BTG Signs Letter of Intent to Acquire STAC, Inc.

FAIRFAX, Va.--(BUSINESS WIRE)--Sept. 17, 1998--BTG, Inc. (Nasdaq: BTGI), an information systems and services company, announced that it has signed a letter of intent to acquire STAC, Inc., an employee-owned analysis and software development company headquartered in Fairfax, Va.

Under the terms of the letter of intent, BTG will purchase all of the common stock of STAC for approximately $6.9 million. The purchase is scheduled to be finalized in November.

BTG President and CEO Ed Bersoff said the acquisition will help expand BTG's high-end applications development provided to the defense and intelligence sector. "The growth and extension of these core capabilities is at the heart of our strategic plan, and STAC brings us exceptional assets in these areas. STAC's highly talented people have experience and expertise in a wide range of complex information operations. We are currently working with them on a mission-critical program for an intelligence client and have been very pleased with the compatibility of that partnership."

STAC President and CEO Alan Jackson said the primary factor behind the alliance is the complementary nature of the two companies' technical capabilities, customer base, employees and culture: "We both have many years of experience in solving complex problems for clients in the defense and intelligence arenas. Our respective clients have come to rely on the expert services of the skilled professionals who work for STAC and BTG. STAC's high-end analysis and systems engineering capabilities, coupled with BTG's outstanding information technology and engineering talents, will benefit the clients of both companies and bring significant new business opportunities in the future."

STAC, which has 65 employees, is expected to report approximately $10 million in revenue for its fiscal year ending December 31, 1998. The company was founded in 1984 to provide a wide range of analytical services and software development support to clients in the U.S. intelligence community, government agencies and commercial enterprises. In addition to its headquarters in Fairfax, STAC has operations in Hanover, Maryland, and Orlando, Florida. More information about STAC is available on the Web at http://www.stacinc.com, by e-mail to Paul Roche at [e-mail] or by calling 703-934-0462.

BTG is a systems integration and engineering services firm that provides solutions to complex information technology issues for government and commercial clients. The company specializes in intelligence systems, knowledge management, and information and network security. More information about BTG is available on the Web at http://www.btg.com, by e-mail at [e-mail], or by calling 703-383-8000.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: The statements contained in this release which are not historical facts are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in or implied by forward-looking statements. These risks and uncertainties include the Company's entry into new commercial businesses, dependence on continued funding of U.S. government programs, government contract procurement and termination risks, and other risks described in the Company's Securities and Exchange Commission filings.