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

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 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 GVA
• Engineering & Construction, including Offshore Oil & Gas; Onshore Oil & Gas; LNG/GTL; Refining; Petrochemicals; Chemicals; differentiated EPC, and Industrial Services
• 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, integrated EPC delivery and Long Term Industrial Services to ensure consistent project 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/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