KBR Awarded Contract to Provide Phenol Technology for Lihuayi Weiyuan Chemical Co., Ltd. in Lijin County, China

Houston, Texas — July 28, 2011 — KBR (NYSE: KBR) today announced it was awarded a contract by Lihuayi Weiyuan Chemical Co., Ltd. to license its phenol technology for Lihuayi’s grassroots, 220,000 tons per annum (kta) Phenol/Acetone plant in Lijin County, Shandong Province, China.

As a key phenol licensor, KBR's product and execution teams have been involved in leading-edge phenol technology for more than 60 years and have completed more than 50 phenol projects worldwide.

“KBR’s phenol technology is known for its reliability and safety, which are important long-term cost of production measures in this extremely competitive industry,” said John Derbyshire, President, Technology. “We look forward to supporting Lihuayi as we work together to complete this project.”

“The Phenol/acetone Project is one of the major organic chemical projects invested by Lihuayi Group. Through the technical cooperation between Lihuayi and KBR, our leading industrial chain will be extended, and the industrial product structure will be optimized and upgraded,” said Mr. Li Yusheng, General Manager of Lihuayi Group, Chairman of Lihuayi Weiyuan Chemical Co., Ltd. “It will accelerate the forging of industrial clusters of organic chemical and new materials, and promote to achieve variation development of our leading industry, thus establish the advantage of leading development and realize environmental friendly development and sustainable development.”

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

Rob Kukla, Jr.
Director, Investor Relations
Gabriela Segura
Manager, Media Relations