In July, Halliburton will be adding two new investment options to the Halliburton Retirement and Savings Plan. After reviewing the current offerings, the Investment Committee decided to add the passively managed Non-U.S. Equity Index Fund and the actively managed Intermediate Bond Fund. Below

is a brief overview of the new investment options. You will be able to add these investment options to your retirement plan portfolio beginning July 31, 2012. To do this, or make any other changes to your portfolio, go to www.halliburton.com/totalrewards (former employees can go to www.netbenefits.com) or call the Benefits Center toll free at (866) 321-0964.

Intermediate Bond Fund

The Intermediate Bond Fund is the new actively managed bond investment option. It seeks to provide a moderate and sustainable level of return with low to moderate risk by investing in primarily U.S. debt securities (bonds). The Intermediate Bond Fund invests in a diversified portfolio of investment grade bonds primarily U.S. government, agency, corporate and mortgage backed bonds. This investment option may also have limited exposure to high yield bonds

TrustTalk Current news concerning your retirement plan

Spring 2012

and bonds of non-U.S. issuers when the professional investment managers find these securities to be attractive for the portfolio. The benchmark for the new Intermediate Bond Fund is the Barclays U.S. Aggregate Bond Index.

The Intermediate Bond Fund is actively managed by professional investment managers who seek to outperform the benchmark and is offered as an actively managed alternative to the passively managed Bond Index Fund investment option. By comparison, the Bond Index Fund is passively managed and seeks to achieve the same return as the benchmark by investing in debt securities

that are similar to, or are the same as, the debt securities held by its benchmark index.

Bonds are especially attractive to investors who are near retirement and who seek stable returns with low risk because the primary source of return is interest income. For other investors, bonds can be an important part of a diversified portfolio offering a balance to their stock asset holdings.

Two New Investment Options

HigherRisk/HigherReturn

LowerRisk/

LowerReturn

StableValue

IntermediateBond Fund

ConservativePremixed

ModeratePremixed

Balanced AggressivePremixed

Large CapValue

Large CapGrowth

Non U.S.Equity

Small CapEquity

BondIndex

S&P 500Index

Non U.S.Equity Index

MidCapEquity Index

Actively Managed Investment Options

Passively Managed Investment Options

Although bonds generally have less risk than stocks, bonds are still subject to risk. In general, bonds can be volatile. Bond yields and prices change daily based on changes in interest rates and market conditions, as well as in response to other economic, political or financial developments. Foreign markets, particularly emerging markets, can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market or economic developments. Investment in lower-quality fixed income securities which generally offer higher yields, carry more risk than higher-quality bonds. In addition, as interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities. Fixed income securities also carry inflation risk, credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding the bonds until maturity is not possible.

Market Risk Inflation Risk Potential Return▲

Low ▲ High▲

Low

Pacific Investment Management Co. and Metropolitan West Asset Management Co., Ltd are the investment managers of the Intermediate Bond Fund. These managers buy and sell bonds in pursuit of the investment objective. Actively managed investment options may offer the possibility of higher than market returns because the managers can adjust to changes in the market and economy. However, lower than market returns are also possible, and fees and expenses tend to be higher than passively managed investment options.

Investment performance is determined after fees are charged to the fund and assumes reinvestment of income and capital gains. As the inception date for the Intermediate Bond Fund is July 31, 2012, no historical investment performance is available at this time. Historical performance data is expected to become available during the fourth quarter of 2012.

The Intermediate Bond Fund expense ratio is estimated at 0.38% or $3.80 per $1,000 of investment. Contrast that to the passively managed Bond Index Fund with an actual expense ratio of 0.16% or $1.60 per $1,000 of investment at March 31, 2012. The expense ratio consists of operating costs that are paid by all participants of the plan and reduces the rate of return realized by participants. These operating costs include, but are not limited to, investment management fees, trustee/custodial fees, accounting fees, audit and legal fees.

Non-U.S. Equity Index Fund

The Non-U.S. Equity Index Fund is a passively managed international equity investment option. It invests in large cap stocks (market capitalization over $10 billion) and, to a lesser

Trust Talk is published quarterly by the Halliburton Trust Investments Department. It is designed to provide participants of the Halliburton Retirement and Savings Plan with conventional wisdom on saving and investing. The information included in Trust Talk is not intended as financial advice. You may want to consult a financial advisor before making any investment decisions.

Suggestions or comments about Trust Talk can be sent to Sharon Cowher or Maria Martin, Trust Investments Department, 10200 Bellaire Blvd., Houston, Texas 77072.

extent, mid cap stocks (market capitalization between $2 - $10 billion) of developed and emerging countries outside of the U.S. It seeks to replicate the risk and returns of the benchmark index — the MSCI All Country World Index ex. U.S. Index — by investing in similar securities held by that index.

The Non-U.S. Equity Index Fund is passively managed and will be made available under the retirement plan as a low-cost passively managed index fund alternative to the actively managed Non-U.S. Equity Fund option. By comparison, the Non-U.S. Equity Fund is managed actively by professional investment managers who invest in equity securities that are consistent with the investment objectives described in that fund’s fact sheet, which has previously been made available at www.halliburton.com/totalrewards. Former employees can go to www.netbenefits.com.

