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(RESTON, Va.-- November 14, 2007) -- MAXIMUS (NYSE:MMS), a leading provider of government services, today reported results for its fourth quarter and fiscal year ended September 30, 2007. Concurrently, MAXIMUS announced that its Board of Directors has completed its process to explore the Company’s strategic alternatives and has authorized the repurchase of up to $150 million of the Company’s outstanding shares under an Accelerated Share Repurchase program (ASR), which represents approximately 15% of the Company’s outstanding stock based on the current stock price.

Completion of the strategic review process: MAXIMUS launches a $150 million ASR program and plans to secure a $50 million to $75 million line of credit to provide additional financial flexibility, in addition to refining its focus on core health and human services operations and seeking possible alternatives for certain non-core assets.

Revenue for the fourth quarter increased 17.5% to $201.9 million compared to $171.8 million reported for the same period last year. Net income increased to $14.2 million, or $0.63 per diluted share, which includes legal and settlement expense of approximately $2.5 million, or $0.06 per diluted share, primarily related to ongoing arbitration. Prior-year-period net income was $2.0 million, or $0.09 per diluted share, which included a pre-tax loss of $12.7 million, or $0.36 per diluted share, related to the now-terminated Texas subcontract with Accenture. The Company is now serving as prime contractor and directly supporting the Texas Health and Human Services Commission.

For the full year, fiscal 2007 revenue increased 5.4% to $738.6 million compared to $700.9 million last year. Excluding revenue from the divested businesses for fiscal 2006, year-over-year organic growth was 6.8%. Net loss for the full year was $8.3 million, or $0.38 per share, which included approximately $44.6 million, or $1.61 per share, in legal and settlement expense, $25.2 million net loss, or $0.67 per share, from the now-terminated Accenture subcontract and a loss of $4.2 million or $0.11 per share from the Ontario project. This compares to fiscal 2006 net income of $2.5 million, or $0.11 per diluted share. Fiscal 2006 results included a pre-tax loss of $49.4 million, or $1.38 per diluted share, from the now-terminated subcontract with Accenture and other legal settlement expense of $9.4 million or $0.27 per diluted share.

“I’m pleased with our ongoing, strong financial performance in the fourth quarter and believe we have completed fiscal 2007 in a substantially improved position from the prior year," commented Richard Montoni, Chief Executive Officer of MAXIMUS. “In the past 12 months, our focus on quality and risk management has resulted in the elimination of several legacy issues, more favorable contract terms on new awards, improved operating margins and accelerating top-line growth. MAXIMUS is refining its focus around its core competencies and moving in a direction that builds on the progress made in fiscal 2007. We will emphasize those businesses which offer us more predictable, recurring streams of revenue and sustainable levels of profitability.”

The Systems Segment reported operating income of $0.5 million in the fourth quarter compared to a loss of $2.0 million for the same period last year which included the deferral of revenue and income related to two software sales to future periods. For the full year, the Systems segment had an operating loss of $4.7 million, compared to a loss of $0.9 million for fiscal 2006. Strong results in the Asset Solutions and ERP divisions offset softness in the Justice and Education divisions.

Backlog at September 30, 2007 totaled $1.3 billion compared to $1.5 billion reported for the prior year period. Year-to-date signed contract wins at September 30, 2007, totaled $569 million, compared to $717 million reported last year. New contracts pending at September 30, 2007, (awarded but unsigned) totaled $310 million compared to $103 million reported last year. Sales opportunities (pipeline) at November 8, 2007, totaled $1.7 billion (consisting of $418 million in proposals pending, $177 million in proposals in preparation, and $1.06 billion in proposals tracking) compared to $1.1 billion the prior year.

At September 30, 2007, cash, cash equivalents, and marketable securities totaled $196.7 million. Days Sales Outstanding (DSO) increased modestly on a sequential basis to 80 days at September 30, 2007. MAXIMUS paid a quarterly cash dividend of $0.10 per share on August 31, 2007. Net cash used from operations in the fourth quarter was $8.2 million. For fiscal 2007 the Company generated net cash from operating activities of $51.2 million and free cash flow, which the Company defines as cash from operations less purchased property and equipment and capitalized software costs, totaled $33.4 million.

