KBR Awarded Recovery Boiler Rebuild Contract by Weyerhaeuser Company

Houston, Texas - August 27, 2008 - KBR (NYSE:KBR) announced today that BE&K Construction, a division of KBR's Services Business unit, has been awarded a contract by Weyerhaeuser Company. The contract award is for the rebuild of a large recovery boiler at Weyerhaeuser's cellulose fiber mill located in Columbus, Mississippi.

Under the contract, BE&K will reconstruct the lower furnace of the mill's large recovery boiler including: replacing furnace walls and existing sloped floor; upgrading the combustion air system; and replacing a smelt dissolving tank, as well as installing new agitators and soot blowers. Work on the project is scheduled to begin in April 2009.

"Our expertise in large recovery boiler construction is unmatched and this contract award further positions BE&K as the premier boiler constructor in the Southeast," said David Zimmerman, President of KBR Services. "We look forward to a successful project completion alongside Weyerhaeuser, one of the world's largest forest product companies and long time BE&K customer."

BE&K, a division of KBR Inc., offers a full spectrum of construction, engineering, and maintenance services to clients in capital-intensive industries worldwide.

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