KBR Acquires Turnaround Group of Texas, Inc. (TGI)

Houston, Texas - April 7, 2008 - KBR (NYSE:KBR) today announced that it has acquired Turnaround Group of Texas, Inc. (TGI) TGI is a Houston-based turnaround management and consulting company that specializes in the planning and execution of turnarounds and outages in the petrochemical, pulp and paper and power industries. While the size of the acquisition does not have an immediate material impact on KBR's financials, it is significant from the standpoint of providing the synergy that will allow the KBR Services business unit to expand the turnaround execution capabilities of its Industrial Services business.

"The TGI acquisition demonstrates KBR's commitment to grow and expand its position in the domestic industrial turnaround and maintenance market," said William P. Utt, KBR Chairman, President and CEO. "We see strong growth and opportunity in this area and believe the TGI acquisition will help leverage our capability in this market."

TGI currently employs just over 50 people that provide services to various clients in the industry, and major engineering firms. Service to TGI's current clients will not be affected. TGI customers will continue to receive the products and services that the Company provides. TGI's employees will join the KBR organization and will become part of KBR's Services business unit. The majority of TGI's employees will be assigned to various project sites, working directly with KBR customers. Those not working at project sites will be located at KBR's downtown Houston offices.

"By integrating TGI into the KBR organization, we are increasing the number of schedulers and planners available to deploy on various projects," said David Zimmerman, President KBR Services. "Experienced and capable project planners are in high demand and by adding this group to our organization, KBR has acquired the skills necessary to expand our capabilities to execute turnaround project opportunities."

"TGI management views this merger as a win-win for both its employees and clients," said Karl Bartl, TGI President. "Our employees will be provided with greater personal growth opportunities and our clients will have access to a wider range of specialized services through resources that KBR provides."

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.

NOTE: The statements in this press release that are not historical statements are forward-looking statements within the meaning of federal securities laws. These statements are subject to numerous risks and uncertainties, including those detailed in our most recent Annual Report on Form 10-K and Quarterly reports on Form 10-Q filed during this fiscal year, many of which are beyond the company's control that could cause actual results to differ materially from the results expressed or implied by the statements.

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