Alion Marks Five-Year Anniversary as an ESOP, Now Topping the List of Largest 100 Percent Employee-Owned Technology Services Providers

Business Wire, Dec 20, 2007

Engineering and IT Firm More than Triples Revenues in Five Years

MCLEAN, Va. -- As Alion Science and Technology marks its five-year anniversary this month, the company celebrates the significant strides it has made since forming an employee stock ownership plan (ESOP) in December 2002. Since that time, Alion's revenues have dramatically increased. This success was achieved through a combination of organic growth and strategic acquisitions. Alion is currently the largest 100 percent ESOP technology services company on the National Center for Employee Ownership's (NCEO) Employee Ownership 100 list.

Five years ago, roughly 1,600 employees of the former IIT Research Institute (IITRI), which was founded in 1936, purchased the majority of IITRI's assets to create Alion. IITRI was a not-for-profit research and development organization affiliated with the Illinois Institute of Technology. Alion was built on its highly technical foundation to focus on advanced engineering, IT and program management, especially in support of the Department of Defense.

"IITRI was known for its science and engineering rigor," said Bahman Atefi, Alion's chairman and CEO. "We have evolved significantly in the last five years, though we retain our laboratory expertise. Today, we specialize in areas ranging from modeling and simulation to information technology, and we are highly regarded as one of the country's leading naval architecture and marine engineering firms. We work with government agencies responsible for protecting our national interests, our homeland and the environment."

Alion's acquisitions in the last five years contributed to the company's expanded capabilities. Key acquisitions include assets of Anteon Corporation's program management and engineering services; John J. McMullen Associates, one of the nation's premier ship design and engineering companies; and BMH Associates, known for its modeling and simulation expertise. The company also acquired Washington Consulting, Inc, a management and IT consulting firm, which is operated as a wholly owned subsidiary.

To support the company's expanding mission, the Alion employee base has also evolved over the past five years. Today roughly 50 percent of Alion's workforce is made up of former members of the military services and Department of Defense. The company makes a significant investment in its ongoing internal research and development (IR&D) program, which encourages employees to develop new technologies that can solve customers' challenges. This program allows Alion to develop proven technologies in advance of market needs.

"There are many ways to measure the company's success since 2002, but we try to measure ourselves in terms of customer success," Dr. Atefi explained. "We have steadily hired a high proportion of former and retired military staff as this helps us ensure we understand our customers' needs and can exceed their expectations."

Most recently, Alion was selected by the Government Services Administration (GSA) as a successful offeror on its Government-wide Acquisition Contract known as Alliant. The contract is focused on integrated IT solutions. "This award signifies the strengthened capabilities of Alion and its employee-owners and affirms the company's commitment to delivering innovative technology that is both effective and practical," Dr. Atefi remarked.

Alion has always taken its role as a corporate citizen seriously. As part of the anniversary celebration, the company recently launched its corporate giving program, Alion Cares. "Alion employees have always been involved in a wide array of philanthropic causes since the company started, and the new program encourage continued involvement and recognizes those efforts," Dr. Atefi explained.

For more information about the awards and recognition the company has garnered during its first five years as an employee-owned company, visit http://www.alionscience.com/index.cfm?fuseaction=company.awards.

About Alion Science and Technology

Alion Science and Technology is an employee-owned technology solutions company delivering technical expertise and operational support to the Department of Defense, civilian government agencies and commercial customers. Building on 70 years of R&D and engineering expertise, Alion brings innovation and insight to multiple business areas: naval architecture & marine engineering; defense operations; systems engineering; modeling & simulation; information management & technology; chemical, biological, nuclear & environmental sciences; wireless spectrum engineering; and industrial technology. Based in McLean, Virginia, Alion employee-owners are located at major offices, customer sites and laboratories worldwide. For more information, call 877.771.6252 or visit Alion online at www.alionscience.com.