Exposure to the stock asset holdings of non-U.S. companies provides diversification in terms of economic growth, stock market exposure and currency exposure. However, keep in mind, foreign securities are subject to currency-exchange-rate, economic and political risks, all of which may be magnified in emerging markets. The currency exposure in the fund is not hedged. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market, economic or other developments.

Market Risk Inflation Risk Potential Return▲ High

▲ Low ▲ High

Non-U.S. stocks are considered an aggressive asset class that can provide high cumulative long-term returns, but also can be subject to high risk in the form of volatile returns. Non-U.S. stocks provide diversification to portfolios holding bonds assets as well as U.S. stocks, as part of an overall investment portfolio. The Non-U.S. Equity Index Fund is passively managed by SSGA, a professional investment manager selected by the Investment Committee. SSGA will exercise the voting rights of the securities held in this collective investment trust fund. Voting rights for the underlying securities are not passed on to you as a participant in the investment option. Management fee expenses for passively managed investment options tend to be lower than for actively managed investments, offering a cost-effective option to participants.

Investment performance is determined after fees are charged to the fund and assumes reinvestment of income and capital gains. As the inception date for the Non-U.S. Equity Index Fund is July 31, 2012, no historical investment performance is available at this time. Historical performance data is expected to become available during the fourth quarter of 2012.

The Non-U.S. Equity Index Fund expense ratio is estimated at

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0.17% or $1.70 per $1,000 of investment. Contrast that to the actively managed Non-U.S. Equity Fund with an actual expense ratio of 0.58% or $5.80 per $1,000 of investment at March 31, 2012. The expense ratio consists of operating costs that are paid by all participants of the plan and reduces the rate of return realized by participants. These operating costs include, but not limited to, investment management fees, trustee/custodial fees, accounting fees, audit and legal fees.

General Plan and Fee Expenses Information

As with the current investment options offered under the retirement plan, there are no fees charged for you to contribute, transfer or withdraw from the new investment options. Transaction costs incurred by the fund for buying and selling securities reduces the fund’s rate of return but, in keeping with industry standards, are not included as an operating cost in the expense ratio.

The cumulative effect of fees and expenses can substantially reduce the growth of your retirement savings but is only one of many factors to consider when you decide to invest in an option. The only fee directly charged to a participant’s account is a mailing

fee if a check is mailed overnight upon request, the cost of which is $25 per transaction.

Visit the Employee Benefits Security Administration website for examples demonstrating the long-term effect of fees and expenses at http://www.dol.gov/ebsa/publications/401k_employee.html.

The new investment options will be subject to the same trading restrictions already imposed on all other investment options within the retirement plan, except for restrictions applicable to the Stable Value Premixed Portfolio. For more information regarding the trading restrictions, please refer to the Summary Plan Description or Investment Highlights.

The Halliburton Retirement and Savings Plan is intended to constitute a plan described in Section 404(c) of the Employee Retirement Income Security Act and Title 29 of the CODE OF FEDERAL REGULATIONS Section 2550.404c-1 and that the fiduciaries of the Plan may be relieved of liability for any losses that are the direct and necessary result of investment instructions given by a Plan participant or beneficiary. The information provided above has been disclosed in compliance with these regulations. For more information, please consult Investment Highlights.

Recovery Hopes Breathe Life Into U.S. MarketsOn March 26, 2012, the markets reached a four-year high, as the market continued to rally during the first three months of 2012. The U.S. economy is estimated to have grown at a 2.2% annual rate in the first quarter of the year, a slight decrease from the 3.0% revised fourth quarter 2011 report. In the U.S. the unemployment rate decreased from 8.5% in December to 8.2% in March. The first quarter of 2012 brought positive economic news as corporate America continued to grow profits despite the weak recovery. Profit margins reached record highs as a result of cheap borrowing costs, low tax rates and high productivity. Household spending increased, though the savings rate dropped. Amid this environment, the U.S. Federal Reserve continued to keep interest rates at near zero levels.

Major U.S. Equity indexes wrapped up their best first quarter since 1998 and only the 11th double digit first quarter gain since 1928. Growth stocks outperformed value stocks across all market caps during the first quarter. Large cap stocks marginally outperformed small caps and slightly trailed mid caps for the quarter. In the first quarter of 2012 the best performing asset class was large cap growth with a return of 14.7%. Nine of ten

Market Update sectors posted positive results for the quarter led by the financials, information technology and consumer discretionary sectors.

The U.S. dollar rally that took place in the second half of 2011 came to a halt in the first quarter of 2012. Major developed currencies faired well against the U.S. dollar, with the Japanese Yen being the exception. The best performing countries in the quarter were Germany (21.1% ), Singapore (19.3% ) and Belgium (19.0% ). The emerging markets rose slightly more than 14.0% in the first quarter. The best performing emerging markets countries for the year were Egypt, Turkey and Hungary. But financial strains eased further during the first quarter of 2012, largely due

to the European Central Bank’s long-term refinancing operation, which provided funding to banks. In addition, structural issues facing the Eurozone have barely been addressed and the area is in a recession. As such, the Eurozone debt crisis is likely to remain a dominant risk in 2012 and beyond.

