KBR Subsidiary Granherne Awarded Frame Agreement by Petoro AS

Houston, Texas - February 18, 2008 - KBR (NYSE:KBR) today announced that its consulting subsidiary Granherne has been awarded a four-year frame agreement by Petoro AS to execute front-end studies and project reviews related to Petoro’s involvement as partner in production licenses in the development of oil and gas resources on the Norwegian continental shelf. Services will include area development studies, feasibility studies, verification studies, project and technical reviews, and schedule, cost and risk analyses.

"This award is an example of Granherne's expertise in conceptual engineering services," said Clive Vaughan, Vice President, Granherne. "We look forward to working closely with Petoro AS in their development and production of oil and gas reserves within the Norwegian sector."

Granherne is a leading front-end engineering consultancy for onshore, offshore and deepwater oil and gas developments and has experience on over 3,000 projects in more than 20 countries. Granherne has provided services for more than 100 subsea developments, including step out expansions, marginal fields and major subsea projects.

KBR is a global engineering, construction and services company supporting the energy, petrochemicals, government services and civil infrastructure sectors. The company offers a wide range of services through its Downstream, Government and Infrastructure, Services, Technology, Upstream and Ventures business segments. For more information, visit www.kbr.com.

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