It’s no surprise that 401(k) account withdrawals are a hot topic these days. While there is some hope on the horizon for an economic recovery, the reality is any recovery may drag on for some time. As a result, more and more Americans are tapping into their

401(k) accounts to make ends meet. A recent report by the Vanguard Group reported a 9% increase in hardship withdrawals from 401(k) accounts. Under normal circumstances, financial experts strongly discourage withdrawals from 401(k) savings, but these are trying times. If you think you may need to withdraw funds from your retirement plan account, you need to know your options and — more importantly — the consequences.

Your Withdrawal Options

As a plan participant, you may access the funds in your account through one or more of the following options:

Financial Hardship Withdrawal – If you have an immediate need due to circumstances beyond your control, you may be able to take a hardship withdrawal from your tax-deferred savings account. Eligible circumstances would include:

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TrustTalk Current news concerning your Retirement Plan

Fall 2009

401(k) Withdrawals: Know the Consequences

Uninsured or unreimbursed medical expenses

Cost to purchase or repair damage to a home

Foreclosure or eviction avoidance

Tuition expenses

Other events that Halliburton may deem qualified for a hardship withdrawal

You will be required to pay taxes and, if applicable, a 10% early withdrawal penalty on any distribution.

Age 59½ Withdrawal – Once you reach age 59½, you can withdraw all or part of your account, even if you are still working for Halliburton and making contributions to the retirement plan. You will be required to pay taxes on any dis-tributions, but won’t incur the 10% early withdrawal penalty.

After-tax Savings Withdrawal – After-tax savings withdrawals are available to participants who have made contributions on an after-tax basis. Only money invested as after-tax savings contributions and the earnings on those contributions is available for withdrawal. Check with your tax advisor, because you may be taxed on any earnings on your after-tax contributions.

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Trust Talk is published quarterly by the Halliburton Trust Investments Department. It is designed to provide members of the Halliburton Savings Plan and Halliburton Retirement and Savings Plan (referred to collectively as the retirement plan) with conventional wisdom on saving and investing. The information included in Trust Talk is not intended as financial advice. You may want to consult a financial advisor before making any investment decisions.

Suggestions or comments about Trust Talk can be sent to Sharon Parkes or Maria Bacaling, Trust Investments Department, 10200 Bellaire Blvd., Houston, Texas 77072.

Loans – A recent study by the Employee Benefit Research Institute states that nearly 20% of 401(k) participants have an outstanding loan. You may be eligible to take a loan from your vested account balance if you are actively employed or on a leave of absence. Only one loan is available at any time. The minimum loan amount is $1,000. The maximum loan amount is:

50% of your vested balance or $50,000 (whichever is less)

Less: Your highest outstanding loan balance in all company-sponsored plans over

the last 12 months

Don’t forget, you must repay the loan, plus interest, to your account through payroll deductions. For most loans, you must repay the loan within 12-60 months. If you take a loan in order to help pay for your primary residence, you must repay the loan within 61-120 months. If you leave the company, you must repay the loan, or the unpaid balance will be considered a taxable distribution and penalties may apply.

Early Withdrawal Penalties and Taxes

Generally all withdrawals of tax-deferred savings are subject to 20% federal tax withholding plus a 10% penalty for early withdrawal. Exceptions to the penalty include withdrawals from an Individual Retirement Account (IRA) for the purpose of purchasing a new home — up to $10,000 and age 59½ withdrawals. Taxes and penalties can take a sizeable bite out of your withdrawal, so you need to think twice before you decide to make a withdrawal. It never hurts to check with your tax advisor before making any withdrawals.

Loss of Compounded Growth

One of the biggest downsides of a withdrawal or loan is the loss of compounded growth on the money now missing from your account. The net effect is that you have less money to invest and to earn interest. The money you withdraw or borrow will no longer appreciate in value in

• conjunction with the rest of your investment portfolio. For example, if you take a $10,000 loan from a $50,000 balance and the market climbs 20%, you’ll only see growth on $40,000, missing out on a $2,000 investment gain. And if you tap into your savings as the market declines, you could have a more difficult time recouping your losses.

In the end, the vested portion of your retirement plan account is yours to manage as you see fit, but be sure to consult a financial advisor and consider all your options before withdrawing funds from your retirement savings account.

