Halliburton announces update on first quarter earnings

HOUSTON, Texas – Halliburton (NYSE: HAL) announced today it expects first quarter earnings to be below analyst consensus estimates.

During the first quarter, the Production Optimization and Fluid Systems Divisions of Halliburton’s Energy Services Group have experienced reduced activity in North America. A significant portion of these lower than anticipated results is attributable to decreased drilling and completion activity in Canada and the northern United States.

Halliburton expects its earnings per share for the first quarter of 2007 to be approximately 49 to 54 cents (excluding any potential impact from possible additional losses related to KBR’s 50-percent owned gas-to-liquids project in Escravos, Nigeria, and any possible impairment charges related to KBR’s Brown & Root-Condor Spa joint venture in Algeria as disclosed in the recent amendment to KBR’s Form S-4 registration statement).

As referenced below, Halliburton is conducting an exchange offer for shares of KBR owned by Halliburton. For information regarding recent developments relating to KBR’s Escravos project and KBR’s Brown & Root-Condor Spa joint venture, please read Amendment No.1 to KBR’s Form S-4 registration statement filed with the Securities and Exchange Commission today.

Founded in 1919, Halliburton 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 KBR.