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<SEC-DOCUMENT>0000016058-00-000013.txt : 20000418
<SEC-HEADER>0000016058-00-000013.hdr.sgml : 20000418
ACCESSION NUMBER:		0000016058-00-000013
CONFORMED SUBMISSION TYPE:	8-K/A
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20000417
ITEM INFORMATION:		
ITEM INFORMATION:		
FILED AS OF DATE:		20000417

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			CACI INTERNATIONAL INC /DE/
		CENTRAL INDEX KEY:			0000016058
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-COMPUTER INTEGRATED SYSTEMS DESIGN [7373]
		IRS NUMBER:				541345888
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0630

	FILING VALUES:
		FORM TYPE:		8-K/A
		SEC ACT:		
		SEC FILE NUMBER:	000-08401
		FILM NUMBER:		602975

	BUSINESS ADDRESS:	
		STREET 1:		1100 N GLEBE ST
		CITY:			ARLINGTON
		STATE:			VA
		ZIP:			22201
		BUSINESS PHONE:		7038417800

	MAIL ADDRESS:	
		STREET 1:		1100 NORTH GLEBE ROAD
		CITY:			ARLINGTON
		STATE:			VA
		ZIP:			22201

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	CACI INC /DE/
		DATE OF NAME CHANGE:	19870119

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	CONSOLIDATED ANALYSIS CENTERS INC
		DATE OF NAME CHANGE:	19730102

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	CALIFORNIA ANALYSIS CENTER INC
		DATE OF NAME CHANGE:	19680603
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K/A
<SEQUENCE>1
<TEXT>

<HTML>
<HEAD>
<TITLE></TITLE>
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<BODY>

<p align=center>SECURITIES AND EXCHANGE COMMISSION<BR>Washington, D.C.  20549</p>

<p align=center>FORM 8-K/A</p>

<p align=center>CURRENT REPORT</p>

<p align=center>Pursuant to Section 13 or 15(d) of<BR>the Securities Exchange Act of 1934</p>

<p align=center><U>April 17, 2000</U><BR>Date of Report</p>

<p align=center><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CACI International Inc&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><br>(Exact name of registrant
as specified in its Charter)</p>

<p align=center><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Delaware&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;</u><br>(State or other jurisdiction of incorporation)</P>

<P align=center><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;0-8401&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;</u><BR>(Commission File Number)</p>

<P align=center><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;54-1345888&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;</u><br>(IRS Employer Identification No.)</P>

<P align=center>1100 N. Glebe Road<BR><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Arlington, Virginia 22201&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><BR>(Address of principal executive offices)  (Zip code)</p>

<P align=center><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(703) 841-7800&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><BR>(Registrant's telephone number, including area
code)</p>

<br wp="br1"><br wp="br2">

<hr size=1 align=center width=30%>

<br wp="br1"><br wp="br2">

<P>ITEM 2.&nbsp;&nbsp;&nbsp;ACQUISITION OF ASSETS.</P>

<P ALIGN=JUSTIFY>On February 2, 2000, CACI International Inc announced that it has completed its acquisition of all of the common stock of XEN Corporation, which became effective at 12:01 a.m. EST on February 1, 2000.  The total consideration paid by CACI
was $4,258,500; XEN shareholders will receive $7.886 per share in cash as they surrender their Common Stock.  XEN specializes in providing quality systems engineering, engineering design, distance learning, training development, multimedia support,
electronic commerce, and data security services to national intelligence organizations, the Department of Defense, and the U.S. Navy.  The transaction was funded through borrowings under CACI's existing line of credit with a group of banks.</p>

<p align=justify>XEN, which has approximately 70 employees, will be operated as a wholly-owned subsidiary of CACI Technologies, Inc., a wholly-owned subsidiary of CACI.  The operations of the new subsidiary will be fully integrated into CACI to achieve
the full benefit of the merger for customers and shareholders.  XEN's revenues for its fiscal year ended September 30, 1999 were $8.5 million.</p>


<P ALIGN=justify>A copy of the Registrant's press release regarding CACI's execution of a Letter of Intent to acquire
XEN is attached as an Exhibit to this current report on Form 8-K.</P>

<P>ITEM 7.&nbsp;&nbsp;&nbsp;FINANCIAL STATEMENTS AND EXHIBITS</P>

   <p align=justify>(a)&nbsp;&nbsp;&nbsp;(1) FINANCIAL STATEMENTS. Restated consolidated financial statements for XEN Corporation for the fiscal year ended September 30, 1999, and Independent Accountant's Report<strike> shall be filed not later than 60
days after the date that this initial report on Form 8-K must be filed.</strike>.</p>

   <p align=justify>(b)&nbsp;&nbsp;&nbsp;(2) PRO FORMA FINANCIAL INFORMATION.  Pro forma financial information relative to the acquisition of XEN Corporation for the most recent fiscal year ended June 30, 1999, and for the quarter ended <strike>March 31,
2000</strike> December 31, 1999. <strike>shall be filed not later than 60 days after the date that this initial report on Form 8-K must be filed</strike></p>

   <p align=justify>The following CACI pro forma condensed consolidated statements of operations for the year ended June 30, 1999 and for the quarter ended December 31, 1999, and the CACI pro forma consolidated balance sheets as of June 30, 1999 and
December 31, 1999, are unaudited and have been prepared on a pro forma basis to give effect to the acquisition (accounted for as a purchase) of XEN Corporation as if the transaction had occurred on July 1, 1998.</p>

   <p align=justify>The pro forma consdensed consolidated statement of operations for the year ended June 30, 1999 does not purport to represent what CACI's result of operations would actually have been had the transaction in fact occurred on the
aforementioned date, or to project CACI's results of operations for any future periods.  The pro forma adjustments are based upon available information and upon certain assumptions that management believes are reasonable under the circumstances.</p>

   <p align=justify>The pro forma condensed consolidated financial statements should be read in conjunction with the historical financial statements of both CACI and XEN, including the notes thereto.</p>


<br wp="br1"></br wp="br2">

<hr line size=1 noshade align=center width=33%>

<br wp="br1"></br wp="br2">

<p align="center">XEN CORPORATION<br>FINANCIAL STATEMENTS
  <br>SEPTEMBER 30,1999</p>

<br wp="br1"><br wp="br2">

<hr line size=1 noshade align=center width=33%>

<br wp="br1"><br wp="br2">

<p align="center">XEN CORPORATION<br>INDEX TO FINANCIAL STATEMENTS
  <br>SEPTEMBER 30, 1999</p>

<p>Accountants' Report</p>
<p>Balance Sheet</p>
<p>Statement of Income</p>
<p>Statement of Stockholders' Equity</p>
<p>Statement of Cash Flows</p>
<p>Notes to Financial Statements</p>

<br wp="br1"><br wp="br2">

<hr line size=1 noshade align=center width=33%>

<br wp="br1"><br wp="br2">

<p align="center">[logo]<br>Clifford N. Abelson
  <br>CERTIFIED PUBLIC ACCOUNTANT<br>271 LAFAYETTE STREET
  <br>SALEM, MASSACHUSETTS 01970<br>(976) 744-5206<br>FAX (978) 741-3766</p>

<p>To the Stockholders and Board of Directors
<br>XEN Corporation</p>

<p align=justify>We have compiled the accompanying balance sheets of XEN Corporation as of September 30,
1999 and 1998, and the related statements of income, stockholders' equity, and cash flows for the
years then ended, in accordance with Statements on Standards for Accounting and Review
Services issued by the American Institute of Certified Public Accountants.</p>

<p align=justify>A compilation is limited to presenting, in the form of financial statements, information that is the
representation of management. We have not audited or reviewed the accompanying financial
statements and, accordingly, do not express an opinion or any other form of assurance on them.</p>

<p align="left">Clifford N. Abelson &amp; Company</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/</p>

<p>Salem, Massachusetts<br>December 9, 1999</p>

<br wp="br1"><br wp="br2">

<hr line size=1 noshade align=center width=33%>

<br wp="br1"><br wp="br2">

<basefont size=2>

<p align="center">XEN CORPORATION<br>BALANCE SHEET<br>SEPTEMBER 30</p>

<p align="center">ASSETS</p>

<table width="73%" cellpadding="0" border=0>

<tr>
  <td width=3%></td>
  <td width=40%></td>
  <td width=3%></td>
  <td width=2%></td>
  <td width=8%></td>
  <td width=1%></td>
  <td width=3%></td>
  <td width=2%></td>
  <td width=8%></td>
  <td width=1%></td>
</tr>

