Press Release

Houston, Texas - April 1, 2015 - The Securities and Exchange Commission (SEC) announced a settlement of its examination into KBR's use of confidentiality statements today. KBR has agreed to resolve this matter amicably with the SEC and appreciates the concerns raised about the language in its confidentiality agreement.
KBR always intended the agreement be used only to protect the integrity and confidentiality of its internal, privileged investigations - as has been recognized by the U.S. Court of Appeals.

Indeed, KBR has always prided itself on its compliance program, designed thoroughly to investigate reports of wrongdoing, bring matters to the attention of law enforcement where appropriate and fully cooperate with law enforcement investigations.

"The SEC's order acknowledges that it is not aware of KBR having ever prevented anyone from reporting to the SEC nor has the company taken any action to enforce the agreement and that is because we have never done so," said Stuart Bradie, KBR President and CEO. "We are pleased to have amicably resolved this matter and look forward to putting it behind us."

KBR goes to great lengths to publicize its compliance reporting policies to employees and has proactively taken steps to ensure that its confidentiality language has been changed to make abundantly clear that any employee is free to report allegations of misconduct to the SEC or any other law enforcement or governmental agency.
We believe the SEC's order, including the amount of the penalty, recognizes that KBR is a good corporate citizen, did not engage in intentional wrongdoing and was fully responsive to the SEC's concerns.About KBR, Inc.

KBR, Inc. is a global technology, engineering, procurement and construction company serving the hydrocarbons and government services industries, employing about 27,000 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 Petrochemicals and Chemicals; and differentiated EPC; and, 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
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/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.

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