Press Release

Houston, Texas

- July 11, 2014 -

KBR (NYSE: KBR) announced today that the company and its affiliate, Services Employees International, Inc., won a class action arbitration alleging that the company had underpaid thousands of truck drivers supporting the military effort in Iraq.

The ruling, issued by Arbitrator Michael Loeb, Esq, acknowledges KBR routinely, and properly, enforced its written timekeeping policy whereby employees record all time worked, and work all time recorded." And, despite the various allegations asserted, the payroll records made it clear that there was no class-wide policy to require under-reporting of hours worked.

The arbitration was filed in November 2007, and Arbitrator Loeb certified a class of approximately 7,000 current and former truck drivers in 2011. The plaintiffs alleged that between 2003 and 2010, KBR maintained a policy to deny truck drivers stationed in Iraq compensation for all overtime hours worked. The arbitration hearing took place in September and October of last year with closing arguments in February of this year.

"KBR is pleased, but not surprised, by the decision," said Andrew Farley, KBR Executive Vice President and General Counsel. "This ruling confirms that KBR's policy and practice was to require accurate time recording and pay these drivers for all hours actually worked."About KBR
KBR is a global engineering, construction and services company supporting the energy, hydrocarbons, power, industrial, civil infrastructure, minerals, government services and commercial markets. For more information, visit www.kbr.com.

Forward Looking Statement
The statements in this press release that are not historical statements, including statements regarding future financial performance and backlog information, 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/A, 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.

CONTACT:

Zac Nagle
Vice President,
Investor Relations and Communications
713-753-5082
investors@kbr.com
or
Rick Goins
Director, Corporate Communications
713-753-3800
mediarelations@kbr.com