Within fixed income markets, interest rates rose in the first quarter. The yield on the 10-year Treasury increased from 1.9% to 2.2% and the 30-year Treasury yield rose by 46 basis points to 3.4%. The Barclays Capital Treasury Index returned -1.3% in the first quarter, compared to

the Barclays Capital U.S. Aggregate Index’s gain of 0.3%. Riskier fixed income securities posted the highest gains, as investors grew more comfortable with credit risk. The Barclays Investment Grade Corporate and High Yield Indexes rose 2.1% and 5.3%, respectively. Local currency emerging market debt was a strong performer, gaining 8.3%.

Newsstand

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Every investor faces a variety of risks, including market risk, inflation risk and interest rate risk. Investors naturally focus on these risks, as they directly impact an investor’s portfolio balance.

However, all investors also face another type of risk that isn’t often considered: longevity risk. This is the risk of not having enough to get through retirement because you didn’t save or invest appropriately to meet your retirement income needs.

While you can’t control the market, inflation or interest rates, you do control how much you save for retirement and how those savings are invested. Remember, you may have to live on your investments for more than 20 years in retirement. Rethink risk by taking control of longevity risk in three ways.

Rethink Risk1. Develop and Follow a Strategy

A good starting point for mitigating longevity risk is having a strategy. What are your retirement goals? Do you want to travel the world or snooze in a hammock in your backyard? Do you have other financial goals? Are you saving for a down payment on a house? Setting aside money for college tuition for your kids? Planning a family dream vacation?

Write down your retirement and other financial goals and discuss them with your family and financial advisor. A financial advisor can help you determine the best way to meet your retirement and other financial goals, through a variety of savings vehicles. Also, you can use one of the Fidelity retirement calculators on www.halliburton.com/totalrewards to help you determine how much you should save now to meet your retirement goals. (See the Fidelity Resource Corner on page 10 for a tool to get you started.) Once you have set your goals, dedicate yourself to meeting them.

Definitions:

FAS

T F

AC

TS Market risk — Change in an

investment’s value caused by fluctuations in market prices.

Inflation risk — Loss of buying power, if your money doesn’t grow as fast as inflation.

Interest rate risk — As interest rates rise and fall, an investment’s value changes.

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3. Diversify

Finally, to help you mitigate longevity risk, you need to diversify. To take advantage of market upswings and weather market downswings, financial analysts agree you should have a diversified mix of stocks and bonds in your portfolio, and aside from periodic rebalancing, stay the course. Your asset allocation will depend on your time horizon and risk tolerance. Halliburton’s Premixed Portfolios provide a simple way to select and manage your asset allocation. They range from aggressive to conservative, offering diverse investment options based on your investment goals.

If you follow these three steps, you can start to rethink risk. While you still have to face the risks of investing, you can reduce the risk of not having enough saved for retirement.

How the Halliburton Retirement and Savings Plan Works

DID

YO

U K

NO

W?

You can contribute any amount you wish to the retirement plan, from 1% to 50% of your salary up to up to $17,000 a year ($22,500 a year if you’re 50 or older), per IRS rules. Your contributions are enhanced by the Halliburton match.

Halliburton offers a dollar-for-dollar company match on the first 4% that you contribute per pay period and $0.50 on the next 2% that you contribute per pay period, for a total of a 5% company match. You need to contribute at least 6% of your salary to take full advantage of the company match. No matter your goals, you should maximize the Halliburton match — if you don’t, you are leaving money on the table.

2. Take Advantage of Dollar Cost Averaging with the Halliburton Retirement and Savings Plan

When you contribute with each paycheck to the Halliburton Retirement and Savings Plan not only are you saving for retirement, but you are also using a strategy called dollar cost averaging — and working on eliminating longevity risk.

Dollar cost averaging is buying an investment at a fixed dollar amount (for example, $50) on a regular schedule (for example, every month), regardless of the share price. This is different from the strategy of trying to predict the market. Market timers try to “call the market bottom” when investing, in an attempt to buy low and eventually sell high. Unfortunately, calling the bottom is difficult and almost impossible to do consistently. However, when you dollar cost average, you purchase shares at regular intervals regardless of market cycles, giving yourself a better chance to grow your retirement account. You automatically do this when you make contributions to the retirement plan.

Dollar cost averaging works best when you make consistent investments over time based on your goals and objectives and leave your investments in place. It is important to reevaluate your investment options periodically, but making frequent changes — such as moving money between investment options — undermines the power of dollar cost averaging.

Rethink risk by taking control of longevity risk.

5

Studies show the average American saved nearly 5% of his or her income in 2011. We all know that we need to save for retirement, and 5% of your yearly income is probably not enough to sustain you during your golden years. Many

experts recommend saving at least 10% of your income, but you may need to save even more if you got a late start. Given all of our daily, monthly and yearly expenses, it may not always seem easy to save. But it can be done.

Be Realistic

Almost no one becomes a millionaire overnight, so don’t expect big returns month after month. While a short-term payoff is great, retirement

is a long-term prospect. Remember that markets are cyclical and over the long term you will likely see positive returns. For example from 1926 to 2011, the S&P 500 posted a 9.97% average annualized return, which includes the Great Depression from 1929 to 1932, the worst stock market decline in history. So don’t panic when the market fluctuates. Choose a strategy and stick to it, regardless of how the market behaves on a day-to-day basis.

Do it Automatically

When it comes to saving for retirement the good news is you are already in the game thanks to the Halliburton Retirement and Savings Plan.

