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KBR to Expand Ferguson Enterprises' Footprint in Northeast Region

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Houston, Texas - September 3, 2014 - KBR Inc. (NYSE: KBR) announced today that KBR Building Group, a subsidiary within KBR's Services Group, has been awarded a contract by Ferguson Enterprises, the nation's largest wholesale plumbing distributor, to construct a 460,000-square-foot distribution center in Coxsackie, New York.

Construction of the Coxsackie distribution center will support the Ferguson's metro New York and Northeast branches, ensuring that customers receive product quickly. In addition, the Coxsackie location will support the company's 11 other regional distribution centers in the United States.

"KBR is pleased to once again have the opportunity to serve Ferguson as it expands its geographic footprint to better serve its customers," said Stuart Bradie, KBR President and Chief Executive Officer. "KBR Building Group has completed similar regional distribution centers for Ferguson in Celina, Ohio, and Waterloo, Iowa, and we look forward to delivering another successful project."

Expected revenue from the contract will be included in the third quarter 2014 backlog of unfilled orders for the Services segment. The contract value was not disclosed.

About KBR

KBR is a global engineering, construction and services company supporting the energy, hydrocarbons, power, industrial, civil infrastructure, minerals, government services and commercial markets. For more information, visit www.kbr.com.

Forward Looking Statement

The statements in this press release that are not historical statements, including statements regarding future financial performance and backlog information, 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.

CONTACT:
Zac Nagle
Vice President,
Investor Relations and Communications
713-753-5082
investors@kbr.com

or

Rick Goins
Director, Corporate Communications
713-753-3800
mediarelations@kbr.com

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