KBR Awarded Kuwait Bulk Fuel Farm Operations Contract by U.S. Army Contracting Command

Houston, Texas - February 16, 2009 - KBR (NYSE:KBR) today announced it has been awarded a contract by the U.S. Army Contracting Command to execute bulk fuel farm operations at specific military sites near Shuiba Port and at Camp Buehring in Kuwait. The one year contract offers four one-year options for renewal and has an anticipated value of up to $19.2 million.

KBR will provide all services, resources, and management necessary to perform bulk fuel farm operations, fuel transfer, inventory management and operations, and related maintenance at specified locations for equipment and vehicles. Services will also include meter calibration and site expansion, as directed by the Government under the contract. Work is expected to begin in March.

"KBR is pleased with the opportunity to continue providing mission support to the U.S. Army in Kuwait," said Bruce Stanski, President, KBR Government and Infrastructure. "With a proven track record of serving the U.S. military as a government contractor for over 60 years, I am confident we can successfully continue to support this and other projects alongside the U.S. Army."

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 Downstream, Government and Infrastructure, Services, Technology, Upstream and Ventures business segments. For more information, visit www.kbr.com.

KBR, Houston
Director, Communications
Heather Browne, 713-753-3775
Director, Investor Relations
Rob Kukla, Jr., 713-753-5082