ITS acquires the government engineering division of Noesis, Inc.

OXNARD, Calif., 1 Dec. 2005. ITS Corp. today announced its acquisition of the Federal Sector Support (FSS) Services business of Noesis, Inc., a Manassas, Va. company specializing in systems engineering, information science and technical program management services for the federal government.

Currently headquartered in Arlington, Va., the Noesis FSS unit has more than 100 employees and an estimated FY 2005 revenue of $32 million.

"The synergy created with the combination of our two businesses will broaden our mutual capabilities across the entire spectrum of information and engineering solutions for federal, intelligence and homeland security agencies," said Thomas D. Sundling, president and CEO of ITS.

"The suite of service offerings and expertise reflected throughout the Noesis organization will bolster our systems engineering and technical assistance business, broaden our capabilities, and expand our presence within the U.S. Navy, the U.S. Marines, the U.S. Air Force, and the Department of Homeland Security, while establishing new relationships with the Office of Naval Research, National Science Foundation and other civil agencies."

Sundling added that both he and Richard J. Martin, president and CEO of Noesis, "are excited about the future because of the synergy created between our two companies. Like ITS, Noesis is a solutions-oriented company that has earned a fine reputation in its target industry. We see this as a triple win for ITS, Noesis, and our customers."

Martin agreed, observing that the transaction also fulfilled an important part of Noesis' long-term strategic plan. "It will help strengthen ITS' portfolio by enabling expert Noesis personnel to provide traditional engineering support services to their valued federal customers," he said. "At the same time, it allows our company's remaining divisions to step up their efforts in product development and SBIR support, pursuing exciting new business lines while eliminating potential conflict-of-interest issues with the federal government."

Newly appointed Senior Vice President Guy Myslivy, a long time Noesis executive, will manage the new Noesis Business Unit.

In a related transaction, Martin announced the October acquisition of Defense Holdings, Inc. (DHI), a northern Virginia defense firm. Noesis plans to move its remaining assets and personnel under the DHI banner, where Martin will serve as CEO.

"The DHI acquisition provides a firm base for us to move forward to pursue new opportunities for growth and innovation as the 21st century unfolds," he said.

ITS Corp., an ISO 9001:2000 registered international company, provides IT and engineering solutions to the U.S. military; intelligence and homeland security agencies; and other agencies of the federal government. ITS' core competencies include systems development and integration, IT security, business information management, studies and analysis, and enterprise management for a broad spectrum of government customers. For more information, see www.itscorporation.com.

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