-- Third quarter results reflect:
   -- Positive performance in Upstream despite loss ($0.08 per share) on an
      EPC project
   -- Cost reduction charges of $2.4 million, which along with additional
      cost saving initiatives anticipated in Q4, are expected to save $17.6
      million on an annual basis
-- Backlog increased to $501 million
-- Awarded construction of 2 spreads of the Fayetteville Express Pipeline
-- Executed NiSource Alliance Agreement
-- Formed Joint Venture with Nacap to pursue major projects in Australia
-- Annual guidance for continuing operations for 2009 reduced to $0.50-0.60
   per diluted share

Willbros Group, Inc. (NYSE: WG) announced results for the third quarter 2009: revenue of $247.5 million and net income of $1.7 million or $0.04 per diluted share. Third quarter results reflect completion of a major large diameter pipeline project, a loss on an engineering, procurement and construction ("EPC") project, as well as charges associated with meaningful cost savings initiatives. While current markets remain challenging, Willbros continues to be optimistic about 2010 based upon its increase in backlog, the first increase in five quarters, and significantly higher levels of bid activity across its business lines. As a result, management is proactively keeping in place key resources, despite the negative near term financial impact, in order to fully capitalize on an anticipated improvement in business activity beginning in the first quarter of 2010.

Third quarter results were also impacted by lower than anticipated utilization rates due to delays and cancellations of anticipated projects, higher levels of non-project chargeable staff required to address increasing levels of bid activity, as well as inclement weather which reduced the potential to convert project contingencies into income. The EPC project which incurred additional charges has now achieved mechanical completion. Randy Harl, President and Chief Executive Officer, explained, "While the third quarter results were impacted by charges on an EPC job, we are confident the issue is not systemic, and we are pleased with our overall execution and job performance reflecting our continuing progress with our processes and system improvements."

Segment Operating Results

The Upstream Oil & Gas segment reported operating income of $5.5 million on revenue of $190.2 million. Operating results were driven by successful execution on large diameter pipeline construction projects, offset by charges (approximately $4.5 million or $0.08 per diluted share) on an EPC project awarded in late 2006 that experienced schedule delays and scope changes, subsequent to a 2009 workplace incident, and charges associated with cost savings initiatives (approximately $0.9 million or $0.02 per diluted share). The Downstream Oil & Gas segment reported an operating loss of $2.0 million, impacted by charges associated with cost savings initiatives (approximately $1.6 million or $0.03 per diluted share) and continued customer curtailment of spend for maintenance and capital projects in the refining sector. Regarding the previously mentioned strategic retention of key resources, management believes this decision should ensure critical equipment and personnel are available for commitments, many of which are included in current backlog, beginning in early 2010 and assure future performance levels.

Cost Reductions

In the third quarter, Willbros significantly advanced its plan to reduce staff and indirect expenses in order to realign its costs with the reduced level of activity in its markets. Given the significant process and systems improvements the Company has made over the last two years, management believes many of these cost reductions can be sustained once market activity increases. Third quarter includes pre-tax charges of $2.4 million associated with cost reductions and anticipated additional charges of approximately $1.3 million in the fourth quarter, which are primarily related to office and facility leases, are anticipated to generate annualized savings of $17.6 million. Total savings related to cost reductions over the last twelve months should result in annualized savings of approximately $56.1 million.

Van Welch, Senior Vice President and CFO, commented, "Our expectations for 2009 results have been impacted by continued delays and cancellations of anticipated work as the macroeconomic environment caused our customers to reevaluate every aspect of their businesses. Accordingly, we have reassessed the cost structure of our business units and taken actions to appropriately size the Company for the market conditions we anticipate, for our current and future commitments, and for the strategic growth we plan going forward. We have maintained discipline with respect to our cash management and capital spending and our leaner structure will contribute significant savings in 2010."

Awards Improve Visibility

Willbros noted that its focus on diversification of its business model continues to provide new revenue opportunities as bid and work volumes increase in the Government Services, Pipeline Manage & Maintain and Pipeline Specialty Services businesses. Increased bid activity in these areas, as well as recent awards across business segments, has improved management's visibility into the first half of 2010. In separate press releases today, Willbros announced the award of significant new work on the Fayetteville Express Pipeline project, which is included in third quarter backlog, and the execution of a long term alliance agreement with NiSource Gas Transmission & Storage.

Downstream Market Outlook

Willbros remains well positioned for refinery maintenance and turnarounds, small capital and life cycle extension projects, and is expecting to see improvement in Downstream activity as early as the first quarter of 2010. Refinery turnarounds, where early planning activity has already begun, are expected to be executed in early 2010. Downstream construction groups are experiencing increased levels of inquiry activity over the previous quarter, while the Wink engineering business is continuing to position the Company for engineering work at the plant level as well as for EPC projects. In the past two months Downstream units have successfully competed for and won assignments for turnarounds, tank services work and plant engineering, displacing incumbent service providers at sites in Cushing, Oklahoma, Baton Rouge, Louisiana and Whiting, Indiana. The Downstream unit has also won new project work for heater services to support operations in a large Gulf Coast refinery. At September 30, 2009 turnaround projects comprised forty-three percent of the Downstream segment backlog.