The Board of Directors has completed the strategic review process announced on July 23, 2007. After a thorough review process, the Board of Directors has concluded that launching a $150 million ASR program, concentrating the Company’s strategic focus on core health and human services offerings and considering alternatives for certain non-core assets, provides the best current opportunity to maximize shareholder value, reflecting the Company’s strong financial position and future growth prospects. Under the ASR program, MAXIMUS will purchase up to $150 million of shares from an affiliate of UBS Investment Bank at the closing market price on November 15, 2007, subject to a future price adjustment based on the volume weighted average trading price of the shares. MAXIMUS will finance the program with cash on hand. In addition, MAXIMUS has approximately $40.0 million available under its previously board-authorized share repurchase program and intends to resume this program after the completion of the ASR.

Peter Pond, MAXIMUS’ chairman stated, “The Company, working with its financial advisors UBS, undertook an extensive process reviewing all possible alternatives, including a potential sale of MAXIMUS. While there was a substantial amount of interest among various parties with all options under consideration, the process was impacted largely by eroded capital market conditions and we ultimately concluded that remaining an independent public Company was the best option for all our constituencies.”

Mr. Montoni commented, “The share repurchase program announced today represents an efficient mechanism to return value to shareholders. The ASR increases earnings per share and improves the efficiency of our capital structure while maintaining our ability to properly fund growth. Lastly, we also remain committed to increasing shareholder value on an ongoing basis through the opportunistic repurchase of shares pursuant to our current board authorized stock repurchase program, upon the completion of the ASR.”

The Company expects fiscal 2008 revenue to be in the range of approximately $850 million to $880 million. The Company estimates that approximately 83% of its fiscal 2008 forecasted revenue is presently in the form of backlog. Diluted earnings per share for fiscal 2008 are expected to be in the range of $2.40 to $2.65. Earnings in the first fiscal quarter are traditionally lower compared to the rest of the year, and as a result the Company expects diluted earnings per share of $0.45 to $0.50. This guidance does not include the positive benefit from the expected $0.15 to $0.20 accretion from the ASR plan in fiscal 2008.

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).

This press release includes certain non-GAAP financial information as defined by Securities and Exchange Commission Regulation G. Pursuant to the requirements of this regulation, reconciliations of this non-GAAP financial information to MAXIMUS financial statements as prepared under generally accepted accounting principles (GAAP) are included in this press release. MAXIMUS discloses net income and earnings per share excluding legal settlement expense and losses from the Texas project in the first half of fiscal 2007, and provides certain additional information, such as non-recurring reserves, regarding earnings per share for fiscal 2007. MAXIMUS management believes providing investors with this information gives additional insights into MAXIMUS results of operations.While MAXIMUS management believes that these non-GAAP financial measures are useful in evaluating MAXIMUS operations, this information should be considered as supplemental in nature and not as a substitute for the related financial information prepared in accordance with GAAP.

MAXIMUS, Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
(Unaudited)

