MAXIMUS Acquires Government Activity Based Costing — ABC — firm

Business Wire, July 31, 2000

Business Editors

MCLEAN, Va.--(BUSINESS WIRE)--July 31, 2000

MAXIMUS (NYSE:MMS) has completed the acquisition of Maryland-based Strategic Partners International, LLC (SPI), a leading implementer of Activity-Based Costing systems for federal, state, and local government agencies.

These systems allow governments to determine the costs of each of their business processes, so that they can be made more efficient.

SPI's professional capabilities and client base strengthen and complement MAXIMUS existing financial consulting practice in the DMG-MAXIMUS subsidiary. SPI's clients include the United States Department of Agriculture, the United States Forest Service, the State of Rhode Island, the California department of Motor Vehicles, the City of Philadelphia, and the Cleveland Regional Transportation Authority.

Headquartered in Greenbelt, Maryland, SPI joins MAXIMUS with 9 employees. SPI will be operationally integrated within DMG-MAXIMUS. Revenues for this fiscal year are projected at $2.5 million. The acquisition of SPI will be accretive to MAXIMUS earnings in 2000.

"With the complexity of issues facing government accounting managers, the acquisition of SPI gives MAXIMUS and DMG-MAXIMUS additional expertise and capabilities to offer our over 4,000 government clients," declared Dr. David V. Mastran, CEO of MAXIMUS. "SPI's unique activity-based costing system experience will allow us to offer a complete cost accounting solution."

MAXIMUS is one of America's largest government services companies devoted to providing state and local governments with program management, consulting, and information technology services. The company has 4,000 employees located in more than 130 offices across the United States. Statements that are not historical facts, including statements about the Company's confidence and strategies and the Company's expectations about revenues, results of operations, profitability, future contracts, market opportunities, market demand or acceptance of the Company's products are forward-looking statements that involve risks and uncertainties. These uncertainties could cause the Company's actual results to differ materially from those indicated by such forward-looking statements and include reliance on government clients; risks associated with government contracting; risks involved in managing government projects; legislative changes and political developments; opposition from government unions; challenges resulting from growth; adverse publicity; and legal, economic, and other risks detailed in Exhibit 99.1 to the Company's most recent Quarterly or Annual Report filed with the Securities and Exchange Commission (file number 001-12997).