For information about loans and withdrawals, visit Your Benefit Resources™ Web site at http://resources.hewitt.com/halliburtonbenefits or call the Halliburton Benefits Center at 1-800-535-8130. If outside the U.S., call 1-866-373-3422 (toll free using the AT&T access code) or 1-847-883-0702 (not a toll-free number).

Penalty Waived for Mandatory Withdrawals in 2009

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Retired participants are legally required to take distributions from their retirement savings accounts beginning at age 70½ — except in 2009. The Worker, Retiree and Employer Recovery Act of 2008 was signed into law in December of 2008 and temporarily waives any required minimum distributions (RMD) for 2009. The penalty (normally 50% for failing to take annual required distributions) will not apply to participants of 401(k) plans and those with traditional Individual Retirement Accounts (IRA). This means participants age 70½ or older aren’t forced to take withdrawals from retirement plans with respect to the 2009 plan year. If you do not want your 2009 RMD suspended, you may still receive payment by calling the Halliburton Benefits Center.

2

It looks like the government will be issuing more Treasury bills, notes and bonds and Treasury Inflation Protection Securities (TIPS) through the end of the year. The Securities Industry and Financial Markets Association (SIFMA) survey forecast that 3rd quarter

Treasury issuances would be $446 billion — that’s up 30% from $343 billion in the 2nd quarter. The 4th quarter is likely to follow suit.

So why does the Treasury need to make a new issuance? The simple answer is to fund the growing budget deficit, now estimated at $1.8 trillion. As the U.S. deficit increases, the Treasury issues new bills, notes and bonds to pay the government’s bills and fund further economic stimulus efforts.

Reports on CNNMoney.com reveal that in late July 2009, the government auctioned more than $200 billion in notes, bills and TIPS followed in August and September by another $75 billion in a string of record-setting debt offerings. That’s on top of the $3.1 trillion issued in the first half of 2009. According to SIFMA, in 2008 the Federal Reserve auctioned off a total of $5.0 trillion in securities.

The Upside

With the increased debt supply, yields on Treasury bonds will be expected to rise and their prices to fall, which may drive some investors to shift money back into real estate and/or stocks and/or bonds, especially if we continue to see better-than-expected corporate earnings reports and improved economic news.

The Downside

As supply concerns increase, eventually foreign investors will be less likely to invest in U.S. Treasuries if interest rates remain low. Higher interest rates can make it more expensive for Americans and American companies to borrow, which can be a drag on the economy. Another risk with the increased Treasury issuance is the potential weakening of the dollar. See “The Weak Dollar and Your Net Worth” on page 4 for more details.

Impact of Treasury Issuance on Your Portfolio

Terms to Know

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Yield – The income return on an investment. This refers to the interest or dividends received from a security, and is usually expressed annually as a percentage based on the investment's cost, its current market value or its face value.

TIPS – Treasury Inflation Protected Security. A security which is identical to a Treasury bond except that principal and coupon payments are adjusted to reflect the impact of inflation.

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We all hear reports about the weak dollar, but what does “weak dollar” really mean? It means that the U.S. dollar can’t buy as much of another currency — say a Euro or Japanese yen. You may think that has no

real impact on you unless you travel to a foreign country, but that’s not quite true. The weak dollar has a ripple effect that may eventually impact your net worth — or more precisely, the purchasing power of your net worth.

While your net worth may have increased over the past year as you paid down debt and curbed spending, the purchasing power of your net worth may have actually declined. That means your dollar may not go as far. According to MeasuringWorth.com calculators (based on consumer price index and the Bureau of Labor Statistics) the purchasing

power of $1.00 in 2008 had declined by 14.5% since 2003. Just this year alone, the U.S. dollar has dropped against the Euro by almost 7%.

Impact of a Weak Dollar

A weak dollar is a source of inflationary pressure. It typically boosts the costs of imports. That’s because foreign companies charge more for their goods to make up for the weaker dollar. If you have purchased any imported goods recently, such as Japanese cars or European products, you’ve probably witnessed this first hand. Another way you may be affected is through rising oil prices. Again, because the dollar is weaker than foreign currencies, we have to pay more for the oil we import.

On the flip side, a weak dollar can have a positive impact on certain segments of the U.S. economy. When the dollar is weak, we tend to export more goods. Foreign buyers find American products to be a bargain; their currency has more purchasing power. Those exports help reduce our trade deficit and keep American workers employed. A weak dollar is also very good news for foreign tourists visiting the United States — and for the American retailers who cater to them. In the long-run, however, the value of the dollar will be a leading indicator about the overall strength of the U.S. economy.