</tr>
<tr>
  <td colspan=3></td>
  <td colspan=3 align=center><font size=2>1999</td>
  <td></td>
  <td colspan=3 align=center><font size=2>1998</td>
</tr>

<tr>
  <td colspan=3></td>
  <td colspan=3><hr line size=1 noshade></td>
  <td></td>
  <td colspan=3><hr line size=1 noshade></td>
</tr>

<tr><td colspan=10></td></tr>

<tr><td colspan=10></td></tr>

<tr>
  <td colspan=4><font size=2>Current assets:</td>
</tr>

<tr>
  <td></td>
  <td colspan=2><font size=2>Cash</td>
  <td align="right"><font size=2>$</td>
  <td align="right"><font size=2>1,351,549</td>
  <td colspan=2></td>
  <td align="right"><font size=2>$</td>
  <td align="right"><font size=2>1,045,958</td>
  <td></td>
</tr>

<tr>
 <td></td>
  <td colspan=2><font size=2>Marketable securities</td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>12,351</td>
  <td align="left"><font size=2></td>
  <td></td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>0</td>
  <td></td>
</tr>

<tr>
  <td></td>
  <td colspan=2><font size=2>Accounts receivable</td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>1,174,781</td>
  <td align="left"><font size=2></td>
  <td></td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>1,038,180</td>
  <td align="left"><font size=2></td>
</tr>

<tr>
  <td></td>
  <td colspan=2><font size=2>Unbilled work in progress</td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>57,353</td>
  <td align="left"><font size=2></td>
  <td></td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>36,708</td>
  <td align="left"><font size=2></td>
</tr>

<tr>
  <td></td>
  <td colspan=2><font size=2>Employee loans - current</td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>34,185</td>
  <td align="left"><font size=2></td>
  <td></td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>40,988</td>
  <td align="left"><font size=2></td>
</tr>

<tr>
  <td></td>
  <td colspan=2><font size=2>Prepaid expenses</td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>28,451</td>
  <td align="left"><font size=2></td>
  <td></td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>40,730</td>
  <td align="left"><font size=2></td>
</tr>

<tr>
  <td colspan=4></td>
  <td colspan=2><hr line size=1 noshade></td>
  <td colspan=2></td>
  <td colspan=2><hr line size=1 noshade></td>
</tr>

<tr>
  <td></td>
  <td colspan=2><font size=2>Deferred income tax asset</td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>64,298</td>
  <td align="left"><font size=2></td>
  <td></td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>0</td>
  <td></td>
</tr>

<tr>
  <td colspan=4></td>
  <td colspan=2><hr line size=1 noshade></td>
  <td colspan=2></td>
  <td colspan=2><hr line size=1 noshade></td>
</tr>

<tr>
  <td colspan=10></td>
</tr>
<tr>
 <td colspan=10></td>
</tr>

<tr>
  <td></td>
  <td colspan=2><font size=2>Total current assets</td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>2,722,968</td>
  <td align="left"><font size=2></td>
  <td></td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>2,202,564</td>
  <td></td>
</tr>
<tr>
  <td colspan=4></td>
  <td colspan=2><hr line size=1 noshade></td>
  <td colspan=2></td>
  <td colspan=2><hr line size=1 noshade></td>
</tr>

<tr>
  <td colspan=10></td>
</tr>
<tr>
  <td colspan=10></td>
</tr>

<tr>
  <td colspan=10><font size=2>Property and equipment:</td>
</tr>

<tr>
  <td></td>
  <td colspan=2><font size=2>Computer and office equipment</td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>235,636</td>
  <td align="left"><font size=2></td>
  <td></td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>218,627</td>
  <td></td>
</tr>

<tr>
  <td></td>
  <td colspan=2><font size=2>Furniture and fixtures</td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>38,572</td>
  <td align="left"><font size=2></td>
  <td></td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>30,409</td>
  <td></td>
</tr>

<tr>
  <td></td>
  <td colspan=2><font size=2>Leasehold improvements</td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>4,618</td>
  <td align="left"><font size=2></td>
  <td></td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>4,618</td>
  <td></td>
</tr>

<tr>
  <td colspan=4></td>
  <td colspan=2><hr line size=1 noshade></td>
  <td colspan=2></td>
  <td colspan=2><hr line size=1 noshade></td>
</tr>

<tr>
  <td></td>
  <td colspan=2><font size=2></td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>278,826</td>
  <td align="left"><font size=2></td>
  <td></td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>253,654</td>
  <td></td>
</tr>

<tr>
  <td></td>
  <td colspan=2><font size=2>Less - accumulated depreciation</td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>(199,771</td>
  <td align="left"><font size=2>)</td>
  <td></td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>(166,422</td>
  <td align="left"><font size=2>)</td>
</tr>

<tr>
  <td colspan=4></td>
  <td colspan=2><hr line size=1 noshade></td>
  <td colspan=2></td>
  <td colspan=2><hr line size=1 noshade></td>
</tr>

<tr>
  <td colspan=3><font size=2>Net property and equipment</td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>79,055</td>
  <td align="left"><font size=2></td>
  <td></td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>87,232</td>
  <td></td>
</tr>

<tr>
  <td colspan=4></td>
  <td colspan=2><hr line size=1 noshade></td>
  <td colspan=2></td>
  <td colspan=2><hr line size=1 noshade></td>
</tr>

<tr><td colspan=10></td></tr>

<tr><td colspan=10></td></tr>

<tr>
  <td colspan=10><font size=2>Other assets:</td>
</tr>

<tr>
  <td></td>
  <td colspan=2><font size=2>Deposits</td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>9,652</td>
  <td align="left"><font size=2></td>
  <td></td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>9,652</td>
  <td></td>
</tr>

<tr>
  <td></td>
  <td colspan=2><font size=2>Employee loans - long-term</td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>24,903</td>
  <td align="left"><font size=2></td>
  <td></td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>39,843</td>
  <td></td>
</tr>

<tr>
  <td colspan=4></td>
  <td colspan=2><hr line size=1 noshade></td>
  <td colspan=2></td>
  <td colspan=2><hr line size=1 noshade></td>
</tr>
<tr>
  <td colspan=3><font size=2>Total other assets</td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>34,555</td>
  <td align="left"><font size=2></td>
  <td></td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>49,495</td>
  <td></td>
</tr>

<tr>
  <td colspan=4></td>
  <td colspan=2><hr line size=1 noshade></td>
  <td colspan=2></td>
  <td colspan=2><hr line size=1 noshade></td>
</tr>

<tr><td colspan=10></td></tr>

<tr><td colspan=10></td></tr>

<tr>
  <td colspan=3><font size=2>Total assets</td>
  <td align="right"><font size=2>$</td>
  <td align="right"><font size=2>2,836,578</td>
  <td align="left"><font size=2></td>
  <td></td>
  <td align="right"><font size=2>$</td>
  <td align="right"><font size=2>2,339,291</td>
  <td align="left"><font size=2></td>
  <td></td>
</tr>

<tr>
  <td colspan=4></td>
  <td colspan=2><hr line size=2 noshade></td>
  <td colspan=2></td>
  <td colspan=2><hr line size=2 noshade></td>
</tr>
</TABLE>


<p>See accompanying notes and accountants' report.</p>

<br wp="br1"><br wp="br2">

<hr line size=1 noshade align=center width=33%>

<br wp="br1"><br wp="br2">

<p align="center">XEN CORPORATION<br>BALANCE SHEET<br>SEPTEMBER 30</p>

<p align="center">LIABILITIES AND STOCKHOLDERS' EQUITY</p>

<table width="73%" cellpadding="0" border=0>

<tr>
  <td width=3%></td>
  <td width=40%></td>
  <td width=3%></td>
  <td width=2%></td>
  <td width=8%></td>
  <td width=1%></td>
  <td width=3%></td>
  <td width=2%></td>
  <td width=8%></td>
  <td width=1%></td>
</tr>

<tr>
  <td colspan=4></td>
  <td colspan=2><hr line size=1 noshade></td>
  <td colspan=2></td>
  <td colspan=2><hr line size=1 noshade></td>
</tr>

<tr>
  <td colspan=3></td>
  <td colspan=3 align="center"><font size=2>1999</td>
  <td></td>
  <td colspan=3 align="center"><font size=2>1998</td>
</tr>

<tr>
  <td colspan=4></td>
  <td colspan=2><hr line size=1 noshade></td>
  <td colspan=2></td>
  <td colspan=2><hr line size=1 noshade></td>
</tr>