	September 30,
	2006				2007
ASSETS
Current assets:
Cash and cash equivalents		$	39,545			$	70,472
Marketable securities			117,315				126,210
Restricted cash			1,512				325
Accounts receivable — billed, net			153,399				132,962
Accounts receivable — unbilled			47,728				42,200
Income taxes receivable			9,003				—
Deferred income taxes			6,844				17,409
Prepaid expenses and other current assets			8,334				9,159
Total current assets			383,680				398,737
Property and equipment, net			33,429				35,901
Software development costs, net			33,925				29,540
Deferred contract costs, net			11,165				8,116
Goodwill			86,688				86,086
Intangible assets, net			5,720				3,603
Other assets			3,894				2,481
Total assets		$	558,501				564,464
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable		$	54,484			$	54,425
Accrued compensation and benefits			24,426				29,449
Deferred revenue			46,669				38,545
Income taxes payable			—				5,487
Current portion of capital lease obligations			1,690				1,627
Other accrued liabilities			1,600				2,059
Total current liabilities			128,869				131,592
Capital lease obligations, less current portion			2,044				417
Long term deferred revenue			7,745				10,143
Deferred income taxes			14,944				12,912
Total liabilities			153,602				155,064
Commitments and contingencies
Shareholders’ equity:
Common stock, no par value; 60,000,000 shares authorized; 21,544,964 and 22,194,489 shares issued and outstanding at September 30, 2006 and 2007, at stated amount, respectively			156,349				175,208
Accumulated other comprehensive income (loss)			(916	)			1,730
Retained earnings			249,466				232,462
Total shareholders’ equity			404,899				409,400
Total liabilities and shareholders’ equity		$	558,501			$	564,464

MAXIMUS, Inc. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share data) (Unaudited)

	Year ended September 30,
	2005			2006				2007

Revenue		$	647,538		$	700,894			$	738,646
Cost of revenue			467,588			547,539				561,563
Write-off of deferred contract costs			—			17,109				—
Gross profit			179,950			136,246				177,083
Selling, general and administrative expenses			116,676			129,678				135,581
Legal and settlement expense			7,000			9,394				44,638
Income (loss) from operations			56,274			(2,826	)			(3,136	)
Interest and other income, net			3,345			6,859				5,804
Gain on sale of business			—			—				451
Income before income taxes			59,619			4,033				3,119
Provision for income taxes			23,550			1,573				11,374
Net income (loss)		$	36,069		$	2,460			$	(8,255	)

Earnings (loss) per share:
Basic		$	1.69		$	0.11			$	(0.38	)
Diluted		$	1.67		$	0.11			$	(0.38	)

Cash dividends per share		$	0.30		$	0.40			$	0.40

Weighted average shares outstanding:
Basic			21,331			21,465				21,870
Diluted			21,653			21,821				21,870

MAXIMUS, Inc. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Dollars in thousands) (Unaudited)

	Year ended September 30,
	2005				2006				2007

Cash flows from operating activities:
Net income (loss)		$	36,069			$	2,460			$	(8,255	)
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation			7,874				9,195				10,648
Amortization			7,271				8,450				10,322
Deferred income taxes			4,806				(9,402	)			(12,598	)
Non-cash equity based compensation			1,372				6,577				3,829
Gain on sale of Corrections division			—				—				(451	)
Write-off of deferred contract costs			—				17,109				—
Tax benefit due to option exercises and restricted stock units vesting			2,955				—				—
Changes in assets and liabilities, net of effects from acquisitions:
Accounts receivable - billed			(12,643	)			(28,922	)			20,438
Accounts receivable - unbilled			(1,494	)			(3,954	)			4,483
Prepaid expenses and other current assets			1,961				(1,064	)			(813	)
Deferred contract costs			(4,954	)			(7,845	)			3,049
Other assets			(828	)			2,489				4,144
Accounts payable			10,675				16,332				434
Accrued compensation and benefits			5,604				(2,401	)			5,023
Deferred revenue			11,703				21,516				(5,321	)
Income taxes			4,695				(13,699	)			14,490
Other liabilities			761				(1,145	)			1,768
Net cash provided by operating activities			75,827				15,696				51,190
Cash flows from investing activities:
Acquisition of businesses, net of cash acquired			(1,946	)			—				—
Proceeds from sale of Corrections division			—				—				1,871
Purchases of property and equipment			(13,337	)			(11,467	)			(13,418	)
Capitalized software development costs			(12,655	)			(14,654	)			(4,412	)
(Increase) decrease in marketable securities			(71,649	)			1,825				(8,895	)
Other			442				144				—
Net cash used in investing activities			(99,145	)			(24,152	)			(24,854	)
Cash flows from financing activities:
Employee stock transactions			14,645				7,697				12,953
Repurchases of common stock			(16,056	)			(10,139	)			—
Payments on capital lease obligations			(1,649	)			(1,374	)			(1,690	)
Tax benefit due to option exercises and restricted stock units vesting			—				1,331				2,078
Cash dividends paid			(6,403	)			(8,587	)			(8,750	)
Net cash provided by (used in) financing activities			(9,463	)			(11,072	)			4,591
Net increase (decrease) in cash and cash equivalents			(32,781	)			(19,528	)			30,927
Cash and cash equivalents, beginning of period			91,854				59,073				39,545
Cash and cash equivalents, end of period		$	59,073			$	39,545			$	70,472

