DRCO Dynamics Research Corp. (MM)

- Sharp Increase in Orders Puts Third Quarter, Year-to-Date New Contract Wins at All Time Highs - ANDOVER, Mass., Oct. 2 /PRNewswire-FirstCall/ -- Dynamics Research Corporation (NASDAQ:DRCO), a leading provider of innovative management consulting, engineering, technology and information technology services and solutions to federal and state governments, today reported that it received an estimated $103 million in new business growth contract awards during the quarter ended September 30, 2008, including $96 million in contracts not previously announced. For 2008, year-to-date new business contract awards now stand at $176 million. The totals for 2008 third quarter and year-to-date awards far surpass all previous comparable periods. These contract wins reflect the successful implementation of DRC's strategy to shift its business mix to a more diversified and balanced federal customer base, for which government funding has been and is expected to continue to increase. DRC's target growth markets include Homeland Security, Business Transformation, Training, Human Capital, Information Security, Civilian Agencies and Military Medical Health. As a result of this change the company is experiencing a sharp increase in order flow from its target markets, most notably the Department of Homeland Security (DHS). As the use of the nine-year DHS Enterprise Acquisition Gateway for Leading Edge (EAGLE) contract matures and expands, there has been a significant increase in task order awards. This has been particularly evident under EAGLE Functional Category 5, Management Support Services, where DRC holds a prime contract. "DRC is experiencing strong demand for our mission-critical technology management services and solutions, validated by the new record of business contracts wins this quarter," said Jim Regan, DRC's chairman and chief executive officer. "DHS is increasingly selecting DRC for assignments in high-end management consulting areas such Enterprise Architecture, IT Governance, and Cyber Security solutions. We also saw strong new contract award activity in our other growth markets, including Military Medical Health where we won our first task order under the TRICARE Teams vehicle, Civilian Agencies where we have expanded our business with financial services agencies, and Army training and human capital where the Army continues to fund strategic initiatives. As these trends indicate, DRC is well positioned for additional high-margin project awards in the quarters to come." DRC has reported eight consecutive quarters of year-over-year earnings increases and plans to announce third quarter 2008 financial results after market close on November 3, 2008. About Dynamics Research Corporation Dynamics Research Corporation is a leading provider of mission-critical technology management services and solutions for government programs. DRC offers forward-thinking solutions backed by a history of excellence and customer satisfaction. Founded in 1955, DRC is a publicly held corporation (NASDAQ:DRCO) and maintains more than 25 offices nationwide with major offices in Andover, Massachusetts; Reston, Virginia; and Fairborn, Ohio. For more information please visit our website at http://www.drc.com/. Safe harbor statements under the Private Securities Litigation Reform Act of 1995: Some statements contained or implied in this news release, may be considered forward-looking statements, which by their nature are uncertain. Consequently, actual results could materially differ. For more detailed information concerning how risks and uncertainties could affect the company's financial results, please refer to DRC's most recent filings with the SEC. The company assumes no obligation to update any forward-looking information. CONTACTS: Investors: Chris Witty Darrow Associates, Inc. (for DRC) 646.438.9385 Media: Marisa Hagerman Sage Communications (for DRC) 703.584.5637 DATASOURCE: Dynamics Research Corporation CONTACT: Investors: Chris Witty of Darrow Associates, Inc., +1-646-438-9385, , or Media: Marisa Hagerman of Sage Communications, +1-703-584-5637, , both of (for DRC) Web site: http://www.drc.com/

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