MAXIMUS Awarded a $70 Million Contract for a Statewide ERP Implementation in Tennessee


MAXIMUS (NYSE:MMS), a leading provider of government services, announced today that it has been awarded an Enterprise Resource Planning (ERP) software and implementation contract with the State of Tennessee, Department of Finance and Administration, totaling nearly $70 million. The contract runs through Summer of 2009, and also includes a $3 million software license and implementation component for MAXIMUS Enterprise Asset Management (EAM), Fleet Maintenance Management and Facilities Management software.

This project encompasses the implementation of a statewide ERP and EAM system that will address the State's administrative business needs. The State expects that improved business processes and technology will help relieve existing administrative burdens and enable State employees to better serve the needs of its citizens.

"This is a key win for MAXIMUS. We welcome the opportunity to work with the State of Tennessee on this very important project," said Richard Montoni, CEO of MAXIMUS. "The synergy between our business lines provides a one-stop solution for the State. We are helping Tennessee realize radical changes for improving the operations of its agencies and ultimately the livelihood of its citizens."

The State of Tennessee currently supports more than 20 systems that run human resources and payroll administration, and has more than 50 systems that support financial management, procurement, and other administrative areas. This fragmented legacy systems environment makes it difficult to generate timely and accurate management information. The implementation of a new ERP and EAM system is expected to allow the state to better manage its resources and will also provide new web-based applications such as employee and vendor self-service.

MAXIMUS currently operates similar Oracle / PeopleSoft ERP implementation projects for the States of New Mexico, Oklahoma, and North Dakota. The MAXIMUS Fleet Maintenance Management application (FleetFocus(TM)) is deployed in 23 States, including recent deployments in Oklahoma, Maine, Washington, Indiana, New Mexico and the State of Minnesota. The MAXIMUS Facilities Manangement Software is deployed in the States of Utah and New York making it the market leading Facilities application for public sector.

MAXIMUS is one of America's leading government services companies devoted to providing program management, consulting and information technology services. The Company has more than 5,200 employees located in more than 220 offices in the United States, Canada and Australia. In 1999, 2001, 2002, 2003, and 2005 MAXIMUS was selected by Forbes Magazine as one of the Best 200 Small Companies in America for that year. Additionally, MAXIMUS is included in the Russell 2000 Index and the S&P SmallCap 600 Index.

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 Annual Report on Form 10-K filed with the Securities and Exchange Commission (file number 001-12997).