KBR Selected to Manage Panama City Airport Project

HOUSTON – May 23, 2007 - KBR (NYSE:KBR) today announced that its Management and Engineering unit has been selected to provide program and construction management (PM/CM) services for the new Panama City-Bay County International Airport in Panama City, Florida. The scope of work will include the relocation and construction of a new $330 million airport. The new airport is scheduled to open in late 2009.

KBR has already begun to staff the program and construction management team in Panama City. The project will be supported by the management and engineering unit's southeast operations office in Mobile, Alabama. KBR was awarded the Panama City contract through a competitive bidding process involving ten other firms.

"This was a highly competitive process and the selection of KBR is a testament to our ability to provide a customer-focused, high quality project management and construction management solution," said Bruce Stanski, Executive Vice President of KBR's Government and Infrastructure division.

KBR's staff has provided its construction expertise to many major airports around the world. Airport services include feasibility studies, planning, design, construction management, program management, and operations and maintenance.

"KBR was selected for this project due to its solid reputation in assembling and managing teams of local consultants and because of our successful completion of the Airside Improvement Program at Houston Intercontinental Airport where we met all of the client goals for schedule and budget milestones," said Jeff Dealy, KBR's program manager for the Panama City project.

In 2005, KBR completed work on the Dallas/Fort Worth International Airport including the construction of the largest airport people mover ever built. KBR provided the architectural and engineering design, design management, construction administration and quality assurance for the project.

KBR is a global engineering, construction and services company supporting the energy, petrochemicals, government services and civil infrastructure sectors. We offer our wide range of services through our Energy and Chemicals (E&C), Government and Infrastructure (G&I), and Ventures business segments. For more information, visit www.kbr.com.

CONTACT:
KBR, Houston
Director, Communications
Heather Browne, 713-753-3775
heather.browne@kbr.com
or
Director, Investor Relations
Rob Kukla, Jr., 713-753-5082
investors@kbr.com