JUNE DEFENSE TECHNOLOGY & GOVERNMENT SERVICES MARKET UPDATE

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1 JUNE DEFENSE TECHNOLOGY & GOVERNMENT SERVICES MARKET UPDATE Aronson Capital Partners, LLC 805 King Farm Boulevard, Suite 300 Rockville, Maryland Tel: (301) Fax: (301) Larry A. Davis Partner Tel: (301) Philip J. McMann Partner Tel: (301) John H. Saunders Partner Tel: (301) Frantz E. Casseus Associate Tel: (301) Timothy P. Schmitt Associate Tel: (301)

2 CACI to Acquire Delta Solutions and Technologies SELECTED M&A TRANSACTIONS CACI International Inc. (NYSE: CACI) announced on June 21, 2012 that it has entered into an agreement to acquire Delta Solutions and Technologies, Inc., a provider of financial management and business analytics services to the federal government, for an undisclosed price. Dan Allen, CACI President of U.S. Operations, said, "Financial management systems are essential to the business operations of every federal agency, and keeping the technology behind these systems up-to-date is critical to mission success. CACI's acquisition of Delta Solutions opens new growth opportunities in the high-priority area of government transformation and enables us to serve an even greater share of this multi-billion-dollar addressable market." The terms of the transaction were not disclosed. LLR Partners Invests in SDI and Message Systems LLR Partners Inc. announced the close of two information technology investments, System Development.Integration, LLC ( SDI ) and Message Systems Inc. SDI is a systems integrator specializing in advanced security technologies and infrastructure improvement for the government. Message Systems provides digital messaging technology to support the customer engagement strategies of companies that interact through , text and other channels. LLR s investments in these two companies will aid in their expansion into new markets and regions. Northrop Grumman Announces the Acquisition of M5 Network Security On June 7, 2012, Northrop Grumman Corporation (NYSE: NOC) announced that is has signed a definitive agreement to acquire M5 Network Security Pty Ltd, an Australia-based provider of cyber security and secure mobile communications products and services and advanced analytics to Australian military and intelligence organizations. Wes Bush, Northrop Grumman Chairman, CEO and President said, "This acquisition enhances our ability to provide innovative, agile, and proven cyber security and communication solutions to Australian customers. The terms of the transaction were not disclosed. SAIC Loses Largest Contract INDUSTRY UPDATES On June 15, 2012, SAIC Inc. (NYSE: SAI) lost its largest contract for the management of DISA s Global Information Grid ( GIG ), to Lockheed Martin Corporation (NYSE: LMT). The GIG is an all-encompassing communications project that serves as the backbone for the DOD s command and control systems and is valued as high as $4.6 billion. Upon news of the loss, SAIC shares fell 3.1% from prior day s close. On June 22, SAIC filed a protest of the award with GAO, stating, We feel our solution is the best value for the customer and we are proud of our performance history on this contract. Xerox Seeking Tuck-in Acquisitions Xerox CEO, Ursula Burns, announced that the company has earmarked between $350 million and $400 million for acquisitions with capabilities in such areas as specialty analytics and healthcare technologies. Xerox s main objective is to grow its services segment as it tries to shift away from its image of being a printer and copier company. General Dynamics CEO to Retire at the End of the Year On June 6, 2012, General Dynamics Corp. (NYSE: GD) announced that Chairman and CEO Jay L. Johnson will retire on December 31, Mr. Johnson, age 66, was named CEO in 2009 and later assumed the additional role of Chairman in Mr. Johnson will be succeeded by Phebe Novakovic, COO. Ms. Novakovic joined General Dynamics in 2001 after a long career at the DoD. CACI s CEO to Retire at the End of the Year CACI International Inc. (NYSE: CACI) announced on June 6, 2012 that Paul M. Cofoni, President and CEO, will retire on December 1, Mr. Cofoni will remain with the company as a board adviser and will be succeeded by current President of U.S. Operations Daniel D. Allen. Mr. Allen joined CACI as COO of U.S. Operations in March 2011 and has 30+ years of industry experience. ICF Names James Morgan as New CFO On June 14, 2012, ICF International Inc. (NasdaqGS: ICFI) named James C. Morgan as its next Executive Vice President and CFO effective July 16, Prior to joining ICF, Mr. Morgan held the CFO position at Serco Inc., a division of Serco Group PLC (LSE: SRP), for 1 year and previously spent 18 years with SAIC, Inc. (NYSE: SAI) as Senior Vice President and Business Transformation Officer. Sudhakar Kesavan, ICF s Chairman and CEO, called the hire "a key element of our growth strategy."

