FOR IMMEDIATE RELEASE       CONTACT: Zelma Branch
December 17, 2001                    Halliburton Global Public Relations
                                     713-676-4371
                                     zelma.branch@halliburton.com


                HALLIBURTON KBR WINS LOGISTICS CIVIL AUGMENTATION
                              CONTRACT FROM US ARMY


ARLINGTON,  Virginia - Halliburton KBR Government  Operations  division has been
awarded  the  U.S.  Army  Logistics  Civil  Augmentation  Program  (LOGCAP)  III
contract.  Halliburton  KBR Government  Operations was formerly known as Brown &
Root Services.
     Established by the U.S. Army to fulfill the Department of Defense's  global
mission  during  contingency   events,   LOGCAP  provides  the  warfighter  with
additional capabilities to rapidly support and augment the logistic requirements
of its deployed forces through use of a civilian contractor.
     Brown  &  Root  Services  served  as the  original  LOGCAP  contractor  and
supported contingency events from 1992 to 1997 in locations ranging from Somalia
to Haiti and subsequently  the Balkans.  When the presence of U.S. Forces in the
Balkans  progressed  into a  sustainment  phase in 1997,  the U.S.  Army  Europe
maintained  continuity of services by awarding Brown & Root the Balkans  Support
Contract.
     Dave  Lesar,  Chairman,  President  and Chief  Executive  Officer of parent
company  Halliburton  (NYSE:  HAL),  discussed the strategic  importance of this
contract:  "Augmenting our military troops with contractor-provided  support has
proven to be an invaluable Force Multiplier."

                                     -more-


HALLIBURTON KBR RECEIVES LOGCAP CONTRACT\2

     LOGCAP III is a 10-year Task Order  contract,  with a one-year  base period
and nine one-year options. Over the past 10 years, Halliburton KBR provided over
$2.5  billion in support  services to  deployed  forces  under  LOGCAP I and the
ongoing  sustainment  work performed  under the Balkans  Support  Contract.  The
contract  requires the contractor to deploy within 72 hours of notification  and
to deliver Combat Support and Combat Service Support  (CS/CSS) for 25,000 troops
within  15 days.  Halliburton  KBR must be ready  to  furnish  these  warfighter
services 24 hours a day, 7 days a week,  365 days a year under any condition and
at any location around the globe. By working with the Army planners, Halliburton
KBR,  drawing on its proven  experience,  will provide for the  construction  of
facilities and infrastructure of base camps including billeting, mess hall, food
preparation,   potable  water,  sanitation,  showers,  laundry,  transportation,
utilities, warehousing and other logistical support. Also included is support of
the Reception,  Staging,  Onward  Movement,  Integration  (RSOI) process of U.S.
Forces as they enter or depart their theater of operation by sea, air or rail.
     "Perhaps at no point in our  history,"  commented  Dave Lesar,  "has such a
need existed for this critical  support.  Our troops have performed  bravely and
brilliantly in the field over the past three months.  We are especially proud to
be able to offer Halliburton's global resources and our continued support to our
nation's heroes."
     Halliburton  KBR  is an  international,  technology-based  engineering  and
construction  company,  which  provides  a  full  spectrum  of  industry-leading
services  for  governments  and public  infrastructure  and to the  hydrocarbon,
chemical, energy, and forest products industries.
     Founded in 1919,  Halliburton 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 business segments. The company's
World Wide Web can be accessed at www.halliburton.com.

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