Veridian Wins $123 Million Navy Contract to Support E-2C Hawkeye and C-2A Greyhound Aircraft.

Business Editors/High-Tech Writers

ARLINGTON, Va.--(BUSINESS WIRE)--Jan. 6, 2003

Base Plus Four Option Year Contract Continues Veridian's 27-Year

History of Support for the Navy's Highest Priority

Aviation Program

Veridian Corporation (NYSE:VNX) today announced that the U.S. Naval Air Systems Command, Naval Air Warfare Center Aircraft Division (NAWCAD) has awarded the company a $123 million (maximum order amount) multiple-award, indefinite delivery/indefinite quantity (IDIQ) contract to provide engineering and program management services for the Navy's E-2C Hawkeye and C-2A Greyhound aircraft.

The contract, which includes one base year and four option years, calls for Veridian to provide support to NAWCAD at Patuxent River, MD, and to other Navy commands throughout the U.S.

Veridian has been supporting the E-2C, the Navy's premier Airborne Early Warning aircraft, and the C-2A Carrier On-board Delivery aircraft programs for more than 27 years.

Recognized as the "eyes of the fleet," the highly advanced E-2C Hawkeye aircraft supports the Navy's global C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance and Reconnaissance) efforts by providing battle space surveillance and targeting for the Joint Forces Commander, and is considered to be the Navy's top aviation priority.

"Veridian is proud to be an integral part of the Navy team supporting our fleet and a proactive contributor to the security and defense of our nation," said Kenneth Shelley, Veridian vice president for Naval Aviation Programs. "Winning the opportunity to continue work on the E-2C and C-2A programs attests to the trust and confidence that the Navy has in the Veridian team."

The work will be performed primarily at Lexington Park, MD with additional services performed at Crystal City, VA; Norfolk, VA; Orlando, FL; San Diego, CA; and Camarillo, CA. Veridian will use approximately 150 employees and a team of subcontractors to provide life cycle support to the two aircraft platforms.

Support will consist of program management, program requirements analysis, system software documentation review and analysis, system technical and analytical support, FMS (foreign military sales), acceptance test planning, evaluation of weapon system specifications, FMS interoperability analysis, training and trainer system support, foreign government subsystem development analysis, and tactical mission support.

Under this multiple-award IDIQ contract, the winning bidders will compete for task orders. The contract has an award-term incentive whereby the Veridian team is eligible to earn additional years of work, based upon pre-determined performance criteria.

At the completion of each contract year, the NAVAIR Term Determining Official will evaluate the Veridian team's performance and may award additional years up to a maximum of 10 along with additional funding. Veridian expects task orders to be issued beginning in January 2003 with completion of the base year and four option years by December 31, 2007.

Any award-term incentives exercised could extend the contract to December 31, 2012.

Veridian's subcontractors are: ARINC Inc.; Computer Systems Center, Inc.; Eagan, McAllister Associates, Inc.; Heron Systems, Inc.; IS Associates, Information Spectrum, Inc.; J. F. Taylor, Inc.; MILVETS Systems Technology, Inc.; National Technologies Associates, Inc.; Systems Application & Technologies, Inc; Smartronix Inc; and Whitney, Bradley, & Brown, Inc.

About Veridian

Veridian is a leading provider of information-based systems, integrated solutions and services specializing in mission-critical national security programs for the intelligence community, the Department of Defense, law enforcement, and other U.S. government agencies.

The company's capabilities include Network Security and Enterprise Protection; Intelligence, Surveillance and Reconnaissance; Knowledge Discovery and Decision Support; Chemical, Biological and Nuclear Detection; Network and Enterprise Management; and Systems Engineering Services.

Veridian has annual revenues of about $1 billion and employs nearly 7,000 computer scientists and software development engineers, systems analysts, scientists, engineers and other professionals. For additional information, visit www.veridian.com.

Forward-Looking Information

Certain statements and assumptions in this news release contain or are based on "forward-looking" information that Veridian Corporation believes to be within the definition in the Private Securities Litigation Reform Act of 1995. Such statements are subject to numerous assumptions and uncertainties, many of which are outside of our control.

These include, among others: the failure of the government to issue task orders or exercise options under this contract or allot funds to complete performance; risks of contract performance; and risks of contract termination by the Government.

For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Prospectus contained in Veridian's Registration Statement on Form S-1, as amended (File Number 333-83792), and from time to time, in Veridian's other filings with the Securities and Exchange Commission, among others, its reports on Form 8-K and Form 10-Q.

The forward-looking statements included in this news release are only made as of the date of this news release and we undertake no obligation to publicly update any of the forward-looking statements made herein, whether as a result of new information, subsequent events or circumstances, changes in expectations or otherwise.