As a Halliburton employee, you automatically receive a 4% basic contribution whether or not you contribute to your 401(k) plan. Any pre-tax contributions you make to the Halliburton Retirement and Savings Plan are deducted from each paycheck and go directly into your account. To make the most of your contributions, you should maximize the Halliburton match (see the sidebar How the Halliburton Retirement Plan Works on page 5 for details on the Halliburton match).

Saving: The Keys to SuccessTo save even more, increase your contributions to the retirement plan when you get a pay raise or when you pay off debt. You can also set up automatic deposits into your personal savings account. Even if you can’t afford to set aside huge sums of money, remember that every little bit helps. Set aside $50 a week and in five years you will have saved $13,000, and that doesn’t take into account any interest you may earn.

Don’t Wait

One of the biggest savings mistakes you can make is to think that either you still have plenty of time to start saving or that it is too

late to start. It’s never too early or too late to save and invest. So if you haven’t already begun — start today. Go to www.halliburton.com/totalrewards to increase your contribution to the Halliburton Retirement and Savings Plan. Also, if you are 50 or older, you can contribute an additional $5,500 to the retirement plan in 2012. The IRS calls these “catch-up contributions.” This means individuals 50 or older can put away up to a total of $22,500 into their retirement account in 2012. The IRS adjusts this catch up contribution amount each year. Watch upcoming editions of Trust Talk for announcements of future adjustments to the catch-up contribution amount.

Many experts recommend saving at least 10% of your income, but you may need to save even more if you got a late start.

6

types of investments and more. If you’d like help finding resources, you can also speak one-on-one with a Fidelity representative toll free at (866) 321-0964.

Manage Your Income

Your next step is to manage your income so it will last. Keep in mind that you may be retired for 20 or more years, so consider that as you calculate what percentage of your nest egg should you withdraw each year.

To determine an appropriate withdrawal rate, you’ll need to consider your age, health, living expenses and rate of return on investments. If you’re generally healthy and retire at age 65, most experts say you can safely begin with a 4%

Adjusting Your Investments During Retirement You planned for years, invested wisely and now that you have finally retired you are ready to sit back, relax and enjoy your retirement. However, retirement planning doesn’t end once you retire. Your portfolio has to provide you with the income stream you need during the remainder of your life. This means managing your cash flow and assets is critical during retirement, when your income comes from your savings rather than from a paycheck. And like any financial plan, your investments require periodic adjusting.

Assess Your Allocations

During retirement you need an asset allocation strategy designed to provide some income, some protection from volatility and some growth. As you round the bend toward retirement, you may not want to take on excessive risk; the traditional advice has been to move toward a more conservative portfolio as you age. This remains solid advice, but the consequences of being too conservative can be significant when you account for inflation and the possibility of outliving your savings.

Financial experts suggest that during retirement you should consider a mix of income assets that also have the potential for growth. Your ideal asset allocation will depend on a number of factors, including your age and health, the size of your portfolio and your risk tolerance. According to Chris McDermott, senior vice president of investor education, retirement and financial planning at Fidelity, many people should consider holding at least 50% of their portfolio in stocks when they retire. Retirement is the time to take some risk off the table, but as you may be retired for 20 years or more, there is also a risk that you could run out of money if you are too conservative with your investments. (See the article Rethink Risk on page 4 for a discussion of longevity risk and how to mitigate it.)

Go to www.netbenefits.com to review your asset allocation and make any necessary changes. At Fidelity, you can also access a number of online tools and resources about asset allocation, the potential risks and rewards of different

Retiree Corner

Newsstand

to 6% withdrawal rate during your first year of retirement. After that, build in cost-of-living adjustments each year to account for inflation.

Also, when deciding on a withdrawal strategy, make sure you consider tax implications and minimum distribution requirements by the IRS once you reach a certain age. Consider withdrawing no more than the amount required each year by the IRS from your retirement account. This will allow the remaining amount to continue growing tax-deferred (or tax-free in the case of Roth IRAs) and will help to reduce the amount of taxes you will owe for the year.

Fidelity provides you with tools and resources to help you determine the withdrawal strategy that is right for you. Visit www.netbenefits.com to get started. Also, it’s wise to seek advice from a financial professional who can help you develop a comprehensive retirement strategy and establish scheduled distributions from your retirement accounts.

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Investment Fund Overview Fund Performance Update

Annualized Net of Fees Returns as of March 31, 2012

Annual Net of Fees Return as of December 31

Expense One Year Ending 3/31/2012

Fund Name / Benchmark Name

1-Year 3-Years 5-Years10-Years /Life **

2007 2008 2009 2010 2011Turnover Ratio

One Year Ending 3/31/2012

Inception DateManagement

Style Investment

Structure ***Market

RiskInflation

RiskPotential

Return% of Assets

Per $1,000 Invested

STABLE VALUE

Stable Value Premixed Portfolio 3.5% 3.8% 4.3% 4.7% 5.3% 5.4% 4.2% 3.6% 3.6% 91% 1/2/87 Active Separate Account Low High Low 0.54% $5.44

Hueler Stable Value Pooled Fund Universe 2.6% 2.9% 3.6% 4.1% 4.9% 4.6% 3.1% 3.1% 2.7%

