Department of Defense Extends Contract with Xacta to Continue Servicing Smart Card Program

Business Wire, July 20, 2004

ASHBURN, Va. -- Xacta Renews Nine-Year Relationship with the Defense Manpower Data Center RAPIDS Program as Prime Support Contractor for Largest Smart Card Program in the U.S. Government

Xacta(R) Corporation today announced that the U.S. Department of Defense (DoD) is extending its relationship with the company as its prime contractor for continental United States (CONUS) installations, worldwide maintenance, and support of the production of secure identification cards as part of the Defense Manpower Data Center (DMDC) Common Access Card program. The five-year contract is slated for completion in August 2008.

As the leading provider of government-validated, secure enterprise solutions, Xacta's services for this agreement were contracted through Telos(R) Corporation, Xacta's parent company and a leading integrator of information technology solutions for government. The award extends the companies' nine-year relationship with the DMDC, during which they have also conducted turnkey certification and accreditations (C&As) and reviews of DMDC systems.

The Common Access Card (CAC) is the standard identification card for active duty uniformed employees, qualified reserve personnel, DoD civilians, and authorized contractors, who use this card to gain physical access to secure areas and cyber access to all government computer networks. The program is based on "smart card" technology, which stores and processes information on an integrated microprocessor chip contained on the card. Currently the largest U.S. government smart card initiative, the CAC program will be implemented throughout the Real-time Automated Personnel Identification System (RAPIDS), circulated to 4.3 million active duty participants and 22 million dependents.

To implement the system throughout the DoD, Xacta is partnering with Fargo Electronics and Viisage. Xacta will be using Fargo Electronics' High Definition Printing solution as its platform for deployable installations, including shipboard, guard reserve, and other mobile platforms for the production of the cards - as well as ribbons and over-laminate materials. Xacta is also working with Trans Digital Technologies (TDT), which was acquired by Viisage in February 2004. Viisage will provide Toppan CP400 printers as the fixed site desktop printers for the production of cards, which employs the most advanced, secure, and counterfeit-resistant card printing system available, including pigment ink technology, which resists fading of images and barcodes.

"Xacta has been implementing secure programs for the federal government since the company's inception - and our parent company, Telos, has been doing it for over 30 years," said Richard Tracy, chief security officer at Xacta. "Information security is our business, and it's the long-standing relationships typified by our work with DMDC that demonstrate our commitment and expertise within this market. We understand that the success of the CAC depends on a smooth and secure production, and we're honored that the DoD wishes to continue this relationship and trusts that we can help ensure the ongoing success of the program."

About Telos

Telos Corporation has provided innovative IT solutions to the federal government for more than 30 years. The company provides systems integration and value added reseller solutions to U.S. government customers. Telos and Xacta Corporation, its subsidiary for security solutions, have been ensuring that the government's most demanding and security-conscious organizations comply with existing and emerging information security mandates since 1989. For more information, visit www.telos.com.

About Xacta

Xacta, a Telos company, develops, markets, and sells government-validated secure enterprise solutions to federal, state and local agencies, as well as to commercial customers. Xacta's offerings include enterprise IT security management solutions, enterprise security consulting services, enterprise messaging, secure wireless networking, and high assurance credentialing solutions. Its solutions are represented to the federal government on Telos' GSA schedule. For more information, visit www.xacta.com.

"Xacta IA Manager" is a trademark, and "Xacta" is a registered trademark, of Xacta Corporation. "Telos" is a registered trademark of Telos Corporation. All other product, service, and company names are trademarks or registered trademarks of their respective holders.