<tr><td colspan=10></td></tr>

<tr><td colspan=10></td></tr>

<tr><td colspan=10><font size=2>Current liabilities:</td></tr>

<tr>
  <td></td>
  <td colspan=2><font size=2>Accounts Payable</td>
  <td align="right"><font size=2>$</td>
  <td align="right"><font size=2>447,856</td>
  <td align="left"><font size=2></td>
  <td></td>
  <td align="right"><font size=2>$</td>
  <td align="right"><font size=2>295,820</td>
  <td></td>
</tr>

<tr>
  <td></td>
  <td colspan=2><font size=2>Note payable - current portion</td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>64,259</td>
  <td align="left"><font size="2"></td>
  <td></td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>58,952</td>
  <td></td>
</tr>

<tr>
  <td></td>
  <td colspan=2><font size=2>Accrued taxes and expenses</td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>355,586</td>
  <td align="left"><font size="2"></td>
  <td></td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>295,860</td>
  <td></td>
</tr>

<tr>
  <td></td>
  <td colspan=2><font size=2>Estimated contract adjustments</td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>144,853</td>
  <td align="left"><font size=2></td>
  <td></td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>212,089</td>
  <td></td>
</tr>

<tr>
  <td colspan=4></td>
  <td colspan=2><hr line size=1 noshade></td>
  <td colspan=2></td>
  <td colspan=2><hr line size=1 noshade></td>
</tr>

<tr><td colspan=10></td></tr>

<tr><td colspan=10></td></tr>

<tr>
  <td colspan=3><font size=2>Total current liabilities</td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>1,012,554</td>
  <td align="left"><font size=2></td>
  <td></td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>862,721</td>
  <td></td>
</tr>

<tr>
  <td colspan=4></td>
  <td colspan=2><hr line size=1 noshade></td>
  <td colspan=2></td>
  <td colspan=2><hr line size=1 noshade></td>
</tr>

<tr><td colspan=10></td></tr>

<tr><td colspan=10></td></tr>

<tr>
  <td colspan=10><font size=2>Other liabilities:</td>
</tr>

<tr>
  <td></td>
  <td colspan=2><font size=2>Note payable - long-term</td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>0</td>
  <td align="left"><font size=2></td>
  <td></td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>64,259</td>
  <td></td>
</tr>

<tr>
  <td></td>
  <td colspan=2><font size=2>Deferred income tax liability</td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>23,381</td>
  <td align="left"><font size=2></td>
  <td></td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>0</td>
  <td></td>
</tr>

<tr>
  <td colspan=4></td>
  <td colspan=2><hr line size=1 noshade></td>
  <td colspan=2></td>
  <td colspan=2><hr line size=1 noshade></td>
</tr>

<tr>
  <td colspan=3><font size=2>Total other liabilities</td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>23,381</td>
  <td align="left"><font size=2></td>
  <td></td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>64,259</td>
  <td></td>
</tr>

<tr>
  <td colspan=4></td>
  <td colspan=2><hr line size=1 noshade></td>
  <td colspan=2></td>
  <td colspan=2><hr line size=1 noshade></td>
</tr>

<tr><td colspan=10></td></tr>

<tr><td colspan=10></td></tr>

<tr>
  <td colspan=10><font size=2>Stockholders' equity:</td>
</tr>

<tr>
  <td></td>
  <td colspan=2><font size=2>Common stock</td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>7,747</td>
  <td align="left"><font size=2></td>
  <td></td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>7,529</td>
  <td></td>
</tr>

<tr>
  <td></td>
  <td colspan=2><font size=2>Additional paid in capital</td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>616,903</td>
  <td align="left"><font size=2></td>
  <td></td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>559,133</td>
  <td></td>
</tr>

<tr>
  <td></td>
  <td colspan=2><font size=2>Retained earnings</td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>1,550,981</td>
  <td align="left"><font size=2></td>
  <td></td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>1,189,786</td>
  <td></td>
</tr>

<tr>
  <td></td>
  <td colspan=2><font size=2>Treasury stock (at cost)</td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>(374,988</td>
  <td align="left"><font size=2>)</td>
  <td></td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>(344,137</td>
  <td align="left"><font size=2>)</td>
</tr>

<tr>
  <td colspan=3><font size=2>Total stockholders' equity</td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>1,800,643</td>
  <td align="left"><font size=2></td>
  <td></td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>1,412,311</td>
  <td></td>
</tr>

<tr>
  <td colspan=4></td>
  <td colspan=2><hr line size=1 noshade></td>
  <td colspan=2></td>
  <td colspan=2><hr line size=1 noshade></td>
</tr>

<tr><td colspan=10></td></tr>

<tr><td colspan=10></td></tr>

<tr>
  <td colspan=3><font size=2>Total liabilities and stockholders' equity</td>
  <td align="right"><font size=2>$</td>
  <td align="right"><font size=2>2,836,578</td>
  <td align="left"><font size=2></td>
  <td></td>
  <td align="right"><font size=2>$</td>
  <td align="right"><font size=2>2,339,291</td>
  <td></td>
</tr>

<tr>
  <td colspan=4></td>
  <td colspan=2><hr line size=2 noshade></td>
  <td colspan=2></td>
  <td colspan=2><hr line size=2 noshade></td>
</tr>
</TABLE>

<p>See accompanying notes and accountants' report.</p>

<br wp="br1"><br wp="br2">

<hr line size=1 noshade align=center width=33%>

<br wp="br1"><br wp="br2">

<p align="center">XEN CORPORATION<br>STATEMENT OF INCOME
<br>FOR THE FISCAL YEARS ENDED SEPTEMBER 30</p>

<table width="73%" cellpadding="0" border=0>

<tr>
  <td width=3%></td>
  <td width=40%></td>
  <td width=3%></td>
  <td width=2%></td>
  <td width=8%></td>
  <td width=1%></td>
  <td width=3%></td>
  <td width=2%></td>
  <td width=8%></td>
  <td width=1%></td>
</tr>

<tr>
  <td colspan=3></td>
  <td colspan=3 align=center><font size=2>1999</td>
  <td></td>
  <td colspan=3 align=center><font size=2>1998</td>
</tr>

<tr>
  <td colspan=3></td>
  <td colspan=3><hr line size=1 noshade></td>
  <td></td>
  <td colspan=3><hr line size=1 noshade></td>
</tr>

<tr><td colspan=10></td></tr>
<tr><td colspan=10></td></tr>

<tr>
  <td colspan=3><font size=2>Sales</td>
  <td align="right"><font size=2>$</td>
  <td align="right"><font size=2>8,564,867</td>
  <td align="left"><font size=2></td>
  <td></td>
  <td align="right"><font size=2>$</td>
  <td align="right"><font size=2>8,249,486</td>
  <td></td>
</tr>

<tr>
  <td colspan=4></td>
  <td colspan=2><hr line size=1 noshade></td>
  <td colspan=2></td>
  <td colspan=2><hr line size=1 noshade></td>
</tr>

<tr><td colspan=10></td></tr>
<tr><td colspan=10></td></tr>

<tr>
  <td colspan=10><font size=2>Operating expenses:</td>
</tr>

<tr>
  <td></td>
  <td colspan=2><font size=2>Bad debt expense</td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>70,887</td>
  <td align="left"><font size=2></td>
  <td></td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>0</td>
  <td></td>
</tr>

<tr>
  <td></td>
  <td colspan=2><font size=2>Business meetings</td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>1,826</td>
  <td align="left"><font size=2></td>
  <td></td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>3,021</td>
  <td></td>
</tr>

<tr>
  <td></td>
  <td colspan=2><font size=2>Contract labor</td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>12,526</td>
  <td align="left"><font size=2></td>
  <td></td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>3,603</td>
  <td></td>
</tr>

<tr>
  <td></td>
  <td colspan=2><font size=2>Contributions</td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>1,250</td>
  <td align="left"><font size=2></td>
  <td></td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>1,000</td>
  <td></td>
</tr>

<tr>
  <td></td>
  <td colspan=2><font size=2>Depreciation</td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>33,349</td>
  <td align="left"><font size=2></td>
  <td></td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>39,057</td>
  <td></td>
</tr>

<tr>
  <td></td>
  <td colspan=2><font size=2>Direct billable costs</td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>1,718,691</td>
  <td align="left"><font size=2></td>
  <td></td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>1,889,837</td>
  <td></td>
</tr>