90 Day TBills 0.1% 0.1% 1.2% 1.9% 5.0% 2.1% 0.2% 0.1% 0.1%

BONDS

Bond Index Fund 7.5% 6.7% 6.2% 5.7% 6.9% 5.4% 5.9% 6.4% 7.7% 68% 4/1/99 Passive Collective Trust Low High Low 0.16% $1.59

Barclays Capital US Aggregate Bond Index 7.7% 6.8% 6.2% 5.8% 7.0% 5.2% 5.9% 6.5% 7.8%

BLENDED FUNDS

Conservative Premixed Portfolio (CPP) 4.7% 13.4% 4.9% 5.8% 8.4% -15.9% 19.8% 10.1% 1.0% 33% 1/2/06 Active Separate Account Medium Medium Low 0.40% $3.97

26% Russell 3000, 12% MSCI ACWI ex. U.S., 20% BarCap US Aggregate, 4% BofA ML High Yield Bond, 38% Hueler Stable Value Pooled Fund Universe

4.1% 12.1% 3.9% 5.7% 6.9% -15.6% 16.8% 9.2% 1.5%

Moderate Premixed Portfolio (MPP) * 5.9% 20.4% 5.0% 7.1% 10.8% -29.2% 31.1% 14.7% 0.2% 39% 1/2/87 Active Separate Account Medium Medium Medium 0.52% $5.22

43.5% Russell 3000, 18.5% MSCI ACWI ex. U.S., 33% BarCap US Aggregate, 5% BofA ML High Yield Bond

4.9% 17.8% 3.6% 6.3% 8.0% -26.3% 24.8% 12.7% 0.8%

Balanced Fund 7.2% 17.6% 4.7% 6.6% 8.4% -22.3% 22.2% 10.9% 3.8% 38% 4/1/99 Active Separate Account Medium Medium Medium 0.34% $3.42

65% S&P500, 35% BarCap US Aggregate 8.6% 17.7% 3.9% 5.0% 6.1% -24.1% 19.4% 12.5% 4.4%

STOCKS

Aggressive Premixed Portfolio (APP) 4.7% 24.6% 2.9% 6.4% 13.7% -41.0% 34.7% 17.5% -3.6% 32% 1/3/94 Active Separate Account High Low High 0.60% $6.03

70% Russell 3000, 30% MSCI ACWI ex. U.S. 2.7% 22.7% 1.2% 5.7% 8.9% -39.9% 32.6% 15.1% -3.7%

S&P 500 Index Fund 8.4% 23.2% 1.9% 4.0% 5.4% -37.0% 26.4% 15.0% 2.0% 4% 4/1/99 Passive Collective Trust High Low High 0.14% $1.43

S&P500 Index 8.5% 23.4% 2.0% 4.1% 5.5% -37.0% 26.5% 15.1% 2.1%

Large Cap Growth Equity Fund 14.2% 24.4% 4.1% 3.6% 16.7% -42.4% 31.8% 15.5% 1.0% 24% 4/1/99 Active Separate Account High Low High 0.54% $5.43

Russell 1000 Growth Index 11.0% 25.3% 5.1% 4.3% 11.8% -38.4% 37.2% 16.7% 2.6%

Large Cap Value Equity Fund 4.2% 22.6% 0.1% 5.0% 4.3% -38.5% 23.1% 16.8% -1.3% 48% 4/1/99 Active Separate Account High Low High 0.49% $4.85

Russell 1000 Value Index 4.8% 22.8% -0.8% 4.6% -0.2% -36.8% 19.7% 15.5% 0.4%

Non US Equity Fund -3.7% 21.6% 0.7% 8.0% 20.8% -44.1% 40.5% 13.4% -11.8% 24% 4/1/99 Active Separate Account High Low High 0.58% $5.80

MSCI All Country World ex. U.S. Index -7.2% 19.1% -1.6% 7.0% 14.1% -47.1% 37.4% 8.4% -16.1%

Mid Cap Equity Index Fund 1.8% 28.3% 4.6% 7.6% 7.9% -36.2% 37.0% 26.4% -1.9% 13% 1/3/05 Passive Collective Trust High Low High 0.16% $1.65

S&P MidCap 400 Index 2.0% 28.5% 4.8% 7.7% 8.0% -36.2% 37.4% 26.6% -1.7%

Small Cap Equity Fund -3.1% 28.4% 3.1% 5.0% -1.9% -37.3% 41.3% 27.6% -5.1% 53% 4/1/99 Active Separate Account High Low High 0.90% $8.97

Russell 2000 Index -0.2% 26.9% 2.1% 6.4% -1.6% -33.8% 27.2% 26.9% -4.2%

The table below includes important information to help you compare the investment options under your retirement plan. It shows how the investment options have performed over time and allows you to compare them with an appropriate benchmark for the same time periods. Keep in mind that you cannot invest in the benchmark indices, which are set forth in italics on the chart underneath the name of each investment option. Remember, past performance does not guarantee future results.

