Press Release

HOUSTON Ð (October 1, 2018) Ð KBR, Inc. (NYSE: KBR) announced today that it is has signed an exclusive Teaming Agreement to support Korean aerospace and defense company LIG Nex1 in upgrading the Korean military's Identify Friend or Foe (IFF) capability. Under the terms of the agreement, KBR will provide test and evaluation services for the planned upgrade of the Korean military's IFF system.

IFF is developed to an agreed standard and is deployed across Allied and Coalition forces to enable integrated military operations to be undertaken safely in both conflict and security operations. Allied and Coalition Forces use IFF technology to provide secure mutual identification of active military assets (aircraft, ground vehicles, naval vessels, etc.) through the transmission of encrypted data. ÊThe global upgrade, from Mode 4 to Mode 5, provides armed forces with improved and inter-forces compatible technology and an integrated, enhanced IFF capability.

KBR will support LIG Nex1 through the integration and operational testing activities, across the Korean military's air, land and maritime platforms, to achieve the requirements for IFF Mode 5 certification. The support will be delivered by KBR's Government Services Asia-Pacific business, headquartered in Australia.

The U.S. government has established stringent testing, evaluation and certification requirements that Mode 5 IFF technology must meet. ÊKBR will use its wide breadth of knowledge, skills, and experience to ensure those requirements are met.

KBR has supported the deployment and support of IFF capabilities in the U.S. for decades under KBRwyle's long history of Army, Navy and Joint military platform support activities.

"KBRwyle has developed an IFF Test & Evaluation Capability (ITEC) capability built on the skills and experience that the company has developed over many years in systems integration, test and evaluation and systems certification," said Jay Ibrahim, KBR President, Europe, Middle East and Africa and Asia-Pacific. "Our agreement with LIG Nex1 is an excellent opportunity to leverage our global footprint and apply our expertise in system testing and certification and complement LIG Nex1's expertise in systems development, integration and production for the ROK IFF upgrade program."

The IFF upgrade program is expected to commence in 2019. Estimated revenue associated with this project is expected to be booked into backlog of unfilled orders for KBR's Government Services business segment in the second half 2019.

About KBR, Inc.

KBR is a global provider of differentiated professional services and technologies across the asset and program lifecycle within the Government Services and Hydrocarbons sectors. KBR employs approximately 34,000 people worldwide (including our joint ventures), with customers in more than 75 countries, and operations in 40 countries, across three synergistic global businesses:

• Government Services, serving government customers globally, including capabilities that cover the full lifecycle 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, 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 and gasification
• Hydrocarbons Services, 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); program management and consulting services

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.

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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, any subsequent Form 10-Qs and 8-Ks, and other U.S. 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
Alison Vasquez
Vice President, Investor Relations
713-753-5082
[email protected]

Media
Brenna Hapes
External Global Communications
713-753-3800
[email protected]