July 31, 2008

KBR Subsidiary Granherne Selected for Trans Euro-Asian Transportation Corridor Feasibility Study

KBR (NYSE:KBR) today announced that its consulting subsidiary Granherne has been selected as the contractor for the Euro-Asian Oil Transportation Corridor Study by MPR "Sarmatia" Sp. z o.o., a firm founded by state oil companies from Azerbaijan, Georgia, Ukraine, Lithuania and Poland.

Granherne was selected for the study through an open bidding process that drew interest from many international engineering and construction firms. The feasibility study will evaluate current and projected production of crude oil from the Caspian region and the forecast market demand in Europe. The study will include conceptual transportation options, financial analysis, facility capacities, economic modeling, capital expenditure (CAPEX) and operating expenditure (OPEX) estimates. Granherne will rely on expertise from its KBR counterparts, including its office in Baku, Azerbaijan, as well as the support of several subcontractors.

"We are delighted to continue to demonstrate Granherne's ability to address the broad scope of bringing oil and gas from the Caspian region to other areas of the world," said Clive Vaughan, Managing Director, Granherne. "We look forward to assisting Sarmatia in this exciting project."

Granherne was also recently selected for the USTDA Trans Caspian Oil and Gas Study to examine the feasibility of building new pipelines to transport oil and gas from the region to other world markets. Granherne was selected for these studies through a competitive bidding process involving 11 other firms.

Granherne is a leading front-end engineering consultancy for onshore, offshore and deepwater oil and gas developments and has experience on over 3,000 projects in more than 20 countries. Granherne has provided services for more than 100 subsea developments, including step out expansions, marginal fields and major subsea projects.

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.