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Winter 2012

Aerospace / Defense and Government Services MarketView

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McLean, Virginia 22102 703.442.1400

www.kippsdesanto.com

(1) DoD FY2013 budget request, past budget requests, and KippsDeSanto research 1

Aerospace / Defense and Government Services MarketViewWinter 2012

Operational / Funding Environment Following the end of the War in Iraq on December 15, 2011, the U.S. and the North Atlantic Trade Organization (“NATO”) are in discussions to officially end their respective combat missions in Afghanistan by as early as 2013. Reflecting the growing sentiment within the Obama administration that the approach used in Iraq – where the official end of combat operations came 16 months before the final U.S. troop withdrawal – is the most effective strategy, Defense Secretary Leon E. Panetta stated that the U.S. is aiming to end its combat missions more than a year ahead of schedule. Current NATO intent, agreed to at a November 2010 summit in Lisbon, calls for coalition forces to gradually shift to a training / advisory role with the Afghan military, while moving towards withdrawing combat troops by the end of 2014. Until NATO leaders come together at their scheduled May summit in Chicago, nothing is final, however, Panetta has stated that “our goal is to complete all of that transition in 2013.” As the U.S. ends its commitments in Iraq and Afghanistan, the DoD has announced that the military will move away from a force focused around large ground forces to one that is smaller and leaner, but agile, flexible, and technologically advanced. Despite concerns expressed by some members of Congress, the President and DoD will reduce the overall force size of the military while building on unmanned assets and Special Forces. The Army will be reduced from 547,000 active-duty soldiers to 490,000, while the Marines will be reduced to 182,000. To avoid creating a hollow force, the DoD has not revealed any vital program terminations; all three variants of the F-35 remain intact, the Navy will keep its 11 aircraft carriers, and the Army will not lose any of its major vehicle programs. Instead, to reduce projected spending by $487 billion over the next 10 years, the Pentagon is eliminating “poorly performing” programs, such as the V-22, and slowing down the production of others, such as the F-35. However, it has not taken into account the possibility of an additional $500 billion cut if sequestration takes effect in January 2013. Although Republican Senators have already begun to introduce bills aimed at delaying the spending cuts required under sequestration by at least one year, President Obama has formerly stated that he would veto any plan that would undo the Budget Control Act of 2011’s (“BCA”) sequestration provision, because he believes it could still force Congress to come together on a much broader solution to reduce the country’s deficit. In response, Panetta continues to warn Congress that further cuts to the budget would be detrimental towards the DoD’s abilities to maintain the quality of the force and provide troops with needed capabilities. Additionally, DoD leaders have emphasized that the spending plan should be viewed as a complete package, carefully balanced and providing little room for modification. The plan has been directly shaped by the BCA cap on security spending, as well as the shifting focus towards the Asia-Pacific region. The Pentagon is requesting $525.4 billion for its base budget with an additional $88.5 billion for Overseas Contingency Operations (“OCO”) which, until the War in Afghanistan officially comes to a close, will likely offset some of the effects of the BCA. The DoD’s budget request for investment spending will be $168.2 billion: $98.8 billion for procurement and $69.4 billion for RDT&E. The total base request is about a 1% year-over-year decline compared with the FY2012 enacted budget and represents the first decline in nominal terms since 1998. Despite the difficulty in selecting the identified cuts, the Pentagon has described its investment choices as “hard but manageable” and has placed its budget request in historical context by noting that after every major conflict, the U.S has been forced to deal with “significant budget drawdowns.” Related to non-defense spending, huge mandatory outlays for social security and medical programs drive home the reality that federal spending also needs to be reshaped and brought under control. The major themes of federal IT spending remain a focus on increased utilization of blanket purchase agreements, cost reduction and avoidance, and relative insulation from funding pressure for programs with proximity to the “mission.” Markets that are expected to benefit are cloud computing, mobile computing, security, health IT, data analytics, and data center consolidation; however, the budget tightening in other areas will likely cause increased competition for these highly sought-after segments as well.

Historical and Projected DoD Spending(1) ($ in billions)

$13 $17 $7

DoD Base Budget OCO Enacted

FY2013 Base Budget Request OCO Requested

(1) Capital IQ, company filings, and KippsDeSanto research 2

Capital Markets and Public Market Valuation Trends Prior to the official February 13th budget release, detail regarding budget reductions minimally impacted the defense primes’ stock prices, as pricing appeared to have factored in significant defense cuts. Boeing, Northrop Grumman, and General Dynamics’ stock prices declined by less than one percent, while Lockheed Martin and Raytheon saw share prices increase by less than one percent. Additionally, after a likely effort to provide the industry some certainty, defense primes appeared to receive credit for many large contracts awarded by the DoD late last year. Despite gains made by the defense industry, Aerospace stocks continue to outpace the overall market. 4Q2011 saw industry backlog increase 4.3% to a record $600 billion, stemming largely from Boeing’s fourth quarter $22.7 billion jump in backlog. Boeing similarly represented $35.7 billion, or 90%, of the $40 billion increase the industry experienced over the entire year. Of note is that this growth was entirely due to the commercial sector (before the recent Air Force award of the Saudi F-35 contract). Boeings defense side had declined $2 billion on a year-over-year basis.

Early 2012 has seen the Dow Jones Industrial Average reach its highest close since 2008 and the S&P gain 7.5%, the best start to a year since 1998. Despite the constant reminders of the recession, industry experts have witnessed people slowly deciding that it may not be the end of the world after all; that there are some European countries that are struggling, but that the U.S. is continuing to move forward and work through any and all hardships. The Fed expects the economy to grow at a moderate pace, but will continue to keep interest rates exceptionally low until 2014 to offset recent slower than expected growth and in order to help mitigate the effects of the ongoing European debt crises. Investors however, remain cautiously optimistic as Greece negotiations edge toward another bailout deal.

Without aid, Greece will be unable to pay a €14.4 billion ($19.0 billion) bond redemption coming due next month. Accordingly, pressure on Greece has been piling up from its euro-zone partners to attempt another round of heavy austerity measures in exchange for a €130 billion ($171 billion) loan promised last October. As a condition to the bailout, however, Greece’s official lenders have required cross-party support for both reform and the austerity program, in order to avoid any backsliding after the upcoming Greek election later this year. Among the austerity measures required include, cutting Greece’s minimum wage by 20%, laying off 15,000 civil servants, and, in total, identifying on the order of €2.6 billion ($3.4 billion) in spending cuts before Greece will be able to receive bailout funds. Additionally, Athens is in talks with private-sector creditors over a planned €100 billion ($132 billion) debt write-down. Government services market multiples continue to hover near all-time lows, as Wall Street expects lackluster earnings, further continued growth challenges, pricing pressures, and procurement challenges. NCI dropped more than 30% after revising 2012 revenue outlook down ~33% due to contract losses and delays. Even those demonstrating growth are struggling with the market perception that it is unsustainable – CACI shares have remained relatively flat since announcing record setting 2Q2012 results and raising full-year guidance. The strong balance sheets of government services companies have afforded some the opportunity to deliver shareholder value through well-perceived dividend programs, share repurchases, and M&A activities – ICF International shares are up roughly 15% over the last three months during which it acquired two companies.