3 CIA Shifts Strategy in Iraq Still High Demand for Niche Capabilities The post-war reductions of CIA personnel in Iraq could provide greater opportunities for contractors with niche capabilities in intelligence collection, processing, and analysis. The Wall Street Journal reported that the CIA is considering plans to reduce its presence in Iraq to 40% of wartime levels due, in part, to Iraqi officials unfavorable feelings toward a major CIA presence in the country. 1 U.S. officials have since complained that deteriorating communications with Iraq have resulted in significant losses of situational awareness regarding the activities of al-qaeda in Iraq. As a result, the CIA and other members of the Intelligence Community ( IC ) will have to shift operations back toward traditional intelligence collection and will need the help of private contractors to augment such a shift. In light of fiscal pressures and sequestration concerns, the IC contracting community is expected to experience cuts in contracting and spending. However, there are still valuable growth opportunities which complement the Obama administration s national security strategy to conduct smaller operations by combining intelligence and special operations capabilities. Leon Panetta, Defense Secretary and former Director of the CIA, stated in the January 5, 2012 strategic review briefing that even with a reduction in the overall defense budget, We will protect our investments in special operations forces, new technologies like ISR and unmanned systems, space and cyberspace capabilities, and our capacity to quickly mobilize. 2 Many niche IC contractors can expect to see minimal to no decreases in product/service demand as the IC continues to expand its presence in various areas of interest around the world, successfully execute missions, and receive greater authorization for OCONUS initiatives and operations such as the recent expansion of the Yemen drone campaign. 3 Areas of expected growth and continued opportunity include unmanned aerial vehicles (UAVs), unmanned ground vehicles (UGVs), and various forward operations support services such as network connectivity, sensors, radars, mobility, cyber security, data analytics, training, and engineering services. Aronson Capital Partners continually talks with potential acquirers who have shown increased interest for small to mid-sized contractors with capabilities in the aforementioned areas. We would be more than happy to discuss strategic alternatives with you. 1 Gorman, Siobhan, and Adam Entous. CIA Prepares Iraq Pullback Wall Street Journal. 5 June Corrin, Amber. Obama, officials lay out new US defense strategy Defense Systems. 5 January Entous, Adam, Siobhan Gorman, and Julian E. Barnes. U.S. Relaxes Drone Rules Wall Street Journal. 26 April 2012.

4 Enterprise Value/LTM EBITDA Indexed Performance GOVERNMENT SERVICES INDUSTRY PERFORMANCE 110 LTM 6/30/2012 Returns S&P: 1.7% Mid-Tier: (30.5%) Tier-1: (6.4%) Jul-11 Nov-11 Mar-12 Jun x 9.0x 6/30/2012 EV/LTM EBITDA Mid-Tier: 6.1x Tier-1: 5.8x 8.0x 7.0x 6.0x 5.0x 4.0x Jul-11 Nov-11 Mar-12 Jun-12 Sources: FactSet and CapIQ Mid-Tier Index: BAH, CACI, CUB, DRCO, ICFI, KEYW, MANT, MRCY, NCIT, SAI Tier-1 Index: BA, GD, HRS, LLL, LMT, NOC, RTN

