MAXIMUS Signs California Healthy Families Contract.

Business Editors

RESTON, Va.--(BUSINESS WIRE)--July 25, 2003

MAXIMUS (NYSE:MMS) has signed and executed the five-year $418.4 million contract with the State of California's Managed Risk Medical Insurance Board (MRMIB), announced in April. The contract contains two additional one-year extensions at the State's option.

The contract covers two California programs: the Healthy Families Program (HFP) and the Access for Infants and Mothers (AIM) Program. MAXIMUS will serve, receive, and process applications for both programs, as well as screen applicants for potential Medi-Cal eligibility. More than 700,000 children and families will be impacted by this program. Numerous innovations will be part of this project effort, including the development of a state-of-the-art eligibility determination system.

MAXIMUS does not expect to recognize any revenues from this contract until January 1, 2004.

The MRMIB was created in 1990 with a broad mandate to advise the Governor and the Legislature on strategies for reducing the number of uninsured persons in the state. The Board is comprised of volunteer members appointed by the Governor and the Legislature. Members serve four-year terms. The MRMIB is dedicated to improving the health of Californians by increasing access to affordable, comprehensive, and quality health care.

MAXIMUS is one of America's leading government services companies devoted to providing program management, consulting and information technology services. The Company has more than 5,500 employees located in more than 300 offices in the United States, Canada, and Australia. In 1999, 2001, and 2002, MAXIMUS was selected by Forbes Magazine as one of the Best 200 Small Companies in America for that year. MAXIMUS was selected by Business Week Magazine as one of the 100 Best Hot Growth Small Companies in 1999, 2000, 2001, and 2002. Additionally, MAXIMUS is included in the Russell 2000 Index and the S&P SmallCap 600 Index.

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).