FOR IMMEDIATE RELEASE                Contact: Cedric Burgher
January 4, 2002                               Vice President-Investor Relations
                                              713/676-4933


                      HALLIBURTON SAYS NO BASIS FOR RUMORS

     DALLAS,  Texas - Halliburton  (NYSE:HAL)  announced  today that there is no
basis to the  spurious  rumor  that it has filed for  bankruptcy  or that such a
filing is contemplated. The Company has also heard a rumor that there has been a
new large  asbestos jury verdict  against it that has not been  announced by the
Company.  That rumor is also unfounded.  The Company conducts a vigorous defense
of asbestos  lawsuits and adverse  verdicts  will and do occur from time to time
and will be promptly announced by the Company when they are materially  adverse.
It is the Company's policy that it does not respond to rumors.  An exception has
been made in this situation  because of the serious and spurious nature of these
particular rumors.

     Halliburton  Company,  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 http://www.halliburton.com.


NOTE: In accordance  with the Safe Harbor  provisions of the Private  Securities
Litigation Reform Act of 1995,  Halliburton  Company cautions that statements in
this press  release  which are  forward  looking  and which  provide  other than
historical  information,  involve  risks and  uncertainties  that may impact the
company's actual results of operations.  Please see Halliburton's  Form 10-Q for
the quarter ended September 30, 2001 for a more complete discussion of such risk
factors.

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