MAXIMUS, Inc.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Dollars in thousands, except per share data)

(Unaudited)

													Year
	Quarter Ended												Ended			Quarter Ended
	Dec. 31, 2008			Mar. 31, 2009			Jun. 30, 2009			Sept. 30, 2009			Sept. 30, 2009			Dec. 31, 2009			Mar. 31, 2010			Jun. 30, 2010

Revenue	$	169,710		$	177,158		$	178,434		$	194,806		$	720,108		$	203,320		$	204,386		$	211,527
Cost of revenue	122,806			130,624			131,064			144,268			528,762			151,145			153,835			154,514
Gross profit	46,904			46,534			47,370			50,538			191,346			52,175			50,551			57,013
Selling, general and administrative expenses	26,414			26,714			27,255			26,645			107,028			27,429			28,787			31,658
Legal and settlement expense (recovery)	—			368			(4,829		)	190			(4,271		)	686			(6,037		)	—
Operating income from continuing operations	20,490			19,452			24,944			23,703			88,589			24,060			27,801			25,355
Interest and other income, net	94			35			129			(113		)	145			99			186			442
Income from continuing operations before income taxes	20,584			19,487			25,073			23,590			88,734			24,159			27,987			25,797
Provision for income taxes	8,131			7,697			9,904			9,161			34,893			9,559			9,996			9,672
Income from continuing operations	12,453			11,790			15,169			14,429			53,841			14,600			17,991			16,125

Discontinued operations, net of income taxes:
Income (loss) from discontinued operations	(485		)	(763		)	(186		)	(4,300		)	(5,734		)	(1,972		)	752			1,200
Loss on disposal	(5		)	—			—			(1,562		)	(1,567		)	—			—			—
Income (loss) from discontinued operations	(490		)	(763		)	(186		)	(5,862		)	(7,301		)	(1,972		)	752			1,200

Net income	$	11,963		$	11,027		$	14,983		$	8,567		$	46,540		$	12,628		$	18,743		$	17,325

Basic earnings (loss) per share:
Income from continuing operations	$	0.70		$	0.68		$	0.87		$	0.82		$	3.06		$	0.83		$	1.03		$	0.93
Income (loss) from discontinued operations	(0.03		)	(0.05		)	(0.01		)	(0.33		)	(0.41		)	(0.11		)	0.05			0.06
Basic earnings per share	$	0.67		$	0.63		$	0.86		$	0.49		$	2.65		$	0.72		$	1.08		$	0.99

Diluted earnings (loss) per share:
Income from continuing operations	$	0.69		$	0.66		$	0.85		$	0.80		$	3.01		$	0.81		$	1.00		$	0.90
Income (loss) from discontinued operations	(0.02		)	(0.04		)	(0.01		)	(0.32		)	(0.41		)	(0.11		)	0.04			0.06
Diluted earnings per share	$	0.67		$	0.62		$	0.84		$	0.48		$	2.60		$	0.70		$	1.04		$	0.96

Dividends per share	$	0.10		$	0.12		$	0.12		$	0.12		$	0.46		$	0.12		$	0.12		$	0.12

Weighted average shares outstanding:
Basic	17,802			17,435			17,503			17,538			17,570			17,595			17,408			17,423
Diluted	17,956			17,751			17,839			17,945			17,886			18,039			17,980			18,004

MAXIMUS, Inc.

Segment Financial Information from Continuing Operations (1)

(Dollars in thousands)

(Unaudited)

													Year
	Quarter Ended												Ended			Quarter Ended
	Dec. 31, 2008			Mar. 31, 2009			Jun. 30, 2009			Sept. 30, 2009			Sept. 30, 2009			Dec. 31, 2009			Mar. 31, 2010			Jun. 30, 2010
Revenue:
Health Services	$	121,995		$	121,228		$	122,415		$	129,503		$	495,141		$	130,640		$	127,279		$	127,307
Human Services	47,715			55,930			56,019			65,303			224,967			72,680			77,107			84,220
Total	169,710			177,158			178,434			194,806			720,108			203,320			204,386			211,527

Gross Profit:
Health Services	35,187			32,901			30,176			33,283			131,547			32,910			28,932			32,425
Human Services	11,717			13,633			17,194			17,255			59,799			19,265			21,619			24,588
Total	46,904			46,534			47,370			50,538			191,346			52,175			50,551			57,013

Selling, General, and Administrative expense:
Health Services	14,562			14,472			15,372			14,267			58,673			15,402			16,209			17,916
Human Services	11,617			11,887			11,839			12,099			47,442			11,886			12,582			13,904
Corporate/Other	235			355			44			279			913			141			(4		)	(162		)
Total	26,414			26,714			27,255			26,645			107,028			27,429			28,787			31,658

