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Thank you Jeff.

Introduction

Assessment

Ladies and gentlemen - my fellow shareholders - I am extremely happy to report that our fiscal year 2004 was one of the most successful in our 42-year history. It was another year of record financial performance and of unparalleled growth for our company. At every level in our company, in line and staff organizations all across CACI, our people delivered and collaborated to produce these results.

It was a year in which we surpassed key strategic milestones one year earlier than when we established them four years ago. Our focus is on our future and how we can continue to build CACI, using the same operational philosophy, credo and business values that have served us so well. Our sights are set squarely on being a profitable, growing and viable Tier 1 company, competing at a level above any in our history.

Operating at the "Next Level"

As I stand here today, reporting to you about our company, CACI is operating at the next level - the next level of competition for business, of our ability to recruit and retain employees and of expectations from you, our shareholders and our investors.

In competition the larger our company has become, so too has the degree of competition we face to sustain and grow our company. We see it from extremely small businesses that enjoy a competitive advantage in the federal sector. And, while CACI is the 14^th largest federal contractor in the latest rankings from Washington Technology, we continue to see a high level of competition with multi-billion dollar corporations that bring to bear a sophisticated level of competition combined with their ability to work at high levels of our government.

In recruiting and retaining our employees, as our company has grown and the workforce demographics have continued to change, we must go beyond competitive compensation and benefits to be successful. Just as we are at the next level competing for business, we are also at the next level competing for people who constitute the intellectual capital upon which our ability to retain and grow our company rests.

And last, we are at the next level of expectations from our investors. As a company with a revenue base of nearly $1.5B and a market capitalization above that, we are at the next level of competing for the capital of investors with risk and reward expectations greater than what we have seen in our 36-year history as a publicly owned corporation. We must be successful in meeting the challenges of the next level in each of these areas if we are to continue to grow and reach the new milestones we have set for our company. I believe we will be successful, and in the next few minutes I want to tell you why I believe that.

Milestones Achieved During and Since the End of FY04

Our accomplishments and results for fiscal year 2004 and the first quarter of fiscal year 2005 have lifted us to the next level and provided us with a firm foundation for the future. Let me give you a brief recap.

Financial Performance Achievements

Last fiscal year we reported record profits of $63.7M on record revenue of $1.146B. We exceeded our goal to achieve $1B in annual revenue a year earlier than planned and recorded the highest annual net profit margin since we embarked on our present growth strategy in fiscal year 2000. Our profit margin was 5.6%, exceeding the 5.3% we reported for all of fiscal year 2003 and setting a new record for the highest profit margin CACI has ever reported. These profits also increased our shareholders' equity by 18.2% and generated another year of strong operating cash flow.

Our revenue growth was driven by the continuing trend of increased demand from our federal government customers for our services and by four very successful acquisitions, including the largest in our history. Revenue from our Department of Defense customers increased 44% to over three-quarters of a billion dollars. And our federal civilian agency revenue was up 25% to over $300M. Overall, revenue from all of our federal government customers grew by 38% in our FY04.

Our operating income was up 49% to $104.7M. This was also a new record for us and produced a record operating margin of 9.1%. This increase was driven by our ability to get operational cost efficiencies from all over CACI, to eliminate duplicate costs from our four successful acquisitions and to maintain and improve a favorable mix of business from our customers throughout the year. All of this produced record diluted earnings per share of $2.13, a 40% increase over our fiscal year 2003 diluted earnings per share of $1.52.

In addition to posting record results we were extremely successful in funding the growth of CACI last year. We produced another year of strong operating cash flow: $75.8M. Most remarkable about this figure is the fact that in the last two quarters of the fiscal year we generated almost $89M dollars of operating cash flow alone - a tremendous accomplishment for our company.

More notable was our ability to successfully go to the capital market and obtain debt funding for our acquisition of the Defense and Intelligence Group from American Management Systems. Because of our track record in generating cash flow over the years we were able to put in place the largest credit facility in our history to pay for this acquisition. With the help of Bank of America we were able to attract many institutions to put together a banking syndicate for a new $550M credit facility that enabled us to complete the transaction. And, according to BofA, the syndicate was one of the most successful they assembled this year because of our known ability to generate cash and our proven track record.

