Black & Veatch’s Energy Engineering & Construction division restructures

KANSAS CITY, Mo., Dec. 4, 2002 — Black & Veatch announced that its Energy Engineering & Construction (EE&C) division, which provides engineering, procurement and construction services for power generation facilities worldwide, has been restructured.

This change will position the company to respond to increasing challenges posed by the power generation market and enhance the company’s global power generation enterprise.

The restructure of Black & Veatch’s largest division will divide its global power generation market into three geographical regions – Europe, Asia and Americas. A separate nuclear group will also be established to oversee nuclear projects in the three geographic regions. These steps will enhance the division’s ability to align resources geographically and enable it to quickly respond to the changing conditions in markets across the globe.

“We must respond to the global power market with an organization adapted to the situation in each region,” said Ron Wood, president of the division. “This new organization is designed to provide the flexibility and resources we need in each market.”

The power generation market varies with economic conditions, political and regulatory influences and the pace of globalization. This reorganization will allow Black & Veatch to better adjust to changing conditions in the various markets it serves.

“Over the last four years, generating facilities in the United States were developed and built at an aggressive rate,” said Wood. “This increase in generation was driven by deregulation, a booming economy, market volatility and increasing wholesale electricity prices. However, in late 2001, the United States’ rapid generation expansion came to an abrupt end. As U.S. energy opportunities remain limited over the next several years, EE&C is increasing its international focus for generating projects, which represent approximately 85 percent of the total new global generation market.”

The following senior executives will oversee each of the three EE&C regions:

* Steve Edwards, who has served as director of engineering and procurement for the EE&C division since 2000, will oversee the Americas region, which includes North, Central and South America. Edwards has been with Black & Veatch since 1978.

* Steve Niles, who has served as director of contracts development for the EE&C division since 1998, will assume the leadership role in the Asia region, which includes East and Southeast Asia. Niles has been with Black & Veatch since 1969.

* Dave Still will assume leadership of the Europe region. Still has been director of marketing and sales for the EE&C division since 2000. The newly formed region includes Europe, Africa, the Middle East, Central and Western Asia. Still has been with Black & Veatch since 1970.

Another important component of the reorganization is the creation of a stand-alone nuclear group, which will be responsible for overseeing nuclear projects in all geographic regions.

“Nuclear is gaining momentum as a solution to global power generation,” said Wood. “A stand-alone nuclear group will allow us to capitalize on this accelerating momentum.”

Heading the nuclear group will be Steve Rus, a project director in EE&C who has been with Black & Veatch since 1976.

Wood also announced several other changes in assignments related to the reorganization.

James Lewis will assume additional responsibilities for detailed engineering, procurement, proposals and contracts. He will also continue to be responsible for project controls and estimating. Lewis has been with Black & Veatch since 1974.

Curtis Kling will continue in his role as chief engineer for the division. However, the reorganization establishes a new and stronger role for the chief engineer. He will become responsible for all conceptual design and will provide all project engineering management. This change is intended to ensure uniform application of best engineering practices across all projects. Kling has been with Black & Veatch for 28 years.

Hal Smith will assume leadership of the EE&C construction group; he had previously been the director of projects for the division. Smith, who has been with Black & Veatch since 1968, will be responsible for coordinating the utilization of construction execution support functions in field operations.

The reorganization is effective immediately; however, the needs of current clients and the maintenance of project team continuity assigned to those clients would take precedence over implementation of the reorganization.

About Black & Veatch

Black & Veatch Corp. is a global engineering, construction and consulting company specializing in infrastructure development in the fields of energy, water and information. Founded in 1915, Black & Veatch serves its clients with conceptual and preliminary engineering services, engineering design, procurement, construction, financial management, asset management, information technology, environmental, security design and consulting, and management consulting services.

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