Representatives of ACS, a provider of business process and information technology outsourcing solutions, announced the signing of a definitive agreement to sell a substantial portion of its federal government business to Lockheed Martin for approximately $658 million which includes $70 million payable pursuant to a five-year non-compete agreement. In a concurrent transaction, ACS will acquire Lockheed Martin's commercial information technology (IT) business for approximately $107 million. ACS will retain its BPO contract with the Department of Education to provide student loan processing services (the "DLSS contract"). The expected after-tax proceeds from the divestiture will be used to pay down debt and for general corporate purposes.

The DLSS contract being retained by ACS, with current annual revenues of approximately $172 million, is currently being re-competed with an award expected in the October to November of 2003 time period. ACS is also retaining certain other assets. Revenues from the divested federal business for the year ended June 30, 2003 were approximately $685 million. Additionally, the commercial operations of ACS will continue to serve as a subcontractor on portions of the transferred business.

Representatives of Alcatel, a GSM/GPRS solutions provider, announced the company has signed a contract for the supply of a complete solution for GSM infrastructure and services to TDCA. The system is already operational in Kabul under the commercial name of Roshan and will cover the five main cities of Herat, Kandahar, Mazar-i-Sharif, Jalalabad and Kunduz by the end of 2003. This contract follows the January 2003 acquisition of the new Afghani GSM license by the international consortium TDCA (Telecom Development Company Afghanistan LTD) led by the Aga Khan Fund for Economic Development (AKFED) and Monaco Telecom International.

Under the terms of this multi-million dollar contract, Alcatel is supplying TDCA with its industry leading Evolium™ solution. The contract encompasses a radio Base Station Subsystem (BSS) and a core Network Sub System (NSS), including a Mobile Switching Center (MSC). When completed the network will include an Intelligent Network platform for value-added services such as Voice Mail Service (VMS) and a Short Message Service Center (SMS-C) supplied by Alcatel. To carry high-capacity traffic, the network is also deploying Alcatel microwave radio and carrier-class transmission solutions, both managed by Alcatel's integrated transport network management platform.

The network will also encompass Alcatel VSAT connections for both domestic and international communications giving Roshan the possibility to take advantage of the end-to-end capability of Alcatel.

Adimos, a progressive company providing wireless multimedia connectivity solutions for consumer appliances in the home, announced today that it has successfully raised $12M in venture capital funding from JVP, Benchmark Capital, Gemini Israel Venture Funds and Genesis Campus. The Series A funding will be used to fuel the company's growth and its research and development activities.

Adimos is based in Silicon Valley with research and development facilities in Israel and a growing presence in Japan. The company is headed by CEO Sandeep Kumar, an industry veteran with 17 years of experience in operations, marketing, management and development of high tech semiconductor products. The founding team of Mr. Eran Igler, Dr. Miki Genossar, Mr. Sandeep Kumar and Mr. Zeev Shpiro collectively bring over 75 years of development and management experience in semiconductor and wireless technologies. Together with the seasoned team that has joined them, they are well positioned to become leaders in the multimedia home connectivity market.

Representatives of Raytheon Company and IBM have announced plans to work together to design custom semiconductors and systems for customers in the aerospace and defense industry.

The two companies have formed a strategic relationship that brings together Raytheon's expertise in defense electronics technology and aerospace and defense, and IBM's leadership in complementary areas such as cutting-edge chip design, software development, large systems computer architecture and network integration.

Raytheon and IBM intend to work together to market the solutions they
design.

Both companies believe that working cooperatively on existing and new programs will provide their customers with the best solutions, improve performance, and provide a foundation for future business. The contract could be worth up to $100 million to IBM over five years.

The two companies are creating a project office to respond to customer needs and oversee potential joint projects and contractual engagements.

Representatives of ACS, a provider of business process and information technology outsourcing solutions, announced that it has been awarded a business process outsourcing (BPO) contract to provide student loan processing services for the Massachusetts Board of Higher Education (MBHE). The total value of the 5-year contract is estimated at $2.4 million.

MBHE is the coordinator and an independent advocate for Massachusetts' public higher education system. The Board ensures that all Massachusetts residents have the opportunity to benefit from a higher education and ensures its institutions use public funds efficiently.

ACS will be a vital partner to MBHE, supporting nearly 150 eligible Massachusetts educational institutions that participate in MBHE loan programs. ACS currently provides loan servicing for more than 25 schools in the state.

As part of the contract, ACS will service four loan programs that support more than 23,000 borrowers in the state of Massachusetts. The four loan programs are the Massachusetts No-Interest Loan, Tomorrow's Teachers Scholarship, Commonwealth Futures Grant, and the Incentive for Inspiring Teachers Program. ACS will provide comprehensive loan servicing, supporting schools and borrowers throughout the entire life of their loans, from enrollment through repayment. Specific among ACS' student loan services will be transaction processing, payment processing, borrower correspondence, reporting and support, and on-line technology applications.