Income from Operations: (1)
Health Services	20,625			18,429			14,804			19,016			72,874			17,508			12,723			14,509
Human Services	100			1,746			5,355			5,156			12,357			7,379			9,037			10,684
Consolidating adjustments	(235		)	(355		)	(44		)	(279		)	(913		)	(141		)	4			162
Subtotal	20,490			19,820			20,115			23,893			84,318			24,746			21,764			25,355
Legal and settlement expense (recovery)	—			368			(4,829		)	190			(4,271		)	686			(6,037		)	—
Consolidated total	$	20,490		$	19,452		$	24,944		$	23,703		$	88,589		$	24,060		$	27,801		$	25,355

Gross profit percentage
Health Services	28.8		%	27.1		%	24.7		%	25.7		%	26.6		%	25.2		%	22.7		%	25.5		%
Human Services	24.6		%	24.4		%	30.7		%	26.4		%	26.6		%	26.5		%	28.0		%	29.2		%
Consolidated total	27.6		%	26.3		%	26.5		%	25.9		%	26.6		%	25.7		%	24.7		%	27.0		%

Selling, General and Administrative expense percentage
Health Services	11.9		%	11.9		%	12.6		%	11.0		%	11.8		%	11.8		%	12.7		%	14.1		%
Human Services	24.3		%	21.3		%	21.1		%	18.5		%	21.1		%	16.4		%	16.3		%	16.5		%
Consolidated total	15.6		%	15.1		%	15.3		%	13.7		%	14.9		%	13.5		%	14.1		%	15.0		%

Operating margin percentage:
Health Services	16.9		%	15.2		%	12.1		%	14.7		%	14.7		%	13.4		%	10.0		%	11.4		%
Human Services	0.2		%	3.1		%	9.6		%	7.9		%	5.5		%	10.2		%	11.7		%	12.7		%
Consolidated total	12.1		%	11.0		%	14.0		%	12.2		%	12.3		%	11.8		%	13.6		%	12.0		%

(1) Before income taxes

MAXIMUS, Inc.

CONSOLIDATED BALANCE SHEETS

(Dollars in thousands)

(Unaudited)

	Dec. 31,			Mar. 31,			Jun. 30,			Sept. 30,			Dec. 31,			Mar. 31,			Jun. 30,
	2008			2009			2009			2009			2009			2010			2010
ASSETS
Current assets:
Cash and cash equivalents	$	61,461		$	85,090		$	91,666		$	87,815		$	126,940		$	121,362		$	153,059
Restricted cash	2,543			2,449			3,702			3,919			4,590			3,971			3,753
Accounts receivable — billed	96,952			94,376			113,261			133,485			124,248			131,026			124,208
Accounts receivable — unbilled	14,454			23,071			15,779			19,510			21,836			24,278			22,179
Current portion of note receivable	759			786			949			736			458			167			—
Income taxes receivable	9,469			17,097			7,823			7,501			—			5,478			—
Deferred income taxes	17,574			8,735			12,695			5,389			11,609			6,846			8,017
Due from insurance carrier	12,986			—			—			—			—			—			—
Prepaid expenses and other current assets	11,322			17,501			18,671			19,749			18,750			20,343			21,757
Current assets of discontinued operations	15,263			10,996			14,367			14,007			4,559			2,657			5,190
Total current assets	242,783			260,101			278,913			292,111			312,990			316,128			338,163

Property and equipment, at cost	78,387			80,463			88,020			98,781			103,300			107,189			109,708
Less accumulated depreciation and amortization	(45,231		)	(47,087		)	(50,322		)	(53,495		)	(56,857		)	(60,380		)	(62,887		)
Property and equipment, net	33,156			33,376			37,698			45,286			46,443			46,809			46,821
Capitalized software	20,521			23,262			23,970			26,475			29,402			31,496			32,830
Less accumulated amortization	(6,159		)	(6,581		)	(6,769		)	(7,506		)	(8,504		)	(9,379		)	(10,049		)
Capitalized software, net	14,362			16,681			17,201			18,969			20,898			22,117			22,781
Deferred contract costs, net	6,384			7,604			8,530			8,206			7,753			7,298			6,863
Goodwill	57,776			57,563			60,088			61,029			61,364			69,067			67,806
Intangible assets, net	2,832			2,458			2,419			2,455			3,218			8,826			8,128
Note receivable	1,036			721			192			—			—			—			—
Deferred income taxes	3,217			1,440			—			1,239			3,434			—			—
Other assets, net	3,459			3,065			2,918			3,939			3,975			3,999			3,816
Noncurrent assets of discontinued operations	1,436			1,373			1,347			—			—			—			—
Total assets	$	366,441		$	384,382		$	409,306		$	433,234		$	460,075		$	474,244		$	494,378

