KBR Awarded Contract for Engineering, Procurement and Construction of Georgia Power Plant Scherer Baghouse Unit

Houston, Texas - October 15, 2008 - KBR (NYSE:KBR) today announced that BE&K, a division of its Services Business unit, has been awarded a multi-million dollar contract by Georgia Power for full engineering, procurement and construction (EPC) services of a new baghouse unit at Plant Scherer near Macon, Georgia. This award marks the fourth unit at the site awarded to BE&K.

BE&K will provide full EPC services for the installation of a new baghouse unit, including major new ductwork and ancillary facilities. As the largest coal-fired power plant on the system, generating more than 3200 megawatts of power, the Scherer facility is integral to Georgia Power's infrastructure and its continued operation is essential. The construction of its new baghouse unit is part of Georgia Power's air quality program. Work on the project is expected to begin immediately.

"This award solidifies KBR's position as a leading contractor of air quality control system installation in the domestic utility market," said David Zimmerman, President of KBR Services. "This project will allow KBR to demonstrate its ability and expertise in handling large, complex retrofit projects, working towards successful project completion in partnership with Georgia Power."

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
Director, Investor Relations
Rob Kukla, Jr., 713-753-5082
investors@kbr.com