Credit Suisse Engineering & Environmental Services Conference

June 2007

Bill Utt – Chairman, President, and CEO

Cedric Burgher – Senior Vice President and CFO

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 Registration Statement on Form S-4 filed with the U.S. Securities and Exchange Commission on March 2, 2007. 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.

1

$253 $223 $304 $898

$3,136$2,274 $1,706

$1,486

$3,604

$7,454

$5,966 $5,262

$1,870

$1,955

$2,170$1,987

2003 2004 2005 2006

$8,863

$11,906

$10,146$9,633

Backlog

KBR: A Leading Global Engineering & Construction Service Provider

Headquarters: Houston, TX

FY2006 Revenue: $9.6 Billion

Operating History: 100+ years

Employees: 56,000+

Engineers: 4,000+

Countries: 45+

Three Operating Segments:

Energy & Chemicals (E&C)

Government & Infrastructure (G&I)

Ventures

Extensive Service Capabilities:

Engineering, procurement, construction, commissioning and start-up (EPC-CS) to the global oil & gas and petrochemical industries

Defense, logistics, contingency support and infrastructure-related services

$12.0 Billion Backlog at 3/31/07

Revenue

2Other E&C

G&I Middle EastE&C Gas Monetization

Other G&I * Not adjusted for Ventures segment breakout

* ** *

Other G&I, 33%

E&C-Gas Monetization,

29%

Ventures, 5%

G&I-Middle East, 21%

Other E&C, 11%

Investment Highlights

Global market leader in oil and gas (including LNG/GTL) engineering, construction and defense services

Compelling long-term growth opportunities in energy, petrochemicals, defense and infrastructure

Best-in-class technical expertise across business lines

Diverse, blue-chip client base

Balanced project portfolio

Focus on risk management and risk adjusted returns

Improving financial performance and strong balance sheet

3

Strategic Initiatives

Improve risk/return profile and achieve “Best-in-Class Risk Awareness” in project pursuits

Grow the North American industrial services and construction business to historic levels

Supplement existing LNG/GTL sales activities by building on legacy refining and petrochemicals expertise

Build on LogCAP III and Allenby & Connaught positions to grow Government services business

Leverage our leading technology portfolio

Continue to focus on overhead reductions

Improve balance sheet efficiency through strategic deployment of excess cash

4

KBR’s Global Footprint: Well Positioned for Growth

Global - Comprehensive expertise coupled with local presenceLarge - Multi-billion dollar projectsComplex - Increasingly in remote locations; Multi-year projects

Business Characteristics

Key GrowthDrivers

LNG and GTL

Refining and Petrochemical

Capacity

Energy Supply / Demand

Imbalance

TroopSupport

Greenford

Jakarta

Leatherhead

Dubai

Singapore

MonterreyHouston

Arlington

Geographically Remote Energy

Resources

HomelandSecurity

Government & InfrastructureRegion With Considerable KBR Activity

Energy & Chemicals ( Denotes High-Value Engineering Center (“HVEC”))Key Locations

Numerous Offices

5

Energy & Chemicals

E&C Services Addressing the Full Facility Lifecycle

(1) Engineering, Procurement, Construction, Facility Commissioning and Start-up.

(2) Engineering, Procurement and Construction Management.

Feasibility StudiesAlternative EvaluationsConceptual StudiesSafety & Environmental Assessments

Technology PackagesFront-end EngineeringDesign OptimizationEPC-CS Cost Estimates

EPC-CSEPCmProgram and Project Management

ModificationsMature Facility Optimization & ManagementLife Extensions and Rebuilds

HydrocarbonResources

MonetizedResources

(1)

(1)

(2)

ResourcePlanning

ProjectDefinition Execute Operate &

Maintain

7

Worldwide Natural Gas Demand

Source: International Energy Agency (IEA).

3,643

3,245

2,784

2004 2010E 2015E

(Billion cubic meters)

+31% Growth

Projected Capital Investment Through 2020($ in billions)

$200

$50

GTL LNG

Source: Cambridge Energy Research Associates (CERA).

Gas Monetization Investment

Exploration Production Liquefaction Shipping Storage Regas Distribution /Pipelines

KBR Plays a Critical Role Throughout the LNG Value Chain

KBR: The Leading LNG Contractor

Total: $250 billion

8

11684

2005 2030

8,858

5,558

2004 2030

ROW Middle East

122,771154,293

2004 2008

Global Oil Refining Capacity(Million barrels per day)

+38% Growth

Developing new technologies

Coal gasification

CO2 sequestration

Sasol SUPERFLEX (high yield propylene technology)

3,940 5,5752,302

3,869

Oil Gas2004 2030

6,2429,444

+26% Growth

+51% Growth

Broad Energy & Chemicals Expertise

Ethylene Capacity(Thousands of metric tons)

Global Oil and Gas Demand(Million tons of oil equivalent)

Source: International Energy Agency (IEA) and SRI Consulting.

