New ACR-1000 Technology of Choice for New Brunswick

Saint John, NB; 2007 August 1 — Team CANDU^® New Brunswick announced today that the Government of New Brunswick has accepted its proposal to conduct a feasibility study for the construction of a Generation III+ Advanced CANDU Reactor^® (ACR-1000^®).

“We are extremely pleased that the Province of New Brunswick has accepted Team CANDU New Brunswick’s proposal to conduct a feasibility study for the new ACR-1000,” said AECL’s Chief Operating Officer Ken Petrunik. “We are confident the study will clearly demonstrate that a second unit will provide an energy-secure future and economic self sufficiency for the Province.”

Premier Shawn Graham said the feasibility study is an important step forward in the energy sector in New Brunswick, and could help produce tremendous growth in the province.

“This feasibility study may lead to a significant private sector investment into electricity generation in New Brunswick creating up to 4,000 jobs during construction and 500 permanent, high-paying jobs to operate the facility,” said New Brunswick Premier Shawn Graham. “It further cements New Brunswick’s growing position as an energy hub on the Eastern seaboard and could be yet another catalyst towards our goal of self sufficiency by 2026.”

Energy Minister Jack Keir added the feasibility study and other energy projects are having a positive impact on the region and province.

“Our ongoing work with Team CANDU has already brought positive spin-offs for the province like a Centre of Excellence for Retubing of CANDU reactors,” Keir said. “And the potential for future collaboration is even greater. The energy sector has the potential to bring transformational change to our province, and this is further evidence of this fact.”

The feasibility study will be funded by Team CANDU and is designed to evaluate the potential for an ACR-1000 to be constructed at the Point Lepreau Generating Station near Saint John, New Brunswick, and will examine the business case for private sector investment; identify prospective markets for this new source of power; and indicate the potential environmental and socio-economic impacts of this project. Each of the Team CANDU New Brunswick partners will take on a share of the project feasibility study that is expected to cost approximately $2.5 million and take up to six months to complete.

Team CANDU New Brunswick represents five of the world’s leading nuclear technology and engineering companies that have joined together to provide a nuclear energy solution to meet the province’s growing electricity needs. Team CANDU New Brunswick draws on the experience and expertise of Atomic Energy of Canada Limited, Babcock & Wilcox Canada, GE-Hitachi Nuclear Energy Canada Inc., Hitachi Canada Ltd and SNC-Lavalin Nuclear Limited.

“Team CANDU New Brunswick has the expertise and experience to deliver a safe and high quality energy solution for the Province of New Brunswick,” said Patrick Lamarre, President of SNC-Lavalin Nuclear. “We are proud of our record for delivering turnkey projects on-time and on-budget, and we look forward to putting our combined expertise to work for the benefit of New Brunswickers.”

The ACR-1000 is an advanced CANDU reactor, building on the pedigree of the existing technology to deliver the same benefits at an even lower cost. When constructed at Point Lepreau, the ACR-1000 will have a projected output of 1085 megawatts of electricity and a planned operating life of 60 years.

Mr. Petrunik added, “Team CANDU NB fully supports the province’s vision to become a world-class centre of excellence for nuclear power research and development. The ACR-1000 is a made-in-Canada solution that we believe is the best choice for New Brunswick in terms of safety, proven performance and project delivery.”

Notes to Editors:

About Team CANDU New Brunswick

Canada’s leading private sector companies in the nuclear and power plant field, Babcock & Wilcox Canada, GE-Hitachi Nuclear Energy Canada Inc., Hitachi Canada and SNC-Lavalin Nuclear have joined together with AECL to create Team CANDU New Brunswick. The Team has already developed a positive long-standing risk-sharing relationship through the success of several new build projects, along with the solid support of industry leaders.

About AECL

Atomic Energy of Canada Limited is a full service nuclear technology company providing services to nuclear utilities around the world. Established in 1952, AECL is the designer and builder of CANDU technology including the CANDU 6, one of the world’s top-performing reactors. AECL’s 4,700 employees deliver cutting edge nuclear services, R&D support, design, and engineering, construction management, specialized technology, refurbishment, waste management and decommissioning in support of CANDU reactor products. More information on AECL and CANDU technology can be found at www.aecl.ca.

About Babcock & Wilcox Canada

Babcock & Wilcox Canada serves North American electric utility and industrial markets and the global nuclear utility market. Based in Cambridge, Ontario, it is a wholly-owned subsidiary of The Babcock & Wilcox Company in Barberton, Ohio, which is an operating unit of McDermott International, Inc. (NYSE:MDR). The Babcock & Wilcox Company is located on the Internet at www.babcock.com.

About General Electric Canada

GE is Imagination at Work -- a diversified technology, media and financial services company focused on solving some of the world's toughest problems. With products and services ranging from aircraft engines, power generation, water processing and security technology to medical imaging, business and consumer financing and media content. GE serves customers in more than 100 countries and employs more than 300,000 people worldwide. In Canada, GE has more than 10,000 employees, 15 manufacturing plants and more than 150 sales and service locations across the country. GE Canada has been a partner in the CANDU technology since its inception in the 1950’s. For more information, visit the company's Web site at www.ge.com.

About Hitachi Canada Ltd.

Hitachi markets and manufactures power and industrial equipment for use in the Generation and Utility industries as well as a broad range of electronics, medical equipment, information and tele-communications systems and consumer products and services throughout the world, making Hitachi, Ltd. a leading global manufacturer of high technology equipment, employing approximately 347,000 people worldwide. Within Canada, Hitachi has a work-force of over 1000 with two manufacturing facilities. Hitachi Canada Ltd. is a member of Team CANDU and provides support for the design and construction of the Balance of Plant using state of the art construction technologies developed in over 40 years of continuous nuclear power construction experience, covering all proven technologies. For more information, please visit our website at www.hitachi.com.

About SNC-Lavalin Nuclear Inc.

SNC-Lavalin Nuclear Inc. is a wholly owned subsidiary of SNC-Lavalin (TSX: SNC), one of the leading groups of engineering and construction companies in the world, a global leader in the ownership of infrastructure, and in operations and maintenance services. The SNC-Lavalin companies have offices across Canada and in 34 other countries around the world and are currently working in some 100 countries. www.snclavalin.com.

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Contact:

Dale Coffin
Director, Corporate Communications
Direct: 905-403-7457
E-Mail: coffind@aecl.ca