Iowa Awards AMS $9.4 Million Contract for Statewide Web-Based ERP Solution.

End-to-End Digital Government System Will Dramatically Improve Business Processes

American Management Systems , a global business and IT consulting firm, today announced it signed a $9.4 million/31 month contract with the state of Iowa to implement a Web-based government ERP (Enterprise Resource Planning) solution. AMS was selected after a competitive bid process found its Web-based ERP solution to be both technically and functionally superior to its higher priced competition. This award continues the momentum of other recent AMS ADVANTAGE(R) 3 awards with Wyoming and Massachusetts; additionally, Iowa becomes the sixth state to select ADVANTAGE HRM (Human Resource Management) as its statewide HR/payroll system and the fourth state to select AMS's budget management solution.

"Through our partnership with AMS, Iowa will make further progress toward a digital government that is cost effective and focused on accountability and productivity," said Dr. Richard J. Varn, chief information officer of the State of Iowa and a nationally recognized leader in digital government. "By implementing this end-to-end Web-based ERP solution, we will dramatically improve the business processes of government and make information more accessible by policy makers and the public."

Cynthia Eisenhauer, director of the Iowa Department of Management, added, "Iowa state government takes pride in being accountable to our citizens. We are committed to meeting the mandate of Iowa's Accountable Government Act, which includes investing tax dollars wisely to achieve results that benefit Iowans. Our partnership with AMS achieves those objectives while continuing to make Iowa a recognized leader in performance-based measurement and accountable government."

The Iowa ERP project leverages AMS's ADVANTAGE suite of administrative solutions and successful track record implementing enterprise-wide administrative systems for a broad range of state and local government and education customers. Utilizing the government best practices that are embedded in ADVANTAGE 3, AMS's implementation will require virtually no customization, resulting in a solution that will be implemented years earlier than other competitors' proposed timelines. AMS will provide software and implementation services for numerous government functions, including statewide-integrated budget and performance management, accounting, e-procurement, and human resources/payroll/benefits.

"Our twenty year relationship with Iowa is an example of how AMS builds enduring, trust-based relationships with our customers," said Terry Blake, AMS Public Sector ERP service line vice president. "We are energized by the evolution of our relationship and are dedicated to delivering the know-how and results that will dramatically transform the business of Iowa's government."

AMS's Web-architected ADVANTAGE 3 is designed specifically to meet the unique administrative management needs of state and local governments. The design and functionality of the solution is based on AMS's unparalleled understanding of public sector administrative needs. AMS ADVANTAGE 3 has been found to reduce previous customization requirements by over 90% and to totally eliminate client-side maintenance costs for the software.

About AMS

AMS is a $1 billion global business and IT consulting firm whose customers have included 38 state and provincial governments, most federal agencies, and hundreds of companies in the Fortune 500. With deep industry experience and technical know-how in all levels of government and throughout the private sector, the company delivers results that measurably impact business performance and the relationship between an organization and its customers. Founded in 1970, AMS is headquartered in Fairfax, Va. with 47 offices worldwide. The company is traded on the NASDAQ under the symbol AMSY. For detailed information about AMS, visit http://www.ams.com/ .

AMS ADVANTAGE is a registered trademark of American Management Systems, Incorporated.

This release may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are subject to risks, uncertainty and changes in circumstances. Actual results may vary materially from the expectations contained in the forward-looking statements. All statements contained in this release that are not clearly historical in nature are forward-looking, and the words "anticipate," "believe," "expect," "estimate," "intends" and similar expressions are generally intended to identify forward-looking statements. The following factors, among others, could cause actual results to differ materially from those described in the forward-looking statements: risks in project delivery and staffing, risk of revenues not being realized when expected, risk of increased competition in the markets, and the effects of economic uncertainty on client expenditures as well as other factors described in item 7 of AMS's Annual Report on Form 10-K for the year ended 2001. The Company specifically disclaims any obligation to update these forward-looking statements. These forward-looking statements should not be relied upon as representing the Company's (estimates or) views as of any subsequent date.

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Contact: Matt Guilfoyle, [phone], or [e-mail], or Lee Allen, [phone], or [e-mail], both of American Management Systems

Website: http://www.ams.com/