DRCO Dynamics Research Corp. (MM)

Dynamics Research Corporation Obtains $100 Million Financing ANDOVER, Mass., Sept. 1 /PRNewswire-FirstCall/ -- Dynamics Research Corporation (NASDAQ:DRCO) today announced that it had entered into a $100.0 million secured financing agreement with its bank group. The new arrangement provides for a $55.0 million, five-year acquisition term loan, with a seven- year amortization schedule, for the purchase of the government division of Impact Innovations LLC, and a $37.0 million, five-year revolving credit agreement for working capital, in addition to the existing $8.0 million mortgage term loan on the company's corporate headquarters in Andover, Massachusetts. The bank group, led by Brown Brothers Harriman & Co., also includes KeyBank, BankNorth, and Fleet National Bank, a Bank of America company. This facility replaces the company's previous $50.0 million revolving credit agreement, which was entered into on June 28, 2002. "Brown Brothers Harriman is pleased to continue to support DRC's growth strategy by arranging this $100 million financing, which marks another great milestone in our 33-year relationship with the company," said John Rogers, Senior Vice President, Brown Brothers Harriman. "We have been very pleased with DRC's performance under the leadership of Jim Regan and have great confidence in the management team's ability to successfully execute its business plan," Rogers added. "The immediate responsiveness by Brown Brothers Harriman and the bank group, to our request for this acquisition financing, positioned DRC to move quickly to close this strategically important acquisition," said James P. Regan, DRC chairman and chief executive officer. "The establishment of this facility is an endorsement of our strategy and demonstrates confidence in the overall financial strength of DRC." About Dynamics Research Corporation Dynamics Research Corporation is an innovative solutions provider that partners with its customers to apply proven processes and technologies. For nearly 50 years, DRC has delivered technical and information technology services that enhance the performance and cost effectiveness of its customers' mission critical systems. For additional information about DRC please visit the company's 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 statements. CONTACT: Elise Caffrey, Vice President & Treasurer (978) 475-9090, Ext. 1309 DATASOURCE: Dynamics Research Corporation CONTACT: Elise Caffrey, Vice President & Treasurer of Dynamics Research Corporation, +1-978-475-9090, Ext. 1309, Web site: http://www.drc.com/

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