Millstone

Vermont YankeeVermont Yankee

(Puerto Rico)Bonus

Constructor of Record

DresdenDresden

South TexasSouth Texas

Quad CitiesQuad Cities

Three Mile IslandThree Mile Island

Ft. St. VrainFt. St. Vrain

West ValleyWest

Valley

Hanford River

Corridor

Hanford River

Corridor

Idaho Falls LaboratoryIdaho Falls Laboratory

Mound FacilityMound Facility

Savannah River

Rocky FlatsRocky Flats

INEL (M&O)INEL (M&O)

Oak RidgeOak Ridge

WIPPWIPP

DOE Projects

Salem

Calvert Cliffs

Calvert Cliffs

Wolf CreekWolf Creek

ByronByron

Palo VerdePalo Verde

Connecticut Yankee

Browns FerryBrowns Ferry

CallawayCallawayClintonClinton

BraidwoodBraidwood

LaSalleLaSalle

Prairie IslandPrairie IslandPoint BeachPoint Beach

PalisadesPalisadesFermiFermi

LimerickPeach Bottom

LimerickPeach Bottom

Nine MilePoint

Nine MilePoint

OconeeOconee

Engineering Modifications

Susque-hanna

Susque-hanna

ColumbiaColumbia

HatchHatchVogtleVogtle

PerryPerry

Maintenance Services

Arkansas Nuclear OneArkansas

Nuclear One

Shoreham

Quality Programs

Pilgrim

Princeton – PA Accelerator

McGuireMcGuire CatawbaCatawba

River BendRiver Bend

Grand GulfGrand Gulf

San OnofreSan Onofre

ZionZion

US SGR/RVCH Projects

DCCookDCCook

Decommissioning

ShippingportShippingportWaltz Mill

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International Nuclear Experience

EngineeringConstruction

Angra 1

Laguna Verde 1Laguna Verde 2

Chin Shan 1Chin Shan 2

Torai 1Tsuruga 1Mihama 1Ohi 1Ohi 2

Almaraz 1Almaraz 2Cofrentes

Santa Marid de GaronaJose Cabera

Ringhals 2Ringhals 2

Beznau 1Beznau 2Beznau 1Beznau 2

Lungmen 1Lungmen 2

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Benefits of Industry ParticipationDuring the Downturn in New Nuclear

• Refinement of large project management capabilities• Lessons learned in areas of construction management

and installation guidance• Large project labor management experience• Construction input into design output• Refinement of documentation systems• Developed organizational approach to assure

licensability• Experienced personnel – “They know from experience

the pitfalls of the previous nuclear program”

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Driving Factors for the Nuclear Market

• Solution to greenhouse gas emissions

• Rising fuel prices

• Fuel diversity

• Energy Policy Act stimulation­ Production tax credit of $18/MWh for the first 6,000MW for their first 8 years

online

­ 80 percent loan guarantees

­ Standby support for delays in the first 6 plants caused by process breakdown or litigation

­ Price Anderson Act renewal to plants online before 2025

• Technology improvements

• One-stop licensing

• Spent fuel storage and reprocessing

37

106

16

2006 - 2016

Europe

93

16

2006 - 2016

AIM

23

42

10

2006 - 2016

Asia

Best CaseMost LikelyWorst Case

Key

Source: GE

North America

157

24

2006 - 2016

7

0

10

2006 - 2016

Emerging MarketsKeys to success …

Certainty—of technology, cost & schedule

Capacity—resource & supply chain to deliver

Credibility—experienced delivery team

Commitment—to industry for the long term

Keys to success …Certainty—of technology, cost & schedule

Capacity—resource & supply chain to deliver

Credibility—experienced delivery team

Commitment—to industry for the long term

Estimated new plant orders by 2016—scenarios worth $35 to $150B over next 10 years

Nuclear New Build—26 to 108 GWe

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License Applications to the NRC

• 22 applications anticipated 2007-2010 (33 units)

• 7 received to date

Company Station Design Units StateAP1000AP1000ESBWRABWREPRAP1000ESBWR

Duke* William Lee 2 SCNuStart* Bellefonte 2 ALDominion* North Anna 1 VANRG* South Texas 2 TXUNISTAR* Calvert Cliffs 1 MDProgress Energy Harris 2 NCNuStart Grand Gulf 1 MS

* Completed acceptance review and docketed

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Dresden Unit 1, the first commercial NPP in the US

Not cost effective or timelyNot cost effective or timely

Nuclear Power Plants—The Old Way

• Construction began before the engineering and licensing were complete

• Each design and project was unique

• Project arrangements were cumbersome and shifted risk to owners

• Weakened cost and schedule controls

• Craft work was not supplemented with technology

• Information technology and modularization was non-existent

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Construction Cycle Shorter –Verification and Configuration Management are Integrated into Design

Construction Cycle Shorter –Verification and Configuration Management are Integrated into Design

Today—Experience Shows Us Nuclear Power is Different

• Advanced designs are pre-licensed

• Engineering is largely completed in detail before construction begins

• Aiming for more regulatory certainty

• More collaboration amongst project participants

• Extensive use of information technology

• New construction techniques, such as open-top construction and composite structures

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Positioned for the Renaissance

• Advancing construction management techniques­ Louisiana Energy Services National Enrichment Facility

• Real time construction on a multi-$B facility­ TVA Watts Bar 2 completion

• 35% subcontractor to Bechtel­ SGT joint venture

• one of only two major component replacement contractors in the U.S.

• Alignment with technology suppliers­ GE ESBWR­ MHI APWR­ AREVA (SGT)

• Owners – Program Management ­ Programs in China

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Questions and Answers