Letter to All Employees

To All Employees of KBR, Inc. and its Subsidiaries:

There is no quality more important than integrity. This applies to a business just as it does to an individual. Integrity is a core value in our Code of Business Conduct.

As we embark on a new beginning for the Company, it is imperative that we all acknowledge and continue adherence to the same Code of Business Conduct principles and policies as we have in the past. Toward that goal, the KBR, Inc. Code of Business Conduct is a guide for every Company Director, Officer, Employee and agent in applying legal and ethical practices to their everyday work. As before, the Code describes not only our standards of integrity but also some of the specific principles and areas of the law that are most likely to affect us.

Certain situations may arise which are not covered in our Code of Business Conduct. If you have any questions concerning the legality or propriety of an action, or the meaning of the Code, you should contact the Company's Law Department.

I am reconfirming that compliance with the Law and honesty and integrity in our dealings with others are not to be sacrificed in the name of profits. Management does not and will not condone any such action. Our success will be attained through compliance with the law, dealings evidencing fairness and integrity and a commitment to quality. I expect your wholehearted continued support of these Company values and principles as we move forward into this chapter of the Company.