* The Moderate Premixed Portfolio was selected as the qualified default investment option in accordance with the guidelines set by federal law if participants do not have an investment election on file. ** Where the investment fund has been in existence for less than 10-years, performance provided is for the Life of the investment option, which is since the inception date. *** Most investment options use institutionally managed separate accounts; this means the accounts are managed only for participants in the Halliburton Plans. Individual securities are bought and sold by professional investment managers selected by the Investment Committee. Collective Trusts are investment vehicles operated by banks or trust companies. Neither collective trust funds nor separate accounts are mutual funds. Unlike mutual funds, separate accounts and collective trust funds are not subject to and are not registered under the Securities Act of 1933 or the Investment Company Act of 1940.Trading Restrictions focuses on what is known as a “round-trip” transaction. A round-trip is an exchange into and out of the same investment fund, in excess of $1,000, within 30 days. Under the Policy, participants are limited to one round-trip transaction in any fund within any rolling 90-day period, subject to an overall limit of four round-trip transactions across all funds over a rolling 12-month period. The Policy governing the Stable Value Premixed Portfolio (SVPP) works differently. If money is transferred or reallocated into the SVPP, the number of units acquired in the transaction cannot be transferred out of the SVPP for 30 calendar days. However, any units already in the SVPP prior to the transaction are not subject to the 30-day waiting period.

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Annualized Net of Fees Returns as of March 31, 2012

Annual Net of Fees Return as of December 31

Expense One Year Ending 3/31/2012

Fund Name / Benchmark Name

1-Year 3-Years 5-Years10-Years /Life **

2007 2008 2009 2010 2011Turnover Ratio

One Year Ending 3/31/2012

Inception DateManagement

Style Investment

Structure ***Market

RiskInflation

RiskPotential

Return% of Assets

Per $1,000 Invested

STABLE VALUE

Stable Value Premixed Portfolio 3.5% 3.8% 4.3% 4.7% 5.3% 5.4% 4.2% 3.6% 3.6% 91% 1/2/87 Active Separate Account Low High Low 0.54% $5.44

Hueler Stable Value Pooled Fund Universe 2.6% 2.9% 3.6% 4.1% 4.9% 4.6% 3.1% 3.1% 2.7%

90 Day TBills 0.1% 0.1% 1.2% 1.9% 5.0% 2.1% 0.2% 0.1% 0.1%

BONDS

Bond Index Fund 7.5% 6.7% 6.2% 5.7% 6.9% 5.4% 5.9% 6.4% 7.7% 68% 4/1/99 Passive Collective Trust Low High Low 0.16% $1.59

Barclays Capital US Aggregate Bond Index 7.7% 6.8% 6.2% 5.8% 7.0% 5.2% 5.9% 6.5% 7.8%

BLENDED FUNDS

Conservative Premixed Portfolio (CPP) 4.7% 13.4% 4.9% 5.8% 8.4% -15.9% 19.8% 10.1% 1.0% 33% 1/2/06 Active Separate Account Medium Medium Low 0.40% $3.97

26% Russell 3000, 12% MSCI ACWI ex. U.S., 20% BarCap US Aggregate, 4% BofA ML High Yield Bond, 38% Hueler Stable Value Pooled Fund Universe

4.1% 12.1% 3.9% 5.7% 6.9% -15.6% 16.8% 9.2% 1.5%

Moderate Premixed Portfolio (MPP) * 5.9% 20.4% 5.0% 7.1% 10.8% -29.2% 31.1% 14.7% 0.2% 39% 1/2/87 Active Separate Account Medium Medium Medium 0.52% $5.22

43.5% Russell 3000, 18.5% MSCI ACWI ex. U.S., 33% BarCap US Aggregate, 5% BofA ML High Yield Bond

4.9% 17.8% 3.6% 6.3% 8.0% -26.3% 24.8% 12.7% 0.8%

Balanced Fund 7.2% 17.6% 4.7% 6.6% 8.4% -22.3% 22.2% 10.9% 3.8% 38% 4/1/99 Active Separate Account Medium Medium Medium 0.34% $3.42

65% S&P500, 35% BarCap US Aggregate 8.6% 17.7% 3.9% 5.0% 6.1% -24.1% 19.4% 12.5% 4.4%

STOCKS

Aggressive Premixed Portfolio (APP) 4.7% 24.6% 2.9% 6.4% 13.7% -41.0% 34.7% 17.5% -3.6% 32% 1/3/94 Active Separate Account High Low High 0.60% $6.03

70% Russell 3000, 30% MSCI ACWI ex. U.S. 2.7% 22.7% 1.2% 5.7% 8.9% -39.9% 32.6% 15.1% -3.7%

S&P 500 Index Fund 8.4% 23.2% 1.9% 4.0% 5.4% -37.0% 26.4% 15.0% 2.0% 4% 4/1/99 Passive Collective Trust High Low High 0.14% $1.43

S&P500 Index 8.5% 23.4% 2.0% 4.1% 5.5% -37.0% 26.5% 15.1% 2.1%

Large Cap Growth Equity Fund 14.2% 24.4% 4.1% 3.6% 16.7% -42.4% 31.8% 15.5% 1.0% 24% 4/1/99 Active Separate Account High Low High 0.54% $5.43

Russell 1000 Growth Index 11.0% 25.3% 5.1% 4.3% 11.8% -38.4% 37.2% 16.7% 2.6%

Large Cap Value Equity Fund 4.2% 22.6% 0.1% 5.0% 4.3% -38.5% 23.1% 16.8% -1.3% 48% 4/1/99 Active Separate Account High Low High 0.49% $4.85