Relative Stock Price Performance(1)

As of February 17, 2012

Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12

Defense Primes Defense Systems Aerospace Government Services S&P 500

Nov 17 Nov 24 Dec 1 Dec 8 Dec 15 Dec 22 Dec 30 Jan 9 Jan 16 Jan 23 Jan 30 Feb 6 Feb 13

Defense Primes Defense Systems Aerospace Government Services S&P 500

(6.8%)

(15.9%)

(4.2%)

(1) Capital IQ, company filings, and KippsDeSanto research 3

M&A Trends and Activity Following just 51 aerospace, defense (“A&D”), and government services transactions announced in the first quarter of 2011, M&A volume trended upwards throughout the rest of the year, ending relatively flat by year end with a total of 233 deals announced, compared to 250 announcements in 2010. The decline in overall deal volume can be attributed to many factors including, the macroeconomic uncertainty revolving around the debt crises in Europe, the volatility experienced in U.S. stock markets, and the slower than expected economic recovery, as well as the governments indecision and ambiguity towards the U.S. budget following the downgrade of the U.S. credit rating. Despite all the difficulties facing both buyers and sellers, deal volume has slowly increased as confidence returns to boardrooms and neglected investment in the lean years of the recession reach a precipice. With many corporations sitting on record cash accounts and private equity firms nearing the point where they will have to invest the record breaking capital they have raised or give it back, 2012 has the potential to bring transaction volume above the past three years. As the underlying fundamentals spurring M&A align, the effects of the aforementioned contrasting macroeconomic forces have slowly begun to recede. With an upward trend in 2011 and a strong beginning to 2012, the A&D and government services markets have witnessed not only increasing deal volume but larger deals as well.

On December 23rd Mercury Computer Systems, Inc. announced its acquisition of KOR Electronics, a developer of digital radio frequency memory units for a variety of modern electronic warfare applications, as well as radar environment simulation and test systems for defense applications, for $70 million, or roughly 1.8x 2011 revenue. The acquisition is expected to enhance Mercury’s sensor processing capabilities in the Electronic Warfare and Signals Intelligence markets. Additionally, L-3 Communications Holdings, Inc. acquired Kollmorgen Electro-Optical, Inc., a manufacturer of electro-optical systems including, submarine optronic products, stabilized platform systems, and optical sights for armored vehicles, for $210 million, or 7.5x and 1.27x LTM EBITDA and revenue, respectively. Strategic activity in the commercial aerospace sector has picked up steam. There have been a number of deals already in 2012, with transactions announced by such companies as TransDigm, RTI International, and B/E Aerospace. Transdigm announced its acquisition of AmSafe Global Holdings, Inc., a manufacturer of safety and securement equipment for the aerospace, defense, and ground transportation industries, for 12.4x LTM EBITDA or $750 million. RTI International Metals entered into a stock purchase agreement to acquire Remmele Engineering, Inc., a manufacturer of custom equipment, precision components, and subassemblies, for $183 million, or 8.3x LTM EBITDA. And finally, BE Aerospace acquired UFC Aerospace Corp., a provider of aerospace logistics and supply chain management services, for $400 million, or 9.5x LTM EBITDA. 2011 government services M&A activity was slightly down from 2010. It is anticipated for 2012 transaction volume to be in line with 2011, as M&A activity will likely be inhibited by buyers’ demanding criteria. These standards depend on strategies chosen to navigate the difficult Federal budget environment. Select examples include companies (i) diversified across the public and private sectors (e.g., ICF International acquiring Ironworks Consulting and GHK Holdings), (ii) well-positioned in select growth markets such as intelligence and healthcare (e.g., ManTech International acquiring WINS and Evolvent Technologies), and (iii) providing high-end, mission critical services, with leverageable IP (e.g., Raytheon Company’s acquisition of Henggeler Computer Consultants and Pikewerks). Select diversified technology companies have opted-out of the Federal market to focus on their core commercial businesses (e.g., CIBER’s divestiture of its Federal Division to CRGT).

M&A Transaction Volume(1)

31 38 3924 21 22

9 14 19 2416

25 20 15 15 167

32 25 27

2311 16

14 1114

13 2218

24 2126

25 1731 26

87 8492

51 5461

1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 Q409 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 YTD12Defense / Homeland Security Aerospace Government

2009195 deals Announced

2010250 deals Announced

2011 233 deals Announced

(1) Capital IQ, company filings, and KippsDeSanto research

(2) DoD and Wall Street Research

(3) DoD, Wall Street, and KippsDeSanto Research 4

Defense Update

YTD Defense Stock Price Performance(1)

While 2011 was highlighted by pressures from Washington to tighten defense budgets, scale back wars abroad, and reduce the scope of major defense programs, the outlook for 2012 is anything but encouraging. Dwindling opportunities for organic growth in an increasingly challenging market, and the potential for even greater draw-backs in a sequestration scenario, keep many investors on the sidelines. Downside risks are mitigated, however, by low debt levels across the industry and strong free cash flow conversion, leading to continued share repurchases and M&A activities. The sector continues to be characterized by top-line pressures buoyed by a strong focus on growing operating margins to preserve EPS for more diversified firms (see Northrop Grumman, General Dynamics, and Lockheed Martin), while more specialized firms (see Cubic and Teledyne) have continued to find growth areas to maintain future revenue streams.

DoD Budget Investment Account Projections(2) ($ in billions)

Concerns over the growing Federal debt, pressures from the Obama administration, and shifting DoD priorities have created significant uncertainties around the future procurement environment. Downward revisions of the Future Years Defense Program - the DoD’s official financial plan - as well as the introduction of a potential sequestration scenario, continue to re-baseline the anticipated future addressable market for the defense industrial base. Moreover, a recent Wall Street survey of ACAT program managers depicts the most pessimistic scenario (“FY13 w/Trigger” on the chart to the left), which reflects the impact of the Budget Control Act and the full impact of sequestration in FY2013. While it is clear that DoD budgets are imperfect, the reality of a shrinking procurement environment is truly evident.

Major Program Funding Shifts(3)

($ in millions)

The FY2013 defense budget request called for $525 billion in funding, a 5.5% decrease from FY2012, reflecting a $45 billion decline. These cuts were implemented across a broad base of major programs. Army modernization programs felt a significant portion of the reductions; Army Ground Vehicles were particularly targeted with a $592 million reduction to the FHTV program and a $440 million reduction to the Stryker program. Several high profile aircraft programs within the Navy and Air Force also saw significant cuts, including the V-22 Osprey and the RQ-4 Global Hawk. Additionally, funding shifts within C4 systems reflected the DoD’s commitment to WIN-T over JTRS. Despite an array of cuts, a handful of programs fared well, such as the Navy’s DDG 51 and CVN RCOH programs.