<tr>
  <td></td>
  <td colspan=2><font size=2>Entertainment and meals</td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>8,243</td>
  <td align="left"><font size=2></td>
  <td></td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>15,318</td>
  <td></td>
</tr>

<tr>
  <td></td>
  <td colspan=2><font size=2>Equipment rental</td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>5,849</td>
  <td align="left"><font size=2></td>
  <td></td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>6,474</td>
  <td></td>
</tr>

<tr>
  <td></td>
  <td colspan=2><font size=2>Group insurance</td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>374,382</td>
  <td align="left"><font size=2></td>
  <td></td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>381,513</td>
  <td></td>
</tr>

<tr>
  <td></td>
  <td colspan=2><font size=2>Insurance</td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>9,063</td>
  <td align="left"><font size=2></td>
  <td></td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>9,959</td>
  <td></td>
</tr>

<tr>
  <td></td>
  <td colspan=2><font size=2>Interest expense</td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>11,097</td>
  <td align="left"><font size=2></td>
  <td></td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>0</td>
  <td></td>
</tr>

<tr>
  <td></td>
  <td colspan=2><font size=2>Legal and accounting</td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>44,311</td>
  <td align="left"></td>
  <td></td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>48,177</td>
  <td></td>
</tr>

<tr>
  <td></td>
  <td colspan=2><font size=2>Marketing and promotion</td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>1,813</td>
  <td align="left"><font size=2></td>
  <td></td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>918</td>
  <td></td>
</tr>

<tr>
  <td></td>
  <td colspan=2><font size=2>Morale, welfare and recreation</td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>19,195</td>
  <td align="left"><font size=2></td>
  <td></td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>18,252</td>
  <td></td>
</tr>

<tr>
  <td></td>
  <td colspan=2><font size=2>Office supplies and expense</td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>45,077</td>
  <td align="left"><font size=2></td>
  <td></td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>29,384</td>
  <td></td>
</tr>

<tr>
  <td></td>
  <td colspan=2><font size=2>Other employee benefits</td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>41,138</td>
  <td align="left"><font size=2></td>
  <td></td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>38,360</td>
  <td></td>
</tr>

<tr>
  <td></td>
  <td colspan=2><font size=2>Pension administration</td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>3,108</td>
  <td align="left"></td>
  <td></td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>7,868</td>
  <td></td>
</tr>

<tr>
  <td></td>
  <td colspan=2><font size=2>Pension expense</td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>383,906</td>
  <td align="left"><font size=2></td>
  <td></td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>382,075</td>
  <td></td>
</tr>

<tr>
  <td></td>
  <td colspan=2><font size=2>Professional dues and publications</td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>7,256</td>
  <td align="left"><font size=2></td>
  <td></td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>6,614</td>
  <td></td>
</tr>

<tr>
  <td></td>
  <td colspan=2><font size=2>Recruiting costs</td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>3,731</td>
  <td align="left"><font size=2></td>
  <td></td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>6,282</td>
  <td></td>
</tr>

<tr>
  <td></td>
  <td colspan=2><font size=2>Rent</td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>128,435</td>
  <td align="left"><font size=2></td>
  <td></td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>109,531</td>
  <td></td>
</tr>

<tr>
  <td></td>
  <td colspan=2><font size=2>Repairs and maintenance</td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>1,063</td>
  <td align="left"><font size=2></td>
  <td></td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>1,811</td>
  <td></td>
</tr>

<tr>
  <td></td>
  <td colspan=2><font size=2>Salaries and wages</td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>4,085,754</td>
  <td align="left"></td>
  <td></td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>3,988,128</td>
  <td></td>
</tr>

<tr>
  <td></td>
  <td colspan=2><font size=2>Taxes - other</td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>41,260</td>
  <td align="left"></td>
  <td></td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>48,422</td>
  <td></td>
</tr>

<tr>
  <td></td>
  <td colspan=2><font size=2>Taxes - payroll</td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>296,327</td>
  <td align="left"></td>
  <td></td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>291,381</td>
  <td></td>
</tr>

<tr>
  <td></td>
  <td colspan=2><font size=2>Telephone</td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>35,241</td>
  <td align="left"><font size=2></td>
  <td></td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>29,838</td>
  <td></td>
</tr>

<tr>
  <td></td>
  <td colspan=2><font size=2>Training and meetings</td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>33,281</td>
  <td align="left"></td>
  <td></td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>27,605</td>
  <td></td>
</tr>

<tr>
  <td></td>
  <td colspan=2><font size=2>Travel</td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>610,654</td>
  <td align="left"></td>
  <td></td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>490,601</td>
  <td></td>
</tr>

<tr>
  <td colspan=4></td>
  <td colspan=2><hr line size=1 noshade></td>
  <td colspan=2></td>
  <td colspan=2><hr line size=1 noshade></td>
</tr>

<tr>
  <td colspan=3><font size=2>Total operating expenses</td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>8,028,713</td>
  <td align="left"><font size=2></td>
  <td></td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>7,875,029</td>
  <td></td>
</tr>

<tr>
  <td colspan=4></td>
  <td colspan=2><hr line size=1 noshade></td>
  <td colspan=2></td>
  <td colspan=2><hr line size=1 noshade></td>
</tr>

<tr><td colspan=10></td></tr>
<tr><td colspan=10></td></tr>

<tr>
  <td colspan=3><font size=2>Income from operations</td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>536,154</td>
  <td align="left"></td>
  <td></td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>374,457</td>
  <td></td>
</tr>

<tr>
  <td colspan=4></td>
  <td colspan=2><hr line size=1 noshade></td>
  <td colspan=2></td>
  <td colspan=2><hr line size=1 noshade></td>
</tr>

<tr><td colspan=10></td></tr>

<tr><td colspan=10></td></tr>

<tr>
  <td colspan=10><font size=2>Other income:</td>
</tr>

<tr>
  <td></td>
  <td colspan=2><font size=2>Interest income</td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>51,790</td>
  <td align="left"><font size=2></td>
  <td></td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>10,474</td>
  <td></td>
</tr>

<tr>
  <td></td>
  <td colspan=2><font size=2>Miscellaneous income</td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>57</td>
  <td align="left"><font size="2"></td>
  <td></td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>1,324</td>
  <td></td>
</tr>

<tr>
  <td></td>
  <td colspan=2><font size=2>Unrealized gain on marketable securities</td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>12,351</td>
  <td align="left"><font size=2></td>
  <td></td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>0</td>
  <td></td>
</tr>

<tr>
  <td colspan=4></td>
  <td colspan=2><hr line size=1 noshade></td>
  <td colspan=2></td>
  <td colspan=2><hr line size=1 noshade></td>
</tr>

<tr>
  <td colspan=3><font size=2>Total other income</td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>64,198</td>
  <td align="left"><font size=2></td>
  <td></td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>11,798</td>
  <td align="left"><font size=2></td>
  <td></td>
</tr>

<tr>
  <td colspan=4></td>
  <td colspan=2><hr line size=1 noshade></td>
  <td colspan=2></td>
  <td colspan=2><hr line size=1 noshade></td>
</tr>

<tr><td colspan=10></td></tr>

<tr><td colspan=10></td></tr>

<tr>
  <td colspan=3><font size=2>Income before provision for income taxes</td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>600,352</td>
  <td align="left"><font size=2></td>
  <td></td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>386,255</td>
  <td></td>
</tr>

<tr><td colspan=10></td></tr>

<tr><td colspan=10></td></tr>

<tr>
  <td colspan=3><font size=2>Provision for income taxes</td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>(190,146</td>
  <td align="left"><font size=2>)</td>
  <td></td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>(163,140</td>
  <td align="left"><font size=2>)</td>
</tr>

<tr>
  <td colspan=4></td>
  <td colspan=2><hr line size=1 noshade></td>
  <td colspan=2></td>
  <td colspan=2><hr line size=1 noshade></td>
</tr>

<tr><td colspan=10></td></tr>

<tr><td colspan=10></td></tr>

<tr>
  <td colspan=3><font size=2>Net income for the year</td>
  <td align="right"><font size=2>$</td>
  <td align="right"><font size=2>410,206</td>
  <td align="left"><font size=2></td>
  <td></td>
  <td align="right"><font size=2>$</td>
  <td align="right"><font size=2>223,115</td>
  <td></td>
</tr>
<tr>
  <td colspan=4></td>
  <td colspan=2><hr line size=2 noshade></td>
  <td colspan=2></td>
  <td colspan=2><hr line size=2 noshade></td>
</tr>
</TABLE>

