KBR on Thursday announced its separation from Halliburton. KBR had been a subsidiary of the oil services company for 44 years. Thursday's announcement marked the end of a separation process that began in 2005.

"This is a significant milestone in KBR's history and now it is time to move forward and chart our own course as a stand alone engineering, construction and government services company, while continuing to provide the quality service and products that our customers have come to expect from KBR," said William P. Utt, President and Chief Executive Officer of KBR. "Moving forward KBR will remain focused on its core mission: to safely deliver any project, any time, in any environment for the benefit of our customers, shareholders, employees and the communities we serve."

KBR, which is headquartered in Houston, employs just over 50,000 people around the world. The company serves customers through its Energy and Chemicals (E&C) and Government and Infrastructure (G&I) business units. The E&C segment designs and constructs energy and petrochemical projects, including large, technically complex projects in remote locations around the world. KBR's G&I segment delivers on-demand engineering, program, construction management and maintenance services across the full military mission cycle.

"KBR will now clearly focus 100% of our activities toward helping our customers achieve success in their business endeavors and missions around the world. We are excited to continue to be a major player on large, international energy projects and complex logistics services offerings, but also look forward to reinvigorating KBR's engineering, construction and industrial services businesses within the U.S. market," added Utt.

For the year ended December 31, 2006, KBR had total revenue of $9.6 billion and income from continuing operations of $81 million. As of December 31, 2006, KBR's total backlog for continuing operations was $13.5 billion, of which $5.7 billion, or 42%, was attributable to KBR's E&C segment and $7.8 billion, or 58%, was attributable to KBR's G&I segment.

KBR also announced the appointment of two new independent directors to fill two vacancies created by the resignation of the Halliburton executive officers who had been serving on the KBR Board prior to the separation. The newly appointed directors are Mr. John R. Huff, Chairman of Oceaneering International, Inc. and Chairman and CEO of Huff International, and Mr. Loren K. Carroll, former President and CEO of M-I SWACO and former Executive Vice President of Smith International, Inc. With the addition of Huff and Carroll, KBR's board is comprised of entirely independent directors, with the exception of William P. Utt, KBR President and Chief Executive Officer.

A list of the entire Board of Directors and brief biographies follows.

• William P. Utt, KBR President and Chief Executive Officer
• Loren K. Carroll
• Jeffrey E. Curtiss
• John R. Huff
• Richard J. Slater

William P. Utt is KBR's President and Chief Executive Officer. He was appointed to his current position in March 2006 and became a member of KBR's Board of Directors in September 2006. Utt is the former President and Chief Executive Officer of SUEZ Energy North America, a company that develops and sells energy products and services, where he had responsibility for the liquefied natural gas (LNG), retail energy, energy marketing, trading, power generation and development businesses from 2000 until he joined KBR.

Loren K. Carroll is currently an independent consultant and an advisor to Smith International, Inc. From March 1994 until April 2006, he served as President and Chief Executive Officer of M-I SWACO and Executive Vice-President of Smith International, Inc., a worldwide supplier of drilling fluids and related equipment and services to the Oil and Gas Industry. Carroll is currently a director of Smith International, Inc., Fleetwood Enterprises, Inc., Forest Oil Corporation and Veritas DGC, Inc.

Jeffrey E. Curtiss is a private investor. From January 2000 to June 2006, he served as the Senior Vice President and Chief Financial Officer of Service Corporation International, a provider of funeral, cremation and cemetery services. From January 1992 to July 1999, Curtiss was the Senior Vice President and Chief Financial Officer of Browning-Ferris Industries (BFI), Inc., a waste services company.

John R. Huff is currently Chairman of Oceaneering International, Inc. and Chairman and CEO of Huff International. Mr. Huff joined Oceaneering in 1986 as President and CEO and was elected Chairman in August 1990. He founded Huff International in 2007 and is also a director of Rowan Companies, BJ Services Company and Suncor Energy, Inc.

Richard J. Slater currently serves as non-executive chairman of Bluebeam Software Inc., as an independent director of Reliance Steel & Aluminum Co. and as trustee and member of the executive committee of the board of trustees of Claremont Graduate University. Beginning in 1980, he served in various executive positions with Jacobs Engineering Group Inc., most recently as Executive Vice President, Operations (1998 to 2002) and consultant to the Chief Executive Officer (2003 to 2006); he retired in October 2006.

KBR is the largest U.S.-based international contractor according to Engineering News-Record based on fiscal 2005 construction revenue from projects outside a company's home country. Engineering News-Record also ranks KBR as the fourth largest U.S.-based contractor overall and the fifth largest U.S.-based contractor in the industrial process and petroleum market based on fiscal 2005 construction revenue.