KBR Announces Pricing of Its Initial Public Offering

HOUSTON – Nov. 15, 2006 - KBR, the engineering, construction and services subsidiary of Halliburton (NYSE: HAL), today announced the pricing of its initial public offering of 27,840,000 shares of its common stock at $17.00 per share.  The shares have been approved to trade on the New York Stock Exchange under the symbol “KBR.”

KBR expects to receive approximately $441 million of proceeds from the offering, net of underwriting fees and estimated expenses.  KBR intends to use the proceeds to repay indebtedness owed to subsidiaries of Halliburton.

The offering is expected to close on November 20, 2006, subject to customary closing conditions.  In addition, KBR has granted the underwriters an option to purchase up to an additional 4,176,000 shares to cover over-allotments, if any.

After the IPO, Halliburton will remain the majority stockholder of KBR, with approximately 83 percent of KBR's outstanding common stock (or 81 percent of KBR's outstanding stock if the underwriters exercise their over-allotment option in full).

The lead underwriters for the offering are Credit Suisse Securities (USA) LLC, Goldman, Sachs & Co., and UBS Securities LLC.

A copy of the final prospectus relating to the offering may be obtained from:

KBR
Investor Relations
4100 Clinton Dr.
Houston, Texas 77020
Investors@KBR.com