Eventually, if the dollar remains weak and interest rates remain low, we are likely to see a decrease in foreign investments. The Fed can attempt to protect the dollar from further weakening by raising interest rates, but raising interest rates can slow economic activity and could lead to further inflation.

To avoid the impact of a declining U.S. dollar, investors can buy securities that are issued in other currencies. For example, the Non-U.S. Equity Fund buys stocks of companies outside the U.S. So if the U.S. dollar declines in value, the value of the Non-U.S. Equity Fund generally increases. As always, check with your financial planner before making investment decisions.

The Weak Dollar and Your Net Worth

How to calculate your net worth

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Your net worth is the amount by which your assets exceed your liabilities. So complete the following exercise to figure out your net worth:

Step 1: Add up all your assets

Cash in checkingMoney market accountPersonal savings account balanceRetirement plan balanceIndividual Retirement Account (IRA) balanceInvestments outside the retirement planHome valueCarOther property

Step 2: Add up all your liabilities

Mortgage balanceCar loan balanceCredit card debtOther liabilities

Step �: Subtract the total of Step 2 from the total of Step 1 — that’s your net worth

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4

How your dollar stacks up

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If you take your dollars abroad, you’ll see that you don’t have as much buying power compared to some foreign currencies. The exchange rates below show the value of the dollar compared to other currencies at a specific date. Keep in mind that exchange rates continuously fluctuate, so if you plan to travel abroad, check the current rates.

Currency U.S. Dollar Value in Foreign

Currency(as of 9/30/09)

U.S. Dollar Value in Foreign

Currency(as of 9/30/08)

U.S. Dollar $1.00 $1.00

Euro $0.68 $0.71

British Pound $0.62 $0.56

Canadian Dollar $1.09 $1.05

Japanese Yen $90.15 $105.94

Act Now: Halliburton Stock Fund Closing

The Halliburton Stock Fund (“HSF”) will be terminated as an investment option on December 31, 2009, unless Evercore Trust Company, N.A. (“Evercore Trust”), the independent fiduciary for the HSF, determines

it is required to terminate the HSF as of an earlier date. Any investments remaining in the HSF following the close of the New York Stock Exchange on the termination date will be liquidated by Evercore Trust and the proceeds will be invested in the Moderate Premixed Portfolio as soon as practicable. Note: If any portion of your account is invested in the HSF, there are key blackout period dates to remember, which blackout periods will limit your ability to transact in the HSF. Please also note the blackout period does not affect your investment in other funds.

December 24, 2009 – Last day to request hardship withdrawals, primary residence loans and distributions that are subject to the joint and survivor annuity provisions (i.e., if you had an account balance in the Plan prior to June 1, 1998).

December 31, 2009 – Last day to transfer funds out of the HSF, obtain general purpose loans and non-hardship withdrawals. This is also the last day to request distributions not subject to the joint and survivor annuity provisions (i.e., if you began participating in the Plan on or after June 1, 1998 and did not have an account balance in the Plan prior to that date).

January 14, 2010 – Blackout period is expected to end by this date. If the blackout period ends prior to this date, you will be notified via email and a mailed notice. A posting will also be made on the Your Benefits Resources™ website.

If you plan to direct the transfer of any portion of your account invested in the HSF, or obtain distributions or withdrawals, be sure to do so before the blackout period begins. If you need assistance contact the Halliburton Benefits Center at 1-800-535-8130. If outside the U.S., call 1-866-373-3422 (toll-free using the AT&T access code) or 1-847-883-0702 (not a toll-free number), or via the Internet at Your Benefits Resources™ (“YBR”) at http://resources.hewitt.com/Halliburtonbenefits.

5

Sam is 45 years old, earns $150,000 per year and contributes 12% (including Halliburton’s contributions) to his retirement account. He plans to retire at age 67 and expects to live until he is 87. Sam’s replacement ratio is 84%, meaning he will need $126,000 per year after retirement to maintain his current standard of living. Sam needs to save more than $1.8 million by the time he reaches retirement age. Luckily Sam has been focused on saving for retirement and his current retirement savings balance is $367,000. As you can see from the chart to the right, at his current savings rate, Sam will meet his goal.

