KBR Awarded Contract by Progress Energy Carolinas, Inc. for Richmond County Combined Cycle Unit Project

Houston, Texas - April 9, 2009 - KBR (NYSE:KBR) announced today that a division of its Services business unit, BE&K Construction Company, has been awarded a power contract by Progress Energy Carolinas, Inc. to provide construction services for a new natural gas-fired combined-cycle unit at the Richmond County Energy Complex located near Hamlet, N.C.

BE&K will provide general construction services including installation of foundations, power generation and auxiliary equipment, piping, electrical, instrumentation, control and related systems for the completion of the facility, which is designed to improve electric system reliability in southern and eastern North Carolina. Work on the project is expected to begin in April 2009.

"We are pleased about the opportunity to work with Progress Energy Carolinas on this essential power project," said David Zimmerman, President of KBR Services. "This award reinforces KBR's reputation as a key provider of construction services for the domestic power industry."

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, hydrocarbon, 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