<p>See accompanying notes and accountants' report.</p>

<br wp="br1"><br wp="br2">

<hr line size=1 noshade align=center width=33%>

<br wp="br1"><br wp="br2">

<p align="center">XEN CORPORATION<br>STATEMENT OF STOCKHOLDERS' EQUITY
<br>SEPTEMBER 30</p>

<table width=73% cellpadding="0" border=0>

<tr>
  <td width=3%></td>
  <td width=3%></td>
  <td width=40%></td>
  <td width=2%></td>
  <td width=8%></td>
  <td width=1%></td>
  <td width=3%></td>
  <td width=2%></td>
  <td width=8%></td>
  <td width=1%></td>
</tr>

<tr>
  <td colspan=3></td>
  <td colspan=3 align=center><font size=2>1999</td>
  <td></td>
  <td colspan=3 align=center><font size=2>1998</td>
</tr>

<tr>
  <td colspan=3></td>
  <td colspan=3><hr line size=1 noshade></td>
  <td></td>
  <td colspan=3><hr line size=1 noshade></td>
</tr>

<tr><td colspan=10></td></tr>

<tr><td colspan=10></td></tr>

<tr>
  <td colspan=10><font size=2>Common stock: (par value $.01 per share)</td>
</tr>

<tr><td colspan=10></td></tr>
<tr><td colspan=10></td></tr>

<tr>
  <td></td>
  <td colspan=2><font size=2>Balance at beginning of year</td>
  <td align="right"><font size=2>$</td>
  <td align="right"><font size=2>7,529</td>
  <td align="left"><font size=2></td>
  <td></td>
  <td align="right"><font size=2>$</td>
  <td align="right"><font size=2>6,984</td>
  <td></td>
</tr>

<tr>
  <td></td>
  <td colspan=9><font size=2>Par value of shares issued:</td>
</tr>

<tr>
  <td></td>
  <td></td>
  <td><font size=2>1999 - 21,800 shares</td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>218</td>
  <td align="left"><font size=2></td>
  <td></td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>0</td>
  <td></td>
</tr>

<tr>
  <td></td>
  <td></td>
  <td><font size=2>1998 - 54,500 shares</td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>0</td>
  <td align="left"><font size=2></td>
  <td></td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>545</td>
  <td></td>
</tr>

<tr>
  <td colspan=4></td>
  <td colspan=2><hr line size=1 noshade></td>
  <td colspan=2></td>
  <td colspan=2><hr line size=1 noshade></td>
</tr>

<tr>
  <td></td>
  <td colspan=2><font size=2>Balance at end of year</td>
  <td align="right"><font size=2>$</td>
  <td align="right"><font size=2>7,747</td>
  <td align="left"></td>
  <td></td>
  <td align="right"><font size=2>$</td>
  <td align="right"><font size=2>7,529</td>
  <td></td>
</tr>

<tr>
  <td colspan=4></td>
  <td colspan=2><hr line size=2 noshade></td>
  <td colspan=2></td>
  <td colspan=2><hr line size=2 noshade></td>
</tr>

<tr><td colspan=10></td></tr>

<tr><td colspan=10></td></tr>

<tr>
  <td colspan=10><font size=2>Additional paid-in capital:</td>
</tr>

<tr><td colspan=10></td></tr>
<tr><td colspan=10></td></tr>

<tr>
  <td></td>
  <td colspan=2><font size=2>Balance at beginning of year</td>
  <td align="right"><font size=2>$</td>
  <td align="right"><font size=2>559,133</td>
  <td align="left"></td>
  <td></td>
  <td align="right"><font size=2>$</td>
  <td align="right"><font size=2>431,603</td>
  <td></td>
</tr>

<tr>
  <td></td>
  <td colspan=2><font size=2>Proceeds in excess of par value<br>of shares of common stock issued</td>
  <td align="right"><font size=2>$</td>
  <td align="right"><font size=2>57,770</td>
  <td align="left"><font size=2></td>
  <td></td>
  <td align="right"><font size=2>$</td>
  <td align="right"><font size=2>127,530</td>
  <td></td>
</tr>

<tr>
  <td colspan=4></td>
  <td colspan=2><hr line size=1 noshade></td>
  <td colspan=2></td>
  <td colspan=2><hr line size=1 noshade></td>
</tr>

<tr>
  <td></td>
  <td colspan=2><font size=2>Balance at end of year</td>
  <td align="right"><font size=2>$</td>
  <td align="right"><font size=2>616,903</td>
  <td align="left"><font size=2></td>
  <td></td>
  <td align="right"><font size=2>$</td>
  <td align="right"><font size=2>559,133</td>
  <td></td>
</tr>

<tr>
  <td colspan=4></td>
  <td colspan=2><hr line size=2 noshade></td>
  <td colspan=2></td>
  <td colspan=2><hr line size=2 noshade></td>
</tr>

<tr><td colspan=10></td></tr>
<tr><td colspan=10></td></tr>

<tr>
  <td colspan=10><font size=2>Retained earnings:</td>
</tr>

<tr><td colspan=10></td></tr>
<tr><td colspan=10></td></tr>

<tr>
  <td></td>
  <td colspan=2><font size=2>Balance at beginning of year</td>
  <td align="right"><font size=2>$</td>
  <td align="right"><font size=2>1,189,786</td>
  <td align="left"><font size=2></td>
  <td></td>
  <td align="right"><font size=2>$</td>
  <td align="right"><font size=2>1.022,926</td>
  <td></td>
</tr>

<tr>
  <td></td>
  <td colspan=2><font size=2>Net income for the year</td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>410,206</td>
  <td align="left"><font size=2></td>
  <td></td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>223,115</td>
  <td></td>
</tr>

<tr>
  <td></td>
  <td colspan=2><font size=2>Adjustment of prior year's tax liability</td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>3,994</td>
  <td align="left"><font size=2></td>
  <td></td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>0</td>
  <td></td>
</tr>

<tr>
  <td></td>
  <td colspan=2><font size=2>Dividends paid</td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>(53,005</td>
  <td align="left"><font size=2>)</td>
  <td></td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>(56,255</td>
  <td align="left"><font size=2>)</td>
</tr>

<tr>
  <td colspan=4></td>
  <td colspan=2><hr line size=1 noshade></td>
  <td colspan=2></td>
  <td colspan=2><hr line size=1 noshade></td>
</tr>

<tr>
  <td></td>
  <td colspan=2><font size=2>Balance at end of year</td>
  <td align="right"><font size=2>$</td>
  <td align="right"><font size=2>1,550,981</td>
  <td align="left"><font size=2></td>
  <td></td>
  <td align="right"><font size=2>$</td>
  <td align="right"><font size=2>1,189,786</td>
  <td align="left"><font size=2></td>
  <td></td>
</tr>

<tr>
  <td colspan=4></td>
  <td colspan=2><hr line size=2 noshade></td>
  <td colspan=2></td>
  <td colspan=2><hr line size=2 noshade></td>
</tr>

<tr><td colspan=10></td></tr>
<tr><td colspan=10></td></tr>

<tr>
  <td colspan=10><font size=2>Common stock in treasury:</td>
</tr>

<tr><td colspan=10></td></tr>
<tr><td colspan=10></td></tr>

<tr>
  <td></td>
  <td colspan=2><font size=2>Balance at beginning of year</td>
  <td align="right"><font size=2>$</td>
  <td align="right"><font size=2>(344,137</td>
  <td align="left"><font size=2>)</td>
  <td></td>
  <td align="right"><font size=2>$</td>
  <td align="right"><font size=2>(126,692</td>
  <td align="left"><font size=2>)</td>
</tr>

<tr>
  <td></td>
  <td colspan=10><font size=2>Purchase of shares for treasury:</td>
</tr>

<tr>
  <td colspan=2></td>
  <td><font size=2>1999 - 8,350 shares</td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>(30,851</td>
  <td align="left"><font size=2>)</td>
  <td></td>
  <td align="right"><font size=2>$</td>
  <td align="right"><font size=2>0</td>
  <td></td>
</tr>

<tr>
  <td colspan=2></td>
  <td><font size=2>1998 - 92,750 shares</td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>0</td>
  <td align="left"><font size=2></td>
  <td></td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>(217,445</td>
  <td align="left"><font size=2>)</td>
</tr>
<tr>
  <td colspan=4></td>
  <td colspan=2><hr line size=1 noshade></td>
  <td colspan=2></td>
  <td colspan=2><hr line size=1 noshade></td>
</tr>

