KBR Subsidiary Awarded Basic Engineering Design Contract by Sojitz Corporation of Japan

Company to provide BED for Ammonia Plant Revamp

HOUSTON - July 10, 2007 - KBR (NYSE:KBR) today announced that its subsidiary, MW Kellogg Limited (MWKL), has been awarded a contract to provide a Basic Engineering Design (BED) package for an ammonia plant revamp. The ex Kemira-Growhow plant is currently being re-located from Rotterdam in the Netherlands to Pakistan by Fatima Fertilizer Co. Ltd. and will form part of a new fertilizer complex to be owned and operated by Fatima at Sadiqabad.

MW Kellogg has already carried out an initial relocation study to assess the necessary changes to the ammonia plant to achieve the desired 1500 metric tonnes per day production at the hotter ambient conditions at the new site and to also accommodate the higher CO2 and N2 content of the feed gas. This next phase of the project will develop the study into a basic design enabling necessary new equipment to be requisitioned or existing equipment to be modified as appropriate and will provide the basis for detailed engineering. MWKL will also provide support by reviewing key aspects of the work of the selected detailed engineering contractor.

The ammonia plant was originally designed in the 1970s by CF Braun, now part of the KBR family. Drawing on the company's extensive ammonia technology know-how, MWKL is able to provide the process license to guarantee the plant’s capacity at the new location. This venerable ammonia plant will hence enjoy a new lease of life aiding agricultural development within Pakistan.

MWKL is also providing support to Kawasaki Plant Systems (K-Plant) of Kobe, Japan in the basic engineering design of the associated Offsite and Utilities, particularly for the ammonia storage and flare systems: - the flare will replace the old open vent system and hence provide improved safety and environmental controls. MWKL are also providing technical support to K-Plant for the new Urea plant.

The BED package has been awarded to MW Kellogg by the Sojitz Corporation of Japan, who is providing the interface with Fatima Fertilizer Co. Ltd. for all commercial arrangements.

"MWKL has been a provider of Ammonia plants in the international marketplace for over 50 years", said John Quinn CEO of MW Kellogg Limited. "We are delighted to be involved in the relocation of this KBR plant from Holland to Pakistan and its subsequent relaunch as a modernised plant producing nitrogenous fertilisers for many years into the future."

KBR is a global engineering, construction and services company supporting the energy, petrochemicals, government services and civil infrastructure sectors. The company offers a wide range of services through its Energy and Chemicals, Government and Infrastructure, and Ventures business segments. For more information, visit www.kbr.com.

NOTE: The statements in this press release that are not historical statements, including statements regarding MWKL's ability to achieve the plant's desired capacity and the effects of the new plant on agricultural development within Pakistan, are forward-looking statements within the meaning of federal securities laws. These statements are subject to numerous risks and uncertainties, many of which are beyond company's control that could cause actual results to differ materially from the results expressed or implied by the statements.

CONTACT:
KBR, Houston
Director, Communications
Heather Browne, 713-753-3775
heather.browne@kbr.com
or
Director, Investor Relations
Rob Kukla, Jr., 713-753-5082
investors@kbr.com