KBR and ExxonMobil's FCC Technology Selected by Southern California Refinery to Advance Ongoing Efforts to Protect the Environment

HOUSTON – Jan. 20, 2005 - KBR, the engineering and construction subsidiary of Halliburton (NYSE: HAL), has been awarded a license and basic design engineering package to provide its state-of-the-art Fluid Catalytic Cracking (FCC) technology for the revamping of the regeneration section of the FCC unit at a 250M BBL/day refinery located in Southern California. KBR and ExxonMobil's unique FCC Counter-Current Regeneration technology (LoNOx) improves the operating performance of FCC units, as well as reduces emissions of NOx and CO from the regenerator, allowing the refiner to meet air quality targets.

"With the ever-increasing focus on reducing NOx emissions from FCC units, our FCC Counter-Current Regeneration technology does just that," said Tim Challand, KBR's vice president of technology. "Our LoNOx technology includes a spent catalyst distributor design that helps reduce NOx generation, and is less expensive, more reliable and easier to operate than other alternatives."

"KBR and ExxonMobil were selected for this project because no other provider offers a proven FCC NOx reduction regenerator technology," Challand added. "The reduction in NOx emissions from this facility will allow the refiner the opportunity to obtain emission offsets for another project in the area."

FCC Counter-Current Regeneration is part of a technology portfolio offered by KBR and ExxonMobil Research and Engineering Company (EMRE) through their FCC technology, development, marketing and engineering alliance. This combines the considerable design, development and operational experience of these two companies, which were instrumental in the creation of fluid catalytic cracking in the early 1940's, and provides state-of-the-art technology and design with both a design contractor's and refiner's perspective. Performance and cost effectiveness are combined with safety, operability and reliability to give petroleum refiners a competitive edge in today's markets.

EMRE is the research and engineering arm of Exxon Mobil Corporation, a leading global oil, natural gas, and petrochemicals company whose subsidiaries have operations in approximately 200 countries and territories. Additional information regarding ExxonMobil and technologies it licenses can be found at http://www.exxonmobil.com/refiningtechnologies.

KBR is a global engineering, construction, technology and services company. Whether designing an LNG facility, serving as a defense industry contractor, or providing small capital construction, KBR delivers world-class service and performance. KBR employs more than 60,000 people in 43 countries around the world.

CONTACT: Halliburton Public Relations, Houston
Melissa Norcross, 713-759-2601
Melissa.Norcross@Halliburton.com