<tr>
  <td></td>
  <td colspan=2><font size=2>Balance at end of year</td>
  <td align="right"><font size=2>$</td>
  <td align="right"><font size=2>(374,988</td>
  <td align="left"><font size=2>)</td>
  <td></td>
  <td align="right"><font size=2>$</td>
  <td align="right"><font size=2>(344,137</td>
  <td align="left"><font size="2">)</td>
</tr>

<tr>
  <td colspan=4></td>
  <td colspan=2><hr line size=2 noshade></td>
  <td colspan=2></td>
  <td colspan=2><hr line size=2 noshade></td>
</tr>

<tr><td colspan=10></td></tr>
<tr><td colspan=10></td></tr>

<tr>
  <td colspan=3><font size=2>Total stockholders' equity</td>
  <td align="right"><font size=2>$</td>
  <td align="right"><font size=2>1,800,643</td>
  <td align="left"><font size=2></td>
  <td></td>
  <td align="right"><font size=2>$</td>
  <td align="right"><font size=2>1,412,311</td>
  <td align="left"><font size=2></td>
  <td></td>
</tr>
<tr>
  <td colspan=4></td>
  <td colspan=2><hr line size=2 noshade></td>
  <td colspan=2></td>
  <td colspan=2><hr line size=2 noshade></td>
</tr>

</TABLE>

<p>See accompanying notes and accountants' report.</p>

<br wp="br1"><br wp="br2">

<hr line size=1 noshade align=center width=33%>

<br wp="br1"><br wp="br2">

<p align="center">XEN CORPORATION<br>STATEMENT OF CASH FLOWS
<br>FOR THE FISCAL YEARS ENDED SEPTEMBER 30</p>

<table width="73%" cellpadding="0" border=0>

<tr>
  <td width=3%></td>
  <td width=3%></td>
  <td width=40%></td>
  <td width=2%></td>
  <td width=8%></td>
  <td width=1%></td>
  <td width=3%></td>
  <td width=2%></td>
  <td width=8%></td>
  <td width=1%></td>
</tr>

<tr>
  <td colspan=3></td>
  <td colspan=3 align=center><font size=2>1999</td>
  <td></td>
  <td colspan=3 align=center><font size=2>1998</td>
</tr>

<tr>
  <td colspan=3></td>
  <td colspan=3><hr line size=1 noshade></td>
  <td></td>
  <td colspan=3><hr line size=1 noshade></td>
</tr>

<tr><td colspan=10></td></tr>
<tr><td colspan=10></td></tr>

<tr>
  <td colspan=3><font size=2><U>CASH FLOWS FROM OPERATING ACTIVITIES</U></td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2></td>
  <td align="left"><font size=2></td>
  <td></td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2></td>
  <td></td>
</tr>

<tr><td colspan=10></td></tr>
<tr><td colspan=10></td></tr>

<tr>
  <td colspan=3><font size=2>Net income for the year</td>
  <td align="right"><font size=2>$</td>
  <td align="right"><font size=2>410,206</td>
  <td align="left"><font size=2></td>
  <td></td>
  <td align="right"><font size=2>$</td>
  <td align="right"><font size=2>223,115</td>
  <td></td>
</tr>

<tr><td colspan=10></td></tr>
<tr><td colspan=10></td></tr>

<tr>
  <td colspan=3><font size=2>Adjustments to reconcile net income to net cash<br>
     provided by (used in) operating activities:</td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2></td>
  <td align="left"><font size=2></td>
  <td></td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2></td>
  <td></td>
</tr>

<tr>
  <td></td>
  <td colspan=2><font size=2>Depreciation</td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>33,349</td>
  <td align="left"><font size=2></td>
  <td></td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>39,057</td>
  <td></td>
</tr>

<tr>
  <td></td>
  <td colspan=2><font size=2>Adjustment of prior year's tax liability</td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>3,994</td>
  <td align="left"><font size=2></td>
  <td></td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>0</td>
  <td></td>
</tr>

<tr><td colspan=10></td></tr>
<tr><td colspan=10></td></tr>

<tr>
  <td></td>
  <td colspan=2><font size=2>Decrease (increase) in assets:</td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2></td>
  <td align="left"><font size=2></td>
  <td></td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2></td>
  <td></td>
</tr>

<tr>
  <td></td>
  <td></td>
  <td><font size=2>Marketable securities</td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>(12,351</td>
  <td align="left"><font size=2>)</td>
  <td></td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>0</td>
  <td align="left"><font size=2></td>
</tr>

<tr>
  <td></td>
  <td></td>
  <td><font size=2>Accounts receivable</td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>(136,601</td>
  <td align="left"><font size=2>)</td>
  <td></td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>210,970</td>
  <td align="left"><font size=2></td>
</tr>

<tr>
  <td></td>
  <td></td>
  <td><font size=2>Unbilled work in progress</td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>(20,645</td>
  <td align="left"><font size=2>)</td>
  <td></td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>(15,304</td>
  <td align="left"><font size=2>)</td>
</tr>

<tr>
  <td></td>
  <td></td>
  <td><font size=2>Prepaid expenses</td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>12,279</td>
  <td align="left"><font size=2></td>
  <td></td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>(28,331</td>
  <td align="left"><font size=2>)</td>

</tr>

<tr>
  <td></td>
  <td></td>
  <td><font size=2>Deposits</td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>0</td>
  <td align="left"><font size=2></td>
  <td></td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>3,653</td>
  <td align="left"></td>

</tr>

<tr>
  <td></td>
  <td></td>
  <td><font size=2>Deferred income tax asset</td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>(64,298</td>
  <td align="left"><font size=2>)</td>
  <td></td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>0</td>
  <td align="left"><font size=2></td>

</tr>

<tr><td colspan=10></td></tr>
<tr><td colspan=10></td></tr>

<tr>
  <td></td>
  <td colspan=2><font size=2>Increase (decrease) in liabilities:</td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2></td>
  <td align="left"><font size=2></td>
  <td></td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2></td>
  <td align="left"><font size=2></td>
  <td></td>
</tr>

<tr>
  <td></td>
  <td></td>
  <td><font size=2>Accounts payable</td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>152,036</td>
  <td align="left"><font size=2></td>
  <td></td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>62,742</td>
  <td align="left"><font size=2></td>
</tr>

<tr>
  <td></td>
  <td></td>
  <td><font size=2>Accrued taxes and expenses</td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>59,726</td>
  <td align="left"></td>
  <td></td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>46,282</td>
  <td align="left"><font size=2></td>
</tr>

<tr>
  <td></td>
  <td></td>
  <td><font size=2>Estimated contract adjustments</td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>(67,236</td>
  <td align="left"><font size=2>)</td>
  <td></td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>7,898</td>
  <td align="left"><font size=2></td>
</tr>

<tr>
  <td></td>
  <td></td>
  <td><font size=2>Deferred income tax liability</td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>23,381</td>
  <td align="left"><font size=2></td>
  <td></td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>0</td>
  <td align="left"><font size=2></td>
</tr>

<tr>
  <td colspan=4></td>
  <td colspan=2><hr line size=1 noshade></td>
  <td colspan=2></td>
  <td colspan=2><hr line size=1 noshade></td>
</tr>
<tr>
  <td colspan=3><font size=2>Net cash provided by operating activities</td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>393,840</td>
  <td align="left"><font size=2></td>
  <td></td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>550,082</td>
  <td></td>
</tr>

<tr>
  <td colspan=4></td>
  <td colspan=2><hr line size=1 noshade></td>
  <td colspan=2></td>
  <td colspan=2><hr line size=1 noshade></td>
</tr>

<tr><td colspan=10></td></tr>
<tr><td colspan=10></td></tr>

<tr>
  <td colspan=3><font size=2><U>CASH FLOWS FROM INVESTING ACTIVITIES</U></td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2></td>
  <td align="left"><font size=2></td>
  <td></td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2></td>
  <td></td>
</tr>

<tr><td colspan=10></td></tr>
<tr><td colspan=10></td></tr>

<tr>
  <td colspan=3><font size=2>Acquisition of property and equipment</td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>(25,172</td>
  <td align="left"><font size=2>)</td>
  <td></td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>(21,110</td>
  <td align="left"><font size=2>)</td>
</tr>

<tr>
  <td colspan=4></td>
  <td colspan=2><hr line size=1 noshade></td>
  <td colspan=2></td>
  <td colspan=2><hr line size=1 noshade></td>
</tr>

