KBR Awarded Lobito Refinery Site Development Contract by Sonangol, E.P.

Houston, Texas- December 5, 2008 - KBR (NYSE:KBR) announced today that it has been awarded a site development contract by Sonangol, E.P. to provide engineering, procurement and construction management services for the 200,000 barrel per day (bpd) Lobito refinery, located in Lobito, Angola.

The site development contract award follows KBR's Front-End Engineering and Design (FEED) contract awarded in November 2008. KBR will provide engineering, procurement and construction management services for the infrastructure necessary to support the construction of the refinery. This includes the development of a heavy haul road used to transport material and equipment to the refinery, as well as a marine facility that will be used to import and export both raw and finished hydrocarbon products. Work on the contract is expected to begin immediately.

"KBR is pleased to receive this second contract related to the Lobito Refinery," said John Quinn, President, Downstream for KBR. "This award demonstrates Sonangol's recognition of KBR's strong commitment to helping our client achieve their objective of reducing Angola's reliance on imported refined products."

KBR is a global engineering, construction and services company supporting the energy, petrochemicals, government services and civil infrastructure sectors. The company offers a wide range of services through its Downstream, Government and Infrastructure, Services, Technology, Upstream and Ventures business segments. For more information, visit www.kbr.com.

CONTACT:
KBR, Houston
Director, Communications
Heather Browne, 713-753-3775

heather.browne@kbr.com

or
Director, Investor Relations
Rob Kukla, Jr., 713-753-5082

investors@kbr.com

http://www.kbr.com/news/press_releases/2008/12/05/KBR_Awarded_Lobito_Ref...