5 PUBLIC COMPANY COMPARABLES (USD in Millions, excluding share prices) EV as a Multiple of Price Annual Annual % of Equity Market Enterprise LTM LTM LTM NTM EBITDA Margin Revenue Growth Company 6/30/2012 High Low High Value Value Revenue EBITDA Revenue EBITDA Revenue EBITDA CY12E CY13E CY12E CY13E Government Service Providers - Mid Tier SAIC, Inc. 1 $12.12 $16.82 $ % $4,140 $4,824 $10,681 $ x 6.7x 0.4x 5.2x 8.5% 8.5% 3.0% (2.4%) Booz Allen Hamilton % 2,025 2,506 5, x 5.2x 0.4x 4.9x 8.7% 8.8% 1.7% (0.3%) CACI International Inc % 1,465 1,992 3, x 5.6x 0.5x 5.7x 9.1% 8.9% 0.4% 1.8% ManTech International Corporation % , x 3.3x 0.3x 4.0x 8.5% 8.0% 1.5% (2.8%) Cubic Corporation % 1,285 1,058 1, x 7.3x 0.8x 7.5x 10.6% 11.0% 1.8% 3.9% ICF International Inc % x 7.5x 0.6x 6.0x 10.0% 10.3% 19.5% 6.3% The KEYW Holding Corporation % x 11.1x 1.3x 10.5x 13.2% 13.9% 21.8% 12.4% Dynamics Research Corporation % x 4.5x 0.5x 5.7x 9.5% 9.5% 2.6% (2.4%) NCI, Inc % x 3.7x 0.3x 7.7x 4.3% 4.6% (36.0%) (6.7%) Mercury Computer Systems, Inc % x 6.8x 1.0x 6.6x 16.1% 16.6% 14.5% 32.1% Mean 0.7x 6.2x 0.6x 6.4x 9.8% 10.0% 3.1% 4.2% Median 0.5x 6.1x 0.5x 5.9x 9.3% 9.2% 2.2% 0.7% Government Service Providers - Tier 1 The Boeing Company $74.30 $77.83 $ % $55,654 $56,911 $73,208 $7, x 7.3x 0.7x 7.5x 9.7% 10.3% 15.8% 8.3% Lockheed Martin Corporation % 28,095 31,049 47,166 5, x 5.9x 0.7x 6.5x 10.6% 11.0% (1.6%) (1.7%) General Dynamics Corp % 23,786 25,062 32,458 4, x 5.6x 0.8x 5.5x 13.7% 13.9% (0.4%) 0.4% Northrop Grumman Corporation % 16,043 17,294 25,876 3, x 4.6x 0.7x 5.4x 13.4% 13.3% (5.1%) (2.4%) Raytheon Co % 18,864 20,092 24,743 3, x 5.9x 0.8x 6.3x 13.0% 13.6% (1.1%) (1.7%) L-3 Communications Holdings Inc % 7,210 10,941 15,156 1, x 5.8x 0.8x 6.5x 11.8% 11.9% (6.0%) (3.4%) Harris Corp % 4,762 6,702 6,042 1, x 5.5x 1.2x 5.6x 21.9% 22.1% (7.3%) (3.2%) Mean 0.8x 5.8x 0.8x 6.2x 13.5% 13.7% (0.8% ) (0.5% ) Median 0.8x 5.8x 0.8x 6.3x 13.0% 13.3% (1.6% ) (1.7% ) Selected publicly traded companies - Foreign EADS $35.42 $40.17 $ % $29,003 $25,581 $67,557 $4, x 5.9x 0.4x 4.5x 8.0% 9.1% 5.6% 5.1% BAE Systems plc % 14,706 16,770 27,660 3, % 12.1% 10.7% 1.4% Finmeccanica SpA % 2,331 9,745 22,989 (1,049) 0.4 N/A % 10.1% (3.8%) 1.8% Serco Group plc % 4,120 5,115 7, % 7.9% 8.1% 6.3% Cobham plc % 3,928 4,313 2, % 23.7% (5.9%) 2.1% QinetiQ Group Plc % 1,596 1,801 2, % 12.1% (4.8%) 2.3% Ultra Electronics Holdings plc % 1,716 1,784 1, % 18.0% 12.9% 3.5% Mean 0.8x 6.7x 0.8x 6.2x 13.0% 13.3% 3.2% 3.2% Median 0.7x 6.2x 0.7x 6.6x 12.1% 12.1% 5.6% 2.3% Selected publicly traded companies - Commercial IT IBM $ $ $ % $225,598 $245,342 $106,982 $26, x 9.2x 2.3x 8.8x 25.2% 26.0% 1.1% 3.5% Accenture plc % 38,145 33,002 27,714 4, % 16.1% 5.3% 5.7% Dell Inc % 21,880 17,166 61,476 5, % 8.6% (3.2%) 2.0% Xerox Corp % 10,607 19,202 22,664 3, % 13.9% 1.2% 2.1% Computer Sciences Corporation % 3,855 5,557 15,877 1, % 11.1% (1.6%) (0.1%) Unisys Corporation % , % 12.5% (0.8%) 0.2% Navigant Consulting Inc % % 13.8% 20.2% 5.6% Kforce Inc % , % 6.6% 0.9% 8.8% Source: Capital IQ Mean 0.8x 7.8x 0.8x 5.5x 13.2% 13.6% 2.9% 3.5% EV: Enterprise Value Median 0.6x 6.6x 0.6x 6.4x 12.8% 13.2% 1.0% 2.8% LTM: Trailing Twelve Months NTM: Next Twelve Months 1) LTM EBITDA metrics for SAIC and KEYW include pro forma adjustments to adjust for the impact of the nonrecurring CityTime charge and the impact of material acquisitions, respectively.

