San Francisco, United States of America – The 2007 Bechtel Report is the annual overview of the privately held Bechtel group of companies. The Bechtel Report 2007 can be downloaded at http://www.bechtel.com/report.htm

Below you can read the Business Review which is page 3 of the report (total 10 pages)

Business Review
Strong execution combined with a diverse, international business portfolio drove Bechtel to new heights in 2006, underscoring our position as the world’s engineering and construction company of choice.

Led by our Oil, Gas & Chemicals business unit and Bechtel National, our government services unit, we posted record results for revenue and the value of new work that we booked. Revenue rose 13 percent from 2005 to $20.5 billion—a record for the fourth straight year—while new work surged 34 percent to
$24.7 billion. About half of our revenue came from outside
North America, reflecting Bechtel’s global reach.

Oil, Gas & Chemicals again set the pace by helping customers meet the fast-growing demand for energy worldwide. Projects in Australia, Equatorial Guinea, and Trinidad and Tobago showcased Bechtel’s leadership in designing and building production plants for liquefied natural gas, while a receiving terminal under construction
in Louisiana promises to boost our ability to serve the U.S. market for LNG. In Canada, Bechtel’s Bantrel subsidiary is among the leaders in extracting energy from that country’s vast oil sands. In India, we began an expansion project on what will be the world’s largest refinery.

Bechtel National, a top services provider to the U.S. government,
turned in another solid performance in 2006. One of the year’s highlights came in June, when a team headed by
Bechtel and the University of California began management and operation of Alamos National Laboratory in New Mexico, the nation’s premier institution for defense and scientific research. The Bechtel team was awarded the project at the end of 2005.
In 2006, we closed out work on the second of two contracts with the U.S. government for reconstruction of infrastructure Reviewin Iraq. We completed nearly all of the work assigned to us, but, tragically, violence gripping the country claimed the lives of 52 of our subcontractor employees associated with the project, including 47 Iraqis.

All of our business units contributed solidly to revenue in 2006. Our global infrastructure work featured three ongoing rail projects in the UK, the new Tacoma Narrows Bridge in the United States, and the New Doha International Airport in Qatar.

Bechtel Power completed a coal-fired plant expansion in Arizona and a natural gas-fired plant in California, both ahead of schedule, and made good progress at a big coal-fired power plant in Wisconsin. We also replaced aging components at several U.S. nuclear plants and are nearing completion on a project to restart the Browns Ferry nuclear plant in Alabama.

Our Mining & Metals unit, a global leader in the aluminum industry, worked on major aluminum smelters in Oman and Iceland, as well as a carbon anode plant in Norway.

Bechtel Communications helped Cingular upgrade its U.S. wireless network to provide high-speed services, and worked on a range of telecommunications projects for carriers in the UK, Europe, the Middle East, and Australia.

Partnerships and alliances continue to play a major role in our business. We are collaborating with the University of California and two companies at Los Alamos. We are teaming with GE on the design of new power plants based on “cleaner coal” technology.

We continue to support utilities pursuing the next generation of nuclear power plants.

Finally, our LNG alliance with ConocoPhillips continues to be a leader in that market.

In the 2007 Bechtel Report you’ll learn about many of the projects
around the world that helped make 2006 our best year yet.