KBR Capabilities Market Opportunity

OIL & GAS

PETRO-CHEMICALS /

SYNGAS

REFINING

EMERGING MARKETS

Onshore production facilities

Pipelines

Offshore fixed platforms / FPSOs / SEMIs

70 year history

Petrochemical facilities

800+ petrochemical projects completed

Syngas – licensor for 200+ ammonia plants

~30% of global greenfield ethylene capacity since 1986

50+ greenfield refineries completed

Brownfield projects– Retrofits – Upgraders

200+ hydroprocessing, fluid catalytic cracking and clean fuel projects

Global Coal Production(Million tons)

+59% Growth

9

Major Awards Drive Significant Backlog Growth

BP Tangguh LNG (Indonesia)

Yanbu Export Refinery(Saudi Arabia)

Yemen LNG(Yemen)

Saudi Kayan Olefins Project(Saudi Arabia)

Pearl GTL(Qatar)

$2,000MMScope of Service: EPC-CS

$110MMScope of Service: FEED & PMC

$2,400MMScope of Service: EPC-CS

$190MMScope of Service: EPCm

$1,000MMScope of Service: FEED,

PMC & EPCm

$443

$3,651 $3,883$3,517

$444

$275$130

$150

$1,462

$1,511$1,700

$1,132

E&C Gas Monetization E&C Offshore E&C Other

$2,349

$5,437$5,713

2004 2005 2006

$4,799

E&C Backlog($ in millions)

2004 to Q107 CAGRTotal E&C: 37%Gas Monetization: 151%

$350MM (TIC)Scope of Service: Technology & EP

Orlando Coal Gasifier (USA)

Note: Dollar figures reflect total contract value and do not necessarily reflect revenue attributable to KBR. Project location noted in parentheses.

Q107

10

* **

* Not adjusted for Ventures segment breakout

Government & Infrastructure

2005 2006 2007 2008

$188

$213$240 $243

$474 $533$601 $620

$70$74

$76

DoD MoD

2005 2006 2007 2008

$544$607

$677 $696$76

World’s Largest Government Services Provider

Key Business Drivers

Overseas Force Sustainment

U.K. MoD Outsourcing

Shift to Flexible Deployment

Growing Outsourcing Trend

U.S. / U.K. Defense Expenditures

DoD O&M Spending

($ in billions)

Source: DoD Comptroller website.

($ in billions)CAGR: 8.9%

A Stable Half Trillion Dollar Market…

Source: DoD – Comptroller websiteMoD - U.K. MoD website.

…With Growing Outsourcing Component

CAGR: 8.6%

12

LogCAP III – Unmatched Military Support Experience

BASE CAMP SUPPORT LOGISTICS SUPPORT

MEALS SERVED

TRUCK MILES 303MM

600MMMANAGED WORKFORCE

BOOTS ON GROUND 200,000+

50,000+COUNTRIES1ST CONTINGENCY

CONTRACT 1994

8

IceFuel

WaterBilletingLaundryLatrines

ShowersFire FightingPest Control

Waste RemovalPower Generation

Operation & MaintenanceHeating, Ventilation & A/C

Moral, Welfare & RecreationDining Facilities Admin. Center

Ope

ratio

ns &

Mai

nten

ance

Rations & WaterEquipment/Tools/SuppliesFuel (Packaged & Bulk)Construction MaterialAmmoRepair PartsJoint Distribution CenterForward Re-Distribution PointMaintenance Org./DirectIce DistributionMail DistributionMovement ControlMaintenance/RecoveryMaterial Handling EquipmentLine Haul (Bulk Fuel/HET/Flatbeds)

Cor

ps L

ogis

tics

Supp

ort S

ervi

ces

Thea

ter T

rans

port

M

issi

on

(1) Since 2003.(2) Since 2002.