CONTINUED SKEPTICISM OVER DEFENSE

MARKET KEEPING INVESTORS OUTStock Price Performance EV / CY 2012E EBITDA Multiple

01/03/12 02/17/12 % Change 01/03/12 02/17/12 ChangeDefense Primes

$4.54 $5.13 13.1% 4.1x 4.7x 0.6x

74.70 75.35 0.9% 6.7x 7.6x 0.9x

67.97 70.88 4.3% 5.6x 5.9x 0.3x

82.12 87.99 7.1% 5.7x 6.5x 0.8x

59.42 60.08 1.1% 4.8x 4.8x (0.0x)

49.11 49.86 1.5% 5.3x 5.6x 0.3x

Defense Primes Median 2.9% 5.5x 5.8x 0.3x

Defense Systems

$58.43 $59.77 2.3% 4.8x 5.3x 0.6x

31.61 28.70 (9.2%) 8.8x 7.9x (0.9x)

2.92 3.02 3.5% 6.1x 6.3x 0.1x

44.78 49.08 9.6% 6.7x 7.5x 0.8x

25.58 25.60 0.1% 8.4x 8.4x 0.1x

67.62 70.95 4.9% 6.2x 6.2x 0.0x

56.41 59.45 5.4% 7.5x 8.2x 0.7x

56.24 62.11 10.4% 7.6x 8.4x 0.8x

Defense Systems Median 4.2% 7.1x 7.7x 0.6x

Overall Median 3.9% 6.1x 6.4x 0.4x

EVOLVING VIEWS ON FUTURE DEFENSE

BUDGETS AND ADDRESSABLE MARKET

FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21

FY11 FYDP FY12 FYDP

FY13 w/o Trigger (Aug 2011) FY13 w/ Trigger (Dec 2011)

BUDGET CUTS ACROSS THE BOARD

REDUCING SCOPE OF MAJOR PROGRAMS% Change

Program FY11 FY12 FY13 FY12 - FY13

DDG 51 (Navy) $2,900 $2,081 $3,515 68.9%

V-22 Osprey (Navy) 2,834 2,789 1,955 (29.9%)

KC-46A Tanker 539 877 1,816 107.0%

CVN RCOH (Navy) 406 516 1,613 212.9%

UH-60 Black Hawk (Army) 1,809 1,706 1,306 (23.5%)

WIN - T (Army) 693 1,064 1,226 15.2%

AH-64 Apache (Army) 582 758 1,180 55.6%

JTRS (Army / Navy / Air Force) 821 1,244 1,053 (15.3%)

C-130J Hercules (Air Force / Marines) 1,302 1,429 835 (41.6%)

RQ-4 Global Hawk (Air Force) 996 825 333 (59.6%)

Stryker (Army) 1,586 772 332 (57.0%)

FHTV (Army) 749 650 58 (91.1%)

WGF Wideband Gapfiller (Air Force) 620 793 37 (95.4%)

(1) Capital IQ, company filings, and KippsDeSanto research

(2) The Boeing Company: Orders and Deliveries; Airbus: Orders and Deliveries. (3) Company press releases; KippsDeSanto research 5

Aerospace Update

YTD Aerospace Stock Price Performance(1)

Coming off of an exceptionally strong 2011 with an increasingly attractive outlook on 2012 and beyond, KippsDeSanto Aerospace indices have experienced significant share price appreciation year-to-date. Underpinned by large product backlogs, new aircraft introductions, and an improved supply chain, Aerospace firms have proven to be generally well positioned in the context of broader macroeconomic themes (e.g., European debt crisis, declining budgets in the government sector, etc.) BE Aerospace has been one of the early winners in 2012, delivering 4Q11 results in line with Street estimates and raising FY2012 guidance on the heels of its widely-applauded acquisition of UFC Aerospace. Shares of Triumph Group have enjoyed similar growth with 3Q2011 EPS surging ~48% YoY, driven by growth in sales and operating margins in the firms aerostructures segment.

OEM Aircraft Orders and Cancellations(2)

The leading indicator of the commercial aerospace sector’s resurgence is the strong order flow experienced by major OEMs during 2011. Airbus posted new records in both gross and net orders with 1,419 and 1,609, respectively, as well as deliveries with 534, in 2011. Airbus’ success was highlighted with its sales at the Paris Air Show, during which it inked 730 deals, including 667 orders and commitments for its new A320neo model. Boeing also posted its best year since its record-setting pace in 2007, making 2011 order totals the second-highest in history behind 2007. Emerging economies proved to be the biggest driver of order flow, with approximately half of all orders coming from Asia, Latin America, and the Middle East.

TransDigm Acquires AmSafe Global Holdings(3)

($ in millions)

TransDigm’s acquisition of AmSafe marks the seventh in the past two years and the second largest in its history (behind only the $1.3 billion acquisition of McKechnie Aerospace). AmSafe, a leading supplier of restraint equipment used in nearly every commercial aircraft in the world, fits well into TransDigm’s current product suite of highly engineered products. Given AmSafe’s widely-installed base in aircraft across the world, its favorable mix of commercial aerospace and aftermarket sales, and its track record for top-line expansion, the acquisition furthers TransDigm’s proprietary solutions-focused inorganic growth strategy. With AmSafe, TransDigm has added roughly $700 million of revenue since December 2010 and approximately $500 million in additional debt, resulting in a Pro Forma Net Debt to EBITDA of 4.1x as of March 31, 2012.

STRONG 2011 POSITION FOR SUSTAINED

CYCLICAL UPSWING IN 2012Stock Price Performance EV / CY 2012E EBITDA Multiple

01/03/12 02/17/12 % Change 01/03/12 02/17/12 Change

Aerospace Systems

$19.72 $23.18 17.5% 4.7x 5.4x 0.7x

39.01 46.09 18.1% 8.6x 9.7x 1.1x

123.84 125.70 1.5% 9.9x 9.6x (0.2x)

59.59 58.93 (1.1%) 13.8x 13.7x (0.1x)

5.61 6.11 9.0% 8.3x 8.1x (0.2x)

98.89 115.94 17.2% 10.6x 11.0x 0.4x

59.83 65.21 9.0% 6.4x 7.2x 0.8x

86.03 92.74 7.8% 8.4x 8.0x (0.5x)

