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KBR Wins Appeal; U.S. Court of Appeals Reverses $81 Million Judgment Against KBR

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HOUSTON - May 18, 2015 - KBR announced today that it won its appeal in the U.S. Court of Appeals for the Ninth Circuit. The Court of Appeals ruled in KBR's favor, and vacated and reversed an $81 million judgment against the company.

The now-vacated judgment had been entered by a federal magistrate judge in Oregon in favor of a group of Oregon national guardsmen who alleged they were exposed to Iraqi-supplied sodium dichromate in 2003 during the Iraq war when deployed by the U.S. Army to provide force protection at a water treatment plant in Iraq.

The Court of Appeals held that KBR was not subject to personal jurisdiction in Oregon, thus agreeing with what KBR had contended years earlier at the beginning of the lawsuit. As a result, the Court of Appeals reversed the $81 million judgment in its entirety.

KBR's Executive Vice President and General Counsel Eileen Akerson said: "This ruling is another major step in resolving the few remaining legacy tort claims related to KBR's work supporting the U.S. military in Iraq. We look forward to bringing closure to all of those matters."

Approximately 130 other plaintiffs brought a similar lawsuit in federal court in Houston, Texas. The federal judge in the Texas case granted summary judgment on the merits in favor of KBR with respect to all of plaintiffs' claims except for their claim for intentional infliction of emotional distress.

KBR's lead trial lawyer is Geoffrey L. Harrison, a partner at Susman Godfrey LLP in Houston. KBR's lead appellate lawyer, Warren W. Harris, a partner at Bracewell & Giuliani LLP in Houston, argued the successful appeal.

About KBR, Inc.

KBR, Inc. is a global technology, engineering, procurement and construction company serving the hydrocarbons and government services industries, employing around 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 Granherne/Energo and GVA; Engineering & Construction, including Upstream Oil & Gas; LNG/GTL; Downstream Oil & Gas, Petrochemicals and Chemicals; and differentiated EPC; 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 and integrated EPC skills to ensure a consistent project delivery with predictable results. At KBR, we deliver.

Visit www.kbr.com.

Forward Looking Statement

This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements include statements regarding our plans, objectives, goals, strategies, future events, future financial performance and backlog information and other information that is not historical information. When used in this presentation, the words "estimates," "expects," "anticipates," "projects," "plans," "intends," "believes," "forecasts" or future or conditional verbs such as "will," "should," "could," or "may," and variations of such words or similar expressions are intended to identify forward-looking statements. All forward-looking statements are based upon our current expectations and various assumptions. Our expectations, beliefs, and projections are expressed in good faith, and we believe there is a reasonable basis for them. However, there can be no assurance that management's expectations, beliefs, and projections will be achieved. There are numerous risks and uncertainties, many of which are beyond our control, that could cause actual results to differ materially from the forward-looking statements contained in this presentation. These risks and uncertainties include, but are not limited to: current or future economic conditions; our ability to obtain and perform under contracts from existing and new customers, including the U.S. Government; exposure to cost overruns, operating cost inflation and potential liability claims and contract disputes; access to trained engineers and other skilled workers; risks relating to operating through joint ventures and partnerships; risks inherent in doing business internationally; potential tax liabilities; maritime risks; changes in the demand for our services and increased competition; protection of intellectual property rights; risks associated with possible future acquisitions; risks related to our information technology systems; impairment of goodwill and/or intangible assets; reduction or reversal of previously recorded revenues; risks relating to audits and investigations, including by governments; compliance with laws and regulations, and changes thereto, including those relating to the environment, trade, exports and bribery; our creditworthiness and ability to comply with the financial covenants in our credit agreement; and other risk factors discussed in our most recently filed Form 10-K, any subsequent Form 10-Qs and 8-Ks, and other Securities and Exchange Commission filings. All forward-looking statements attributable to us, or persons acting on our behalf, apply only as of the date made and are expressly qualified in their entirety by the cautionary statements in this presentation.Except as required by law, we undertake no obligation to revise or update forward-looking statements to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events.

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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