BTG Lowers Third Quarter Revenue and Earnings Expectations.

Business Editors/High Tech Writers

FAIRFAX, Va.--(BUSINESS WIRE)--Jan. 16, 2001

Contract and Proposal Backlogs Increase Sharply

BTG, Inc. (Nasdaq: BTGI), an information systems and technical services company, announced today that revenue and earnings for its third quarter ended December 31, 2000, will be below the company's prior expectations provided during its second quarter earnings conference call on October 25, 2000.

Revenue for the third quarter is now expected to be in the range of $50 million to $52 million. The company expects to report an operating loss of $250,000 to $350,000. Estimates are based upon preliminary results and are subject to final review. The company will hold a conference call at 8:30 a.m. EST on Wednesday, January 17, 2001. The session will include brief remarks and a question and answer period. The conference call can be accessed by calling 800/370-0869 or 973/633-1010. A digital replay of the call will be available from 11:00 a.m. on January 17, 2001, through 5:00 p.m. on Tuesday, January 24, 2001. The replay may be accessed by calling 973/341-3080, PIN 2374915.

BTG President and CEO Ed Bersoff said the results were primarily caused by a combination of factors, including weaker than anticipated sales from the company's federal civilian business unit related to the failure of the federal government to pass a budget at the start of its fiscal year on October 1, 2000. This necessitated a continuing resolution that delayed funding for the civilian agencies that account for 21% of BTG's revenue. Other factors were higher than anticipated costs for bids and proposals, expanded business development activities, severance costs for certain terminated employees, and a continuing lag in contract staff hiring during the third quarter.

In addition, BTG will record a non-operating, fully diluted, after-tax loss of $520,000 from the sale of 1.3 million shares of common stock in GTSI, Inc., representing a liquidation of the remainder of BTG's holdings in GTSI. Bersoff said that although the company is recognizing a non-operating loss from the transaction, liquidating the investment several years before BTG would otherwise have been allowed to do so was clearly in the best interests of the company, since it converted a restricted asset into cash. After the effect of this charge, BTG will report a fully diluted loss per share of $0.12 to $0.14 for the third quarter.

Bersoff said he remains confident in the vitality of the company and the outstanding capabilities of BTG's employees. "During the third quarter, we invested in strategic areas for future growth and profitability. BTG's backlog has grown to more than two times the projected total revenue for fiscal 2001. As of December 31, our contract backlog increased to $524 million, up $83 million over the previous quarter, and our bid-and-proposal backlog increased $93 million to over $403 million. We have the experienced leadership, professional capacity, and strategic focus to achieve long-term benefits for our shareholders, employees, and customers worldwide."

BTG is an information systems and technical services firm that provides computer-based solutions for clients in the private sector and in federal, state, and local governments. Additional information about BTG is available on the web at www.btg.com , by e-mail at [e-mail], or by calling 703/383-8140.

"SAFE HARBOR" STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: The statements contained in this release that are not historical facts are forward-looking statements that are subject to risks and uncertainties that could cause actual results to different materially from those set forth in or implied by forward-looking statements. These risks and uncertainties include the amount of work actually to be awarded under any contract or subcontract, the Company's entry into new commercial businesses, dependence on continued funding of U.S. government programs, government contract procurement and termination risks, including risks associated with protests, and other risks described in the Company's Securities and Exchange Commission filings.