Press Release

Wire Release

HOUSTON  (May 15, 2017)

KBR, Inc. (NYSE: KBR) announced today it has been awarded a program alliance contract by the Victorian Government for railroad crossing removal projects in Victoria, Australia.

Under the terms of the contract, KBR will remove two railroad crossings in an integrated alliance with John Holland, Metro Trains and the Level Crossing Removal Authority. These projects will commence in the coming months and be completed in 2018 with KBR providing engineering and design services for the crossing removals and associated works.

Subject to these projects being delivered in line with strict performance measures, the alliance has the potential to extend the contract to remove a further four railroad crossings.

The works are being undertaken by the Victorian Government as part of its program to remove 50 of the most dangerous and congested railroad crossings across the city of Melbourne. Last year, KBR and its alliance partners successfully delivered the first four railroad crossing removals as part of this government initiative.

"This latest contract builds on KBR's decade long involvement in railroad crossing removals in Victoria and adds to our current portfolio of major rail infrastructure projects in Australia," said Greg Conlon, President Asia Pacific.

"This includes early works for the multi-billion dollar Metro Tunnel and extension to the Mernda metropolitan line, both in Victoria, the Torrens Rail Junction Project in South Australia and the Sydney Metro project in New South Wales.

"We are pleased to be part of these transformational infrastructure projects that are creating jobs, stimulating local economies and delivering safer roads and railways for Australian communities," continued Conlon.

For more than 50 years, KBR has contributed to many of Australia's landmark transportation developments, including some of the nation's most complex urban and regional rail projects.

The contract value was not disclosed. ÊExpected revenue from the contract will be included in KBR's second quarter 2017 backlog of unfilled orders for its Engineering & Construction business.

About KBR, Inc.
KBR is a global provider of differentiated professional services and technologies across the asset and program life cycle within the Government Services and Hydrocarbons sectors. KBR employs over 34,000 people worldwide (including our joint ventures), with customers in more than 80 countries, and operations in 40 countries, across three synergistic global businesses:Government Services, serving government customers globally, including capabilities that cover the full life-cycle of defense, space, aviation and other government programs and missions from research and development, through systems engineering, test and evaluation, program management, to operations, maintenance, and field logisticsTechnology & Consulting, including proprietary technology focused on the monetization of hydrocarbons (especially natural gas and natural gas liquids) in ethylene and petrochemicals; ammonia, nitric acid and fertilizers; oil refining; gasification; oil and gas consulting; integrity management; naval architecture and proprietary hulls; and downstream consultingEngineering & Construction, including onshore oil and gas; LNG (liquefaction and regasification)/GTL; oil refining; petrochemicals; chemicals; fertilizers; differentiated EPC; maintenance services (Brown & Root Industrial Services); offshore oil and gas (shallow-water, deep-water, subsea); floating solutions (FPU, FPSO, FLNG & FSRU) and program management

KBR is proud to work with its customers across the globe to provide technology, value-added services, integrated EPC delivery and long term operations and maintenance services to ensure consistent delivery with predictable results. At KBR, We Deliver.

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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
Nelson Rowe
Senior Vice President, Investor Relations
713-753-5082
Investors@kbr.com

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