SAIC Awarded Contract to Provide Medicare Systems Modernization Support

SAN DIEGO and MCLEAN, Va., Sept. 26 /PRNewswire-FirstCall/ -- Science Applications International Corporation (NYSE: SAI) today announced that it won a contract from the Centers for Medicare and Medicaid Services (CMS) to provide business application development and maintenance support services for the Enterprise System Development (ESD) program.

The multiple-award indefinite-delivery/indefinite-quantity contract will allow CMS to procure Medicare systems modernization services and support. It has a one-year base period of performance and nine one-year options. The contract has a total maximum value of $4 billion for all task orders placed with all awardees over the life of the contract.

The SAIC-led team will provide services as required, including design, development and maintenance for CMS' automated systems and application software. SAIC will also provide enterprise-level services through the development and support of business applications. Work on the contract will be performed primarily in Baltimore , Md.

"ESD is a very important and strategic win -- opening the doors for doing substantial new business at CMS and further establishing SAIC as a leading systems integrator for the transformation and modernization of government health systems," said Robert McCord, SAIC business unit general manager. "We look forward to the opportunity to deliver innovative, cost-effective and efficient solutions that enables CMS to best meet mission-objectives."

SAIC is a leading provider of scientific, engineering, systems integration and technical services and solutions to all branches of the U.S. military, agencies of the Department of Defense, the intelligence community, the U.S. Department of Homeland Security and other U.S. Government civil agencies, as well as to customers in selected commercial markets. With more than 44,000 employees in over 150 cities worldwide, SAIC engineers and scientists solve complex technical challenges requiring innovative solutions for customers' mission-critical functions. SAIC had annual revenues of $8.3 billion for its fiscal year ended January 31, 2007 . SAIC: FROM SCIENCE TO SOLUTIONS(R)

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 SAIC's Annual Report on Form 10-K for the period ended January 31, 2007 , and such other filings that SAIC 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.