Press Release

- Company Tapped for Proven Track-Record, Expertise -

HOUSTON, March 24 /PRNewswire-FirstCall/ -- KBR (Kellogg Brown & Root) has been awarded a contract from the US Army Corps of Engineers to put into action a contingency plan the company originally developed at the Department of Defense's (DoD) request for assessing and extinguishing oil well fires in Iraq and evaluating and repairing, as directed by the US government, the country's petroleum infrastructure. KBR is the engineering and construction subsidiary of Halliburton (NYSE: HAL).

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KBR's initial task involves hazard and operational assessment, extinguishing oil well fires, capping oil well blowouts, as well as responding to any oil spills. Following this task, KBR will perform emergency repair, as directed, to provide for the continuity of operations of the Iraqi oil infrastructure.

KBR was selected for this award based on the fact that KBR is the only contractor that could commence implementing the complex contingency plan on extremely short notice. This contract will be used for an interim period, until the US Army Corps of Engineers procures additional contracts to provide a broad range of services required to support full execution of the contingency plan. KBR is leveraging the expertise of personnel from Halliburton's Energy Services Group for oil well services and engineering planning efforts.

Halliburton is proud to offer the company's global resources and capabilities at this critical time.

The DoD, through its US Army Logistics Civil Augmentation Program (LOGCAP) III contract with KBR, tapped the company in November 2002 to develop the contingency plan. Implementation of the plan is being executed through a separate contract KBR now holds with the US Army Corps of Engineers.

KBR has subcontracted the firefighting portion of the work to Houston- based companies Boots & Coots International Well Control, Inc. and Wild Well Control, Inc.

In 1991, Halliburton crews brought 320 wells in Kuwait under control in less time than was expected following the Gulf War. More than 190,000 work hours were incurred on this project without a lost-time accident. Originally scheduled as an 18-month project, Halliburton's crew extinguished 90 percent of the blowouts within one year of the beginning of operations.

Additionally, Brown & Root Services (now KBR) was initially responsible for damage assessment and expeditious repairs to war-damaged public and private buildings in three sectors of Kuwait City following the end of the Gulf War. Two additional contracts also were awarded for emergency electrical and building restoration to government buildings in Kuwait City following the Gulf War.

With more than 60 years of government experience, KBR has a proven track record on military contracts, such as the production of Navy war ships for World War II, the construction of the Phan Rang Air Base in Vietnam in 1965, and the designation as the premier logistics services provider for US troops stationed in the Balkans.

KBR provides global engineering, procurement, construction, logistics, operation and maintenance, program management and other technical services. Whether designing a chemical plant; serving as a defense industry contractor; or providing small capital construction, KBR delivers world class service and performance.

Halliburton, founded in 1919, is one of the world's largest providers of products and services to the petroleum and energy industries. The company serves its customers with a broad range of products and services through its Energy Services Group and Engineering and Construction Group business segments. The company's World Wide Web site can be accessed at www.halliburton.com .

SOURCE Halliburton