Foster Wheeler Names Kent Masters as Chief Executive Officer

24/07/2011


ZUG, Switzerland, Jul 25, 2011 (BUSINESS WIRE) -- Foster Wheeler AG (Nasdaq: FWLT) announced today that its board of directors has approved a senior leadership succession plan under which J. Kent Masters, 50, will become the company's Chief Executive Officer, effective October 1, 2011. It is expected that he will stand for election to the company's board of directors as soon as practicable after October 1. Umberto della Sala, 63, will continue to serve as Interim Chief Executive Officer through September 30 and then will continue with the company in his ongoing roles as President and Chief Operating Officer, CEO of the company's Global Engineering and Construction Group and member of the board of directors.

As part of the leadership succession plan, Raymond J. Milchovich, 61, is expected to continue to serve as Non-Executive Chairman of the board of directors of Foster Wheeler AG through November 3. He has informed the board that he intends to leave the board on that date. The board has been actively planning for Milchovich's eventual departure and expects to announce its succession plan for Chairman on or before November 3, 2011.

Masters comes to Foster Wheeler from The Linde Group, a world-leading gases and engineering company, where he has served as a member of the Executive Board with responsibility for the operating segments Americas, the Global Business Unit Healthcare and the Business Area Merchant & Packaged Gases. He joined Linde in 2006 as a result of Linde's acquisition of The BOC Group, where he had been Chief Executive, Industrial and Special Products and a member of the board of directors.

"Kent has significant operating, technical and contracting experience -- and a demonstrable track record of successfully leading complex global organizations," said Milchovich, Non-Executive Chairman of the Board of Foster Wheeler AG. "Moreover, we believe that Kent's leadership approach is a perfect fit with the cultural norms of Foster Wheeler. I know I speak for the entire board when I say that we have full confidence in Kent to drive the company to reach its full potential."

Milchovich added, "With Umberto under contract through 2013 and having spent considerable time with Kent and Umberto together, I believe that they will be an excellent team. Furthermore, I have assured both Kent and the board that I will remain available to them in the event I can help with the transition in any way."

A native of Atlanta, Georgia, Masters holds a Bachelor of Science degree in Chemical Engineering from the Georgia Institute of Technology and a Master's degree in Business Administration from The Stern School of Business at New York University. He also serves on the board of directors of Rockwood Holdings, a manufacturer of chemicals and advanced materials based in Princeton, New Jersey.

Umberto della Salajoined Foster Wheeler in Milan in 1973 as a process engineer. From 1997 to 2000, he was assigned to FW USA as Vice President and General Manager of Latin American Operations and President of FW Caribe and later as commercial director. In 2000, he returned to Milan as Commercial Director of the newly formed Foster Wheeler Continental Europe Unit. He was appointed in 2001 as President and CEO of FW Continental Europe. In 2005 he was appointed as Foster Wheeler CEO Global Engineering & Construction (E&C) Group. He assumed the additional role of President and Chief Operating Officer of Foster Wheeler in 2007 and has served as the company's Interim Chief Executive Officer since October of 2010. He was elected to the Foster Wheeler board of directors in February 2011.

Conference Call Information

Foster Wheeler AG plans to hold a conference call today, Monday July 25, at 4:00 p.m. Central European Time (10:00 a.m. Eastern Daylight Time in the U.S.) to discuss today's announcement. The call will be accessible to the public by telephone or webcast. To listen to the call by telephone, dial 973-935-8752 (conference I.D. No. 84752401) approximately ten minutes before the call. The conference call will also be available over the Internet at http://www.fwc.com or through StreetEvents at http://www.streetevents.com.

A replay of the call will be available on the company's web site for four weeks following the call.

Foster Wheeler AG is a global engineering and construction contractor and power equipment supplier delivering technically advanced, reliable facilities and equipment. The company employs approximately 12,000 talented professionals with specialized expertise dedicated to serving its clients through one of its two primary business groups. The company's Global Engineering and Construction Group designs and constructs leading-edge processing facilities for the upstream oil and gas, LNG and gas-to-liquids, refining, chemicals and petrochemicals, power, mining and metals, environmental, pharmaceuticals, biotechnology and healthcare industries. The company's Global Power Group is a world leader in combustion and steam generation technology that designs, manufactures and erects steam generating and auxiliary equipment for power stations and industrial facilities and also provides a wide range of aftermarket services. The company is based in Zug, Switzerland, and its operational headquarters office is in Geneva, Switzerland. For more information about Foster Wheeler, please visit our Web site at http://www.fwc.com.

Safe Harbor Statement

Foster Wheeler AG news releases may contain forward-looking statements that are based on management's assumptions, expectations and projections about the Company and the various industries within which the Company operates. These include statements regarding the Company's expectations about revenues (including as expressed by its backlog), its liquidity, the outcome of litigation and legal proceedings and recoveries from customers for claims and the costs of current and future asbestos claims and the amount and timing of related insurance recoveries. Such forward-looking statements by their nature involve a degree of risk and uncertainty. The Company cautions that a variety of factors, including but not limited to the factors described in the Company's most recent Annual Report on Form 10-K, which was filed with the U.S. Securities and Exchange Commission and the following, could cause the Company's business conditions and results to differ materially from what is contained in forward-looking statements: benefits, effects or results of the Company's redomestication or the relocation of our principal executive offices to Geneva, Switzerland; the benefits, effects or results of our strategic renewal initiative; further deterioration in global economic conditions, changes in investment by the oil and gas, oil refining, chemical/petrochemical and power generation industries, changes in the financial condition of its customers, changes in regulatory environments, changes in project design or schedules, contract cancellations, changes in estimates made by the Company of costs to complete projects, changes in trade, monetary and fiscal policies worldwide, compliance with laws and regulations relating to its global operations, currency fluctuations, war and/or terrorist attacks on facilities either owned by the Company or where equipment or services are or may be provided by the Company, interruptions to shipping lanes or other methods of transit, outcomes of pending and future litigation, including litigation regarding the Company's liability for damages and insurance coverage for asbestos exposure, protection and validity of its patents and other intellectual property rights, increasing global competition, compliance with its debt covenants, recoverability of claims against its customers and others by the Company and claims by third parties against the Company, and changes in estimates used in its critical accounting policies. Other factors and assumptions not identified above were also involved in the formation of these forward-looking statements and the failure of such other assumptions to be realized, as well as other factors, may also cause actual results to differ materially from those projected. Most of these factors are difficult to predict accurately and are generally beyond the Company's control. You should consider the areas of risk described above in connection with any forward-looking statements that may be made by the Company. The Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. You are advised, however, to consult any additional disclosures the Company makes in proxy statements, quarterly reports on Form 10-Q, annual reports on Form 10-K and current reports on Form 8-K filed with the Securities and Exchange Commission.

SOURCE: Foster Wheeler AG

Foster Wheeler AG
Media Contacts
Julie Stanisz, 908-730-4047
julie_stanisz@fwc.com
or
Investor Relations
Scott Lamb, 908-730-4155
scott_lamb@fwc.com

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