Figuring out how much income you’ll need in retirement can be tricky and the answer for you will likely be completely different from the person sitting next to you. The amount of income you need in retirement will depend on a number of things:

Will your lifestyle change in retirement? Will you continue to work? Will you spend less?Will you travel?

Generally, you’ll need less income in retirement because:

Your income taxes decrease You no longer have to pay Social Security taxesYou cease contributions to your 401(k)

You will want to take all these factors into consideration when you attempt to figure out how much money you’ll need in retirement.

Additionally you will want to consider your income replacement ratio. A replacement ratio is the percentage of your current salary that you’ll need after retirement to maintain your same standard of living; usually 60 – 90% according to financial advisors.

A recent study by Aon Consulting provides some estimates about the amount of income typically required in retirement. The study states that replacement ratios are highest for lower paid employees (90% – 94%). This is because they generally save the least and pay the least taxes as a percentage of their income. Further, they spend a higher

••••

•••

percentage of their income resulting in a higher replacement ratio. After reaching an income level of $60,000, the replacement ratios remain fairly constant at 77% – 78%. Then as salaries climb for higher paid employees so does the replacement ratio. For salaries $150,000 – $250,000, the replacement ratio increases to 84% – 88% because Social Security benefits are capped, which means more money is required from other sources.

Replacement Ratio Estimates from Aon StudyPre-retirement Income

Social Security Other Sources Replacement Ratio

$20,000 69% 25% 94%

$40,000 54% 31% 85%

$60,000 46% 32% 78%

$80,000 39% 38% 77%

$150,000 23% 61% 84%

So, now that you have an idea what your replacement ratio may be, all you need to do is figure out how much you need to save.

How Much Do I Need To Save?

Learning how much money you’ll need to save for retire-ment can be a sobering experience. Many people find they are not saving nearly enough to meet their retirement needs. Others find they are right on track. Using an online calcula-tor at http://moneycentral.msn.com/Retire/Planner.aspx, we created some examples to help demonstrate some different savings scenarios.

How Much Money Will I Need in Retirement?

$1,800,000

$1,600,000

$1,400,000

$1,200,000

$1,000,000

$800,000

$600,000

$400,000

$200,000

$0

45 67 87

6

Sarah is 45 years old, earns $70,000 per year and contributes 12% (including Halliburton’s contributions) to her retirement account. She plans to retire at age 67 and expects to live until she is 87. Sarah’s replacement ratio is 77%, meaning she will need $53,900 per year after retirement to maintain her current standard of living. Sarah needs to save more than $600,000 by the time she reaches retirement age. Unfortunately Sarah hasn’t been able to save as much as she planned and her current retirement balance is $50,000. As you can see from the chart to the right, at her current savings rate, Sarah will be able to save only about $485,000, so she will run out of savings at age 83. However, it’s not too late to make some adjustments that can help her meet her goal. For instance, she could increase her contribution rate to 15% – 16% (including Halliburton Contributions), or she could decrease her expenses in retirement to make her money last until she is age 87.

Sam was shocked to learn he

needs to save $1.8 million for

retirement. Luckily he is on track!

There are some good online retirement planning calculators, but the Your Benefits Resources™ Web site provides a robust retirement calculator that provides a truly comprehensive look at your specific situation, using pre-populated data regarding your salary and retirement plan elections. You can also include income from other sources. Visit the Your Benefit Resources™ Web site at http://resources.hewitt.com/halliburtonbenefits and click on the Retirement Planning tab. You’ll also find other helpful resources to help you plan for retirement. Get online and crunch the numbers!

* These estimates are for illustrative purposes only. Examples were developed using the Retirement Planner found on moneycentral.msn.com. All

examples assume an 8% average return on investments before retirement and 4% average return on investments after retirement. The calculations

also include an estimated Social Security benefit as well as adjustments for inflation. Halliburton cannot guarantee their accuracy. Overall market

performance can be inconsistent, therefore actual results may vary.

Matt is 45 years old, earns $40,000 per year and contributes 12% (including Halliburton’s contributions) to his retirement account. He plans to retire at age 67 and expects to live until he is 87. His replacement ratio is 94%, so he will need $34,000 per year. Matt’s current retirement balance is $50,000. Matt needs to save about $341,000 to maintain his current lifestyle in retirement. As you can see from the chart to the right, at his current savings rate, Matt will meet his goal.