<tr><td colspan=10></td></tr>
<tr><td colspan=10></td></tr>

<tr>
  <td colspan=3><font size=2><U>CASH FLOWS FROM FINANCING ACTIVITIES</U></td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2></td>
  <td align="left"><font size=2></td>
  <td></td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2></td>
  <td></td>
</tr>

<tr><td colspan=10></td></tr>
<tr><td colspan=10></td></tr>

<tr>
  <td colspan=3><font size=2>Acquisition of treasury stock at cost</td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>(30,851</td>
  <td align="left"><font size=2>)</td>
  <td></td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>(217,445</td>
  <td align="left"><font size=2>)</td>
</tr>

<tr>
  <td colspan=3><font size=2>Dividends paid</td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>(53,005</td>
  <td align="left"><font size=2>)</td>
  <td></td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>(56,255</td>
  <td align="left"><font size=2>)</td>
</tr>

<tr>
  <td colspan=3><font size=2>Proceeds from issuance of long-term debt</td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>0</td>
  <td align="left"><font size=2></td>
  <td></td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>123,211</td>
  <td align="left"><font size=2></td>
</tr>

<tr>
  <td colspan=3><font size=2>Repayment of long-term debt</td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>(58,952</td>
  <td align="left"><font size=2>)</td>
  <td></td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>0</td>
  <td></td>
</tr>

<tr>
  <td colspan=3><font size=2>Proceeds from sale of common stock</td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>577,988</td>
  <td align="left"><font size=2></td>
  <td></td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>128,075</td>
  <td></td>
</tr>

<tr>
  <td colspan=3><font size=2>Employee loan repayments(net)</td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>21,743</td>
  <td align="left"></td>
  <td></td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>7,832</td>
  <td></td>
</tr>

<tr>
  <td colspan=4></td>
  <td colspan=2><hr line size=1 noshade></td>
  <td colspan=2></td>
  <td colspan=2><hr line size=1 noshade></td>
</tr>

<tr>
  <td colspan=3><font size=2>Net cash used in financing activities</td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>(63,077</td>
  <td align="left"><font size=2>)</td>
  <td></td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>(14,582</td>
  <td align="left"><font size=2>)</td>
</tr>

<tr>
  <td colspan=4></td>
  <td colspan=2><hr line size=1 noshade></td>
  <td colspan=2></td>
  <td colspan=2><hr line size=1 noshade></td>
</tr>

<tr><td colspan=10></td></tr>
<tr><td colspan=10></td></tr>

<tr>
  <td colspan=3><font size=2>Net increase in cash</td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>305,591</td>
  <td align="left"><font size=2></td>
  <td></td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>514,390</td>
  <td></td>
</tr>

<tr><td colspan=10></td></tr>
<tr><td colspan=10></td></tr>

<tr>
  <td colspan=3><font size=2>Cash at beginning of year</td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>1,045,958</td>
  <td align="left"><font size=2></td>
  <td></td>
  <td align="right"><font size=2></td>
  <td align="right"><font size=2>531,568</td>
  <td></td>
</tr>

<tr>
  <td colspan=4></td>
  <td colspan=2><hr line size=1 noshade></td>
  <td colspan=2></td>
  <td colspan=2><hr line size=1 noshade></td>
</tr>

<tr><td colspan=10></td></tr>
<tr><td colspan=10></td></tr>

<tr>
  <td colspan=3><font size=2>Cash at end of year</td>
  <td align="right"><font size=2>$</td>
  <td align="right"><font size=2>1,351,549</td>
  <td align="left"><font size=2></td>
  <td></td>
  <td align="right"><font size=2>$</td>
  <td align="right"><font size=2>1,045,958</td>
  <td></td>
</tr>

<tr>
  <td colspan=4></td>
  <td colspan=2><hr line size=2 noshade></td>
  <td colspan=2></td>
  <td colspan=2><hr line size=2 noshade></td>
</tr>
</TABLE>

<br wp="br1"><br wp="br2">

<hr line size=1 noshade align=center width=33%>

<br wp="br1"><br wp="br2">

<p align="center">XEN CORPORATION<br>NOTES TO FINANCIAL STATEMENTS
<br>SEPTEMBER 30, 1999</p>

<p><b><i>Note 1 - General</i></b></p>

<p align=justify>XEN Corporation was organized on October 1, 1987 and commenced active operations on that date.
The Company is engaged in computer engineering services for commercial and
government customers.</p>

<p><b><i>Note 2 - Significant Accounting Policies</i></b></p>

<p align=justify>It is the Company's policy to employ generally accepted accounting principles on a consistent basis so
as to present fairly the financial position and results of operations. In this connection, the significant
accounting policies utilized by the Company are described below.</p>

<p><i>A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PROPERTY AND EQUIPMENT</i></p>

<p align=justify> Property and equipment are stated on the balance sheet at cost, and do not purport to represent
replacement or realizable values. Depreciation is provided on the straight-line method for reporting
purposes and on an accelerated method for income tax purposes. The principal estimated useful life of
the properties is 5 years for  computer  and office equipment, 7 years for office furniture and fixtures,
and 39 years for leasehold improvements.</p>

<p><i>B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;UNBILLED WORK IN PROGRESS</i></p>

<p align=justify>The Company  accumulates reimbursable expenses in a work-in-progress account until I such time as
the amounts are billed.  This  method of accounting for billable services provides for a better
matching of expenses and  revenue, and more accurately reflects periodic results of operations.</p>

<p><i>C.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;MARKETABLE SECURITIES</i></p>

<p align=justify>The Company's marketable securities that are acquired and held principally for the purpose of selling
them in the near term are classified as trading securities. Trading securities are recorded at fair market
value on the balance sheet in current assets, with the change in fair market value during the period
included in earnings.  All of the Company's marketable securities as of  September 30, 1999 are
classified as trading securities.</p>

<p><i>D.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;INCOME TAXES</i></p>

<p align=justify>Deferred income taxes arise from temporary differences resulting from income and expense items
reported for financial accounting and tax purposes in different periods. Deferred taxes are classified as
current or noncurrent, depending on the classification of the assets and liabilities to which they relate.
Deferred taxes arising from temporary differences that are not related to an asset or liability are
classified as current or noncurrent depending on the periods in which the temporary differences are
expected to reverse.</p>

<p align=justify>Temporary differences giving rise to the deferred income tax liability consist primarily of the excess
of depreciation for tax purposes over the amount for financial reporting purposes.</p>

<p align=justify>Temporary differences giving rise to the deferred income tax asset consist primarily of the amount of
accrued expenses reported for financial purposes over tax purposes.</p>

<p align=justify>The Company's effective income tax rate is lower than what would be expected if the Federal
statutory rate were applied to income from continuing operations primarily because of expenses
deductible for tax purposes that are not deducted for financial reporting purposes.</p>

<p><b><i>Note 3 - Stockholders' Equity</i></b></p>

<p align=justify>Common stock, par value $.01 per share, at September 30, 1999 consists of 1,000,000 shares
authorized, 774,650 shares issued, 543,500 shares outstanding.
The Company holds 231,150 shares as Treasury stock.</p>

<p><b><i>Note 4 - Cash Flow Information</i></b></p>

<p align=justify>Cash paid for interest and income taxes for 1999 and 1998 was as follows:</p>

<table align="center" width="38%" cellpadding="0" border=0>

<tr>
  <td width=15%></td>
  <td width=2%></td>
  <td width=8%></td>
  <td width=3%></td>
  <td width=2%></td>
  <td width=8%></td>
</tr>

<tr>
  <td></td>
  <td colspan=2 align=center><font size=2>1999</td>
  <td></td>
  <td colspan=2 align=center><font size=2>1998</td>
</tr>

<tr>
  <td></td>
  <td colspan=2><hr line size=1 noshade></td>
  <td></td>
  <td colspan=2><hr line size=1 noshade></td>
</tr>

<tr>
  <td><font size=2>Interest</td>
  <td align="right"><font size=2>$</td>
  <td align="right"><font size=2>11,097</td>
  <td></td>
  <td align="right"><font size=2>$</td>
  <td align="right"><font size=2>0</td>
</tr>

<tr>
  <td></td>
  <td colspan=2><hr line size=2 noshade></td>
  <td></td>
  <td colspan=2><hr line size=2 noshade></td>
</tr>
<tr>
  <td><font size=2>Income tax</td>
  <td align="right"><font size=2>$</td>
  <td align="right"><font size=2>151,647</td>
  <td></td>
  <td align="right"><font size=2>$</td>
  <td align="right"><font size=2>76,132</td>
</tr>

