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KBR selected by UK Ministry of Defence for Operational Support Capability Contract

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Trade Release

HOUSTON - (May 10, 2016) - KBR, Inc. (NYSE: KBR) announced today it has been selected by the UK's Ministry of Defence for the Operational Support Capability Contract (OSCC).

The contract will see KBR continue to be embedded in to the British military operational headquarters, the Permanent Joint Headquarters (PJHQ) for up to the next four years. KBR will provide its expertise in project management, engineering, supply chain management, logistics and project delivery to support military planning, operations and training.

This win is a testament to KBR's long term commitment to the British military operating alongside one another in Afghanistan, Iraq and other remote locations.

"We are extremely proud of the strong partnership that we have developed with the British Military through successfully delivering operational support for the past 12 years. Our track record of delivering projects and support, sometimes in the most austere and hostile environments Ð and often on an urgent basis - has proven our ability to deliver in this challenging landscape. We are pleased to have been selected to continue this responsibility for up to the next four years," said Andrew Barrie, Head of KBR's UK Government Services business.

KBR's Government Services business provides deployed operational support to the highest standards across the world.

President of Government Services Andrew Pringle said, "Our work with the military, for which KBR is perhaps best known, goes back decades. There is now a clear role for contractors to work in support of our military colleagues in the deployed space as a truly integrated force."

"The award of this contract continues on the company's commitment to win the right work including more long term, enduring contracts with foreign governments," Pringle added.

Revenue associated with this project will be recognized as task orders are confirmed.

Notes to Editors

Kellogg Brown & Root Ltd, operating from its UK headquarters in Surrey, operates on a global scale working in different sectors delivering diverse and challenging projects.

Kellogg Brown & Root Ltd is a major Programme Management Contractor delivering some of the world's most challenging projects in the UK and overseas. Please see our website for reference projects.

KBR media contact regarding this announcement:

Andrea Newman | External Affairs Director
KBR Government Services (EMEA)
m: 07880 400260
t. 01372 864655

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.

Visit www.kbr.com

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

Media
Marit Babin
Director, Global Communications & Government Relations
713-753-3800
Mediarelations@kbr.com

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