Aerospace Systems Median 9.0% 8.5x 8.9x 0.4x

Aerospace Structures

$6.81 $8.32 22.1% 4.7x 4.8x 0.1x

24.87 25.75 3.5% 9.1x 9.5x 0.5x

17.99 20.70 15.1% 4.9x 5.2x 0.3x

167.34 167.51 0.1% 10.6x 10.8x 0.2x

2.71 2.90 6.9% 6.5x 6.8x 0.3x

21.29 23.84 12.0% 5.5x 6.6x 1.0x

Aerospace Structures Median 9.5% 6.0x 6.7x 0.7x

Overall Median 9.0% 8.4x 8.0x 0.3x

OEM ORDERS SET THE TREND FOR

CONTINUED SECTOR RESURGENCE

Airbus New Orders Boeing New Orders

Cancellations % Cancellations

1,3411,413

777 668

271142

574 530

091 140

2007 2008 2009 2010 2011 YTD 1/12

TRANSDIGM CONTINUES ACQUISITION

SPREE WITH AMSAFE PURCHASE

Commercial70%

Military10%

Commercial Ground Vehicles

Rev. by Market AmSafe Historical Revenues

Enterprise Value $750

Enterprise Value as a Multiple of: 2011

Revenue(1)2.88x

EBITDA(1)12.4x

2007 2011

(1) Capital IQ, company filings, and KippsDeSanto research. (2) Source: 2011 PricewaterhouseCoopers MoneyTree Report. (3) DC / Metroplex includes Washington, D.C., Virginia, West Virginia, and Maryland 6

Government Services Update

Government Services Earnings Update(1)

*Excludes one-time restructuring charge of $0.14 per share

Government services companies continue to jockey for position in mission critical, well-funded areas as budget reduction strategies begin to unfold. CACI continues to perform well, beating earnings expectations by 16% and raising fiscal year guidance. CACI has identified focus on ISR, IT modernization, and cybersecurity to drive growth, but longer-terms growth questions remain. NCI expects a significant decline in 2012 revenue, lowering outlook from $515 million to a range of $340 to $350 million. The Company is experiencing major difficulties due to pricing pressures, delayed and cancelled contracts, and an overall unfavorable competitive environment. The broader segment of public federal services providers maintain strong balance sheets, with Booz Allen, CACI, KEYW, and Kratos recently approving share repurchase programs and ManTech implementing a regular, semi-annual dividend program.

FedRAMP Sets New Security Standards for Cloud Services to the Federal Government

The Federal Risk and Authorization Management Program (“FedRAMP”) standardizes security requirements for federal agencies procuring cloud computing solutions and for contractors selling such solutions. Based on existing NIST security controls for Federal IT systems, 70 cloud specific requirements will be assessed by independent third party organizations, while continuously being updated by a Joint Authorization Board of DHS, DoD, and GSA. As the latest effort in realizing former CIO, Vivek Kundra’s initiative to reform federal IT, FedRAMP is an “evolving and iterative” program” designed to accelerate the controlled adoption of cloud solutions. FedRAMP attempts to eliminate duplicative costs and streamline procurement through security baseline security standards and pre-vetted solutions are estimated up to 30% - 40% when securing systems.

Technology Venture Capital Investment Value Growth (2)

Though the Silicon Valley region remains a central hub for technology venture capital (“VC”) investments, over the past few years, more investments are funding companies on the east coast. In particular, Silicon Valley has only seen a 19.6% increase in the number of VC deals from 2009 to 2011. In the same time period, New York and the DC metro area saw increases of 37.3% and 20.7%, respectively. While investment value has risen across all regions from 2009 to 2011, New York and the DC area have recognized dollar-value increases of 62.3% and 54.4%, respectively, compared to Silicon Valley’s 44.5%. As focus shifts to agnostic, internet-based companies, and the U.S. Government plays a larger role in the cyber, cloud and big data worlds, it is expected that VC activity will continue to shift east.

INDUSTRY CONTINUES TO RESHUFFLE AS

NEW BUDGET STRATEGIES EMERGEEPS (Latest Quarter Releases)

Estimated Actual Full Year Guidance

$0.39 $0.40 2.5%

1.30 1.51 3.2%

0.40 02/23/12 Release

0.44 02/29/12 Release

0.01 0.01 Not Provided

0.05 03/07/12 Release

0.87 02/22/12 Release

0.15 0.15* Not Provided

0.34 03/20/12 Release

GOVERNMENT REGULATIONS SOLIDIFY

ROLE OF CLOUD COMPUTING

Initial FedRAMP memo released

Dec. 2011

CIO council to publish baseline security / privacy

controls and continuous monitoring

controls

Jan. 2012

FedRAMP PMO to publish a Concept of Operations

(“CONOPS”)

+ 60 days

FedRAMP Joint Authorization

Board to publish a charter

defining its governance

+ 90 days

FedRAMP PMO to provide an

initial operating capability for FedRAMP

+ 180 days

FedRAMP Timeline of Events

TECHNOLOGY VENTURE CAPITAL

INVESTMENT MOVING EAST

0.0% 20.0% 40.0% 60.0% 80.0%

NY Metro

DC / Metroplex

Silicon Valley

New England

Philadelphia Metro

(1) Company filings, Capital IQ, and KippsDeSanto research 7

Public Company Trading Analysis(1) ($ in millions, except per share amounts)

Stock Price % of 52 Market Enterprise CY 2012E CY 2013P EV / CY 2012E EV / CY 2013PDefense Primes 02/17/12 Week High Cap Value Rev. EBITDA Margin Rev. EBITDA Margin Rev. EBITDA Rev. EBITDA

The Boeing Company $75.35 93.4% $56,190.1 $57,438.1 $79,029.1 $7,576.1 9.6% $85,687.7 $8,838.5 10.3% 0.73x 7.6x 0.67x 6.5x

Lockheed Martin Corporation 87.99 99.4% 28,253.6 31,128.6 45,592.8 4,773.1 10.5% 45,051.1 4,852.1 10.8% 0.68x 6.5x 0.69x 6.4x

General Dynamics Corp. 70.88 90.6% 25,264.3 26,545.3 33,167.8 4,516.6 13.6% 33,507.5 4,575.1 13.7% 0.80x 5.9x 0.79x 5.8x

Raytheon Co. 49.86 93.9% 17,256.5 18,020.5 24,511.2 3,193.8 13.0% 24,188.1 3,257.7 13.5% 0.74x 5.6x 0.75x 5.5x

BAE Systems plc 5.13 93.7% 16,602.3 18,222.7 32,184.7 3,911.1 12.2% 32,417.3 3,968.2 12.2% 0.57x 4.7x 0.56x 4.6x

Northrop Grumman Corporation 60.08 82.9% 15,178.1 15,874.1 25,095.1 3,324.0 13.2% 24,875.8 3,204.9 12.9% 0.63x 4.8x 0.64x 5.0x

Median 93.6% $21,260.4 $22,384.0 $32,676.2 $4,213.9 12.6% $32,962.4 $4,271.7 12.6% 0.70x 5.8x 0.68x 5.7x

