Nichols Research Announces Systems Integration and Support Awards at Fort Belvoir, Virginia.

HUNTSVILLE, Ala.--(BUSINESS WIRE)--July 8, 1998--Michael J. Mruz, CEO and President of Nichols Research Corporation (NASDAQ:NRES), announced today that the US Army has recently awarded systems integration and support tasks totaling over $2 million at Fort Belvoir, Virginia. The Project Manager, Night Vision/Reconnaissance, Surveillance and Target Acquisition (PM, NV/RSTA) and the Communications and Electronics Command (CECOM) Night Vision and Electronic Sensors Directorate (NVESD) are the principal customers.

Nichols will provide the NVESD Countermine Office with Command, Control, Communications, Computers & Intelligence (C4I) systems integration support of countermine elements into the digitized battlefield. Support to the PM, NV/RSTA includes ongoing sensor system integration efforts and a Tactical Low Energy Laser Horizontal Technology Integration management plan.

Nichols is supporting both organizations through the implementation of the Sensor Link Protocol which acts as an enabling technology linking RSTA sensors to the digitized battlefield. The Sensor Link Protocol is a networking protocol that allows a variety of sensor systems to be digitally connected to a diverse set of computer platforms. Initial applications of the protocol include the integration of the Lightweight Laser Designator Rangefinder with the Army's Hand-held Terminal Unit and STRIKER vehicle system, as well as the Marine Corps' Target Location, Designation and Hand-off System. The protocol will also facilitate the digital flow of minefield location data into the Digital Reconnaissance System.

"We are excited about this opportunity to combine Nichols Research's extensive systems integration experience with Army digitization efforts, and recognize these awards as key components of the expansion of our C4I and Sensors work within the Washington, DC and Fort Monmouth, New Jersey communities," said James L. McCullough, Vice President, Tactical Systems Integration Division.

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 2,800 employees, with over 700 of these within the Washington, DC area. Additional information may be found at 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," "hopes," 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, 1997, including the Management's Discussion and Analysis of Financial Conditions and Results of Operations section of that Annual Report.

    CONTACT:  Nichols Research Corp., Huntsville
               Pat L. Hattox, 256/885-7447
               E-Mail:  [e-mail]