Press Release

Houston, Texas - July 9, 2014 - KBR (NYSE: KBR) announced today that KBR Building Group, a subsidiary within KBR's Services Group, has been awarded a contract by Purdue Pharma Manufacturing L.P. to build a new Oral Solid Dosage manufacturing plant in Durham, N.C. The 188,000-square-foot, steel-framed facility is being constructed on a 51-acre site in Treyburn Corporate Park in Durham.

Production areas will feature clean room spaces with epoxy flooring, and epoxy painted walls and ceilings. The building will also house administrative offices, laboratories and associated support areas, such as dining, conference, and training areas.

KBR Building Group has provided construction services to Purdue Pharma Manufacturing L.P. in the past, and we look forward to serving this important client again," said Mitch Dauzat, KBR Services Group President. "KBR Building Group specializes in constructing facilities for the life sciences and pharmaceutical sectors and this award reinforces our leadership position in this market."

Expected revenue from the contract was included in the first quarter 2014 backlog of unfilled orders for the Services segment.

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 Halliburton Company; 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 Annual Report on Form 10-K/A dated May 5, 2014, Form 10-Q for the quarters ended March 31, 2013, June 30, 2013, and September 30, 2013, recent Current Reports on Forms 8-K, 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