KBR : Awarded Major Infrastructure Upgrade Project in Australia

HOUSTON - June 8, 2015 - KBR announced today it has been awarded an alliance contract by the Victorian Government for Railroad Crossing Removal Projects in Victoria, Australia.

Under the terms of the contract, KBR and John Holland will remove four railroad crossings in Victoria. This work is expected to be performed over three years, with KBR providing design services for the railroad crossing removals and associated works in an integrated alliance with John Holland, VicRoads, Metro Trains Melbourne and Public Transport Victoria.

The grade separations will be the first undertaken by the Victorian Government as part of its program to remove 50 of the most dangerous and congested railroad crossings across Melbourne. The project will remove railroad crossings at Centre Road in Bentleigh, North Road in Ormond, McKinnon Road in McKinnon and Burke Road in Glen Iris.

Delivering the grade separations and station rebuilds at four sites as one coordinated package should create efficiencies in costs, reductions in disruptions to rail and road users and create accelerated delivery of safer transportation infrastructure.

KBR's Engineering & Construction President for the Asia-Pacific, Ivor Harrington, said "we are looking forward to working with the alliance to deliver safer roads and railways for all Victorians, through this transformational infrastructure project".

"The rail line will be lowered under the road at each location and stations will also be rebuilt to provide street level access down to the platforms. They will be safer, more accessible and will have better connections to other public transport modes," Harrington said. "This work fits with both our Australian business plan and our core skills in the transport sector."

For more than 50 years, KBR has contributed to many of Australia's landmark transportation developments, including the continent-bridging Alice Springs to Darwin railway, and the Regional Rail Link which delivered Victoria's largest rail network upgrade in 40 years.

The contract value was not disclosed. Expected revenue from the contract will be included in KBR's second quarter 2015 backlog of unfilled orders for its Engineering & Construction business line. Work on the projects has commenced and is expected to be completed in the first quarter of 2017.

About KBR, Inc.

KBR, Inc. is a global technology, engineering, procurement and construction company serving the hydrocarbons and government services industries, employing approximately 25,000 people worldwide with customers in more than 70 countries and operations in 40 countries across three distinct global businesses:

• Technology & Consulting, including proprietary technology in refining, ethylene, ammonia and fertilizers, and gasification; and niche consulting and know-how through subsidiaries Granherne, Energo and GVA
• Engineering & Construction, including Offshore Oil & Gas; Onshore Oil & Gas; LNG/GTL; Refining; Petrochemicals; Chemicals; differentiated EPC, and Industrial Services
• Government Services, including program management and long term annuity contracts

KBR is proud to work with its customers across the globe to provide technology, value-added consulting services, integrated EPC delivery and Long Term Industrial Services to ensure consistent project delivery with predictable results. At KBR, we deliver.

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Forward Looking Statement

The statements in this press release that are not historical statements, including statements regarding future financial performance, are forward-looking statements within the meaning of the federal securities laws. These statements are subject to numerous risks and uncertainties, many of which are beyond the company's control that could cause actual results to differ materially from the results expressed or implied by the statements. These risks and uncertainties include, but are not limited to: the outcome of and the publicity surrounding audits and investigations by domestic and foreign government agencies and legislative bodies; potential adverse proceedings by such agencies and potential adverse results and consequences from such proceedings; the scope and enforceability of the company's indemnities from its former parent; changes in capital spending by the company's customers; the company's ability to obtain contracts from existing and new customers and perform under those contracts; structural changes in the industries in which the company operates; escalating costs associated with and the performance of fixed-fee projects and the company's ability to control its cost under its contracts; claims negotiations and contract disputes with the company's customers; changes in the demand for or price of oil and/or natural gas; protection of intellectual property rights; compliance with environmental laws; changes in government regulations and regulatory requirements; compliance with laws related to income taxes; unsettled political conditions, war and the effects of terrorism; foreign operations and foreign exchange rates and controls; the development and installation of financial systems; increased competition for employees; the ability to successfully complete and integrate acquisitions; and operations of joint ventures, including joint ventures that are not controlled by the company.

KBR's most recently filed Annual Report on Form 10-K, any subsequent Form 10-Qs and 8-Ks, and other Securities and Exchange Commission filings discuss some of the important risk factors that KBR has identified that may affect the business, results of operations and financial condition. Except as required by law, KBR undertakes no obligation to revise or update publicly any forward-looking statements for any reason.

For further information, please contact:

Investors
Zac Nagle
Vice President, Investor Relations
713-753-5082
Investors@kbr.com:
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Media
Marit Babin
Director, Global Communications & Government Relations
713-753-3800
Mediarelations@kbr.com:
mailto:Mediarelations@kbr.com