Nichols Research Announces Joint Test and Evaluation Awards at Patuxent River, Maryland.

HUNTSVILLE, Ala.--(BUSINESS WIRE)--Jan. 21, 1999--Michael J. Mruz, Nichols Research Corporation CEO (NASDAQ:NRES), announced today that the United States Air Force, Headquarters Air Force Development Center, has recently awarded Joint Test and Evaluation tasks totaling over $13.5 million at Naval Air Station, Patuxent River, Maryland. The Director, Joint Shipboard Helicopter Integration Process (JSHIP), Joint Test and Evaluation Force (JTEF) is the customer.

Nichols will provide engineering and test and evaluation support for integration of Air Force and Army rotorcraft systems with Navy carriers, large deck amphibious ships and air capable ships. Support to the Director includes test planning, at-sea and lab tests, analysis, and engineering and other technical support in the areas of mechanical, electronic and aerodynamic compatibility, training and procedures.

Nichols is supporting the Office of the Undersecretary of Defense (Acquisition and Technology) Director, Test Systems, Engineering and Evaluation / Test and Evaluation in several Joint Test and Evaluation Programs. This is a four-year effort, to be conducted aboard the Naval Air Station, Patuxent River, Maryland, in partnership with the Air Force, Army, and Marine Corps. It will develop the processes necessary to carry any rotorcraft and ship pairing through an interoperability certification program. This program will certify many systems to operate near their full range of capabilities while operating from ships at sea and provides the Joint Service mission planners and Commanders with a broad range of capabilities and an increased level of effectiveness.

"We are excited to be able to apply our broad technical capabilities in system integration, weapon systems operations and training, to a program that offers the warfighter with immediate and significantly improved capabilities in the area of joint rotorcraft operations and missions," said James L. McCullough, Vice President, Defense Systems Integration.

Nichols Research Corporation, headquartered in Huntsville, Alabama, provides information technology (IT) and technical services for the Department of Defense, federal civilian agencies, state government clients, and commercial clients. The company has 31 locations throughout the United States with approximately 3,000 employees. Additional information may be found at the Nichols web site: www.nichols.com. The Company's stock is traded under the Nasdaq market symbol: NRES.

Except for historical information contained herein, this release contains forward-looking statements as defined in Section 21E of the Securities Exchange Act of 1934. These forward-looking statements can be generally identified as such because the content of the statement will usually contain words such as the Company or management "believes," "anticipates," "expects," "estimates," "plans," and words of similar import. Similarly, statements that describe the Company's future plans, objectives, goals or strategies are forward-looking statements. Such forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from those projected in the forward-looking statements. These risks and uncertainties are discussed in more detail in the Company's Annual Report on Form 10-K for the fiscal year ended August 31, 1998, including the Management's Discussion and Analysis of Financial Conditions and Results of Operations section of that Annual Report.