MAXIMUS, Inc.
Segment Information
(In thousands except per share data)
(Unaudited)

	Three Months						Year
	Ended September 30,						Ended September 30,
	2006			2007			2006			2007
Revenue:
Consulting	$	26,125		$	22,542		$	102,842		$	93,707
Systems		29,984			37,425			127,189			141,335
Operations		115,690			141,907			470,863			503,604
Total	$	171,799		$	201,874		$	700,894		$	738,646

Gross profit:
Consulting	$	12,615		$	7,199		$	44,127		$	37,296
Systems		8,258			10,920			38,769			37,678
Operations		14,753			37,380			53,350			102,109
Total	$	35,626		$	55,499		$	136,246		$	177,083

Selling, general, and administrative expense:
Consulting	$	7,446		$	6,645		$	29,628		$	30,875
Systems		10,266			10,454			39,622			42,333
Operations		17,697			13,832			62,803			62,977
Corporate/other		(456	)		196			(2,375	)		(604	)
Total	$	34,953		$	31,127		$	129,678		$	135,581

Income (loss) from operations:
Consulting	$	5,169		$	554		$	14,499		$	6,421
Systems		(2,008	)		466			(853	)		(4,655	)
Operations		(2,944	)		23,548			(9,453	)		39,132
Consolidating adjustments		456			(196	)		2,375			604
Legal and settlement expense		909			(2,524	)		(9,394	)		(44,638	)
Total	$	1,582		$	21,848		$	(2,826	)	$	(3,136	)

Net income (loss)	$	1,993		$	14,169		$	2,460		$	(8,255	)

Earnings (loss) per share
Basic	$	0.09		$	0.64		$	0.11		$	(0.38	)
Diluted	$	0.09		$	0.63		$	0.11		$	(0.38	)

MAXIMUS, Inc.
Supplemental Pro Forma Information
(Dollars in millions, except per share data)
(unaudited)

	Three Months Ended								Year Ended
	September 30,				September 30,				September 30,			September 30,
	2006				2007				2006			2007

Revenue, as reported (GAAP)		$	171.8			$	201.9			$	700.9		$	738.6


Income (loss) before taxes, as reported (GAAP)		$	3.3			$	24.4			$	4.0		$	3.1
Add back Texas subcontract (1)			12.7				(0.2	)			49.4			25.2
Add back Ontario project loss			-				-				-			4.2
Add back legal and settlement expense			(0.9	)			2.5				9.4			44.6

Pro forma income before taxes, (non-GAAP)		$	15.1			$	26.7			$	62.8		$	77.1


Diluted earnings (loss) per share, as reported (GAAP)		$	0.09			$	0.63			$	0.11		$	(0.38	)
Add back Texas subcontract contract (1)			0.36				(0.01	)			1.38			0.67
Add back Ontario project loss			-				-				-			0.11
Add back legal and settlement expense			(0.03	)			0.06				0.27			1.61

Pro forma diluted earnings per share (non-GAAP)		$	0.42			$	0.68			$	1.76		$	2.01

FOR IMMEDIATE RELEASE	CONTACTS:	Lisa Miles (Investor)
		800-MAXIMUS x11637

DATE: November 14, 2007		Rachael Rowland
		800-MAXIMUS x11688