FOR IMMEDIATE RELEASE                       Cedric Burgher
May 28, 2002                                Vice President, Investor Relations
                                            713.676.4608
                                            cedric.burgher@halliburton.com

                                            Wendy Hall
                                            Manager, Public Relations
                                            713.676.5227
                                            wendy.hall@halliburton.com


                   HALLIBURTON SETTLES THIRTY ASBESTOS CLAIMS

Dallas,  Texas - Halliburton  (NYSE:HAL) announced today that it settled a group
of thirty  mesothelioma  and lung  cancer  cases  pending in New York at a value
consistent with the company's  historical averages for these types of claims. It
is Halliburton's  policy not to announce settlements reached during the ordinary
course of litigation unless they are material.  However, at the company's recent
meeting with analysts and investors  there were numerous  inquiries with respect
to the  status  of these  particular  cases,  which  includes  one that had been
presented  to a jury.  The  company  does not  intend to change  this  policy by
issuing  the  current  statement,  but an  exception  has been made  because  of
widespread investor interest in these particular cases.

Halliburton,  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.