FOR IMMEDIATE RELEASE      CONTACT: Wendy Hall
March 14, 2002                      Halliburton, Public Relations
                                    713-676-5227

                                    Cedric Burgher
                                    Halliburton, Investor Relations
                                    713-676-4608



                       HALLIBURTON RESPONDS TO COURT ORDER

DALLAS,  Texas - Halliburton  Company  announces  that,  on March 13, 2002,  the
Delaware Supreme Court issued an Order affirming without opinion the judgment of
the Court of Chancery in  litigation  between  Highlands  Insurance  Company and
Halliburton.  The Chancery Court had held that the fixed-cost  primary insurance
policies issued by Highlands  Insurance  Company to Brown & Root, Inc. from 1958
until  1986  terminated  on  January  23,  1996 at the time of the  spin-off  of
Highlands Insurance Group, Inc. by Halliburton.  These policies provided primary
insurance for the  approximately  30,000 Brown & Root  asbestos  claims noted in
Halliburton's  Annual  Report on Form 10-K filed March 12,  2002.  This  primary
coverage  represents  only a portion of total  insurance  covering  Brown & Root
asbestos  claims.  There is more than $2  billion of excess  coverage  above the
Highlands  primary  coverage.  As reported in the Form 10-K,  based on a written
legal opinion by outside counsel that Halliburton would prevail in the Highlands
litigation,  Halliburton  determined to carry approximately $80 million in claim
receivables  against the Highlands insurance policies for settlement and defense
costs and pending asbestos litigation.  These receivables will likely be written
off in the first quarter of 2002 and if so will result in an after tax reduction
in income of $0.11 per diluted  share.  Approximately  45% of these  receivables
relate to payments of settlement and defense costs already made by  Halliburton.
The remainder is management's  estimate of insurance  recoveries  against future
settlement payments on existing Brown & Root asbestos claims.
     "We  are  surprised  by the  decision  of the  Court  and we are  currently
reviewing our options,"  said Dave Lesar,  Chairman and CEO,  Halliburton.  "The
actions  of the  Court  only  affect  claims  that are  related  to Brown & Root


operations,  which  represent  less than 11 percent of the total 274,000  claims
outstanding  at the end of last year."
     Doug  Foshee  Executive  Vice  President  and Chief  Financial  Officer  of
Halliburton will hold a telephone  conference on March 14, 2002 at 9:00 am (CST)
to discuss these  matters.  If you plan to  participate  in the  teleconference,
please  telephone  (719) 457-2727 ten to fifteen  minutes prior to starting time
and refer to confirmation code 792467.
     Halliburton  Company,  founded  in  1919,  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  Group  business
segments.   The   company's   World   Wide   Web  site   can  be   accessed   at
www.halliburton.com.
                                      # # #