(1)

(2)

13

G&I New Project Awards Diversifying Backlog

AFCAP III

DHS Nationwide Contingency

ResponseUSAREUR Support

Balkans

$820MM(2)

Contingency Logistics

$390MM(2)

Contingency Logistics$1.25B(2)

Operations & Maintenance

(1) Estimated value of Indefinite Quantity Contract

Allenby & Connaught

$16.5B(1)

Construction and O&M

G&I Backlog($ in millions)

G&I Other G&I DML G&I Middle East

$4,743

$5,152

$7,803

$2,128

$883

$1,732

$1,708

$1,305

$2,139

$3,658

$1,079

$3,066

2004 2005 2006

$2,773

$2,543

$1,220

$6,536

(1) Reflects contract value over 35 years; current backlog reflects only 5 years.

(2) Estimated value of Indefinite Quantity Contract.

Q107

14* Not adjusted for Ventures segment breakout

* * *

Ventures

Ventures

New business unit created to provide independent assessment and

accountability for project investments

Makes and manages equity investments on a stand-alone basis

No longer participating in project equity investments that would expose us to

merchant risk.

EBIC

2006

Heavy Equipment Transport (HET)

2001

Allenby & Connaught

2006

16

Financial Overview

G&I E&C VenturesG&I E&C Ventures

KBR Revenue & BacklogRevenue

($ in millions)Backlog

64%

36%

Cost-Reimbursable

$7.7B

Fixed Price $4.3B

14%

47% 12%

27%

U.S. $1.4

Iraq / Kuwait $4.5

U.K. $1.1

Other $2.6

2006 Revenue by Geography

($ in billions)

2004* 2005* 2006* Q106 Q107 2004* 2005* 2006* Q107

$11,906

$10,146$9,633

$2,246 $2,251

$7,092

$10,589

$13,516

$11,963

3/31/2007 Backlog by Contract Type

($ in millions)

18* Not adjusted for Ventures segment breakout

3.4%

5.2%

3.8%

1.8%

Adj. Operating Income Less Minority Interest

Adj. Operating Income Margin

Items Impacting Historical Results

Key Items Impacting Results

Nigeria GTL Project and offshore project losses

Write-downs on government and infrastructure projects and BRC

Restructuring charge and gains on sale of assets / investments

Adjusted Operating Income Less Minority Interest($ in millions)

Note: A reconciliation to reported operating income is provided in the Appendix of this presentation.

2006

$72

3.6%

19

2005 Q1072004

$188

$301

$485

GAAP Operating Income

($ in millions)2004 2005 2006 Q107

Total ($357) $455 $246 $62%Margin (3.0%) 4.5% 2.6% 2.8%

Unlevered capital structure

Significant liquidity to pursue prospects and drive continued growth

Balance Sheet Supports Growth Opportunities

Strategic Uses of Cash

•Opportunistic Acquisitions

•Technology Investments/Acquisitions

•Equity Investments in Projects

•Return Capital to Shareholders

Capitalization @ 3/31/07($ in millions)

Available Cash 817Cash Associated with JVs 470

Total Cash and Cash Equivalents 1,287

Current Maturities on Long-Term Debt 15Long-Term Debt 1

Total Debt 16

Minority Interest 28Shareholders' Equity 1,817

Total Capitalization 1,861

Total Debt / Total Capitalization 0.9%

20

Investment Highlights

Global Market Leader

Best-in-ClassTechnical Expertise

Strong Management

Team

Blue-ChipClient Base

Improving Financial

Profile

Stringent Risk Management

Compelling E&C Growth

Opportunities

Balanced Project Portfolio

21

Appendix

Financial Reconciliation

23

($ in millions)2004 2005 2006 Q107

Reported Revenue $11,906 $10,146 $9,633 $2,251(–) Barracuda-Caratinga & Belanak Projects 245 96 28 0

Adjusted Revenue $11,661 $10,050 $9,605 $2,251

Reported Operating Income ($357) $455 $246 $62% Margin (3.0%) 4.5% 2.6% 2.8%

Losses on Barracuda-Caratinga FPSO Projects $407 $8 $19Losses on Belanak FPSO Project 29Charge Related to Escravos, Nigeria GTL Project 157Charge Related to the Brown & Root-Condor Spa JV 20Write-down on Infrastructure and Government Projects(1) 94Restructuring Charge 40 5Impairment on Equity Investments 68Gain on Sale & Cash Distribution From Dulles Greenway Toll Road (96)Other Gains on Sales of Assets (25)Total $570 ($113) $249 $20

Adjusted Operating Income $213 $342 $495 $82% Margin 1.8% 3.4% 5.2% 3.6%

Minority Interest (25) (41) (10) (10)

Adj. Operating Income Less Minority Interest $188 $301 $485 $72% Margin 1.6% 3.0% 5.0% 3.2%

(1) Includes write-down of infrastructure projects in Europe and Africa and a government project in Afghanistan.