KBR Awarded Contract to Build Detention Centers

FOR IMMEDIATE RELEASE: January 24, 2006

KBR AWARDED U.S. DEPARTMENT OF HOMELAND SECURITY CONTINGENCY SUPPORT

PROJECT FOR EMERGENCY SUPPORT SERVICES

ARLINGTON, Virginia – KBR announced today that its Government and Infrastructure
division has been awarded an Indefinite Delivery/Indefinite Quantity (IDIQ) contract to
support the Department of Homeland Security’s (DHS) U.S. Immigration and Customs
Enforcement (ICE) facilities in the event of an emergency. KBR is the engineering and
construction subsidiary of Halliburton (NYSE:HAL).

With a maximum total value of $385 million over a five-year term, consisting of a one-year based
period and four one-year options, the competitively awarded contract will be executed by the U.S.
Army Corps of Engineers, Fort Worth District. KBR held the previous ICE contract from 2000
through 2005.

“We are especially gratified to be awarded this contract because it builds on our extremely strong
track record in the arena of emergency operations support,” said Bruce Stanski, executive vice
president, KBR Government and Infrastructure. “We look forward to continuing the good work we
have been doing to support our customer whenever and wherever we are needed.”

The contract, which is effective immediately, provides for establishing temporary detention and
processing capabilities to augment existing ICE Detention and Removal Operations (DRO) Program
facilities in the event of an emergency influx of immigrants into the U.S., or to support the rapid
development of new programs. The contingency support contract provides for planning and, if
required, initiation of specific engineering, construction and logistics support tasks to establish,
operate and maintain one or more expansion facilities.

The contract may also provide migrant detention support to other U.S. Government organizations in
the event of an immigration emergency, as well as the development of a plan to react to a national
emergency, such as a natural disaster. In the event of a natural disaster, the contractor could be
tasked with providing housing for ICE personnel performing law enforcement functions in support of
relief efforts.

ICE was established in March 2003 as the largest investigative arm of the Department of Homeland
Security. ICE is comprised of four integrated divisions that form a 21st century law enforcement
agency with broad responsibilities for a number of key homeland security priorities.

KBR is a global engineering, construction, technology and services company. Whether designing an
LNG facility, serving as a defense industry contractor, or providing small capital construction, KBR
delivers world-class service and performance. KBR employs more than 60,000 people in 43
countries around the world.

Halliburton, founded in 1919, is one of the world's largest providers of products and services to the
petroleum and energy industries. The company serves its customers with a broad range of products
and services through its Energy Services Group and KBR. Visit the company's World Wide Web site
at www.halliburton.com.

Contact Info
Corporate
Cathy G. Mann
Director, Communications
5 Houston Center
1401 McKinney St., Suite 2400
Houston, TX 77010
(p) 713.759.2605
cathy.mann@halliburton.com

Corporate
Melissa Norcross
Public Relations Supervisor
1401 McKinney St., Suite 2400
Houston, TX 77010
(p) 713.759.2608
melissa.norcross@halliburton.com

North America
Zelma Branch
Public Relations
10200 Bellaire Blvd
Houston, Texas 77072
(p) 281.988.2557
zelma.branch@halliburton.com
Contact Info
Corporate
Cathy G. Mann
Director, Communications
5 Houston Center
1401 McKinney St., Suite 2400
Houston, TX 77010
(p) 713.759.2605
cathy.mann@halliburton.com

Corporate
Melissa Norcross
Public Relations Supervisor
1401 McKinney St., Suite 2400
Houston, TX 77010
(p) 713.759.2608
melissa.norcross@halliburton.com

North America
Zelma Branch
Public Relations
10200 Bellaire Blvd
Houston, Texas 77072
(p) 281.988.2557
zelma.branch@halliburton.com