Stock Price % of 52 Market Enterprise CY 2012E CY 2013P EV / CY 2012E EV / CY 2013PDefense Systems 02/17/12 Week High Cap Value Rev. EBITDA Margin Rev. EBITDA Margin Rev. EBITDA Rev. EBITDA

Rockwell Collins Inc. $59.45 88.3% $8,835.9 $9,379.9 $5,025.0 $1,150.1 22.9% $5,248.2 $1,222.5 23.3% 1.87x 8.2x 1.79x 7.7x

L-3 Communications Holdings Inc. 70.95 80.1% 7,085.3 10,535.3 14,316.6 1,707.2 11.9% 13,764.9 1,652.6 12.0% 0.74x 6.2x 0.77x 6.4x

FLIR Systems, Inc. 25.60 68.7% 3,993.4 3,800.4 1,599.5 450.6 28.2% 1,745.5 505.1 28.9% 2.38x 8.4x 2.18x 7.5x

Cobham plc 3.02 80.2% 3,257.3 3,864.5 2,732.9 617.9 22.6% 2,761.5 623.0 22.6% 1.41x 6.3x 1.40x 6.2x

Kongsberg Gruppen ASA 21.22 73.3% 2,553.6 2,189.5 2,642.7 386.3 14.6% 2,725.9 381.9 14.0% 0.83x 5.7x 0.80x 5.7x

Alliant Techsystems Inc. 59.77 75.8% 1,973.1 2,932.7 4,441.0 549.4 12.4% 4,119.9 547.8 13.3% 0.66x 5.3x 0.71x 5.4x

Exelis, Inc. 10.41 86.0% 1,921.5 2,506.5 5,375.5 640.0 11.9% 5,039.0 616.0 12.2% 0.47x 3.9x 0.50x 4.1x

Huntington Ingalls Industries, Inc. 36.40 85.2% 1,776.6 3,106.6 6,520.5 530.9 8.1% 6,491.7 618.2 9.5% 0.48x 5.9x 0.48x 5.0x

Cubic Corporation 49.08 84.1% 1,312.2 1,015.8 1,358.4 135.2 10.0% 1,435.2 160.2 11.2% 0.75x 7.5x 0.71x 6.3x

AeroVironment, Inc. 28.70 78.7% 623.0 445.7 351.3 56.5 16.1% 386.0 63.1 16.4% 1.27x 7.9x 1.15x 7.1x

Median 80.1% $2,263.4 $3,019.7 $3,586.9 $540.1 13.5% $3,440.7 $581.9 13.7% 0.79x 6.2x 0.78x 6.3x

Stock Price % of 52 Market Enterprise CY 2012E CY 2013P EV / CY 2012E EV / CY 2013PDefense Electronics / Comm. 02/17/12 Week High Cap Value Rev. EBITDA Margin Rev. EBITDA Margin Rev. EBITDA Rev. EBITDA

Harris Corp. $42.66 79.9% $4,857.8 $6,907.1 $6,127.6 $1,277.0 20.8% $6,054.6 $1,213.6 20.0% 1.13x 5.4x 1.14x 5.7x

Teledyne Technologies Inc. 62.11 101.9% 2,295.8 2,559.2 2,043.5 306.5 15.0% 2,153.3 319.9 14.9% 1.25x 8.4x 1.19x 8.0x

ViaSat Inc. 45.98 92.3% 1,969.7 2,373.0 958.9 196.7 20.5% 1,152.4 273.2 23.7% 2.47x 12.1x 2.06x 8.7x

Ultra Electronics Holdings plc 26.36 91.5% 1,811.1 1,827.3 1,306.8 232.4 17.8% 1,359.7 239.8 17.6% 1.40x 7.9x 1.34x 7.6x

Orbital Sciences Corp. 14.31 73.8% 840.7 666.5 1,512.0 139.1 9.2% 1,685.4 158.0 9.4% 0.44x 4.8x 0.40x 4.2x

Comtech Telecommunications Corp. 32.78 91.9% 666.9 392.6 396.3 66.9 16.9% 397.4 73.8 18.6% 0.99x 5.9x 0.99x 5.3x

Mercury Computer Systems, Inc. 14.95 68.2% 461.3 356.4 286.9 36.8 12.8% 377.9 54.5 14.4% 1.24x 9.7x 0.94x 6.5x

Median 91.5% $1,811.1 $1,827.3 $1,306.8 $196.7 16.9% $1,359.7 $239.8 17.6% 1.24x 7.9x 1.14x 6.5x

Stock Price % of 52 Market Enterprise CY 2012E CY 2013P EV / CY 2012E EV / CY 2013PHomeland Security 02/17/12 Week High Cap Value Rev. EBITDA Margin Rev. EBITDA Margin Rev. EBITDA Rev. EBITDA

Smiths Group plc $16.68 75.4% $6,548.7 $7,759.7 $4,794.3 $1,025.0 21.4% $4,992.1 $1,092.0 21.9% 1.62x 7.6x 1.55x 7.1x

Mine Safety Appliances Co. 36.69 89.7% 1,344.3 1,284.4 1,217.1 171.5 14.1% 1,300.5 181.3 13.9% 1.06x 7.5x 0.99x 7.1x

OSI Systems, Inc. 53.17 92.5% 1,051.4 1,001.3 799.9 98.4 12.3% NA NA NA 1.25x 10.2x NA NA

Ceradyne Inc. 32.11 60.0% 776.9 591.1 601.5 145.6 24.2% 599.4 NA NA 0.98x 4.1x 0.99x NA

Analogic Corporation 58.10 97.3% 710.5 559.4 532.9 72.0 13.5% NA NA NA 1.05x 7.8x NA NA

Smith & Wesson Holding Corporation 5.25 97.9% 340.6 381.2 412.6 59.2 14.4% 450.3 72.1 16.0% 0.92x 6.4x 0.85x 5.3x

Federal Signal Corp. 4.58 62.3% 284.9 499.6 843.6 75.0 8.9% 897.0 75.0 8.4% 0.59x 6.7x 0.56x 6.7x

Median 89.7% $776.9 $591.1 $799.9 $98.4 14.1% $897.0 $128.1 15.0% 1.05x 7.5x 0.99x 6.9x

Public Company Trading Analysis, cont.(1) ($ in millions, except per share amounts)

Stock Price % of 52 Market Enterprise CY 2012E CY 2013P EV / CY 2012E EV / CY 2013PAerospace Systems 02/17/12 Week High Cap Value Rev. EBITDA Margin Rev. EBITDA Margin Rev. EBITDA Rev. EBITDA

Goodrich Corp. $125.70 99.8% $15,812.9 $17,265.3 $8,930.1 $1,795.4 20.1% $9,626.5 $1,955.5 20.3% 1.93x 9.6x 1.79x 8.8x