6 RECENT INDUSTRY M&A TRANSACTIONS Date Buyer Target Target Business Description EV($M) EV/LTM Revenue Multiple EV/LTM EBITDA Multiple Northrop Grumman M5 Network Security Provider of cybersecurity and secure mobile communications products and services to Australian military and intelligence clients Kimball Consulting Schafer Corp. (Backed by Metalmark Capital) Mercury Computer Systems Micronetics, Inc. Industry M&A Transactions Provider of embedded software development, computer network operations, digital signal processing, wireless and network programming, and IT security services for the IC Manufacturer of microwave and radio frequency components and integrated subassemblies used in a variety of defense, aerospace and commercial applications CACI Delta Solutions Technologies Provider of federal financial management and technology solutions customized to the U.S. government CGI Group Inc. Logica plc Business and technology services company providing business consulting, systems integration, and outsourcing services worldwide $ x 10.6 x 3, x 0.5 x The Resolute Fund II, L.P. (affiliate of The Jordan Company) Kratos Defense & Security Solutions, Inc. VT Services, Inc. Composite Engineering, Inc. Provider of engineering and logistics services in support of DoD mission critical systems, logistics and operational readiness, and platform sustainment initiatives Manufacturer and developer of unmanned aerial target systems and compostie structures for use in National Security programs Jun-12 Serco Group Vertex Public Sector Limited Provider of dedicated business process outsourcing services to both local and central government Jun-12 Veritas Capital Thomson Reuters' Provider of data, analytics and performance benchmarking solutions Healthcare Business and services to hospitals, health systems, employers, health plans, government agencies, and healthcare professionals Apr-12 MAXIMUS Policy Studies Inc. Government health and services provider supporting government clients in the administration of public programs Apr-12 Six3 Systems (porfolio Ticom Geomatics, Inc. Industry leaer in interoperable, mission-ready, precision Geolocation company of GTCR) and ISR systems and services Apr-12 Noblis, Inc. ElanTech Systems, Inc. Provder of systems engineering & technical assistance (SETA), acquisition management support, and software engineering services. Apr-12 XL, Inc. (portfolio company of The Halifax Group) ALON, Inc. Apr-12 ITT Exelis Applied Kilovolts Group Holdings, Limited Apr-12 Apr-12 Apr-12 Acentia (portfolio company of Snow Phipps) Salient Federal Solutions (portfolio co. of Frontenac) ManTech International Corp. Program management, strategic acquisition planning, and financial management services business serving federal customers Provider of precision high voltage power supplies for medical, scientific, pharmaceutical, and food safety instruments 2020 Company, LLC Federal IT solutions provider specializing in custom system maintenance, systems development and integration, technology infrastructure support, and a variety of business services ATS Corp. HBGary, Inc. Mar-12 Aveshka, Inc. Civitas Group, LLC [Homeland Security and Private Sector Preparedness business] Mar-12 White Oak Technologies FGM, Inc. (portfolio company of Arlington Capital) Feb-12 The SI Organization PhaseOne Communications, Inc. Feb-12 Feb-12 Lake Capital (NetStar-1) Logistics Management Institute (LMI) Whitney, Bradley and Brown, Inc. Belzon, Inc. Jan-12 CRGT, Inc. (portfolio company of Veritas Capital) CIBER, Inc. (Federal Division) Jan-12 LLR Partners Paragon Technology Group, Inc. Source: Company Press Releases; FactSet; Infobase EV: Enterprise Value LTM: Last Twelve Months Provider of software & systems development, systems integration, infrastructure management & outsourcing, information sharing, and consulting to DoD and federal civilian agencies Provides a comprehensive suite of software products to detect, analyze, and diagnose Advanced Persistent Threats (APT) and targeted malware Advisory and consulting services for private industry and government clients around the world Provider of software engineering services, specializing in data analytics and information sharing for the Intelligence Community Offers full service support in communications research and planning, development and evaluation. Leading provider of CONOPs, requirements, organizational development, acquisition, and technical consulting services to agencies including the DOD, DHS, and VA Provider of project management services in life cycle logistics planning, readiness management, business case analyses, program management support, IT, and engineering services. Supports U.S. Federal Government with enterprise architecture, application development, systems implementation and integration, operations support and security services Provides extensive specialized information technology consultation and services to federal clients x N/A x 9.7 x 86.0 N/A N/A 1,250.0 N/A N/A x N/A x 6.1 x 40.0 N/A N/A

7 REPRESENTATIVE ACP TRANSACTIONS on their sale to on its acquisition of WHO IS ARONSON CAPITAL PARTNERS? Aronson Capital Partners is a leading financial advisor to government services and technology firms. We exercise our special domain expertise in the Defense, Intelligence, and Federal Civilian markets to achieve exceptional results for our clients. In addition to completing more than 100 transactions in the federal sector, our principals have decades of executive level, hands-on experience in the industry a key differentiator that leads to success. M ERGERS & ACQUI SI T I ONS: Sell-Side M&A Buy-Side M&A Private Equity Platform Acquisitions Management & Leveraged Buyouts Divestitures Asset Sales ESOP CORPORATE FI NANCE: Recapitalizations & Restructurings Common & Preferred Equity Senior Debt Subordinated Debt Convertible Debt Private Equity Investments Minority Equity Investments F I NANCI AL ADVI SORY: Internal Capital Transaction Advisory Independent Corporate Valuations Fairness Opinions Strategic Alternatives Assessments