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2004 Press Releases
FOR IMMEDIATE RELEASE: May 10, 2004

KBR FORMS STRATEGIC ALLIANCE WITH TURBINE MARKET LEADER

ABERDEEN, Scotland - KBR (Kellogg Brown & Root) Production Services announced today they have formed a strategic alliance with Solar Turbines Incorporated to serve the global oil and gas market with an enhanced portfolio of services in offshore and onshore asset management and operations and maintenance. KBR is the engineering and construction subsidiary of Halliburton (NYSE:HAL).

Production Services is a global market leader capable of delivering the complete range of support services to oil and gas exploration and production customers. With extensive experience of successfully managing and executing major projects, the company is constantly developing new tools and techniques to meet and exceed the needs of customers. Production Services is currently active on major projects in over 21 countries including the UK and US.

Building on the successful business relationship already developed between the two companies, the Alliance is a recognition of the mutual benefits achievable in forming a strategic working relationship to support, develop and grow a combined involvement in global operations and maintenance contracts.

The Alliance combines the asset and maintenance management expertise of KBR Production Services group with Solar Turbines' comprehensive machinery management and servicing capabilities. Solar Turbines is to be KBR Production Services' preferred supplier with regards to supply and maintenance of Solar gas turbines and compressors to oil and gas industry customers around the world.

"Both Production Services and Solar Turbines are market leaders in their respective fields of operation and enjoy an excellent reputation," says Tadg Slattery, KBR Production Services Vice President. "This working relationship will offer our customers a substantially enhanced service. Solar has a culture of continuous improvement with a clear focus on customer satisfaction which is a good match with our own business ethos."

KBR's Production Services group is a leading global onshore and offshore contracting organisation with a world-wide reputation for providing highly skilled project management, engineering, maintenance and construction services to the oil, gas and process industries.

KBR is a global engineering, procurement and services company. Whether designing a chemical plant; serving as a defence industry contractor; or providing small capital construction, KBR delivers world class service and performance.

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.

Solar Turbines is a world leader in the design, manufacture and service of industrial gas turbine engines in its size range. More than 11,000 Solar gas turbine engines and turbomachinery systems are used on land and offshore in 90 nations for the production and transmission of crude oil, petroleum products and natural gas and for generating electricity and thermal energy for a wide variety of industrial applications. Solar Turbines is a wholly owned subsidiary of Caterpillar Inc., the world's leading manufacturer of construction and mining equipment, diesel and natural gas engines and industrial gas turbines.

Contact
Georgina Turner
georgina.turner@halliburton.com
KBR
Public Relations - Aberdeen
(p) 44.1224.7774372

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