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TITAN CORP. MAKES ANNOUNCEMENT

 TITAN CORP. MAKES ANNOUNCEMENT
 SAN DIEGO, March 13 /PRNewswire/ -- The Titan Corp. (NYSE: TTN)


announced today that its Linkabit division had received a show cause notice from the Department of the Air Force with respect to the UHF Satellite Terminal System Contract ("the USTS Contract"). The show cause notice stated that the government was considering terminating the USTS Contract for default due to alleged technical and programmatic deficiencies. Titan is preparing its response to this notice. The government has not yet determined that the USTS Contract should be terminated for default, and Titan intends to include in its response approaches to the USTS Contract which, if accepted by the government, would avoid such a determination.
 If the USTS Contract were terminated for default, Titan could be liable for up to approximately $9.6 million in payments made by the government under the contract to date and, under certain circumstances, could be liable as well for the government's excess reprocurement costs. Titan believes that it has offsetting claims against the government relating to the USTS Contract. Notwithstanding the potential cash impact of any such repayment, any potential impact on Titan's financial results of operations could be partially mitigated by reserves set aside for completion of the USTS Contract which had been in a cost overrun position. Titan intends to defend its position on the USTS Contract vigorously. At this time the outcome of this matter is uncertain and the effect on Titan's results of operations and financial condition cannot be determined.
 The Titan Corp., headquartered in San Diego, is a leading supplier of customized high technology electronics products and integrated hardware/software systems to federal, state and local government agencies, as well as domestic and international clients.
 -0- 3/13/92
 /CONTACT: Michelle Mueller of Titan, 619-552-9400/
 (TTN) CO: Titan Corp. ST: California IN: ARO CPR SU:


DM-JL -- SD004 -- 8031 03/13/92 21:06 EST
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Copyright 1992 Gale, Cengage Learning. All rights reserved.

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Publication:PR Newswire
Date:Mar 13, 1992
Words:315
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