Growth of the Company: FY 2002

Fiscal Year 2002

Our strong growth also resulted in SAIC being ranked #1 on Federal Computer Week's list of the Top System Integrators.

SAIC won major contracts in three commercial growth areas including: application hosting, wireless technologies, and health. We expanded our relationship with BP. Our Telcordia Technologies subsidiary is providing mobility solutions and won contracts to provide OSS software components and intelligent network platforms. We are supporting pharmaceutical companies and providing a variety of organizations that serve and provide health care with information technology and e-health solutions.

Numerous large federal government contracts also were awarded to SAIC during fiscal year 2002.

• An award from the Defense Information Systems Agency to support the Defense Information System Network Global Solution. The maximum cumulative value is approximately $3 billion.

• A contract from the National Cancer Institute (NCI) to continue performing and supporting cancer and AIDS research at NCI's federally funded research and development center located in Frederick, Md. The five-year contract is valued at $1.2 billion. NCI has the option to extend the contract for an additional two years, which would increase the value to $1.8 billion.

• A contract from the U.S. Air Force to provide services under the Flexible Acquisition and Sustainment Tool (FAST) program. The FAST program was established to improve responsiveness of warfighter support. The contract is estimated at $1.25 billion and will be performed over a period of seven years.

• A task order from the U.S. Navy Space and Naval Warfare System Command (SPAWAR) to provide SPAWAR with systems engineering and integration technical support. The task order has a potential ceiling value of more than $596 million and was awarded by the General Services Administration (GSA) Federal Systems Integration and Management Center through the GSA Millenia contract.

• A contract awarded to AMSEC LLC, a partnership between SAIC and Northrop Grumman Newport News, to provide integrated installation support services for U.S. Navy militarized and commercial off-the-shelf command, control, communications, computers, intelligence, surveillance and reconnaissance systems. The five-year contract is valued at more than $422 million.

• An Air Combat Command (ACC) Contracted Advisory and Assistance Services II contract to an SAIC-led team. Under the terms of the agreement, SAIC will provide management and professional services, analyses, evaluations, engineering and technical services to Headquarters, ACC located at Langley Air Force Base, Va. The five-year contract has a potential value of $300 million.

Throughout the year, SAIC's wholly-owned subsidiary,SAIC Venture Capital Corporation, made strategic investments totaling $57 million in 12 new portfolio companies, and 7 additional investments in existing portfolio companies.