KBR Awarded Convoy Support Center Contract by U.S. Army Corps of Engineers

Houston, Texas - January 28, 2009 - KBR (NYSE:KBR) today announced it has been awarded a $35.4 million contract by the U.S. Army Corps of Engineers (USACE), Transatlantic Programs Center, Winchester, Va. for the Phase II design and construction of a convoy support center at Camp Adder in Iraq.

The KBR team will design and construct a power plant, electrical distribution center, water purification and distribution system, waste water collection system, and associated information systems, along with paved roads at this site. Work on the project is expected to begin in February 2009.

"KBR has served the U.S. Army Corps of Engineers and the Department of Defense for many years, most recently providing services integral to missions in Iraq," said Bruce Stanski, President, KBR Government and Infrastructure. "We remain committed to providing quality services to the Army Corps and DoD for the successful completion of the Camp Adder convoy support center."

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
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