$500,000

$450,000

$400,000

$350,000

$300,000

$250,000

$200,000

$150,000

$100,000

$50,000

$045 67 87

$360,000

$320,000

$280,000

$240,000

$200,000

$160,000

$120,000

$80,000

$40,000

$045 67 87

7

Is the Recession in the Rear-View Mirror?The markets continued to rally through the third quarter of 2009. Since the end of March, the S&P 500 Index is up 34% leading many investors to believe the recession may be in the rear-view mirror. The growing consensus that the recession is over helped equity markets rise despite continued indications that the recovery will be weak. The government’s initial estimate of Gross Domestic Product (GDP) for the third quarter showed that the economy

expanded by 2.4%. The equity and fixed income markets posted strong results for the quarter and year to date, but the trailing one-year numbers are still negative for most asset classes.

The U.S. equity market posted strong results across all investment styles and market caps during the third quarter. The S&P 500 Index returned more than 15% for the quarter and more than 19% year to date. Small cap stocks outperformed large cap stocks and value stocks outperformed growth stocks. Lower quality stocks continued to rally as these stocks benefited from an improving lending environment and more positive economic outlook. The consumer discretionary sector fared well due to improved consumer spending and economic sentiment. The financial sector also posted strong results in the large- and mid-cap sectors as financial institutions continued to strengthen with government support. However, the financial sector of the small-cap market struggled as regional and local banks continued to suffer from bad real estate loans. More defensive sectors, such as healthcare and utilities also underperformed across the market-cap spectrum.

The international equity market continued to rally during the third quarter. Developed markets outside of the U.S. had roughly the same return as the U.S. — up 14.9%. For U.S. investors, the declining U.S. dollar added another 4.6% to those returns. Many of the same trends that drove U.S. markets impacted non-U.S. equities. The financial sector was the strongest performer while healthcare, utilities and telecom lagged for the quarter. Year to date, the materials sector was the top performer with a return of more than 53%. European markets posted their best quarterly gain in almost a decade while the Japanese market was up only half

as much. Emerging markets also posted strong results for the quarter and slightly outperformed developed markets. Year to date, emerging markets were up 64%. Latin America outperformed the emerging markets led by Brazil, while Asia underperformed, primarily due to relative weakness in China.

The overall U.S. fixed income market posted a positive return of 3.7% for the quarter, but results across different sectors varied drastically. As low rates and a growing appetite for risk returned to the market, lower quality fixed-income securities outperformed higher quality securities as investors looked for increased yields. The high-yield market returned 14% for the quarter and 49% year to date. The lowest quality corporate bonds — rated Ca to D — performed the best, returning almost 35% for the quarter. Treasury bonds fared worse returning only 2% for the quarter and -2.3% year to date. The Federal Reserve did not move rates during the quarter but held them at the target 0% – 0.25%. This caused rates at the low end of the yield curve to remain relatively unchanged and rates at the long end of the curve fell slightly.

Market Update

Newsstand

8

Newsstand

What Happens If I Retire EarlyInstead of working longer as the economy continues to lag, more Americans are retiring early according to the Social Security Administration. Because of the current state of the economy, many older Americans have lost jobs and are finding it difficult to find new ones. According to the U.S. Bureau of Labor Statistics, it now takes laid-off workers over the age of 55 nearly a month longer to find a job than their younger counterparts. Therefore, for those who aren’t too far away from full-retirement, it may not be what they planned, but they are opting to live on less.

As was mentioned in 401(k) Withdrawals: Know the Consequences on the cover of this newsletter, retiring early and withdrawing funds from your 401(k) can have some drawbacks. The same is true for your Social Security benefits.

Early Retirement and Your Social Security Benefit

As a general rule, early or late retirement will give you about the same total Social Security benefits over your lifetime. If

you retire early, the monthly benefit amounts will be smaller to take into account the longer period you will receive them. If you retire late, you will get benefits for a shorter period of time, but the monthly amounts will be larger to make up for the months when you did not receive anything.

There are advantages and disadvantages to taking your benefit before your full retirement age. The advantage is that you collect benefits for a longer period of time. The disadvantage is your benefit is permanently reduced. Each person's situation is different, so remember:

If you delay your benefits until after full retirement age, you may be eligible for delayed retirement credits that would increase your monthly benefit.

There are other things to consider when making a decision about your retirement benefits, so contact Social Security before you decide when to retire.

