Press Release

Houston, Texas - January 30, 2015 - KBR today announced that it has been selected by BG Group as their Global Upstream Alliance Partner.

The six-year contract, includes an option for two two-year extensions, and will provide capability support, services (Pre-FEED and FEED) and project management services across all of BG Group's Global Upstream Portfolio.

"The alliance will provide us with access to dedicated and proven third-party expertise and resources that can be tailored to specific projects. Importantly, it will focus on enhancing BG Group's productivity and agility as we develop projects that will deliver the next phase of the company's growth," said Sami Iskander, BG Group Chief Operating Officer.

The single partner alliance will focus on BG Group's global portfolio of projects, enhancing BG Group's capacity to deliver major upstream oil and gas projects around the world. This integrated approach will capitalize on KBR's high caliber of people, knowledge and expertise and will be central to BG Group's overall delivery. KBR is a pioneer in project alliances and has delivered many successful projects in the North Sea using the alliancing model.

"We are excited about this opportunity to continue our relationship with BG Group," said Stuart Bradie, KBR President and Chief Executive Officer. "This contract will lead to work for project teams working together from offices around the world to leverage KBR's proven ability to deliver for customers in developing complex projects anywhere across the globe."

Expected revenue from this alliance will be booked as services contracts are awarded to the Engineering and Construction business segment.

About KBR, Inc.

KBR, Inc. is a global technology, engineering, procurement and construction company serving the hydrocarbons and government services industries, employing about 27,000 people worldwide with customers in more than 70 countries and operations in 40 countries across three distinct global businesses: Technology & Consulting, including proprietary technology in refining, ethylene, ammonia and fertilizers, and gasification; and niche consulting and know-how through Granherne/Energo and GVA; Engineering & Construction, including Upstream Oil & Gas; LNG/GTL; Downstream Petrochemicals and Chemicals; and differentiated EPC; and, Government Services, including program management and long term annuity contracts.

KBR is proud to work with its customers across the globe to provide technology, value-added consulting services and integrated EPC skills to ensure a consistent project 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/A, 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.

CONTACT:
Zac Nagle
Vice President, Investor Relations
713-753-5082
[email protected]

or

Rick Goins
Director, Communications
713-753-3800
[email protected]