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	30,830			48,500			45,876			44,644			48,070			53,940			57,134
Accrued compensation and benefits	21,564			23,710			25,782			31,738			29,393			34,850			37,997
Current portion of deferred revenue	19,075			17,543			18,947			22,177			32,278			30,319			35,385
Current portion of income taxes payable	—			—			—			—			4,982			—			823
Acquisition-related contingent consideration	—			—			—			—			—			—			906
Other accrued liabilities	16,968			12,929			14,554			15,083			16,396			10,554			9,577
Current liabilities of discontinued operations	15,430			12,752			11,057			13,823			13,991			3,608			3,209
Total current liabilities	103,867			115,434			116,216			127,465			145,110			133,271			145,031
Acquisition-related contingent consideration	—			—			—			—			—			3,092			2,100
Deferred revenue, less current portion	4,490			5,745			6,019			6,527			9,572			13,039			16,081
Income taxes payable, less current portion	1,668			1,573			1,753			1,871			2,086			2,041			1,755
Deferred income taxes	—			—			2,212			243			243			2,714			2,724
Long-term debt	—			—			—			—			—			885			1,187
Total liabilities	110,025			122,752			126,200			136,106			157,011			155,042			168,878
Shareholders’ equity:
Common stock	330,834			332,462			334,590			338,739			341,819			345,591			349,098
Treasury stock	(312,338		)	(319,149		)	(319,146		)	(319,149		)	(327,810		)	(333,657		)	(341,664		)
Accumulated other comprehensive income	(1,139		)	(1,771		)	4,694			8,268			9,351			11,007			6,673
Retained earnings	239,059			250,088			262,968			269,270			279,704			296,261			311,393
Total shareholders’ equity	256,416			261,630			283,106			297,128			303,064			319,202			325,500
Total liabilities and shareholders’ equity	$	366,441		$	384,382		$	409,306		$	433,234		$	460,075		$	474,244		$	494,378

MAXIMUS, Inc.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Dollars in thousands)

(Unaudited)

													Year
	Quarter Ended												Ended			Quarter Ended
	Dec. 31, 2008			Mar. 31, 2009			Jun. 30, 2009			Sept. 30, 2009			Sept. 30, 2009			Dec. 31, 2009			Mar. 31, 2010			Jun. 30, 2010

Cash flows from operating activities
Net income	$	11,963		$	11,027		$	14,983		$	8,567		$	46,540		$	12,628		$	18,743		$	17,325
Adjustments to reconcile net income to net cash provided by operating activities:
(Income) loss from discontinued operations	490			763			186			5,862			7,301			1,972			(752		)	(1,200		)
Depreciation	1,961			2,129			2,217			2,575			8,882			3,104			3,132			3,320
Amortization	737			788			555			1,270			3,350			1,436			1,346			1,311
Deferred income taxes	12,043			10,617			(309		)	4,368			26,719			(8,492		)	8,337			(1,126		)
Gain on sale of fixed asset	—			(51		)	—			—			(51		)	—			—			—
Deferred interest income on note receivable	107			104			101			64			376			61			118			84
Non-cash equity based compensation	1,866			2,084			1,678			1,679			7,307			1,865			2,088			2,030

Change in assets and liabilities, net of effects from business combinations and divestitures:
Accounts receivable — billed	22,162			2,441			(18,076		)	(19,579		)	(13,052		)	9,349			(4,572		)	6,118
Accounts receivable — unbilled	(6,327		)	(8,774		)	7,822			602			(6,677		)	(2,327		)	(2,103		)	1,891
Due from insurance carrier	—			12,500			—			—			12,500			—			—			—
Prepaid expenses and other current assets	(3,844		)	(6,081		)	(1,024		)	(852		)	(11,801		)	1,042			(1,456		)	(1,590		)
Deferred contract costs	(1,236		)	(1,250		)	(720		)	324			(2,882		)	479			487			392
Other assets	(899		)	133			1,074			(1,130		)	(822		)	(34		)	(253		)	151
Accounts payable	(11,841		)	17,641			(3,118		)	(1,689		)	993			587			1,219			6,762
Accrued compensation and benefits	(3,746		)	2,100			1,524			5,619			5,497			(2,035		)	4,952			3,844
Deferred revenue	2,492			57			840			2,431			5,820			13,134			992			8,423
Income taxes	(21,959		)	(7,535		)	9,452			(709		)	(20,751		)	14,867			(11,099		)	5,751
Other liabilities	(34,755		)	(723		)	(186		)	(1,051		)	(36,715		)	1,251			694			(3,897		)