Social Security Age 62 Benefit Reductions

The following table, supplied by the Social Security Administration, demonstrates the difference between a $1,000 full-retirement benefit and age-62 reduced benefits for you and your spouse. Since full retirement is changing for anyone born in 1938 or later, look for your year of birth to determine the potential benefit reduction should you decide to draw benefits early.

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Retiree Corner

Full Retirement and Age 62 Benefit By Year of Birth

Year of Birth1 Full (normal) Retirement Age

At Age 62

A $1,000 retirement benefit would be reduced to

The retirement benefit is reduced by2

A $500 spouse's benefit would be reduced to

The spouse's benefit is reduced by3

19�7 or earlier 65 $800 20.00% $�75 25.00%

19�8 65 and 2 months $791 20.8�% $�70 25.8�%

19�9 65 and 4 months $78� 21.67% $�66 26.67%

1940 65 and 6 months $775 22.50% $�62 27.50%

1941 65 and 8 months $766 2�.��% $�58 28.��%

1942 65 and 10 months $758 24.17% $�54 29.17%

194�-1954 66 $750 25.00% $�50 �0.00%

1955 66 and 2 months $741 25.8�% $�45 �0.8�%

1956 66 and 4 months $7�� 26.67% $�41 �1.67%

1957 66 and 6 months $725 27.50% $��7 �2.50%

1958 66 and 8 months $716 28.��% $��� ��.��%

1959 66 and 10 months $708 29.17% $�29 �4.17%

1960 and later 67 $700 �0.00% $�25 �5.00%

1. If you were born on January 1, you should refer to the previous year. 2. Percentages are approximate due to rounding. 3. The maximum benefit for the spouse is 50% of the benefit the worker would receive at full retirement age. The percentage reduction for the spouse should

be applied after the automatic 50% reduction. Percentages are approximate due to rounding.

Note: Even if you decide to delay your Social Security benefits until after age 65, you should still apply for Medicare benefits within three months of your 65th birthday. If you wait longer, your Medicare medical insurance (Part B) and prescription drug coverage (Part D) may cost you more money.

For more information visit the Social Security Administration Retirement Planning Page http://www.ssa.gov/retire2/.

9

Halliburton Company Employee Benefit Master Trust for the period ended September 30, 2009

Index Composite Balanced Aggressive Moderate ConservativeU.S. stocks 65.0% 70.0% 43.0% 26.0%Russell �000 Index

Non-U.S. stocks — 22.5% 14.0% 9.0%MSCI EAFE Index

Emerging market stocks — 7.5% 5.0% 3.0%MSCI Emerging Market Free Index

U.S. broad market bonds 35.0% — 33.0% 20.0%Barclays Aggregate Bond Index

U.S. high yield bonds — — 5.0% 4.0%Merrill Lynch High Yield Bond Index

iMoneyNet Money Market Fund Average — — — 38.0%

Performance 10 Years* 5 Years* 3 Years* 1 Year 3rd Quarter

PReMIxed PoRTFolIos Stable Value Premixed Portfolio 5.4% 5.1% 5.1% 4.4% 1.2%IMoneyNet Money Market Fund Average 2.7% 2.9% 2.7% 0.5% 0.0%Conservative Premixed Portfolio (CPP) 5.1% 5.3% 3.4% 7.2% 9.0%CPP Index Composite 3.7% 4.2% 1.7% 3.2% 7.6%Moderate Premixed Portfolio (MPP) 4.9% 5.6% 1.5% 6.5% 14.3%MPP Index Composite 4.0% 4.7% 0.5% 3.9% 12.6%Aggressive Premixed Portfolio (APP) 2.9% 4.7% -2.3% -1.9% 17.5%APP Index Composite 2.1% 3.9% -3.6% -2.4% 17.4%

