KBR Awarded Multiple Australian Infrastructure Services Contracts

HOUSTON, TX --(Marketwired - December 22, 2016) - KBR, Inc. KBR announced today it has been awarded multiple contracts to provide professional services for major Australian infrastructure projects.

--  KBR will provide engineering and design management services to John
    Holland for the AU$600 million Mernda Rail Extension Project in
    Melbourne, Victoria. The project includes eight kilometers of dual rail
    line and the construction of three new stations, three rail bridges, two
    road underpasses, and additional parking facilities along with walking
    and cycling paths. Construction is scheduled to commence in the coming
    months and will take approximately two years to complete, with trains
    expected to being running in early 2019. The project builds on KBR's
    successful collaboration with John Holland to deliver significant
    infrastructure projects in Melbourne, including the removal of four
    street level rail crossings earlier this year as part of the Victorian
    Government's program of works to enhance the safety and efficiency of
    the city's rail network. 
--  KBR was awarded a contract by the Managing Contractor, Doric
    Contractors, for hydraulic engineering services to upgrade water
    infrastructure at the HMAS Stirling Navy base in Western Australia as
    part of the Australian Department of Defence Stage 3A redevelopment
    project for the site. KBR is providing detailed design, construction and
    commissioning support services for base-wide enhancements to existing
    facilities and infrastructure. The site is the Royal Australian Navy's
    western headquarters and provides home port facilities for nearly half
    of the Navy's fleet. KBR previously delivered engineering services for
    the master planning and early design phases of the project. 
--  KBR is providing marine and maritime structural engineering services to
    the Laing O'Rourke Managing Contractor team responsible for the
    redevelopment of the HMAS Coonawarra Navy base and Larrakeyah Barracks
    in the Northern Territory. KBR's scope includes detailed design,
    documentation, construction and commissioning support for works
    including the refurbishment of marine facilities at HMAS Coonawarra and
    the design of a new wharf. This work builds on KBR's previous
    involvement in upgrade works at the site. 

"We are pleased to be involved in these nationally significant projects that will deliver vital transport infrastructure for Australian communities and support strategic assets for the Royal Australian Navy," said Greg Conlon, President Asia Pacific.

"These latest awards build on KBR's strong portfolio of Australian infrastructure projects, which has seen continued growth in 2016, reflecting our long-term commitment to providing differentiated professional services to customers in the Asia Pacific region," continued Conlon.

Revenue associated with the Mernda Rail Extension project will be booked into backlog of unfilled orders for KBR's Engineering & Construction (E&C) business segment once the contract documents are formally executed. Revenue associated with the two Australian defense infrastructure projects was booked into E&C backlog in Q3 2016.

About KBR, Inc.

KBR is a global provider of differentiated professional services and technologies across the asset and program life cycle within the Hydrocarbons and Government Services Sectors. KBR employs over 31,000 people worldwide, 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 logistics
--  Technology & 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 consulting 
--  Engineering & 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.

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:

For further information, please contact:
Investors
Lynn Nazareth
Vice President, Investor Relations
713-753-5082
Investors@kbr.com

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