Cash provided by (used in) operating activities — continuing operations	(30,786		)	37,970			16,999			8,351			32,534			48,887			21,873			49,589
Cash provided by (used in) operating activities — discontinued operations	3,609			891			(5,198		)	(1,203		)	(1,901		)	6,134			(7,139		)	(1,147		)
Cash provided by (used in) operating activities	(27,177		)	38,861			11,801			7,148			30,633			55,021			14,734			48,442

Cash flows from investing activities
Payments for sales of discontinued operations, net of transation costs	—			—			—			(1,626		)	(1,626		)	—			—			—
Proceeds from sale of fixed assets	—			54			—			642			696			—			—			—
Acquisition of business, net of cash acquired	—			—			—			(406		)	(406		)	—			(10,673		)	—
Proceeds from note receivable	182			184			265			341			972			217			173			83
Purchases of property and equipment	(2,414		)	(2,476		)	(5,714		)	(9,090		)	(19,694		)	(3,938		)	(2,093		)	(4,352		)
Capitalized software costs	(1,717		)	(2,969		)	(351		)	(1,851		)	(6,888		)	(2,641		)	(1,684		)	(1,982		)

Cash used in investing activities — continuing operations	(3,949		)	(5,207		)	(5,800		)	(11,990		)	(26,946		)	(6,362		)	(14,277		)	(6,251		)
Cash used in investing activities — discontinued operations	(11		)	(3		)	(22		)	(54		)	(90		)	—			—			—
Cash used in investing activities	(3,960		)	(5,210		)	(5,822		)	(12,044		)	(27,036		)	(6,362		)	(14,277		)	(6,251		)

Cash flows from financing activities
Employee stock transactions	593			(690		)	733			1,656			2,292			1,004			611			1,064
Repurchases of common stock	(22,431		)	(7,615		)	—			—			(30,046		)	(8,661		)	(5,850		)	(8,007		)
Payments on capital lease obligations	(417		)	—			—			—			(417		)	—			—			—
Tax benefit due to option exercises and restricted stock units vesting	53			234			(281		)	645			651			135			975			314
Issuance (repayment) of long-term debt	—			—			—			—			—			—			(7		)	333
Cash dividends paid	(1,765		)	(2,089		)	(2,101		)	(2,099		)	(8,054		)	(2,118		)	(2,083		)	(2,094		)
Cash provided by (used in) financing activities — continuing operations	(23,967		)	(10,160		)	(1,649		)	202			(35,574		)	(9,640		)	(6,354		)	(8,390		)
Cash provided by (used in) financing activities — discontinued operations	—			—			—			—			—			—			—			—
Cash provided by (used in) financing activities	(23,967		)	(10,160		)	(1,649		)	202			(35,574		)	(9,640		)	(6,354		)	(8,390		)

Effect of exchange rate changes on cash and cash equivalents	(3,040		)	138			2,246			843			187			106			319			(2,104		)
Net increase (decrease) in cash and cash equivalents	(58,144		)	23,629			6,576			(3,851		)	(31,790		)	39,125			(5,578		)	31,697
Cash and cash equivalents, beginning of period	119,605			61,461			85,090			91,666			119,605			87,815			126,940			121,362
Cash and cash equivalents, end of period	$	61,461		$	85,090		$	91,666		$	87,815		$	87,815		$	126,940		$	121,362		$	153,059

MAXIMUS, Inc.

Supplemental Pro Forma Diluted EPS from Continuing Operations (“Adjusted EPS”)

(Unaudited)

										Year
	Quarter Ended									Ended			Quarter Ended
	Dec. 31, 2008		Mar. 31, 2009		Jun. 30, 2009			Sept. 30, 2009		Sept. 30, 2009			Dec. 31, 2009		Mar. 31, 2010			Jun. 30, 2010
Diluted EPS from continuing operations-GAAP basis	$	0.69	$	0.66	$	0.85		$	0.80	$	3.01		$	0.81	$	1.00		$	0.90

Pro forma adjustments:
Legal and settlement expense (recovery), net	—		0.01		(0.16		)	0.01		(0.14		)	0.02		(0.21		)	—
Severance	—		0.01		—			—		—			—		—			—
Subtotal pro forma adjustments	$	0.00	$	0.02	$	(0.16	)	$	0.01	$	(0.14	)	$	0.02	$	(0.21	)	—

Adjusted EPS from continuing operations	$	0.69	$	0.68	$	0.69		$	0.81	$	2.87		$	0.83	$	0.79		$	0.90