Russell 1000 Value Index 4.8% 22.8% -0.8% 4.6% -0.2% -36.8% 19.7% 15.5% 0.4%

Non US Equity Fund -3.7% 21.6% 0.7% 8.0% 20.8% -44.1% 40.5% 13.4% -11.8% 24% 4/1/99 Active Separate Account High Low High 0.58% $5.80

MSCI All Country World ex. U.S. Index -7.2% 19.1% -1.6% 7.0% 14.1% -47.1% 37.4% 8.4% -16.1%

Mid Cap Equity Index Fund 1.8% 28.3% 4.6% 7.6% 7.9% -36.2% 37.0% 26.4% -1.9% 13% 1/3/05 Passive Collective Trust High Low High 0.16% $1.65

S&P MidCap 400 Index 2.0% 28.5% 4.8% 7.7% 8.0% -36.2% 37.4% 26.6% -1.7%

Small Cap Equity Fund -3.1% 28.4% 3.1% 5.0% -1.9% -37.3% 41.3% 27.6% -5.1% 53% 4/1/99 Active Separate Account High Low High 0.90% $8.97

Russell 2000 Index -0.2% 26.9% 2.1% 6.4% -1.6% -33.8% 27.2% 26.9% -4.2%

For current information, including month-end performance and free paper copy of available information, please visit www.halliburton.com/totalrewards (if you are a current employee) or www.netbenefits.com (if you are a former employee). You may also call the Halliburton Benefits Center at (866) 321-0964 (international toll free, use your country’s AT&T access code, then (866) 321-0964 or for toll call (857) 362-5980, select option 2. The mailing address is Fidelity Investments, P.O. Box #770003, Cincinnati, OH 45277-0065.

Fees and Expenses include all charges to the investment options except for individual service that a participant may select such as overnight mailing fees of $25 per transaction. The investment option does not charge fees to contribute, transfer or withdraw from the option. Investment option performance is compared with benchmark index. Indices are unmanaged portfolios of specified securities and the indices do not reflect any initial or ongoing expenses. The investment option’s portfolio may differ significantly from the securities in the indices. Investment performance is determined after fees are charged to the options and assumes reinvestment of dividends and capital gains. Transaction costs incurred for buying and selling securities becomes part of the cost basis of the securities and are not included in the expense ratio. These costs, along with management fees, plan administration fees and other fees are paid out of the investment option’s assets, reducing the rate of return realized by participants. Cumulative effect of fees and expenses can substantially reduce the growth of a participant’s retirement account. Participants are encouraged to visit the Employee Benefits Security Administration website at: www.dol.gov/ebsa/publications/401k_employee.html for information and example demonstrating the long-term effect of fees and expenses. Fees and expenses are only one of several factors that participants and beneficiaries should consider when making investment decisions.Plan Administrator: Halliburton Company Benefits Committee - 2107 City West Blvd., Bldg 2.601A, Houston, TX 77042-3051, telephone number (281) 575-3000.

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Fidelity Resource Corner Each issue of Trust Talk in 2012 will feature a different Fidelity tool. This quarter is the Fidelity Income Strategy Evaluator.SM

The Fidelity Income Strategy EvaluatorSM is an educational tool designed to help determine your retirement planning progress and map out possible strategies. You input your

current investments and their estimated value, along with your current income. The Fidelity Income Strategy EvaluatorSM then displays a report, which includes an estimate of your monthly retirement income and next steps you may want to take.

To access this tool, go to www.fidelity.com.

Step 1: Once you get to the Fidelity site, select the “Guidance and Retirement” tab and click on “All Tools & Calculators.”

Step 3: Finally, read over what you will need once you are on the welcome page for the tool. When you are ready, click on “Get Started Now.” Follow the instructions once you are in the tool.

Step 2: Next, select the “Fidelity Income Strategy EvaluatorSM.”

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Annual Return – The amount an investment changes in value over a one-year period.

Annualized Return – The amount an investment changes in value over a specified period of time, expressed in annual terms.

Asset-Backed Investment Contracts/Synthetic Guaranteed Investment Contract (GIC) – Instruments designed specifically for use in employer-sponsored qualified retirement plans. The contracts are issued by financial institutions such as banks or insurance companies. Securing the contract is a portfolio of securities or underlying assets. In the case of the Stable Value and Conservative Premixed Portfolios, for example, large portions of the assets backing the contracts are bonds. These bonds provide for a specific rate of return over a specified period. The trustee has custody of all these bonds. Therefore, if the financial institution runs into trouble, there is a diversified portfolio of bonds to mitigate losses.

BarCap US Agg Bond TR USD is the Barclays Capital US Aggregate Bond Total Return USD Index – It is commonly used as a benchmark to measure investment performance relative to the U.S. dollar-denominated investment grade fixed-rate taxable bond market. The index currently includes U.S. Treasuries, government-related issues, corporate bonds, agency mortgage-backed pass-throughs (MBS), consumer asset-backed securities (ABS) and commercial mortgage-backed securities (CMBS).

Bond – A debt security in which an investor loans money to an entity (corporate or governmental) for a defined period of time at a fixed interest rate. Bonds are used by companies, municipalities, states and U.S. and foreign governments to finance a variety of projects and activities. Bonds are commonly referred to as fixed-income securities.

Credit Quality – A rating of a company’s ability to repay its obligations.

Diversification – The process of spreading your savings across more than one type of investment. Diversification helps reduce market risk and protects against the volatility that can result from putting your entire savings in one type of investment.

