Credit Suisse 2008Engineering and Environmental

Services Conference

June 5, 2008

Bill Utt – Chairman, President, and CEO

Forward-Looking Statements

This presentation contains “forward-looking statements.” All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements include statements about the benefits of the split-off, the discussions of KBR’s business strategies and KBR’s expectations concerning future operations, profitability, liquidity and capital resources. You can generally identify forward-looking statements by terminology such as “anticipate,” “believe,” “continue,” “could,”“estimate,” “expect,” “forecast,” “goal,” “intend,” “may,” “objective,” “plan,” “potential,” “predict,” “projection,”“should” or other similar words. These statements relate to future events or future financial performance and involve known and unknown risks, uncertainties and other factors that may cause actual results, levels of activity, performance or achievements to differ materially from those in the future that are implied by these forward-looking statements. Many of these factors cannot be controlled or predicted. These risks and other factors include those described under “Risk Factors” in KBR’s Annual Report on Form 10-K dated February 26, 2008, final prospectus for its exchange offer dated March 27, 2007, Forms 10-Q, recent Current Reports on Forms 8-K, and other Securities and Exchange Commission filings . Those factors, among others, could cause KBR’s actual results and performance to differ materially from the results and performance projected in, or implied by, the forward-looking statements. As you read and consider this presentation, you should carefully understand that the forward-looking statements are not guarantees of performance or results. KBR cautions you that assumptions, beliefs, expectations, intentions and projections about future events may and often do vary materially from actual results. Therefore, KBR cannot assure you that actual results will not differ materially from those expressed or implied by forward-looking statements.

The forward-looking statements included in this presentation are made only as of the date of this document. New risks and uncertainties arise from time to time, and KBR cannot predict those events or their impact. KBR assumes no obligation to update any forward-looking statements after the date of this presentation as a result of new information, future events or developments, except as required by the federal securities laws.

KBR: A Leading Global Engineering & Construction Provider

Upstream

Downstream

Technology

Services

Government &Infrastructure

Ventures

1

FY 2007 Revenue: $8.7 Billion; EPS $1.79 (diluted)

89% International / 11% Domestic

Backlog at 3/31/08: $13.4 Billion

76% cost-reimbursable / 24% fixed-price *

Headquarters in Houston, Texas

100+ years of operating history

~52,000 employees (~5,000 engineers)

45+ countries

Extensive service capabilities:

Engineering, procurement, construction, commissioning and start-up (EPC-CS) to global oil, gas, petrochemical, and infrastructure customers

Defense, logistics, and contingency support for defense services

* For contracts that contain both fixed-price and cost-reimbursable components, KBR classifies the components as eitherfixed-price or cost-reimbursable according to the composition of the contract, except for smaller contracts that are characterized on the predominate component.

$-

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Q106 Q107 Q108

Back

log

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ns)

Upstream Business Unit

2

Strategic Growth OpportunitiesMaintain and expand gas monetization leadership

Expand Onshore/Offshore oil and gas opportunities

Leverage consulting expertise

Continue to enhance engineering and technical capabilities to meet expected future market growth

+ 65%

Key ProjectsPearl GTLEscravos GTL Yemen LNGTangguh LNGSkikda LNG Kashagan workNorth Rankin 2Pazflor FPSO TopsidesPluto Production Platform

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Other Government & Infrastructure Middle East Operations

Government & Infrastructure Business Unit

3

Key ProjectsLogCAP III LogCAP IV (Awarded)Allenby & ConnaughtCENTCOMCONLOG Hope Downs DESScottish Water

Strategic Growth OpportunitiesLeverage capabilities and proven track record to capture more design and construction work for federal, state, and local governments

Portfolio diversification among defense services and non-defense branches of the U.S. Government

International geographic diversification among defense services

+ 122%+ 2%

+ 181%

- 14%

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Q106 Q107 Q108

Bac

klog

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+ 208%

Services Business Unit

4

Strategic Growth OpportunitiesGrow domestic construction capability through organic growth and acquisitions

Expand industrial services product offerings and geographic footprint

Expand and capture Canadian Oil Sands opportunities

Leverage existing Canadian fabrication capabilities to broaden scope of work supplied on KBR projects

Key ProjectsScotford Upgrader Expansion North West Upgrader projectsBassell chemical plantsTexas Instruments Campuses project Air Products Hydrogen facilityMMM Vessels business

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Downstream Business UnitStrategic Growth Opportunities

Continue leadership in Program Management Consultancy (PMC)

