KBR Awarded Navy Contract for Hurricane Damage Repairs in Northwest Florida.

ARLINGTON, Va. -- The Southern Division Naval Facilities Engineering Command (NAVFACENGCOM) announced today that KBR is one of four contractors awarded a U.S. Navy Indefinite Delivery Indefinite Quantity (IDIQ) Multiple Award Construction Contract (MACC) to repair northwest Florida Navy facilities damaged by Hurricane Ivan. KBR was also selected as the contractor for the initial task order on this project. KBR is the engineering and construction subsidiary of Halliburton (NYSE:HAL).

"KBR is honored to have been awarded a contract to support the Navy's repair and renovation efforts in northwest Florida," said Bruce Stanski, senior vice president, KBR's Government & Infrastructure Division. "We see this award as a reflection of the quality services we have provided in the past and we look forward to working with the Navy on this new phase of its efforts."

Two days after hurricane Ivan struck in mid-September 2004, KBR began reconstruction work in Pensacola under the Navy's Construction Capability Contract (CONCAP). The contracts announced today will take the place of the rapid response CONCAP work KBR has been performing. Each of the new contracts is for one year, with two additional one-year options, and has a minimum guarantee of $25,000. The total three-year estimated repair, renovation and construction costs for all four contracts is not to exceed $350 million. Under the MACC, KBR and the three other contractors will compete for each task order on an individual basis with the anticipated value of each task order being between $3 million and $15 million.

The initial task order awarded to KBR is valued at approximately $2.5 million (including the minimum guarantee) and covers work that will be carried out at the Naval Air Station in Pensacola, Florida.

The contracts will cover work at these primary Florida locations: Naval Air Station Pensacola and its outlying airfields; Corry Station; Naval Surface Warfare Center Coastal Systems Station in Panama City; Naval Air Station Whiting Field; and outlying airfields in the panhandle of northwest Florida.

The work will include repairs and renovations including, but not limited to, those made to aircraft support facilities, medium industrial buildings, marine construction, mechanical and electrical improvements, civil construction, and family housing renovation.

KBR is a global engineering, construction, technology and services company. Whether designing an LNG facility, serving as a defense industry contractor, or providing small capital construction, KBR delivers world-class service and performance. KBR employs more than 60,000 people in 43 countries around the world.

Halliburton, founded in 1919, is one of the world's largest providers of products and services to the petroleum and energy industries. The company serves its customers with a broad range of products and services through its Energy Services and Engineering and Construction Groups. The company's World Wide Web site can be accessed at www.halliburton.com.