KBR Announces Plan for West Houston Campus Location

Houston, Texas - May 2, 2008 - KBR (NYSE:KBR) today announced plans to develop a campus facility near Katy, Texas. The campus will be located off Grand Parkway and Interstate 10 (I-10). KBR has signed an earnest money agreement and intends to enter into a long-term lease for the new facility, which is expected to be just over 910,000 square feet. KBR will continue to maintain a corporate and operations presence in downtown Houston. Maintaining a downtown Houston presence will give KBR the flexibility to support engineering, project management and government contracting opportunities throughout the energy corridor in west Houston. While definitive documents have yet to be finalized, construction is expected to begin before year-end with completion anticipated in 2010.

"As future opportunities for new business continue to be reviewed, it is apparent that access to talented labor from two locations at each end of the Energy Corridor on I-10 will be a crucial element of KBR's continued growth and success," said William P. Utt, KBR Chairman, President and CEO. "Not only will the new campus enable KBR to meet our future growth demands, but it will also provide the Company with a more favorable location amongst its growing employee and customer base in the Houston metropolitan area."

KBR's West Houston Campus will utilize low-rise, tilt-wall construction and is being designed within LEED (Leadership in Energy and Environmental Design) specifications, to align with KBR's commitment to environmental stewardship and sustainable development.

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.

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