KBR Chosen to Continue Supporting U.S. Navy Under CONCAP Contract.

HOUSTON -- KBR has been selected to continue providing private sector construction and related services to the U.S. Navy and other Department of Defense agencies and missions worldwide under the competitively awarded CONCAP (construction capabilities) contract from the Naval Facilities Engineering Command, Atlantic Division. KBR is the engineering, construction and services subsidiary of Halliburton (NYSE:HAL).

The total amount of the contract, one base year and four one-year options, is not to exceed $500 million.

Under the CONCAP contract, the U.S. Navy could direct KBR to provide the following services: program planning, scheduling, design, engineering, transportation, construction management and quality control, as well as the personnel, equipment, materials, labor, travel and everything needed to give the Navy a quick response for civilian construction contract capability.

"KBR's work for the U.S. Navy dates back to the early 1940s when we were contracted to build NAS Corpus Christi in Texas," said Bruce Stanski, Senior Vice President of Government Operations, KBR. "Our relationship with the Navy has continued through the years and includes many projects. Under the previous CONCAP contract awarded in 2001, KBR performed repairs following a typhoon in Guam; constructed detention facilities in Guantanamo Bay, Cuba; constructed and repaired airfield runways in Italy and Spain; constructed and repaired a breakwater facility in Azores; and constructed military and civilian facilities in Kuwait and Iraq."

KBR is a global engineering, procurement and services company. Whether designing a chemical plant, serving as a defense industry contractor or providing capital construction, KBR delivers world-class service and performance. KBR employs 64,000 people in 43 countries around the world.

Founded in 1919, Halliburton 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 Group and Engineering and Construction Group business segments. The company's World Wide Web site can be accessed at www.halliburton.com.