Alion Awarded Contracts Potentially Worth $86.6 Million to Support Navy Warfare Development Command

McLean, VA – August 6, 2007 – The Navy Warfare Development Command awarded Alion Science and Technology three contracts, totaling $16.3 million, for technical support services for the Joint Semi-Automated Forces program (JSAF), non-JSAF-related modeling and simulation work and networking and system administration support.

The indefinite-delivery/indefinite-quantity contracts, which were awarded on July 1, each include a base year and four, one-year options. If all options are exercised, the total contracts would be worth $86.6 million.

Under the Lot I contract, Alion will provide technical support tasks related to JSAF, the Navy’s core simulation tool used for training and experimentation. JSAF supports the live, virtual and constructive (LVC) environment and includes high-fidelity simulations of many realistic terrains and scenarios. Under Lot I, Alion will provide modeling and simulation, information technology and engineering efforts to support the Navy Warfare Development Command (NWDC), Fleet Forces Command and its components with concept of operations, doctrine development, Sea Trial coordination, experimentation, analysis and other required efforts.

“Alion and its team have performed the majority of the current JSAF-related technical support work for the Navy Warfare Development Command,” said Rear Adm. Richard E. Brooks (USN, Ret.), Alion Senior Vice President and Manager of the National Security Group. “We have a significant footprint with NWDC for modeling and simulation work in support of JSAF. This is a testament to Alion’s expertise and experience in this area, as well as our continued success with the JSAF program.” 

Under Lot II, Alion will provide technical support for non-JSAF modeling and simulation work, including war game analysis, concepts analysis and training and experimentation. The third contract, known as Lot III, is for IT work, including database and Web development support, networking and system administration.

NWDC, headquartered in Newport, RI., is responsible for developing Navy operational and warfighting concepts and conducting experiments to test emerging and future technologies. The command was established in 1998 and has been designated the Navy’s lead agency for Sea Trial, a key component to Navy transformation.

Work will be performed in Newport, RI.; Norfolk, VA.; San Diego, CA; and Pearl Harbor, HI.  The Fleet and Industrial Supply Center Norfolk Philadelphia Office is the contracting authority.

Multiple contract awards were issued under the three contract lots.

This press release contains information about management’s view of Alion’s future expectations, plans and prospects that constitute forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by these forward-looking statements as a result of a variety of risk factors and uncertainties discussed in documents periodically filed by Alion with the SEC. 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.