News Release

HOUSTON--(BUSINESS WIRE)--July 22, 2004--J. Ray McDermott, S.A. ("J.Ray"), a subsidiary of McDermott International Inc. (NYSE:MDR) ("McDermott"), announced today that it has sold its Oceanic 93 (the "Shearleg Crane") to Marine Management Group BV. The cash sales price received was approximately $18.7 million. J. Ray's proceeds from the transaction will be used in accordance with the indenture on its secured notes, issued in 2003.

"J. Ray is continually evaluating its asset base, and looks to divest assets that are either not required for future operations or do not generate a sufficient return on capital employed," said Bob Deason, president and chief operating officer of J. Ray. "After completing the dual lifts on its three spar projects, J. Ray no longer viewed the Shearleg Crane as strategic to its future operations, which provided the opportunity to realize value today through its divestiture."

McDermott 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 energy and power industry, including the U.S. Department of Energy. Its subsidiary, J. Ray McDermott, S.A. is a leading provider of solutions for offshore field development worldwide.

    CONTACT: McDermott, Houston
             Jay Roueche, 281-870-5462
             jroueche@mcdermott.com
             www.mcdermott.com

    SOURCE: McDermott