Press Release

Trade Release

HOUSTON

- February 22, 2017 -

KBR, Inc. (NYSE: KBR) announced today it has been awarded a technology licensing and basic engineering design (LBED) revamp contract by LG Chem for its Ethylene Plant at Daesan, South Korea.

Under the terms of the contract, KBR will provide license and basic engineering design services to expand the plant ethylene capacity by 230KTA to a total of 1,270KTA through the addition of two (2) new SCORETM SC-1 proprietary furnaces and product recovery system modifications. This project is part of a larger LG Chem Daesan facility expansion that will enable the company to produce additional high value-added ethylene derivative products.

The LG Chem Daesan Ethylene Plant is a heritage KBR Licensed facility that had an original ethylene nameplate capacity of 350KTA. Through close cooperation between LG Chem and KBR, the facility has been revamped multiple times over the years allowing LG Chem to remain one of the leaders in ethylene production.
"We are delighted to continue our close cooperation with LG Chem and that KBR's cost-effective, industry leading capabilities will play a key role in LG Chem's growth strategy to maintain its market lead and secure feedstock for high value-added downstream products," said John Derbyshire, President, KBR Technology and Consulting (T&C).

KBR has been a leader in olefin plant design, construction and technology development for more than 50 years. Since 1990, over 21 new ethylene plants with a combined capacity of 13 million metric tons per year have been brought on-stream using KBR's cost-effective, cracking technologies and flexible plant designs to produce ethylene, propylene and other byproducts from a variety of feedstocks.

The contract value was not disclosed. Expected revenue was booked into backlog of unfilled orders for KBR's T&C Business Segment in fourth quarter 2016.

About KBR, Inc.

KBR is a global provider of differentiated professional services and technologies across the asset and program life cycle within the Government Services and Hydrocarbons 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 logisticsTechnology & 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 consultingEngineering & 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:
Investors
Lynn Nazareth
Vice President, Investor Relations
713-753-5082
[email protected]
Media
Marit Babin Stout
Vice President, Global Communications & Government Relations
713-753-3800
[email protected]