Press Release

Trade Release

HOUSTON

(May 23, 2016)

KBR, Inc. (NYSE: KBR) announced today it has been awarded the first contract under a new Government single supplier framework agreement.

The national contract, with the UK's Home Office includes managing a 24/7 helpdesk, computer aided facilities management system, performance monitoring of the supply chain and management information and reporting and Mobilisation of Services will start immediately.

KBR will act as the the single point of contact and expects to receive around 40,000 requests annually, which it will manage from its National Integrated Service Centre in Swindon.

From its Centre, the KBR team currently manages a number of other separate support contracts including those for the Metropolitan Police Service and London Fire Brigade.

This new contract for the Home Office will add to KBR's growing portfolio of property services. Under the FM assurance framework KBR will support the Home Office to manage some 400 properties and 450,000 square meters of accommodation nationally. The diverse estate is used by Home Office business units to deliver a range of services e.g. Visas, Immigration, Passport and Border Control.

The new framework approach, introduced by Crown Commercial Service (CCS) last September, aims to simplify the procurement process for public sector entities giving them greater flexibility and a "menu of options" for a wide range of support services.

Managing Director of KBR FM Services, Colin Kenton said: "The award of this call off contract is a testament to the more simplified process that CCS has put in place. This new style of contracting reduces the procurement burden and enables departments to act more quickly and efficiently, while also benefiting from savings for the taxpayer".
Revenue associated with this project is estimated to be £2.6m and will be commence in 2016.

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 GVAEngineering & Construction, including Offshore Oil & Gas; Onshore Oil & Gas; LNG/GTL; Refining; Petrochemicals; Chemicals; differentiated EPC, and Industrial ServicesGovernment 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