Equity – A term that means having “ownership” in something. Stocks are considered equity investments because you, as an investor, have a stake in that company.

Expense Ratio – The amount of a fund’s operating expenses compared with its total asset base, expressed as a percentage. Because these expenses are paid from plan assets, a lower expense ratio is desirable.

Growth – Growth investors buy stock in companies with excellent potential for sales and earnings growth. Growth investors typically seek to maximize capital gains. New companies, industries and markets

are exciting to growth investors because they believe these companies are capable of achieving strong sales and earnings performance. Dividend payments are not emphasized as companies prefer to reinvest earnings into capital projects.

Hueler Stable Value Pooled Fund Index - A broadly used stable value benchmark. The index represents approximately 75% of the stable value pooled funds available to the marketplace. Stable value pooled funds are only available to investors through employer sponsored retirement plans.

Index – A measurement of the performance of the overall bond or stock market or a particular market segment.

Inflation Risk – The likelihood that an investment’s growth will not keep pace with inflation. Inflation is the rate at which prices change. If the inflation rate grows faster than your investment’s rate of return, it can cause your savings – and your purchasing power – to erode substantially. To maintain your purchasing power, you need to earn a rate of return higher than the inflation rate.

Management Fees – Management fees are paid out of the investment fund assets to investment managers who are responsible for the strategy and specific investment buying and selling decisions of their account.

Market Capitalization – The total value of a company’s outstanding shares in the stock market, calculated by multiplying the total number of shares by the price per share.

Market Risk – The likelihood that an investment will go up and down in value, especially over the short term. Funds with higher market risk tend to have more dramatic ups and downs in value than funds with lower market risk. Yet, historically, funds with higher market risk offer the potential for greater returns.

MSCI (Morgan Stanley Capital International) All Country World Index (ACWI) ex. U.S. USD – An index of non-U.S. stock securities listed on the stock exchanges of developed and emerging markets.

Plan Administration Fees – Plan administration fees are paid out of the investment fund assets for recordkeeping and check-writing services.

Principal – The original sum of money invested.

Rate of Return – The amount an investment changes in value over a period of time expressed as a percentage of the amount invested.

Russell 1000 Growth Total Return (TR) Index – Focuses on the 1,000 largest companies in the Russell 3000 Index that have lower dividend yields and above average growth rates.

Russell 1000 Value Total Return (TR) Index – Focuses on the 1,000 largest companies in the

Russell 3000 Index that have higher dividend yields and below average growth rates.

Russell 2000 Total Return (TR) Index – Measures performance of the 2,000 smallest companies in the Russell 3000 Index.

Russell 3000 Index – Measures performance of the 3,000 largest U.S. companies based on total market capitalization. It is used as a general measure of U.S. stock market performance.

Security – An instrument representing ownership (stocks), a debt agreement (bonds) or the rights to ownership (derivatives).

Stable Value – An investment that is meant to protect your principal and provide a consistent rate of return. This does not mean that the investment will never experience a negative rate of return over shorter time periods; however, the fund is managed with the intent of reducing this possibility.

Standard & Poor’s (S&P) 500 Total Return (TR) Index – A popular standard for measuring large company U.S. stock market performance. The index includes a representative sample of 500 leading companies in prominent industries.

Standard & Poor’s (S&P) MidCap 400 Total Return (TR) Index – A popular standard for measuring mid cap U.S. stock market performance. The index includes a representative sample of 400 leading companies in prominent industries.

Stock – An ownership interest in a company. When you buy stock, you become part owner of the company that issued it. The price of the stock depends on what investors are willing to pay for it, based on such things as the company’s profitability, products, business environment and projected future earnings. Stocks typically are volatile over the short term, but they historically offer greater returns over the long term than other types of investments.

Total Return – The return on an investment, including income from dividends and interest, as well as appreciation or depreciation in the price of the security, over a given time period, usually a year.

Turnover Ratio – Measures the funds’ trading activity. The percentage represents the number of times the portfolio’s holdings have changed over the past year.

Value – Value investors buy stocks in companies with a price that is significantly below the value that a fair marketplace should place on the stock. The reason for the price discrepancy may be temporary management or product problems, an asset that the company holds that the marketplace is not fully aware of, or simply that the company is out of favor with the market’s fads. Value investors look for stocks with low price to earnings ratio that pay dividends.

Terms to Know

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10200 Bellaire Blvd.

Houston, TX 77072

What's Inside

Two New Investment Options

Market Update

Rethink Risk

Saving: The Keys to Success

Retiree Corner

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Spring 2012

PRSRT STDU.S. POSTAGE

PAIDADDISON, TXPERMIT NO. 6

NON PROFITORGANIZATIONU.S. POSTAGE

PAIDADDISON, TXPERMIT NO. 6

PRESORTEDFIRST-CLASS MAIL

U.S. POSTAGE PAID

ADDISON, TXPERMIT NO. 6

We encourage you to call the Trust Investments Department at (281) 575-3316 with any suggestions or comments regarding Trust Talk. You can expect the next issue in September 2012.

For account information, go to www.halliburton.com/totalrewards if you are an active employee (if you are a former employee, go to www.netbenefits.com) or call the Halliburton Benefits Center automated telephone system at (866) 321-0964.

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