KBR Awarded Contract by Solid Waste Authority of Palm Beach County, Fla., For Resource Recovery Facility Refurbishment Project

Houston, Texas - January 26, 2009 - KBR (NYSE:KBR) announced today that a division of its Services business unit, BE&K, has been awarded a $126 million dollar contract by the Solid Waste Authority of Palm Beach County, Fla., to provide engineering, procurement and construction (EPC) services for the refurbishment of its North County waste-to-energy resource recovery facility.

BE&K will complete a major refurbishment of the existing two-boiler waste-to-energy facility that will extend the facility's service life by an additional 20 years. The scope of work includes the replacement of boiler internals, upgrades to the electrical and control systems including the DCS system, upgrades to pollution control equipment, and removal and replacement of electrostatic precipitators with fabric filter houses. The plant, which has been operating since 1989, currently burns 1800 tons of refuse derived fuel (RDF) per day and produces enough steam to power a 60 megawatt (MW) steam turbine. A high percentage of the metals in the waste stream are recovered and sold for recycling. Work on the project is expected to begin immediately.

"We are pleased to have been selected as the contractor of choice for the Solid Waste Authority's renewable energy project," said David Zimmerman, President of KBR Services. "Our unique capabilities in the alternative energy market will allow us to provide the exceptional level of service expected from KBR, and we look forward to enhancing this facility for future clean energy development."

KBR Services, a business segment of KBR, Inc., offers a full spectrum of direct hire construction, engineering, and maintenance services to US domestic clients in capital-intensive industries.

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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