FOR IMMEDIATE RELEASE Contact: Guy T. Marcus
--------------------- Vice President-Investor Relations
10/23/00 214/978-2691
BROWN & ROOT SERVICES TO DEFEND CIVIL LITIGATION
DALLAS, Texas -- Halliburton Company (NYSE:HAL) stated today that one
of its business units, Brown & Root Services ("BRS"), is a defendant in civil
litigation pending in federal court in Sacramento, California, alleging that it
violated certain provisions of the False Claims Act while performing work for
the U.S. Army at Ft. Ord in California (the "Qui Tam" litigation). This lawsuit
was filed by a former employee in 1997. BRS has denied the allegations and is
preparing to defend itself at trial, which is expected to occur in late 2001.
Halliburton believes that the outcome of this civil litigation will not have a
material adverse impact on it.
Although in 1998 the U.S. Department of Justice declined to join the
Qui Tam litigation, it has now advised BRS that BRS is the target of a federal
grand jury investigation regarding the contract issues raised in the Qui Tam
litigation. In addition, BRS has been served with grand jury subpoenas, which
require the production of certain documents relating to the Ft. Ord contract.
BRS is cooperating in the investigation and believes that it has acted in
accordance with the law and the Ft. Ord contract. At the present, the Department
of Justice has not made any specific allegations against BRS.
Halliburton Company, founded in 1919, is the world's largest provider
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 http://www.halliburton.com.
NOTE: In accordance with the Safe Harbor provisions of the Private Securities
Litigation Reform Act of 1995, Halliburton Company cautions that statements in
this press release which are forward looking and which provide other than
historical information involve risks and uncertainties that may impact the
company's actual results of operations. Please see Halliburton's Form 10-Q for
the quarter ended June 30, 2000 for a more complete discussion of such risk
factors.
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