TransDigm Group Incorporated 115.94 97.6% 5,873.2 8,654.4 1,627.1 783.9 48.2% 1,803.5 877.5 48.7% 5.32x 11.0x 4.80x 9.9x

Zodiac Aerospace SA 92.74 98.7% 4,917.2 5,761.9 4,317.2 724.3 16.8% 4,654.5 792.5 17.0% 1.33x 8.0x 1.24x 7.3x

Meggitt plc 6.11 96.4% 4,757.4 6,119.0 2,567.2 754.6 29.4% 2,707.0 817.3 30.2% 2.38x 8.1x 2.26x 7.5x

BE Aerospace Inc. 46.09 98.7% 4,753.8 5,835.0 2,972.9 602.4 20.3% 3,350.7 694.3 20.7% 1.96x 9.7x 1.74x 8.4x

Triumph Group, Inc. 65.21 97.7% 3,197.6 4,377.0 3,610.2 607.2 16.8% 3,843.2 672.2 17.5% 1.21x 7.2x 1.14x 6.5x

HEICO Corp. 58.93 95.1% 2,480.7 2,659.9 924.8 194.7 21.1% 1,046.9 217.8 20.8% 2.88x 13.7x 2.54x 12.2x

Esterline Technologies Corp. 65.89 80.1% 2,019.0 2,881.7 2,085.7 383.5 18.4% 2,205.2 401.9 18.2% 1.38x 7.5x 1.31x 7.2x

AAR Corp. 23.18 73.2% 895.8 1,332.0 2,105.5 247.0 11.7% 2,280.9 291.1 12.8% 0.63x 5.4x 0.58x 4.6x

Median 97.6% $4,753.8 $5,761.9 $2,567.2 $607.2 20.1% $2,707.0 $694.3 20.3% 1.93x 8.1x 1.74x 7.5x

Stock Price % of 52 Market Enterprise CY 2012E CY 2013P EV / CY 2012E EV / CY 2013PAerospace Structures 02/17/12 Week High Cap Value Rev. EBITDA Margin Rev. EBITDA Margin Rev. EBITDA Rev. EBITDA

Precision Castparts Corp. $167.51 93.3% $24,316.1 $24,191.1 $8,064.9 $2,230.0 27.7% $9,358.9 $2,597.7 27.8% 3.00x 10.8x 2.58x 9.3x

Spirit AeroSystems Holdings Inc 23.84 90.0% 3,405.9 4,429.5 5,359.4 675.2 12.6% 6,038.4 780.2 12.9% 0.83x 6.6x 0.73x 5.7x

Hexcel Corp. 25.75 95.5% 2,559.2 2,760.6 1,548.9 289.2 18.7% 1,696.7 319.2 18.8% 1.78x 9.5x 1.63x 8.6x

Senior plc 2.90 94.6% 1,164.5 1,265.5 1,147.0 186.4 16.3% 1,227.0 202.7 16.5% 1.10x 6.8x 1.03x 6.2x

LMI Aerospace Inc. 20.70 82.8% 240.0 231.8 294.9 44.3 15.0% 319.9 49.3 15.4% 0.79x 5.2x 0.72x 4.7x

Median 93.3% $2,559.2 $2,760.6 $1,548.9 $289.2 16.3% $1,696.7 $319.2 16.5% 1.10x 6.8x 1.03x 6.2x

Stock Price % of 52 Market Enterprise CY 2012E CY 2013P EV / CY 2012E EV / CY 2013PGovernment Services 02/17/12 Week High Cap Value Rev. EBITDA Margin Rev. EBITDA Margin Rev. EBITDA Rev. EBITDA

SAIC, Inc. $12.97 73.5% $4,425.5 $4,814.5 $10,709.8 $930.0 8.7% $10,586.4 $883.5 8.3% 0.45x 5.2x 0.45x 5.4x

Booz Allen Hamilton Inc. 17.94 86.5% 2,373.1 2,940.8 6,050.0 517.1 8.5% 6,315.5 552.7 8.8% 0.49x 5.7x 0.47x 5.3x

CACI International Inc. 59.21 89.1% 1,568.4 2,143.4 4,071.7 355.6 8.7% 4,304.0 375.9 8.7% 0.53x 6.0x 0.50x 5.7x

QinetiQ Group Plc 2.34 100.0% 1,516.7 1,751.8 2,335.1 285.4 12.2% 2,326.2 281.3 12.1% 0.75x 6.1x 0.75x 6.2x

ManTech International Corporation 36.08 78.0% 1,327.9 1,346.0 3,133.9 292.8 9.3% 3,117.7 266.9 8.6% 0.43x 4.6x 0.43x 5.0x

ICF International Inc. 27.51 94.1% 543.8 591.8 1,022.1 103.4 10.1% 1,069.2 116.3 10.9% 0.58x 5.7x 0.55x 5.1x

Kratos Defense & Security Solutions, Inc. 6.68 45.2% 229.8 775.3 932.8 124.2 13.3% 915.4 120.7 13.2% 0.83x 6.2x 0.85x 6.4x

The KEYW Holding Corporation 7.47 46.7% 195.6 243.8 237.4 29.3 12.4% 269.1 36.4 13.5% 1.03x 8.3x 0.91x 6.7x

Dynamics Research Corp. 11.50 66.9% 117.6 240.9 400.0 45.1 11.3% NA NA NA 0.60x 5.3x NA NA

NCI, Inc. 7.43 29.4% 100.9 152.0 355.2 18.7 5.3% 347.9 18.2 5.2% 0.43x 8.1x 0.44x 8.4x

Median 75.7% $935.8 $1,060.6 $1,678.6 $204.8 9.7% $2,326.2 $266.9 8.8% 0.55x 5.9x 0.50x 5.7x

Stock Price % of 52 Market Enterprise CY 2012E CY 2013P EV / CY 2012E EV / CY 2013PEngineering & Construction 02/17/12 Week High Cap Value Rev. EBITDA Margin Rev. EBITDA Margin Rev. EBITDA Rev. EBITDA

Jacobs Engineering Group Inc. $45.55 86.7% $5,852.9 $5,443.0 $11,553.4 $719.2 6.2% $12,508.1 $775.2 6.2% 0.47x 7.6x 0.44x 7.0x

Babcock International Group plc 11.77 97.1% 4,218.3 5,348.9 5,562.6 613.6 11.0% 5,886.0 655.2 11.1% 0.96x 8.7x 0.91x 8.2x

URS Corporation 42.91 88.8% 3,416.3 3,859.4 10,294.7 759.6 7.4% 10,713.7 791.5 7.4% 0.37x 5.1x 0.36x 4.9x

AECOM Technology Corporation 23.46 78.3% 2,747.7 3,539.4 8,536.0 587.5 6.9% 8,815.7 667.8 7.6% 0.41x 6.0x 0.40x 5.3x

Shaw Group Inc. 29.52 70.9% 1,923.4 1,757.0 6,041.1 315.6 5.2% 6,352.3 346.8 5.5% 0.29x 5.6x 0.28x 5.1x

Tetra Tech Inc. 24.58 90.5% 1,552.0 1,583.7 2,040.4 228.0 11.2% 2,125.4 243.7 11.5% 0.78x 6.9x 0.75x 6.5x

Median 87.7% $3,082.0 $3,699.4 $7,288.6 $600.6 7.1% $7,584.0 $661.5 7.5% 0.44x 6.5x 0.42x 5.9x

Select Recent Aerospace / Defense M&A(1) ($ in millions)

Announce EBITDA EV / LTM

Date Buyer / Investor Target Target Description EV Revenue EBITDA Margin Revenue EBITDA

02/01/12 Berger Group Holdings, Inc

Ranger International Services Group, Inc.

