KBR AWARDED CONTRACT FOR CONLOG: 03/02/04

LONDON - Kellogg Brown & Root (KBR) has been awarded the contract for CONLOG by the UK Ministry of Defence to provide logistics and infrastructure support to Permanent Joint Forces Headquarters (PJHQ) operations and exercises worldwide. KBR is the engineering, construction and services subsidiary of Halliburton (NYSE:HAL).

The CONLOG contract (Contract for Logistics Support) for which KBR is the Prime Contractor, is an enabling arrangement of seven-years duration consisting of a core planning capability, and the enabling procedures and processes for PJHQ to secure a wide range of support services as and when required for military operations and exercises. As part of the contract, a small KBR team will be embedded into the PJHQ organisation to provide planning input for a wide range of operational services. This competitively tendered contract was won by KBR against strong international competition.

Tony Pryor, Chief Operating Officer for KBR’s Government Operations business in Europe and Africa said: 'KBR has unrivalled experience in the successful delivery of this type of project and understands the strategic importance of CONLOG. This award has highlighted the role of KBR as one of the top five defence contractors in the UK. It further reinforces KBR's leading position in supporting deployed operations worldwide, including work which we are currently doing for the British forces in Iraq.'

The contract over the seven-year period will have a core value of approximately £12m but based upon PJHQ activities over recent years the value of the non-exclusive enabled element could be in the region of £50m per year.

The contract will improve the efficiency and affordability of future deployed commercial support to PJHQ by through planning improvements, aggregation of tasks and the incorporation of policies and procedures into a single enabling contract. The CONLOG in-service date, when the contract will have full capability to deploy the service worldwide, is expected to be April 2004. KBR, as the Prime Contractor, has selected Serco, Inchcape Shipping Services and International SOS as team members.

KBR has been providing a similar service to the US military since 2001 under its Logistic Civil Augmentation Programme (LogCAP).

Founded in 1919, Halliburton 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 Engineering and Construction business segments. The company’s World Wide Web can be accessed at www.halliburton.com.

Contact: Ken Beedle: ken.beedle@halliburton.com:KBR:Public Relations:(p) 44.1372.86.6622

OTHER HALLIBURTON-UK TIES

Defence

KBR provides a wide variety of services to governments in the UK and other locations around the world. KBR's services include:

• Facilities operation and maintenance
• Ownership and operation of defence and private sector facilities
• Construction of major civil and military infrastructure
• Submarine and surface ship maintenance and support
• Aircraft and vehicle maintenance and support
• Emergency or contingency worldwide deployment and support
• Logistics support consultancy

Contact Info
ukgovernment.ops
@halliburton.com

Project Experience

Heavy Equipment Transporters - UK MoD
The KBR - led consortium, FASTTRAX, is providing heavy equipment transporter (HET) services to the British Army, mainly the transportation of the Challenger main battle tank, in both peacetime and conflict scenarios.

Devonport Management Limited (DML) - UK
KBR is the majority shareholder in Devonport Royal Dockyard Limited (DML), the company which owns and operates Devonport Royal Dockyard, the UK's major warship and submarine support site.

Devonport Dockyard - D154 Project - UK
KBR is one of the six companies in the D154 alliance established by Devonport Royal Dockyard Ltd (DML) to manage the development and upgrading of the nuclear submarine refit facilities at Devonport dockyard.

RAF Valley - UK
KBR, in joint venture with Marshall Aerospace, provides aircraft maintenance, supply and other support services at RAF Valley in Anglesey, North Wales under a multi-activity contract.

Emergency Housing - Montserrat, West Indies
KBR, in a contract awarded by UK Government's Department for International Development (DfID), managed the $10m emergency programme for the Caribbean island of Montserrat, to provide housing for up to 1,000 people as rapidly as possible and evacuation support, in the wake of the island's volcanic activity during 1997.

Technical Services - London Borough of Ealing - UK
KBR, trading as Cardinal, is providing a range of municipal services to the London Borough of Ealing under contracts valued at more than $90m.