FOR IMMEDIATE RELEASE               CONTACT:Cedric Burgher
December 11, 2001                           Vice President-Investor Relations
                                            cedric.burgher@halliburton.com
                                            (713) 676-5227

                                            Wendy Hall
                                            Manager-Media Relations
                                            wendy.hall@halliburton.com
                                            (713) 676-5227


               HALLIBURTON MAINTAINS STANDARD & POOR'S INVESTMENT
                                  GRADE RATING


     DALLAS, Texas - Standard and Poor's today reduced Halliburton's (NYSE: HAL)
long-term credit rating to A- from A+, and the company's commercial paper rating
from A1 to A2. The ratings continue at investment grade levels.

     "We are pleased to see that we continue  to hold  strong  investment  grade
ratings with Standard & Poor's in light of all that has happened in the last few
days,"  said  Dave  Lesar,  chairman,  president  and chief  executive  officer,
Halliburton.  "The  strength  of our  balance  sheet  and  our  underlying  core
businesses mean we can look forward to returning to our A+ rating as we continue
to execute on our business strategies."

     On  Monday  morning,  Halliburton  outlined  its  strategy  with  regard to
asbestos  litigation.  In addition,  the company  reviewed its balance sheet and
liquidity. Highlights included:

     o   Halliburton currently has approximately $250 million in cash.  The cash
         balance alone is enough to satisfy 16 percent of the company's debt.

     o   In  addition  to  cash, as of  October 31, 2001,  Halliburton  had $2.7
         billion in other  positive working capital, another  significant source
         of liquidity.

                                     -more-



         Halliburton Company                                 page 2

     o   Halliburton currently  has $700 million  in committed  credit  lines on
         bank   revolving  credit   agreements,  under   which   there   are  no
         outstandings.

     o   During the first  ten months of 2001  Halliburton has  reduced its debt
         from 40 percent of capitalization to 25 percent.

     "Halliburton is very sound financially," said Doug Foshee,  chief financial
officer, Halliburton. "Halliburton has an extremely strong balance sheet that is
conservatively  financed with substantial  amounts of working capital as well as
significant amounts of borrowing capacity."

     Halliburton,  founded in 1919, is the world's largest  provider 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  Group business  segments.  The
company's World Wide Web site can be accessed at www.halliburton.com.

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