sINgle FoCUs FUNds Bond Index Fund 6.2% 5.1% 6.4% 10.5% 3.7%lehman Aggregate Bond Index 6.3% 5.1% 6.4% 10.6% 3.7%Balanced Fund 5.9% 5.2% 1.3% 4.5% 11.3%Balanced Fund Index Composite 3.0% 3.1% -0.7% 0.1% 11.8%Large Cap Value Equity Fund 3.5% 1.8% -6.2% -7.6% 17.9%Russell 1000 Value Index 2.6% 0.9% -7.9% -10.6% 18.2%S&P 500 Index Fund -0.2% 1.0% -5.5% -6.8% 15.5%s&P 500 Index -0.2% 1.0% -5.4% -6.9% 15.6%Large Cap Growth Equity Fund -2.2% 1.0% -4.8% -8.6% 12.6%Russell 1000 growth Index -2.6% 1.9% -2.5% -1.9% 14.0%Non-U.S. Equity Fund 5.1% 9.3% 0.6% 4.7% 20.2%MsCI ACWI ex U.s. ** 3.5% 8.1% -1.2% 5.9% 19.7%Mid Cap Equity Index Fund 7.4% 4.4% -1.5% -3.3% 19.9%s&P MidCap 400 Index 7.5% 4.5% -1.4% -3.1% 20.0%Small Cap Equity Fund 4.6% 2.2% -3.7% 1.0% 20.3%Russell 2000 Index 4.9% 2.4% -4.6% -9.6% 19.3%Halliburton Stock Fund 4.0% 10.9% -0.3% -16.1% 30.4%* Annualized.** Returns prior to January 1, 2005, include MSCI EAFE Index, the previous fund benchmark.

General Investment Policy

Fund Performance Update

10

Performance NotesThe Mid Cap Equity Index Fund was not in existence until January 1, 2005. The Conservative Premixed Portfolio was introduced January 1, 2006.

In order to provide comparative historical returns, the managers’ return of their Halliburton Trust account is shown. If the Halliburton Trust had not employed a manager for the periods presented, the firm’s composite account return was added. All rates of return are net of expenses. Your rate of return may vary depending on your account activity (e.g., contributions, withdrawals, transfers, loans, etc.) and your plan’s administration expenses.

To help you better understand how your funds are performing, the funds are compared with composite returns or with appropriate indexes. The composites are created by blending together index returns in proportion to the investment policy of each fund (see chart). Because there are no indices comparable to the Stable Value Premixed Portfolio’s investments, we compare its return with money market funds tracked by iMoneyNet.

Performance data represents past performance; no assurance can be made regarding future results.

Index Definitions*

iMoneyNet Money Market Fund Average is an index of over 700 money market funds.

Barclays Aggregate Bond Index is an index of U.S. bonds, including government, corporate, mortgage-backed and asset-backed securities.

Merrill Lynch High Yield Bond Index is an index of U.S. corporate bonds that are rated less than investment grade but are not in default.

MSCI (Morgan Stanley Capital International) All Country World Index (ACWI) ex. U.S. is an index of non-U.S. stock securities listed on the stock exchanges of developed and emerging markets.

MSCI EAFE Index is an index of non-U.S. equity securities listed on the stock exchanges of Europe, Australasia and the Far East.

MSCI Emerging Market Free Index is an index of non-U.S. stocks traded in emerging markets.

Russell 1000 Growth Index focuses on the 1,000 largest companies in the Russell 3000 Index that have lower dividend yields and above-average growth rates.

Russell 1000 Value Index focuses on the 1,000 largest companies in the Russell 3000 Index that have higher dividend yields and below-average growth rates.

Russell 2000 Index measures the performance of the 2,000 smallest companies in the Russell 3000 Index.

Russell 3000 Index measures the performance of the 3,000 largest U.S. companies based on total market capitalization. It is used as a general measure of U.S. stock market performance.

Standard & Poor’s 500 Index is a popular standard for measuring large-cap U.S. stock market performance. The index includes a representative sample of 500 leading companies in prominent industries.

Standard & Poor’s MidCap 400 Index is a popular standard for measuring mid-cap U.S. stock market performance. The index includes a representative sample of 400 leading companies in prominent industries with a market capitalization of approximately $1 – $4 billion.

* You cannot invest in any of these indices. Fund holdings will differ from index holdings.

For account information, go to Your Benefits Resources™ at http://resources.hewitt.com/halliburtonbenefits or call the Benefits Center automated telephone system at 1-800-535-8130.

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We encourage you to call the Trust Investments Department at (281) 575-��16 with any suggestions or comments regarding Trust Talk. You can expect the next issue in February 2010.

What's Inside

401(k) Withdrawals: Know the Consequences

Impact of Treasury Issuance on Your Portfolio

The Weak Dollar and Your Net Worth

How Much Money Will I Need inRetirement?

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Fall 2009