Press Release

DALLAS, Feb 7, 2002 /PRNewswire-FirstCall via COMTEX/ -- Halliburton Company (NYSE: HAL) announced today that its Kellogg Brown & Root, Inc. subsidiary has settled a qui tam lawsuit filed in 1997 in Federal Court in California. The lawsuit alleged that Brown & Root had improperly billed the U.S. government for services provided under a government job order contract at Ft. Ord, California.

Under the settlement, Brown & Root will pay $2 million to the United States government. Brown & Root denied wrongdoing in the lawsuit and did not admit liability in settling the lawsuit. The United States agreed to suspend further investigation and forego any further sanctions with regard to the Ft. Ord contract. Although it believes that it properly administered the contract at Ft. Ord, Kellogg Brown & Root settled the lawsuit in order to resolve this matter and to avoid further litigation. It expects to continue its work as a major contractor to the Unites States government in numerous projects.

SOURCE Halliburton Company

CONTACT:          Wendy Hall of Halliburton Global Public Relations,

                  +1-713-676-4371, for Halliburton Company