Provides airfield, aircraft, and base logistics services at military bases, as well as maintenance, modification, reset, and overhaul services for tactical military vehicles, aircraft, and aerospace ground equipment

NA NA NA NA NA NA

01/31/12 Wynnchurch Capital, Ltd.

Burtek, Inc. Manufactures ground-based mobile military equipment including, radar systems, ground vehicles, shelters, and trailers

$9.0 NA NA NA NA NA

01/25/12 Novaria Group Fitz Aerospace Manufactures precision aerospace components ranging from machined parts to aerospace hardware needs

NA NA NA NA NA NA

01/23/12 Sun Capital Partners, Inc.

Pacific Safety Products Produces protective products for law enforcement, security, and defense markets including body armor, ballistic blankets, and fragmentation protective vests

NA $21.8 ($1.1) (5.3%) NA NA

01/20/12 TransDigm Group Incorporated

AmSafe Global Holdings, Inc. Manufactures safety and securement equipment for aerospace, defense, and ground transportation industries including aviation cargo securement products; cargo containments and restraints; and escape slides

750.0 260.0 60.5 23.3% 2.88x 12.4x

01/17/12 Vishay Intertechnology, Inc.

HiRel Systems, LLC Manufactures custom electronic components and power assemblies used in various applications, including medical, defense, aerospace, commercial, and military

85.0 NA NA NA NA NA

01/17/12 Lockheed Martin Corporation

Procerus Technologies Provides autopilot, targeting and payload technologies for micro UAS to domestic and international governments, as well as industry and academic institutions

NA NA NA NA NA NA

01/11/12 Mangrove Equity Partners, LLC

Aircraft On Ground, Inc. Provides aircraft maintenance support solutions for commercial, military, and corporate aviation companies in the United States and internationally

NA NA NA NA NA NA

01/11/12 Gentex Corporation Ops-Core, Inc. Produces a fully modular helmet platform for ground forces with the ability to meet the U.S. Army’s protective standards

NA NA NA NA NA NA

01/10/12 RTI International Metals, Inc.

Remmele Engineering, Inc. Offers contract manufacturing, designing, and building of custom equipment, precision components, and subassemblies

182.5 125.9 22.0 17.5% 1.45x 8.3x

01/10/12 Gridiron Capital, LLC Nex-Tech Aerospace Manufactures components, structures, and assemblies for fixed wing and rotary aircraft for the defense and global aerospace industries

NA NA NA NA NA NA

01/09/12 Motor Sich Public Joint Stock Company

Public Limited Company Orsha Aircraft Repair Plant

Provides overhauling of military and civic airplanes, as well as repair of remove and fixed equipment, utility, aggregates and systems, measuring means, and checkout gears

NA NA NA NA NA NA

01/09/12 BE Aerospace Inc. UFC Aerospace Corp. Provides aerospace logistics and supply chain management services including, kitting, JIT programs / consignment, point-of-use supply, and third party logistics / acquisition services

400.0 NA 42.1 NA NA 9.5x

01/04/12 Grey Mountain Partners

Global Security Glazing Provides security and architectural glazing products, including all-glass laminates and polycarbonates, for government, defense, and commercial applications

NA NA NA NA NA NA

01/03/12 Blue Wolf Capital Partners LLC

Channel Technologies Group, LLC

Manufactures piezoelectric ceramic products extending through ceramic, transducer, sonar and navigation systems, and emerging energy harvesting, or "green" applications

NA NA NA NA NA NA

01/03/12 Kratos Defense & Security Solutions

TBD Engineers, manages, and maintains specialty security systems typically integrated into command and control system infrastructure or command centers

20.0 40.0 4.5 11.3% 0.50x 4.4x

12/23/11 Mercury Computer Systems, Inc.

KOR Electronics Develops digital radio frequency memory units for a variety of modern electronic warfare applications, as well as radar environment simulation and test systems for defense applications

70.0 38.0 NA NA 1.84x NA

12/23/11 Takata Corporation BAE Systems Safety Products Inc. & SCHROTH Safety Products Gmbh

BAE Systems Safety Products Inc. designs and manufactures occupant restraints and safety products; SCHROTH Safety Products GmbH manufactures and sells safety products for the racing, aviation, and military sectors

32.0 NA NA NA NA NA

12/23/11 TenCate Advanced Armour Danmark A/S

ABDS ApS Manufactures protective equipment for army vehicles against roadside bombs NA NA NA NA NA NA

12/22/11 Cyalume Technologies, Inc.

Combat Training Solutions, Inc.

Manufactures non-pyrotechnic battlefield effects simulators and improvised explosive device simulators

1.0 3.4 0.5 14.7% 0.29x 2.0x

12/22/11 J.F. Lehman & Company

Doss Aviation, Inc. Provides air terminal management, alert services, and flight operations requirements, as well as aircraft maintenance services and component repair and modifications

NA NA NA NA NA NA

12/20/11 Whitcraft, LLC Dell Manufacturing Co Manufactures precision components from stainless steels, titanium, nickel alloys and other exotic metals to tolerances of .0001" with computerized grinding, milling, and turning equipment

NA NA NA NA NA NA

12/20/11 URS Corporation CATI Training Systems, LLC Develops visual image generation systems, and visual simulation terrain databases for commercial, UAV, and military simulators

NA NA NA NA NA NA

12/16/11 Moog Inc. Bradford Engineering B.V. Produces and tests spaceflight components and systems in two divisions: Microgravity and Space Systems / Components

13.0 10.4 NA NA 1.25x NA

Select Recent Government Services M&A(1) ($ in millions)

Announce EBITDA EV / LTM

Date Buyer / Investor Target Target Description EV Revenue EBITDA Margin Revenue EBITDA

02/21/12 Salient Federal Solutions, Inc.

