FOR IMMEDIATE RELEASE               CONTACT: Wendy Hall
August 1, 2002                               Halliburton Public Relations
                                             713-676-4371

                                             Cedric Burgher
                                             Halliburton Investor Relations
                                             713-676-4933


                    HALLIBURTON RESPONDS TO FALSE STATEMENTS


DALLAS, Texas - Wednesday Citizensworks put out a false and misleading statement
regarding   Halliburton's  payments  of  federal  corporate  income  taxes  from
1996-2000.  Halliburton has the highest tax compliance  practices and standards,
and above all else - a commitment to ethics.

     We want to publicly  request this group to stop making  political and false
statements that are not based on facts.

Here are the facts.

     Our non-U.S.  subsidiaries  were formed to manage our  business  operations
outside the United States and for no other reason.  Halliburton recorded a total
current provision for federal income taxes for the following years:

- -  2000 $16 million on continuing operations, plus an additional $141 million
   for the sale of our interest in Dresser-Rand and a portion of the $60 million
   worldwide taxes attributable to discontinued operations.
- -  1999 $9 million net provision because we had a $85 million tax benefit
   resulting from a loss on continuing operations, reduced by $94 million
   provision for tax on the sale of our interest in Ingersoll-Dresser Pump.
- -  1998 $302 million.
- -  1997 $167 million, includes Halliburton and Dresser Industries pre-merger
   amount.
- -  1996 $82 million, includes Halliburton and Dresser Industries pre-merger
   amount.

     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.

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