SAIC Wins NATO Active Layered Theatre Ballistic Missile Defence Feasibility Study Contract.

Business Editors/Hi-Tech Writers

MCLEAN, Va.--(BUSINESS WIRE)--June 11, 2001

Science Applications International Corporation (SAIC) announced today that it will lead one of two contractor teams for the NATO Active Layered Theatre Ballistic Missile Defence (TBMD) Feasibility Study.

The contract, valued at approximately $13.5 million, will be managed by the NATO Consultation, Command and Control Agency (NC3A) for NATO (North Atlantic Treaty Organization).

The feasibility study marks an important milestone in the development of active layered theater ballistic missile defense for NATO, enabling it to take its first concrete steps toward formal acquisition and fielding of layered TBMD capabilities.

The study will examine weapons systems, firing platforms, sensors and battle management command, control, communications and intelligence that can be utilized to protect deployed troops or selected NATO regions against threats within a distance of approximately 3,000 km.

Two industry teams will conduct independent feasibility studies in parallel over 18 months, with the results combined by NC3A into a NATO Staff Requirement for a possible follow-on project definition effort.

"This is one of the most technically complex and strategically important programs NATO will ever undertake," said Frank Jenkins, SAIC senior group vice president. "SAIC will assist NC3A in determining a preferred architecture for layered TBMD capabilities. We believe that our ability to provide objective recommendations based on our team's experience in missile defense systems analysis and large-scale systems integration was the key to our success in the competition. We assembled a first-rate transatlantic team."

SAIC's team includes U.S. and European analytic and scientific research institutes and integrators of large-scale ballistic and missile defense systems of systems. SAIC's principal teammate in the United States is the Boeing Company, headquartered in Seattle, Wash.

European teammates include the European Aeronautics and Defense Space Company's Launch Vehicles division (EADS LV), located in Les Mureaux, France; Diehl VA, a subsidiary of Diehl Stiftung in Nurnberg, Germany; Germany's Industrieanlagen-Betriebsgesellschaft mbH (IABG); Britain's Defence Evaluation Research Agency (DERA) (soon to become QinetiQ); and the Netherlands Organisation for Applied Scientific Research (TNO). SAIC is a leading U.S. provider of systems analysis support to NATO on missile defense architecture and integration requirements.

SAIC is the United States' largest employee-owned research and engineering company, providing information technology, systems integration and eBusiness products and services to commercial and government customers.

SAIC engineers and scientists work to solve complex technical problems in telecommunications, national security, health care, transportation, energy, the environment and financial services. With annual revenues of $5.9 billion, SAIC and its subsidiaries, including Telcordia Technologies, have more than 41,000 employees at offices in more than 150 cities worldwide.

More information about SAIC can be found on the Internet at www.saic.com.

Statements in this announcement other than historical data and information constitute forward-looking statements that involve risks and uncertainties.

A number of factors could cause our actual results, performance, achievements or industry results to be very different from the results, performance or achievements expressed or implied by such forward-looking statements.

Some of these factors include, but are not limited to, the risk factors set forth in the Company's Annual Report on Form 10-K for the period ended January 31, 2001, and such other filings that the Company makes with the SEC from time to time. Due to such uncertainties and risks, readers are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof.