KBR (NYSE: KBR) announced today that the United States has voluntarily dismissed its False Claims Act case it filed against the company. On April 1, 2010, the United States sued KBR for damages claiming that KBR had violated the False Claims Act by billing under LOGCAP III, which is KBR’s logistics support contract with the Army. These costs were associated with armed private security contractors in Iraq. KBR is pleased that the Government decided to dismiss the False Claims Act case. KBR has faithfully supported American troops in Iraq and has performed its work in support of the Army with professionalism and in full compliance with its contract and the law. KBR has maintained that the LOGCAP contract did not prohibit the use of private security contractors. The use of armed private security contractors was both reasonable and necessary given the dangerous, life-threatening conditions under which KBR and its subcontractors were asked to perform in Iraq. The Government’s voluntary dismissal of the False Claims Act case was the right thing to do, and KBR is committed to continuing its work in support of the American military. KBR is a global engineering, construction and services company supporting the energy, hydrocarbon, government services, minerals, civil infrastructure, power, industrial, and commercial markets. For more information, visit www.kbr.com.