Nichols Research Awarded $15 Million Navy Hydrodynamics Modeling Contract.

HUNTSVILLE, Ala.--(BUSINESS WIRE)--June 4, 1998--Nichols Research Corporation (NASDAQ:NRES) announced today that its Advanced Marine Engineering unit has won the competitive recompete of a five-year contract with the U.S. Navy's Naval Surface Warfare Center - Carderock Division (NSWC) in Bethesda, Maryland, for "Engineering Services Related to Ship and Submarine Evaluations in the area of Hydrodynamics and Hydroacoustics at Both Model-scale and Full-scale." The new contract, valued at approximately $15 million, represents a three-fold increase in size from the previous three-year base contract with NSWC.

Primary support services under this contract include production of high-precision hydrodynamic test models, associated test support equipment and prototype hardware for special applications. To augment its core areas of naval architecture, marine engineering, and program management for the U.S. Navy, Advanced Marine provides these R&D services from its Model Design and Manufacturing Shop inFulton, Maryland. The shop produces a wide variety of ship hull models, such as surface combatant and auxiliary ships, submarines, special craft; propulsor and propeller models, and offshore platforms and torpedoes. The Model Shop team is directly supported by the naval architects and engineers at Advanced Marine's offices in Arlington, Virginia. The models produced by Nichols - Advanced Marine are used in tests conducted in towing tanks, water tunnels, and in NSWC's Large Cavitation Channel.

"Our Model Shop's capabilities are nearly unique in the U.S., and its experience supporting the U.S. Navy is unmatched,"said John T. Drewry, Vice President of Nichols' Advanced Marine Engineering business unit. "The testing and analytic activities conducted with these products represent an important step in the Navy's R&D efforts regarding new and future ship design technology. While computer analysis and simulation activities continue to grow, the testing and analysis of physical ship models remains essential to the success of all major ship design projects. We are very pleased to continue our excellent working relationship with NSWC Carderock."

Nichols - Advanced Marine Engineering has been providing ship design, engineering, and management support services to the U.S. Navy, Marine Corps, Army, Coast Guard, other Government agencies, and the commercial industry for twenty-two years.

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. 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
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