Market Overview

SAIC Awarded $116 Million Navy Tactical Networks Contract


Company to provide engineering services for afloat and ashore assets

The Space and Naval Warfare Systems Center Pacific awarded Science
Applications International Corp. (NYSE:SAIC) a prime contract worth
approximately $116 million to continue to provide engineering services
to the U.S. Navy's afloat and ashore assets.

Under the contract SAIC will provide management, engineering, technical,
integrated logistics support, and configuration management to the Navy's
Tactical Networks In-Service Engineering Activity (TACNET ISEA).

The single award, indefinite-delivery, indefinite-quantity contract has
a three-year base period of performance and a two-year option period
which, if exercised, would bring the potential value of this contract to
an estimated $196 million. Work will be performed primarily in San
Diego, California and Norfolk, Virginia, while some additional work will
be performed on Navy ships and shore sites globally.

"We are proud to continue our support to SPAWAR Systems Center Pacific
TACNET and are dedicated to ensuring the highest degree of fleet
readiness. For more than 20 years, we have assisted the Navy with
sustainment services for critical TACNET systems that serve as the
backbone of U.S. naval vessels," said Jim Scanlon, SAIC senior vice
president and general manager of the Defense Systems Customer Group.

TACNET ISEA is responsible for the sustainment of fielded systems
through end-of-life replacement, system upgrades, follow-on, or
interrelated system, distant support, on-site repair, installations, and
system analysis to ensure networks are performing within designed

About SAIC

SAIC is a premier technology integrator providing full life cycle
services and solutions in the technical, engineering, intelligence, and
enterprise information technology markets. SAIC is Redefining Ingenuity
through its deep customer and domain knowledge to enable the delivery of
systems engineering and integration offerings for large, complex
projects. SAIC's more than 15,000 employees are driven by integrity and
mission focus to serve customers in the U.S. federal government.
Headquartered in Reston, Virginia, SAIC has annual revenues of
approximately $4.5 billion. For more information, visit For
ongoing news, please visit our newsroom.

Certain statements in this announcement constitute forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. These statements involve risks and uncertainties and
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 SAIC's Annual Report on Form
10-K and other such filings that SAIC makes with the SEC from time to
time, which may be viewed or obtained through the Investor Relations
section of our web site at
. 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.

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