2011 SAIC Stockholder Tax Information

This information is being provided to assist SAIC shareholders who sold shares during the 2011 calendar year either through your BNY Mellon Shareowner Services ("BNY Mellon") Equity Holdings and/or ESPP accounts.

BNY Mellon will provide a Form 1099-B to you by Feb. 15, 2012. This Form 1099-B will provide relevant information on all your sale transactions.

Changes to the IRS Substitute 1099-B Form

The Form 1099-B has been modified to align with IRS cost basis regulations that became effective on Jan. 1, 2011. These regulations require brokers, transfer agents and stock plan administrators to track and report cost basis for certain new shares acquired after Jan. 1, 2011.

The information provided on the Form 1099-B will depend on whether you sold "covered shares" or "non-covered shares." Generally, at SAIC, covered and non-covered shares may be acquired as follows:

Covered Shares

• Shares acquired through the ESPP after Jan. 1, 2011
• Shares acquired through a cash exercise of an option after Jan. 1, 2011
• Shares acquired through the cashless hold exercise of an option after Jan. 1, 2011

Non-Covered Shares

• Shares acquired through the stock swap exercise of an option
• Shares acquired through the vesting of a Restricted Stock Award
• Shares distributed from either of the Stock Compensation, the Key Executive Plan or the Retirement Plan
• Shares acquired prior to Jan. 1, 2011 under any method

If you sold "covered shares" from either your Equity Holdings account or your ESPP account, the Form 1099-B will provide the following information:

1. Acquisition date of shares sold;
2. Sales proceeds less transaction fees and brokerage commissions;
3. Cost basis of the shares sold;
4. The amount of any wash sale loss disallowed; and
5. An indication of whether the gain or loss is short or long term.

If you sold non-covered shares, the Form 1099-B will only report the sales proceeds less transaction fees and brokerage commissions. For these noncovered security sales, stockholders will need to calculate the short- or long-term gain or loss on the transaction based on their own cost basis records.

If you sold both covered and non-covered shares from the same account, you will only receive one Form 1099-B with information on all of the sale transactions. However, the Form 1099-B will segregate your sales between non-covered shares, covered shares resulting in a short-term gain/loss and covered shares resulting in a long-term gain/loss.

If you sold shares from both your Equity Holdings and your ESPP accounts, you will receive separate Form 1099-Bs which reflect sale transactions from each of these accounts.

More Information

More information is available on saic.com to help you understand the changes to the Form 1099-B and the information that provided on that form.

• Cost Basis For Shares Acquired after Jan. 1, 2011
• Guide to Tracking Shares and Transaction Detail for Shares Acquired prior to Jan. 1, 2011

Specific questions about your cost basis and your particular tax situation should be referred to your tax advisor.

If you have any questions, please contact BNY Mellon Stockholder services at 1-866-400-SAIC (7242).