Dr. J.P. (Jack) London, CACI International Inc, Chairman, President and Chief Executive Officer

Thank you, Phil. It's a real pleasure to be here with you this morning. I know you are all interested in the mechanics of growing a business and how M&A fits into the combination for success. I hope to be able to share some stories with you about how CACI has planned and grown over the years and how our Combination Strategy - a mix of People, Planning and Purpose - has worked for us.

CACI: A Brief History

CACI was founded in 1962 in California. We have been publicly traded since 1968. Founders Herb Karr and Harry Markowitz were, in my opinion, business and software geniuses. They tapped into the brand new computer industry and started CACI. They were truly a dynamic duo.

Among Herb and Harry's innovations was our famous SIMSCRIPT modeling and simulation software language still on the market today, but in a modern form. They also developed an easy-to-use database retrieval system for the Commerce Department. They parlayed this technology to DoD and Justice projects. They always kept abreast of trends and found new clients while continuing to provide quality service to existing clients. Their example of client service and innovative thinking continues to serve as an example at CACI today.

Today's CACI - People, Planning, Purpose

Herb and Harry set the bar high, and CACI continues to do the same, meeting or exceeding expectations. Currently we are a $1.6B company with 9500 employees all over the world. And, I'm happy to share the formula of our success with you. It involves the three things I mentioned and dubbed our Combination Strategy: People, Planning and Purpose.

Let's talk about People. We hire heroes, folks who are tops in their field, who also have that extra spark, and are willing to go the extra mile for a client, a colleague or the company. At CACI, our Credo calls for

• Quality service and best value for our clients,
• Individual opportunity and respect for each other,
• Integrity and excellence in our work, and
• Distinction and the competitive edge in our markets.

And our corporate culture is based on our people as CACI's major asset and star distinction.

The second component of our Combination Strategy is Planning. I just told you how our people create and work in an environment of ethics, integrity and client service. These very same people develop and work our strategic business plan. And, they are very good at what they do. Here's proof: We reached our goal of becoming a $1B company a full year ahead of plan. That's because our people worked hard to meet and exceed our customers' and our company's expectations. CACI employees are great assets, heroes who plan their work and work their plan.

The final component of our success is Purpose. Every CACI employee knows that we are in this business to serve our clients and our shareholders. We keep that in mind every day. We all know that in business and in life you are only as good, as your good name. We enjoy working with our clients and follow them wherever they need us - from the boardroom, to the war room, to the boiler room, if necessary. We are currently assisting some of our DoD clients in fighting the global war on terrorism. Why? Because our clients asked us to go with them and we believe in what they are doing. We were happy to help them fulfill their most important mission.

CACI's M&A Activities

That's a little bit about where we started and were we are today. I'd like to tell you about how we got here - in particular about some of our M&A activities.

To be sure, M&A strategies have helped us achieve our goals. And they will be a component of our success in the future. I'm proud to say that we recently received the "Deal of the Year" award from the National Capital chapter of the Association for Corporate Growth for our acquisition of the Defense and Intelligence Group of American Management Systems - AMS. This was the largest acquisition for our company to date. It brought in 300 new contracts, $250M in revenue and 1650 new employees. All in all, a good deal for everyone concerned. But this was just our most recent stand out M&A transaction. We have completed many. Since 2001 we have acquired nine companies and businesses

1. Digital Systems International Corp. (DSIC)
2. Government Solutions Division of Condor
3. Acton Burnell
4. Applied Technology Solutions of Northern Virginia
5. Premier Technology Group (PTG)
6. C-Cubed Corporation
7. MTL Systems
8. CMS Information Systems
9. And the AMS deal I just mentioned.

Each of these deals enhanced our IT and communications capabilities and gave us greater access to business with the U.S. Intelligence Community.

How CACI Identifies M&A Opportunities

Again, People, Planning and Purpose come into play. Ensure that your corporate culture is strong in each of these areas. I'll give you some insight into how CACI identifies M&A opportunities. These steps have worked for us and may very well work for you, too

• Dedicate top staff to M&A. At CACI we have a full time staff that monitors the marketplace and gauges how to move forward. These people ensure that any deal on our radar screen fits into our strategic business plan. We assign an internal business group champion, and we ensure that the deal is accretive, in terms of future earnings and growth. Growth prospects are crucial.
• We fully identify the prospective sellers and assess whether they are ready to sell. This works for us. We ask: Is the company ready to sell, is their technology the right fit, are the people comfortable? In other words we evaluate their employees, their size, location, financial performance and contract base. We also look at their management, ownership and technology base.
• We evaluate the stability of the company. One of the most important things we look for is a stable, well regarded company that has a good financial standing and potential for future success. We look for business longevity, one or more long-term contracts, favorable performance records and a stable management team. We also look for seasoned managers with three to five years of continuity with the company and low employee turnover.
• We also look at the key people in the prospective company. Are they the type of folks you would want to do business with? At CACI we ask if they will adapt to our corporate culture of ethics and integrity, above all else. We place a great amount of emphasis on proper behavior in all facets of the workplace. If the company we are scouting does not operate right, we look elsewhere. Period.
• We ensure that the company we are negotiating with has a profit making culture and a history of steady growth. Again, we look for companies that have at least three consecutive years of profitability, and we turn down deals with folks who are in negative financial situations.

At CACI we take our commitment to our shareholders seriously and only enter into agreements with companies that are going to increase our top line. We examine the contract base of the prospective company. We check to see if they can bring new projects - appropriate projects to our portfolio. We prefer a mix of large and small contracts and look for customers that are new to CACI. That's how we grow. In addition, we avoid single contract, single program and single customer deals. And, we place little or no value on small business set asides.

We look at the customer base of the prospective company to ensure it's a right fit. At CACI we don't want to work with companies that don't understand our IT business. And, we don't want to have to learn an entire new market sector or industry just to make a deal. We look for a company with a broad-based customer list - a company that has no single customer dependency. We prefer a mix of both civilian agencies and DoD. And, we look for companies that have inroads in the defense, intel and homeland security arenas.

Finally, we engage in acquisitions that ensure a first year return to shareholders. This is very important to us. At CACI we understand our responsibility to our shareholders. We are always mindful that beyond the customers, our shareholders' well-being is our goal. We only engage in practices that are ethical and profitable. That's why we are a $1.6B company. And, that's why we are growing.

CACI's Future

Now that you've heard me discuss our origins, our current situation and our philosophy toward M&A, I'd like to tell you where I think we are heading. We are in a good place right now. But you don't have to take my word for that. The Wall Street Journal's Shareholder Scorecard feature released February 28 ranked CACI as the number one performer in five- and ten-year average returns to shareholders for the computer services industry. I'm happy to report that we jumped from 56^th place to 30^th place in the latest issue of Business 2.0 magazine's Top 100 Fastest Growing Companies in America. And, we were just ranked 51^st in Business Week's Top 100 Tech Companies listing. Good news, for sure. We are a top performer year after year with a five-year CAGR above 20%. Based on these and other factors CACI is poised to become a $3B company by 2009. That's our goal, and I believe, based on our history, that we will meet it on time or ahead of schedule. Stay tuned.

Conclusion

I've talked to you today about CACI's Combination Strategy of People, Planning and Purpose. I'd like to add one more element now - Privilege. It has been my privilege to be associated with CACI over the last 33 years and to have had a hand in its growth and success. And, it is a privilege and an honor, indeed, to have shared my thoughts with all of you this morning.