ATS Corporation Provides specialized application development and data integration services that administer decision-ready information to Command and Control ("C2") and Decision Support Systems

$73.5 $91.4 $11.9 13.0% 0.80x 6.2x

02/02/12 KPMG LLP Thomson Reuters Coporation

Provides intelligent information for businesses and professionals in the financial, legal, tax and accounting, intellectual property and science, and media markets worldwide

NA NA NA NA NA NA

01/30/12 ICF International Inc. GHK Holdings Limited Provides consultancy services to public and private sector clients worldwide NA NA NA NA NA NA

01/23/12 CRGT, Inc. CIBER, Inc., Federal Divison Provides mission, business, and IT operations support through a full spectrum of solutions that are fully integrated to work with a customers needs

35.0 NA NA NA NA NA

01/18/12 LLR Partners Inc. Paragon Technology Group Provides an extensive suite of services, including IT systems engineering and application development, governance and PMO implementation and support, business intelligence and data management

NA NA NA NA NA NA

01/09/12 ManTech International Corp.

Evolvent Technologies, Inc. Provides healthcare IT services to the federal government in the U.S. NA NA NA NA NA NA

12/30/11 Electronic Consulting Services, Inc.

Paradigm Technologies, Inc. Provides product oriented management and technical services for federal government customers

NA NA NA NA NA NA

12/29/11 Raytheon Company Henggeler Computer Consultants, Inc.

Provides IT subcontracting services to government clients in the Washington, D.C area

NA NA NA NA NA NA

12/20/11 URS Corporation CATI Training Systems, LLC Provides visual image generation systems, and visual simulation terrain databases for commercial, UAV, and military simulators

NA NA NA NA NA NA

12/08/11 Technology Service Corporation

Praxis, Inc. Provides scientific analysis, systems engineering, and integration services for government and industrial clients in the space, defense, and information systems markets

NA 27.5 NA NA NA NA

12/12/11 ICF International Inc. Ironworks Consulting, LLC Provides technology and interactive solutions, specializing in planning, managing, and delivering technology projects for Fortune 500 companies and government agencies

100.0 57.0 NA NA 1.75x NA

12/02/11 Jacobs Engineering Group Inc.

Unique World Pty. Ltd. Provides IT services concentrated on information and knowledge management; enterprise collaboration and intranets and portals solutions using Microsoft SharePoint Server

NA NA NA NA NA NA

12/05/11 Raytheon Company Pikewerks Corporation Provides research, development, training, and consulting of a range of information security solutions

NA NA NA NA NA NA

12/05/11 Ultra Electronics Holdings plc

Zu Industries Inc. Provides integrated products solutions for law enforcement and the industrial security industry

76.6 NA NA NA NA NA

12/05/11 Ultra Electronics Holdings plc

Special Operations Technology, Inc.

Provides turnkey communications surveillance systems, integrating proprietary andcommercial-off-the-shelf data analytic tools to manage large volumes of data from mobile, fixed line and broadband networks

38.4 NA NA NA NA NA

12/05/11 IBM Corporation Cúram Software Ltd. Provides social enterprise management ("SEM") solutions that integrate human services, labor, health, social security, and military and veterans agencies

NA 79.0 NA NA NA NA

12/02/11 Sotera Defense Solutions, Inc.

Potomac Fusion, Inc. Provides advanced intelligence, data fusion, and visualization technologies NA 40.0 NA NA NA NA

11/22/11 NetScout Systems, Inc. Simena, LLC Provides network monitoring, testing, and measurement solutions 10.8 NA NA NA NA NA

11/21/11 The Halifax Group XL Associates, Inc. Provides acquisition lifecycle support, grants lifecycle management, and professional services for agencies, governments, and commercial customers

NA NA NA NA NA NA

11/15/11 Kratos Defense & Security Solutions

SecureInfo Corporation Provides information assurance solutions, strategic advisory services 17.5 NA 2.5 NA NA 7.0x

11/11/11 CH2M HILL Companies, Ltd.

Halcrow Holdings Ltd. Provides planning, designing, and management services for infrastructure development

195.0 730.0 NA NA 0.27x NA

11/07/11 HMS Holdings Corp. HealthDataInsights, Inc. Provides fraud, abuse, and overpayment identification and recoupment solutions for government payers, health plans, and employers

400.0 NA NA NA NA NA

11/07/11 Grant Thornton LLP Computer Technology Associates, Inc., Health Solutions Division

Provides information technology services for government and industrial clients NA NA NA NA NA NA

11/07/11 Pacific Architects and Engineers Incorporated

Defense Support Services, LLC

Provides equipment and facilities maintenance and support services to the DoD in the U.S. and internationally

NA NA NA NA NA NA

Select Recent KippsDeSanto & Co. Advised Transactions

November 2010

has been acquired by

December 2010

February 2011

July 2011

BTS, LLC

has been acquired by the management team

a subsidiary of

August 2011

Arrow Electronics

The Technology Innovation Team of

August 2011

September 2011

November 2011

November 2011February 2012

a portfolio company of

has merged with

About KippsDeSanto & Co. KippsDeSanto is an investment banking firm focused on delivering M&A and financing expertise. Our solutions are focused on the technology sectors we know – Aerospace / Defense and Government Services. We are recognized for our depth of industry experience, knowledge of sector-specific transaction drivers, and long-standing relationships with industry participants. We welcome the opportunity to have a more detailed discussion of developments in our focus industries. For more information, please contact us: Robert D. Kipps Managing Director bkipps@kippsdesanto.com

Kevin P. DeSanto Managing Director kdesanto@kippsdesanto.com

Marc B. Marlin Director mmarlin@kippsdesanto.com Karl M. Schmidt Director kschmidt@kippsdesanto.com Aaron M. Sharp Vice President asharp@kippsdesanto.com Robert G. Dowling Associate rdowling@kippsdesanto.com Eric W. Islinger Associate eislinger@kippsdesanto.com

Michael J. Misantone Director mmisantone@kippsdesanto.com Suzanne E. Kecmer Vice President skecmer@kippsdesanto.com Jon Yim Vice President jyim@kippsdesanto.com Laura E. Hockensmith Associate lhockensmith@kippsdesanto.com Brian T. Tunney Associate btunney@kippsdesanto.com

Connect with KippsDeSanto:

The information and opinions in this newsletter were prepared by KippsDeSanto & Co. and the information herein is believed to be reliable and has been obtained from and based upon public sources believed to be reliable. KippsDeSanto & Co. makes no representation as to the accuracy or completeness of such information. Opinions, estimates, and analyses in this newsletter constitute the current judgment of the author as of the date of this newsletter. They do not necessarily reflect the opinions of KippsDeSanto & Co. and are subject to change without notice. This newsletter is meant to impart general knowledge about a sector or industry and is not expected to provide reasonably sufficient information upon which to make any investment decisions. KippsDeSanto & Co. is not affiliated with any of the companies identified in this newsletter. Unless otherwise described, the companies identified are also not affiliated with one another.

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