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Press release from Business Wire

Fluor to Provide Environmental Services Upgrades for PNM San Juan Generating Station in New Mexico

<p class='bwalignc'> <i><b>Emissions Reduction Project to Produce Substantially Cleaner Energy</b></i> </p>

Thursday, November 08, 2012

Fluor to Provide Environmental Services Upgrades for PNM San Juan Generating Station in New Mexico08:48 EST Thursday, November 08, 2012 IRVING, Texas (Business Wire) -- Fluor Corporation (NYSE: FLR) announced today that it was awarded an early-phase engineering, procurement and construction (EPC) contract by PNM to provide environmental services upgrades for four power units at the San Juan Generating Station in New Mexico. Fluor will book the undisclosed first phase value of this project into backlog in the fourth quarter of 2012. Fluor expects to begin the second phase in January 2013 with full notice-to-proceed projected for mid-2013. Fluor will provide full EPC services to design, build, install and commission new selective catalytic reduction (SCR) equipment for each of the San Juan Generating Station's four units totaling 1,848 megawatts of capacity, which will significantly reduce the nitrogen oxide (NOx) emissions. When the environmental upgrades are completed, the equipment utilized will provide one of the highest NOx removal efficiencies in the country and will comply with the Environmental Protection Agency federal plan to address regional haze at San Juan Generating Station. “This first phase contract for a new SCR project has been the result of a highly collaborative process with PNM,” said Dave Dunning, president of Fluor's Power Group. “Fluor is a leader in providing environmental compliance services for power plants across the country with more than 39,000 megawatts of SCR upgrade projects completed. We will assist PNM with creative, flexible solutions to bring cleaner power to its customers.” “We have been very impressed with Fluor's professionalism and flexibility as we have been engaged to bring this project to reality over the past several months,” said Ron Talbot, senior vice president and COO of PNM Resources, the parent company of PNM. “We appreciate Fluor's willingness to develop approaches that keep our compliance with the federal regional haze rule on track while also giving PNM and the other San Juan Generating Station owners the flexibility to aggressively explore alternatives to the federal plan. Minimizing the cost impact to customers while alternatives were explored is important, and Fluor has helped us achieve that.” The San Juan Generating Station is located in Waterflow, N.M., and is expected to have more than 500 craft laborers at construction peak in mid-2015. All units are expected to be online by mid-2017. Fluor's Greenville, S.C. office is expected to lead the project. Fluor previously served as EPC contractor for the LUNA (partially-owned by PNM) natural gas, combined cycle facility in Deming, N.M. that was completed in 2006. About Fluor Corporation Fluor Corporation (NYSE: FLR) designs, builds and maintains many of the world's most challenging and complex projects. Founded in 1912, the company was started by John Simon Fluor Sr. with a modest investment of $100. Since those humble beginnings, the company has grown into one of the largest engineering & construction companies in the world. Fluor is celebrating its 100th anniversary during 2012. Today, through its global network of offices on six continents, the company provides comprehensive capabilities and world-class expertise in engineering, procurement, construction, commissioning, operations, maintenance and project management. Headquartered in Irving, Texas, Fluor is a FORTUNE 200 company and had revenue of $23.4 billion in 2011. For more information, visit www.fluor100.com and www.fluor.com. Fluor CorporationMedia RelationsKeith Stephens, 469-398-7624orBrian Mershon, 469-398-7621orInvestor RelationsKen Lockwood, 469-398-7220orJason Landkamer, 469-398-7222