California Signs MAXIMUS Healthcare Contract.

Business Editors/Health & Medical Writers

RESTON, Va.--(BW HealthWire)--Oct. 2, 2001

MAXIMUS (NYSE:MMS) has signed and executed a three-year contract with the State of California Department of Health Services, Office of Medi-Cal Procurement to provide Health Care Options (HCO) program enrollment broker services statewide.

The MAXIMUS estimate for the scope of work contained in the Request for Proposal for the first three years is $113 million. The contract has three additional one-year options. MAXIMUS had previously announced in May that the Company had bid on this contract and had been the incumbent providing these services in California.

Under this contract, MAXIMUS will continue to provide managed care education and enrollment services to over four million Medicaid recipients in California. MAXIMUS has operated the Medicaid managed care program since January 1997.

As part of its services, MAXIMUS operates a multi-lingual call center, and provides a comprehensive education and outreach program that includes direct mail educational literature, and in-person presentations.

"We are pleased to continue to provide these services in California. MAXIMUS looks forward to continuing to increase the understanding by the Medicaid population of the healthcare options available to them, and improving their access to quality healthcare," said Dr. David V. Mastran, CEO of MAXIMUS.

MAXIMUS is a strong and vital business presence in California, with more than 10% of the Company's employees living and working in the state. MAXIMUS provides managed are enrollment services to more Medicaid recipients that any other public or private entity in the nation.

Serving 11 of the largest and smallest states in the U.S., MAXIMUS has enrolled more than ten million Medicaid recipients nationwide into managed care programs.

MAXIMUS is one of America's largest government services companies devoted to providing state and local governments with program management, information technology, and consulting services. The company has more than 4,700 employees located in more than 170 offices across the United States.

Statements that are not historical facts, including statements about the Company's confidence and strategies and the Company's expectations about revenues, results of operations, profitability, future contracts, market opportunities, market demand or acceptance of the Company's products are forward-looking statements that involve risks and uncertainties. These uncertainties could cause the Company's actual results to differ materially from those indicated by such forward-looking statements and include reliance on government clients; risks associated with government contracting; risks involved in managing government projects; legislative changes and political developments; opposition from government unions; challenges resulting from growth; adverse publicity; and legal, economic, and other risks detailed in Exhibit 99.1 to the Company's most recent Annual Report filed with the Securities and Exchange Commission (file number 001-12997)