AMSEC LLC ACQUIRES ENGINEERING SERVICES DIVISION OF APPLIED TECHNICAL SYSTEMS, INC.

Amsec, LLCNIA BEACH and NEWPORT NEWS, VA December 14, 1999 -- <%=company%>, a subsidiary of Science Applications International Corporation (SAIC) that is jointly owned with Newport News Shipbuilding (NNS), announced today that it has acquired the Engineering Services Division of Applied Technical Systems, Inc. (ATS) to enhance and broaden its logistics engineering and shipboard configuration management businesses. Based in Bremerton, Wash., ATS is a recognized leader in the design and development of configuration-based, life-cycle support systems and solutions. The terms of the deal were not disclosed.

ATS has 120 employees operating from its Bremerton, Wash., and Chesapeake, Va., offices. Of these, 100 employees from the Engineering Services Division have transferred to AMSEC LLC and will remain at their existing locations in Bremerton and Chesapeake. The remaining ATS business, comprised primarily of its Advanced Systems Division, will relocate its offices to Silverdale, Wash., where it will focus on the development of specialized computer products and services, using the ATS developed and patented Contiguous Connection Model (CCM) technology. For more information on this technology, visit the ATS Web site at www.apptechsys.com.

AMSEC LLC Chief Executive Officer Carl Albero said, "The Engineering Services Division of ATS brings excellent waterfront logistics management tools and capabilities to AMSEC LLC as we continue building our total life-cycle support capabilities for aircraft carriers, surface ships and submarines. ATS has provided loyal, dedicated services to the Navy, which we intend to continue and build upon."

The Engineering Services Division of ATS has demonstrated the ability to integrate engineering, maintenance, and logistics support processes and products for the Navy. The division designs systems such as the Combat System Casualty Control Computer System (CSCS) which integrates combat system procedures, operational states, alarm conditions, and a myriad of other functions and products.

CSCS is widely used aboard aircraft carriers and is growing steadily as a critical resource for combat systems officers at sea. AMSEC LLC develops and utilizes many of the products and procedures integrated by CSCS. With this acquisition, AMSEC LLC now has the resources in place to thoroughly integrate, simplify, and optimize these products on behalf of the Navy.

AMSEC LLC recently expanded its Virginia Beach headquarters by more than 26,000 square feet due to strong business growth across all business lines including design and in-service engineering support. AMSEC LLC has been awarded five significant Navy contracts in 1999, valued at more than $210 million over five years. AMSEC LLC has more than 2,000 employees in 15 cities across the United States and in Japan.

AMSEC LLC is jointly owned by Virginia's Newport News Shipbuilding and SAIC. Newport News Shipbuilding designs and constructs nuclear-powered aircraft carriers and submarines for the U.S. Navy and provides life-cycle services for ships in the Navy fleet. The company employs nearly 17,600 people and has annual revenues of approximately $1.8 billion. For more information about Newport News Shipbuilding, visit its Web site at www.nns.com.

SAIC is the nation's largest employee-owned research and engineering company, providing information technology and systems integration products and services to government and commercial customers. SAIC scientists and engineers work to solve complex technical problems in telecommunications, national security, health care, transportation, energy, the environment, and financial services. With annual revenues of $4.7 billion, SAIC and its subsidiaries, including Telcordia Technologies (formerly Bellcore), have more than 38,000 employees at offices in more than 150 cities worldwide. More information about SAIC can be found on the Internet at www.saic.com.