First Fiscal Quarter Recap

The momentum we established during FY04 continued into the first quarter of the present fiscal year. Let me give you the highlights of our first fiscal quarter

• Revenue up 65% to a record $388.7M
• Operating income up 73% to almost $36M
• Net income up 52% to $19.8M
• Diluted earnings per share up 51% to $0.66, and
• Contract awards of approximately $577M during the quarter.

As you can see from those results we believe we are on our away to another very successful year.

Organizational Achievements

Long standing customer relationships and new relationships produced our outstanding growth during this past fiscal year. We won every one of our recompetes during FY04. And last fiscal year was our most successful year in winning new business: nearly $1B - that's $1B - from new customers across our federal market space base of business such as the U.S. Army's Intelligence and Security Command, the Army's Communications-Electronics Command Night Vision and Electronics Sensors Division and the Social Security Administration.

The four acquisitions we made were a significant part of our growth during the year. Led by the acquisition of the Defense and Intelligence Group from American Management Systems, the largest in our history, the four transactions we accomplished last year brought in more than $360M in annual revenue. All four were accretive to our bottom line. All four expanded our relationships throughout the federal government and broadened our overall capabilities to provide information technology and solutions to our customer base. And in fact, our acquisition of the Defense and Intelligence Group was honored by the Northern Virginia Technology Council as part of the "Hottest Merger and Acquisition Deal" of the year, recognizing both our acquisition and the purchase of AMS by CGI.

Challenges During FY04

As you can see, we had many successes during last fiscal year. But we had our challenges, too. With the acquisition of the Defense and Intelligence Group came the critical task of integrating into CACI over $250M of business and almost 1650 new employees. I am very pleased to report that the integration of this group has been extremely successful as a result of the outstanding effort by many people throughout CACI. We could not be more pleased with the outcome that we are seeing.

We were also challenged by the events that occurred at the Abu Ghraib prison in Iraq. Our fine reputation was under attack by many who had no direct knowledge of the facts surrounding that deplorable situation. But, in the end, again through the effort of many people throughout CACI and our culture of strong personal integrity and high ethical standards, the truth prevailed as we made every effort to respond. No stone was left unturned. And we have seen the response of our customers, our employees and you, our shareholders, as our stock is near an all time high as we meet today.

CACI's Strategic Focus and the World in Which We Operate

I have spoken about our performance and accomplishments over the last year and one-quarter. Now let me turn to what we face in our market space as we enter the next level.

Our strategic focus has not changed as we have grown to our present size. It is, and will remain, national security - including intelligence, the global war against terrorism and the reshaping of the way government agencies communicate, use and disseminate information, and deliver services to the citizens.

External Threats

We continue to live in a world, described in this year's Worldwide Threat Briefing by the Director of Central Intelligence, that "is equally, if not more complicated and fraught with dangers for United States interests."

We face terrorism on a worldwide scale from militant, fanatical Islamic fundamentalists. We have seen the awful beheadings of contractors and others supporting our troops in Iraq, as well as suicide bombers killing innocent civilians and in the tragedies of 9/11, four hijacked airliners and terrorist attacks in Spain, Indonesia and many other places. We are learning more each day about the proliferation of weapons of mass destruction in Iran and North Korea, as well as China, India and Pakistan. These are all external threats that our government clients are contending with and seeking solutions for.

These solutions require America to field a military that is more mobile and more flexible, yet also more lethal. It requires interoperability of systems throughout the armed services, on a larger scale than ever before, for better communications and a more rapid response than ever before. It requires intelligence fusion and information superiority for our joint and combined forces.

This dangerous world environment, and the way our government is changing priorities to address America's role in that environment, has significantly altered CACI's market space. We will continue to see increased spending on the defense of our nation. We will continue to see more spending on improving our intelligence capabilities. And we will continue to see an increasing concern for homeland security that is simultaneously altering domestic priorities and significantly influencing our country's role in the world environment.

