KBR Awarded Significant Program Management Contract Change

HOUSTON, TX --(Marketwired - November 01, 2016) - KBR, Inc. ( NYSE : KBR ) announced today its joint venture, Aspire Defence, has been awarded a significant change order expanding services to be provided under an existing contract for the UK's Ministry of Defence (MoD). The change order, with a total value for the joint venture of approximately $1.4bn USD, calls for construction and program management services and facilities maintenance at the UK major military estate -- Project Allenby/Connaught -- in the South of England.

Under the terms of the change order, KBR, as part of the Aspire Defence joint venture entities, will design and build an additional 130 buildings over the next four years in support of the MoD's Army Basing Program. Once completed, these new buildings will be included within the existing estate for which KBR is responsible for providing operational support and facilities management for 25 years. The types of services provided range from catering and cleaning to technical stores management and tailoring of uniforms, from the provision of transport to administration support.

Project Allenby/Connaught, the largest infrastructure private finance initiative (PFI) contract ever let by the Ministry of Defence will run until 2041. KBR, in partnership with Carillion, is responsible for managing the existing Army estates including providing a full range of hard and soft facilities management services, as well as overseeing the design, consent, demolition, new build, and refurbishment of garrison buildings for Project Allenby/Connaught. The first wave of construction under this project was successfully completed in 2014 with a superior safety performance, one of the safest major construction projects in the UK. The additional work under the change order is expected to be delivered by the summer of 2020.

"This award is indicative of KBR's success over the past ten years improving accommodations and working facilities for the UK military through Project Allenby/Connaught," said Stuart Bradie, KBR President and CEO. "We will continue to successfully deliver on this significant project and look forward to further growing and strengthening our enduring relationship with the UK military."

"Further, this award follows on our third quarter backlog growth this year, significantly increasing our government services backlog through the fourth quarter, and positions us well for the future, with a pipeline of long-term, reimbursable, low-risk service contracts into 2017 and beyond," continued Bradie.

The KBR revenue associated with the Change Order is estimated to be $736 million USD and will be booked into backlog of unfilled orders for KBR's Government Services Business Segment during Q4 of 2016.

About KBR, Inc.

KBR is a global provider of differentiated professional services and technologies across the asset and program life cycle within the Hydrocarbons and Government Services 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 logistics
• Technology & 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 consulting
• Engineering & 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.