KBR Joint Venture Awarded FEED Contract for Browse LNG Project

Houston, Texas — February 21, 2011 — KBR (NYSE: KBR) announced today that KLH Australia-Browse Joint Venture (KLH Australia), a joint venture between KBR, Leighton Contractors and John Holland, has been awarded a FEED contract by Woodside for the company’s Browse Liquefied Natural Gas (LNG) Development in Western Australia.

The joint venture will provide lump sum FEED services for the development of three four-million ton per annum (MTPA) LNG trains, associated infrastructure, accommodation and marine facilities. The award of this contract marks the first contract win for KLH Australia. Work on the project is expected to begin immediately.

The LNG processing facilities are to be located at the Western Australian Government’s Browse LNG Precinct, 60 kilometers (approximately 37 miles) north of Broome on the North West coast of Australia. As an area with limited existing infrastructure and with tides in excess of eight meters, the project poses significant onshore infrastructure and marine engineering challenges.

"The award of this contract underscores the value KBR's global LNG strength and capabilities brings to projects in remote, challenging environments,” said Mitch Dauzat, President, KBR Gas Monetization. “The added expertise and local knowledge of Leighton Contractors and John Holland allows our joint venture to provide premier services during an important phase of the Browse LNG Development. We are proud to be given this opportunity and look forward to our continued collaboration with Woodside."

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:
Rob Kukla, Jr.
Director, Investor Relations
713-753-5082
investors@kbr.com
or
Gabriela Segura
Manager, Media Relations
713-753-8694
gabriela.segura@kbr.com