Internal Needs

These threats will only heighten and increase the internal needs of our market space that must be fulfilled by companies, such as CACI, in the private sector. The need to transform government, and especially the Department of Defense, continues unabated. We are seeing best practices from the private sector being incorporated into how government agencies operate. We are seeing more outsourcing support projects being diverted to the private sector as a result of the retirement of government workers and the difficulty to recruit and fill those vacancies. And we are seeing the need for the Intelligence Community and its 15 member organizations to change their operations, their priorities and their organizations.

Emerging Trends That May Affect CACI

As we analyze these external threats and internal needs we find that our market is shaped by a proactive national response with its emphasis on homeland security, by the transformation of the Defense Department and the shift of the military from platform-centric to network-centric tactics and by the drive for greater emphasis on joint threat assessment and information sharing across all the intelligence agencies.

We see that response placing demands on these key business areas of CACI

• C4ISR engineering
• National intelligence collection, analysis and training
• Expedited logistics
• Development, refit and in-service engineering of combat and combat support systems, and
• Expanded legal support of litigation cases and detainee interrogation and prosecution.

We believe that our solutions are matched to the needs of our customers. We believe that we will be able to modernize our customers' information systems without risk. We believe that we will be able to provide secure connectivity anywhere the mission goes. We believe that with our customers, we are anticipating threats in time to act. We believe that our solutions are helping our customers get the right information in the right hands at the right time. We believe that our solutions are assuring the readiness of our forces on a global scale.

All of this places us at the next level of competition for business, at the next level of being able to recruit and retain employees and at the next level of expectation from our shareholders.

Positioning CACI for the Next Level

It is one thing for CACI to grow and get to the next level. It is an entirely different thing for us to be a viable participant at the next level. The view here is much different. And while our basic growth strategy of maintaining our base of business, of accelerating new business development in areas of faster growth and of doing accretive mergers and acquisitions has not changed, what we must do to continue to implement that strategy has.

Factors We Need To Consider

If we are to be a viable participant we must not only look outward for the new opportunities that will fuel our growth but also look inward at our entire organization. We need to

• Assess our strengths and how they will help sustain us at the next level
• Assess our weaknesses and what it will take to eliminate them so that they don't detract from our ability to operate at the next level
• Make certain that we have the right leaders at all levels of CACI who are driven with an unrelenting need to produce sustained results
• Make certain that they are ambitious first and foremost for CACI and not only for themselves, that they are the right people for us, and
• Ensure that we have the proper systems in place that will support us at the next level.

We must consider all these factors not just once, but continuously.

Challenges We Need To Answer

To succeed at the next level we must prepare for and answer these challenges

• Motivating our people to confront the facts of reality head on and to act decisively on the implications
• Understanding what CACI can and cannot be the best at so that we can continue to produce superior returns and enhance shareholder value
• Hiring self disciplined people who engage in disciplined thought and who then take disciplined action
• Continuing to make acquisitions that will help accelerate our progress
• And finally, preserving our core values and purpose while our strategies and operating practices adapt to a changing environment.

We have begun to take the steps required to consider these factors and answer these challenges. We believe that doing so will help us identify the discriminators and attributes of what it takes to be successful at the next level. We believe that through this effort we can compete at the next level, that we can recruit and retain the right employees and that we will meet our own and our shareholders' expectations. We understand that being a Tier 1 company entails more than achieving a certain size.

Setting Goals

Now that we have surpassed the $1B in annual revenue goal a year early we have set new goals for ourselves. We want to achieve $3B in annual revenue by our fiscal year 2009 and more than double our FY04 net income of $63.7M by the same year. That means we want to continue to grow our top line at a compound annual growth rate of 20% plus and grow the bottom line at a similar rate. We believe we can achieve this using the three-part strategy I mentioned a few minutes ago. It is the same strategy we have used since late 1999 and has propelled us to the next level.

Conclusion

We are committed to keeping our company a client service oriented one. At CACI the client is number one. We are committed to our people - our most important asset. And we are committed to enhancing shareholder value. We are committed to the principles that are the core of our culture. We remain true to our commitment to honesty, integrity and client focus. We know that if we understand the factors that can sustain us at the next level and can answer the challenges to staying at the level, we will become a company that has not only been built to last but also can move from "good to great."

Thank you.