Growth of the Company: FY 2011

Fiscal Year 2011

A. Thomas Young was elected non-executive Chair of the Board of Directors effective June 18, 2010. Young, who served as a member of the SAIC Board of Directors since 1995 and as its independent Lead Director, succeeded Ken Dahlberg, who retired from the board.

During a year of challenging market conditions, SAIC's 42nd year in business was one of solid growth. Highlights of SAIC's fiscal year (FY) 2011 contract wins include contracts to:

• Serve as the lead systems integrator and help the U.S. Department of State, Bureau of Information Resource Management engineer, design, secure, operate and maintain its critical enterprisewide information technology (IT) infrastructure.

• Provide technical and engineering services to support sensor and weapon development and integration for air, surface and unmanned platforms for the Naval Surface Warfare Center - Crane Division.

• Provide all services necessary to operate and maintain integrated enterprise application systems supporting all 10 National Aeronautics and Space Administration (NASA) field centers, NASA Headquarters, and the NASA Shared Services Center.

• Continue to provide IT services to help U.S. Citizenship and Immigration Services (USCIS) maintain and operate its infrastructure, enhance security, migrate to consolidated data centers and assist USCIS transform to modern business and infrastructure standards, under a contract to the U.S. Department of Homeland Security.

• Help the City of Lakeland, Fla., increase the reliability and efficiency of its power grid.

• Provide systems engineering and technical support services to the Navy Tactical Mobile Program, under a contract with the Space and Naval Warfare Systems Command.

• Provide logistics services to support munitions storage and resupply efforts as well as operation of the ammunition supply point and theater storage area activities for the U.S. Army 1st Theater Sustainment Command.

• Continue providing substance abuse counseling services to adolescent family members of active duty U.S. military personnel under a contract to the Department of Defense.

• Provide program management, engineering, logistics, integration, and test and evaluation services to shorten the lead time of delivering command, control, communications, computers, intelligence, surveillance, and reconnaissance integrated vehicles to the warfighter, under a contract with the Space and Naval Warfare Systems Center Atlantic.

• Provide hosting services, including server, storage, high-performance computing operations, facility management and disaster recovery services to support the U.S. Environmental Protection Agency National Computer Center.

• Design and build geothermal power plants in Nevada, under contract awards from Terra Gen Sierra Holdings, LLC and USG Nevada LLC.

• Produce and deliver the SAIC Tsunami Buoy (STB) system to the Russian Federation and two next-generation Easy-to-Deploy (ETD) Deep-ocean Assessment and Reporting of Tsunami (DART®, National Oceanic and Atmospheric Administration) buoy systems to Australia.

In FY 2011, SAIC acquired Reveal Imaging Technologies, Inc., a leading threat detection products and services company. Reveal supports the efforts of the Transportation Security Administration and other customers in the airport and transportation safety industries as a supplier of Explosive Detection System and automated threat detection technologies, including inspection systems that check baggage for explosives.

SAIC also acquired technology, intellectual property, and related assets from three firms that develop human language technologies: AppTek Partners, LLC; Applications Technology, Inc.; and MediaMind, LLC. The acquired technology and assets are helping further establish SAIC as a leader in delivering language services to the intelligence, defense and law enforcement communities.

During the fiscal year, SAIC opened a Cyber Innovation Center in Columbia, Md., that better enables the company to help government and commercial enterprises prepare for, protect against, and respond to a wide array of cybersecurity threats.

SAIC awarded approximately $2 billion in subcontracts to small businesses, during Government Fiscal Year 2010. Recognizing the company's commitment to small business, the National Veteran-Owned Business Association's Vetrepreneur magazine named SAIC one of the 2010 Best Corporations for Veteran-Owned Businesses. SAIC also received the 2010 Frances Perkins Vanguard Award for Excellence from the Small Business Administration. During GFY 2010, SAIC awarded $360 million in subcontracts to women-owned firms. SAIC exceeded the five percent statutory goal, awarding approximately 10 percent of total dollars subcontracted to women-owned small businesses.

SAIC continued its support of future scientists and engineers. SAIC Chief Executive Officer Walt Havenstein was elected chairman of the board of directors for FIRST® (For Inspiration and Recognition of Science and Technology), a not-for-profit organization founded to inspire young people's interest and participation in science and technology. SAIC sponsored FIRST regional robotics competitions and the robotics competition championship. SAIC also pledged $200,000 to Project Lead The Way, Inc. (PLTW®), a not-for-profit organization that helps inspire, engage and educate students in science, technology, engineering and mathematics (STEM) education. SAIC and PLTW worked with schools across the country to encourage participation in PLTW's program. SAIC made a donation to the newly formed Women's Memorial Foundation advisory committee on STEM, working to encourage women to serve in STEM-related fields in the military. The University of Maryland, Baltimore County (UMBC) received a $300,000 commitment from SAIC to support a new UMBC initiative to help students succeed in critical introductory mathematics and science classes. In addition, SAIC will donate $500,000 to the University of Southern California's Viterbi School of Engineering over the next five years. SAIC also awarded $50,000 to the University of Kent Biometric Research Competition, fostering innovative academic work in biometrics.

Related Information: SAIC Announces Financial Results for Fourth Quarter and Fiscal Year 2011.