DRCO Dynamics Research Corp. (MM)

Dynamics Research Corporation Completes Acquisition Impact Innovations Group's Government Division Enhances DRC's IT Service Offering and Adds Intelligence Capabilities ANDOVER, Mass., Sept. 1 /PRNewswire-FirstCall/ -- Dynamics Research Corporation (NASDAQ:DRCO) announced that it has completed the acquisition of the government division of Impact Innovations Group LLC, effective today. As previously announced, DRC paid $53.4 million in cash for the division. According to James Regan, DRC chairman and chief executive officer, "This is a singularly important day for DRC. The combination of Impact Innovations' impressive people, capabilities and customers with DRC's similarly strong resources and solutions will greatly enhance our opportunities for supporting national priority markets in defense, citizen security and citizen services. "Impact's substantive software development and change management capabilities complement and enrich DRC's already robust Business Intelligence, Business Transformation and Network Engineering & Operations solutions. Its existing customer portfolio also broadens DRC's current portfolio of customers. Impact's long tenure with the National Security Agency and depth in the intelligence sector add important new customers to that segment of DRC's portfolio. Perhaps most important," Regan continued, "is the cultural fit between Impact and DRC, as well as the strong leadership of Ellen Glover, Impact's former president, and her management team who will be joining DRC. These are my greatest reasons for enthusiasm at the completion of this transaction. I am excited and happy to welcome Ellen and her key staff to DRC. The new DRC team will be a very formidable competitor in the federal IT services market." Impact Innovations' government division has about 365 employees in the United States. With offices in Columbia, Maryland and Vienna, Virginia, Impact has approximately 325 employees in the Washington, D.C. area. About 30% of its revenues stem from government intelligence agencies, 30% from various Department of Defense agencies, and about one-third from federal civilian agencies, such as the FDIC, Department of Veteran's Affairs, U.S. Postal Service, National Archives and the Department of Justice. Approximately half of Impact's employees hold security clearances. Impact will be integrated immediately into the DRC organization, and Ellen Glover has been named a DRC vice president and division manager. "Both DRC and Impact have a long history and excellent reputation with our government customers," noted Regan. "We look forward to building upon this legacy and making DRC an even more formidable competitor in both the state and federal government arena." 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 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: Elise Caffrey, Vice President & Treasurer, (978) 475-9090, Ext. 1309, MEDIA: Al Black, Qorvis Communications, (703) 744-7833 DATASOURCE: Dynamics Research Corporation CONTACT: INVESTORS: Elise Caffrey, Vice President & Treasurer, of Dynamics Research Corporation, +1-978-475-9090, Ext. 1309, ; or MEDIA: Al Black of Qorvis Communications, +1-703- 744-7833 Web site: http://www.drc.com/

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