KBR Awarded Second Contract by BP for West Nile Delta Development

Houston, Texas - August 25, 2010 - KBR (NYSE: KBR) announced today that it has been selected by BP to undertake the second stage of concept selection and definition for the onshore terminal and export pipelines for BP's West Nile Delta Development in Egypt.

KBR's scope of work under the contract comprises the development of a technical definition package for an onshore terminal that will process 1,000 million standard cubic feet per day of gas and condensate to sales specifications from a number of offshore fields. This award follows the execution of the project's first stage undertaken by KBR and builds upon the feasibility work completed by KBR's consulting subsidiary, Granherne.

"As a long time client of KBR, we are proud that BP has once again selected the company as its contractor of choice," said Roy Oelking, President, KBR Oil & Gas. "The project is an important one for the Egyptian market and capitalizes on KBR's experience in this region. We look forward to working with our valued client to achieve the safe, successful execution of this project."

KBR is a global engineering, construction and services company supporting the energy, hydrocarbon, government services, minerals, civil infrastructure, power and industrial markets. For more information, visit www.kbr.com.

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