Capitalize on growing end markets

Leverage in-house and third party technology for expanded opportunities

Emerging market focus

5

Key ProjectsRas Tanura Integrated Project Yanbu Export RefinerySaudi Kayan Ethylene/Olefins facilityEBIC Ammonia plantMAN Ferrostaal AC Ammonia plant

- 42%

Technology Business UnitStrategic Growth Opportunities

Leverage intellectual property assets

Increase pull-through opportunities based on technology

Capitalize on licensing opportunities

Continue to invest in research and development

6

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Q106 Q107 Q108

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log

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+ 9%

Key ProjectsSUPERFLEX™ - Sasol SA KAAP™ - MAN Ferrostaal Ammonia plantSCORE™ - Lanzhou China plantNingbo Wanhua Polyurethanes Company aniline plant

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Ventures Business UnitStrategic Growth Opportunities

Invest capital and development expertise for pull-through service opportunities

Make/manage equity investments on a stand-alone basis

Investment accountability independent of services provided

Reduce portfolio merchant risk profile

7

Key ProjectsAspire Defence – Allenby & Connaught investment EBIC Ammonia project investmentAlice Springs-Darwin railway project investmentVarious road projects investments

+ 17%

KBR Investment Thesis

8

“Go To” Contractor

“Best-in-Class” Risk Awareness

Improving Financial Performance

Focus on Safety

Strategic Uses of Cash

“Go To” Contractor

9PM

C

FEED

EPC / EPCm

Logistics

Technology

Desi

gn /

Cons

ultin

g

EXECUTION

Yanbu Export Refinery;

Pearl GTL; Ras Tanura;

Multiple LNG Projects;

Skikda LNG; Tangguh LNG;

Yemen LNG; EBIC Ammonia Project

Ras Tanura; Pearl GTL;

Kashagan

ROSE™; SUPERFLEX™;

SCORE™; KAAP™; TRIG™

LogCAP III & IV;

CONCAP; CONLOG;

AFCAP; CENTCOM;

North Rankin 2;

Pluto Offshore Platform;

Pazflor FPSO Topsides;

Trans Caspian Oil & Gas Study

“Best-in-Class” Risk Awareness

10

Commercial Risk

Technical Risk

Legal Risk

Identification

Analysis

Measurement

Pricing

Management

Reporting

Improving Financial Performance

11

Recurring Business Unit Income* KBR Total Backlog

$8.0B

KBR Backlog

Q106 Q107 Q108 Q106 Q107 Q108

$10.7B

$13.4B

$117M$129M

$168M

Recurring Business Unit Income*

5.7%6.4%

6.7%

Percentages in boxes represent Recurring Business Unit Income Margins

* See Appendix for GAAP reconciliation

+ 10%

+ 30%

+ 34%

+ 25%

0.000.100.200.300.400.500.600.700.800.901.00

2006 2007 YTD 2008

Inci

dent

Rat

e

Recordable Incident Rate Lost Time Incident Rate

Focus on Safety

12

0.83

0.53

0.190.15

0.41

0.24

Total Recordable Incident Rate Total Lost Time Incident Rate(Shaded Areas Represent LogCAP III Portion)

Construction Industry Institute Rates2006 CII Recordable Rate 0.562006 CII Lost Time Rate 0.22

KBR Cash at 3/31/08 ($ in millions)

Total Cash & Equivalents 1,927 Cash Associated with JVs 358 Advanced Payment on a KBR Project* 231 LogCAP III Working Capital Requirements ~300Operating Cash Requirements ~100

Discretionary Cash 938

Announced Acquisition of BE&K, Inc. ~550

Strategic Uses of Cash

Balance Sheet Supports Growth Opportunities

Return Capital to Shareholders

Opportunistic Acquisitions

Equity Investments in Projects

Technology Investments / Acquisitions

13

* Advanced payments associated with a contract being executed by a wholly-owned subsidiary of KBR.

Investment Highlights

Global Market Leader

Best-in-ClassTechnical Expertise

Strong Management

Team

Blue-ChipClient Base

Improving Financial

Profile

Stringent Risk Management

Compelling Growth

Opportunities

Balanced Project Portfolio

14

Appendix - GAAP Reconciliation

Q106 Q107 Q108Total Business Unit Revenue 2,056$ 2,027$ 2,519$

Total Recurring Business Unit Income 117$ 129$ 168$

Items included in Business Unit IncomeGovernment & Infrastructure

Barracuda Additional Charge (15) - - Skopje Embassy Provision - (1) (12)

UpstreamBrown&Root-Condor SPA Impairment - (20) - Pemex Arbitration Gain - - 51

VenturesASD Impairment (26) - -

Total Items included in Business Unit Income (41) (21) 39

Total Business Unit Income (GAAP) 76$ 108$ 207$