<tr>
  <td></td>
  <td colspan=2><hr line size=2 noshade></td>
  <td></td>
  <td colspan=2><hr line size=2 noshade></td>
</tr>
</TABLE>

<p><b><i>Note 5 - Defined Contribution Pension Plan</i></b></p>

<p align=justify>The Company sponsors a defined contribution pension plan covering substantially all of its
employees. Contributions are determined at ten percent of each covered employee's salary and totaled
$383,986 in 1999 and $340,282 in 1998.</p>

<p><b><i>Note 6 - Commitments</i></b></p>

<p align=justify>The minimum lease payments under long-term lease agreements at September 30, 1999 for each of
the next three years and in aggregate are:</p>

<table width="20%" align="center" cellpadding="0" border=0>

<tr>
  <td width=10%></td>
  <td width=2%></td>
  <td width=8%></td>
</tr>

<tr>
  <td><font size=2>2000</td>
  <td align="right"><font size=2>$</td>
  <td align="right"><font size=2>108,331</td>
</tr>

<tr>
  <td><font size=2>2001</td>
  <td colspan=2 align="right"><font size=2>112,664</td>
</tr>

<tr>
  <td><font size=2>2002</td>
  <td colspan=2 align="right"><font size=2>38,043</td>
</tr>
<tr>
  <td></td>
  <td colspan=2><hr line size=1 noshade></td>
</tr>

<tr>
  <td colspan=2 align="right"><font size=2>$</td>
  <td align="right"><font size=2>259,038</td>
</tr>

<tr>
  <td></td>
  <td colspan=2><hr line size=2 noshade></td>
</tr>
</TABLE>

<p><b><i>Note 7 - Use of Estimates</i></b></p>

<p align=justify>The process of preparing financial statements in conformity with generally accepted accounting
principles requires the use of estimates and assumptions regarding certain types of assets, liabilities,
revenues, and expenses. Such estimates primarily relate to unsettled transactions and events as of the
date of financial statements. Accordingly, upon settlement, actual results may differ from estimated
amounts.</p>

<p><b><i>Note 8 - Credit Risk</i></b></p>

<p align=justify>The Company's business activities are with customers throughout the country. As of September 30,
1999 and 1998, the Company's receivables represent balances due from Customers in various
industries, most of which are U.S. Government agencies.</p>

<p align=justify>The allowance for doubtful accounts was zero as of September 30, 1999 and 1998, due to the nature
of the balances owed and customer's credit history.</p>

<p align=justify>The Company maintains a bank account balance in a large regional bank in excess of the Federal
Deposit Insurance Corporation insured $100,000 limit.</p>

<p><b><i>Note 9 -  Note Payable</i></b></p>

<p align=justify>The following is a summary of notes payable at September 30, 1999:</p>

<table width="50%" align=center cellpadding="0" border=0>

<tr>
<td width=40%></td>
<td width=1%></td>
<td width=8%></td>
</tr>

<tr>
  <td></td>
  <td align="center" colspan=2><font size=2>1999</td>
</tr>

<tr>
  <td></td>
  <td colspan=2><hr line size=1 noshade></td>
</tr>

<tr valign=bottom>
  <td><font size=2>9.0% note payable to former employee<br>in annual
installments of $70,042,<br>principal and interest, maturing,
March 2000.</td>
  <td align="right"><font size=2>$</td>
  <td align="right"><font size=2>64,259</td>
</tr>

<tr>
  <td></td>
  <td colspan=2><hr line size=2 noshade></td>
</TABLE>

<p><b><i>Note 10 - Employee Loans</i></b></p>

<p align=justify>The Company allows employees to purchase stock in the Company based upon a number of factors,
such as length of service, etc. Employees are allowed to borrow a portion of the cost for the stock
purchase from the Company under varying interest rates and terms. Interest rates vary from 5.32% to
7.92%, and terms vary from one to five years. Loans are secured by the stock purchased.

<p><b><i>Note 11 - Deferred Income Taxes</i></b></p>

<p align=justify>On  October 1, 1998, XEN Corporation adopted Statement of Financial Accounting Standards No.
109 "Accounting for Income Taxes" ("SFAS  No.  109"). SFAS No. 109 requires that the Company
adopt the liability method of accounting for income taxes. The liability method attempts to recognize
the future tax consequences of temporary differences between the book and tax basis of assets and
liabilities.</p>

<p align=justify>Deferred taxes were computed using a Federal rate of 34% and a state rate of 6%.</p>

<p>Amounts for deferred income tax items are as follows:</p>

<table width="45%" cellpadding="0" border=0 align=center>

<tr>
  <td width=35%></td>
  <td width=1%></td>
  <td width=8%></td>
</tr>

<tr>
  <td></td>
  <td align="center" colspan=2><font size=2>1999</td>
</tr>

<tr>
  <td><font size=2>Deferred income tax asset, related to<br>accrued
expenses timing differences</td>
  <td align="right"><font size=2>$</td>
  <td align="right"><font size=2>64,298</td>
</tr>

<tr>
  <td></td>
  <td colspan=2><hr line size=2 noshade></td>
</tr>

<tr>
  <td><font size=2>Deferred income tax liability related
to<br>depreciation timing differences</td>
  <td align="right"><font size=2>$</td>
  <td align="right"><font size=2>23,381</td>
</tr>

<tr>
  <td></td>
  <td colspan=2><hr line size=2 noshade></td>
</tr>
</TABLE>

<p>Tax valuation allowances were zero as of September 30, 1999.</p>

<p><b><i>Note 12 - Provision for Income Taxes</i></b></p>

<p>The provision for income taxes at September 30 is comprised of
the following:</p>

<table width="50%" cellpadding="0" border=0 align=center>

<tr>
  <td width=4%></td>
  <td width=3%></td>
  <td width=20%></td>
  <td width=1%></td>
  <td width=8%></td>
  <td width=1%></td>
  <td width=3%></td>
  <td width=1%></td>
  <td width=8%></td>
</tr>

<tr>
  <td colspan=3></td>
  <td colspan=3 align=center><font size=2>1999</td>
  <td></td>
  <td colspan=2 align=center><font size=2>1998</td>
</tr>

<tr>
  <td colspan=3></td>
  <td colspan=3><hr line size=1 noshade></td>
  <td></td>
  <td colspan=2><hr line size=1 noshade></td>
</tr>

<tr>
  <td></td>
  <td colspan=8><font size=2>Current:</td>
</tr>

<tr><td colspan=9></td></tr>

<tr>
  <td colspan=2></td>
  <td><font size=2>Federal income tax</td>
  <td align="right"><font size=2>$</td>
  <td align="right"><font size=2>196,020</td>
  <td colspan=2></td>
  <td align="right"><font size=2>$</td>
  <td align="right"><font size=2>137,916</td>
<tr>

<tr>
  <td colspan=2></td>
  <td><font size=2>State income tax</td>
  <td colspan=2 align="right"><font size=2>35,043</td>
  <td colspan=4 align="right"><font size=2>25,224</td>
</tr>

<tr>
  <td colspan=2></td>
  <td><font size=2>Total current income tax</td>
  <td colspan=2 align="right"><font size=2>231,063</td>
  <td colspan=4 align="right"><font size=2>163,140</td>
</tr>

<tr><td colspan=9></td></tr>
<tr><td colspan=9></td></tr>

<tr>
  <td></td>
  <td colspan=8><font size=2>Deferred:</td>
</tr>

<tr>
  <td colspan=2></td>
  <td><font size=2>Federal income tax</td>
  <td colspan=2 align="right"><font size=2>(34,779</td>
  <td><font size=2>)</td>
  <td colspan=3 align="right"><font size=2>0</td>
</tr>

<tr>
  <td colspan=2></td>
  <td><font size=2>State income tax</td>
  <td colspan=2 align="right"><font size=2>(6,138</td>
  <td><font size=2>)</td>
  <td colspan=3 align="right"><font size=2>0</td>
</tr>

<tr>
  <td colspan=3></td>
  <td colspan=3><hr line size=1 noshade></td>
  <td></td>
  <td colspan=2><hr line size=1 noshade></td>
</tr>

<tr>
  <td></td>
  <td colspan=2><font size=2>Total deferred income tax</td>
  <td colspan=2 align="right"><font size=2>(40,917</td>
  <td><font size=2>)</td>
  <td colspan=3 align="right"><font size=2>0</td>
</tr>

<tr>
  <td colspan=3></td>
  <td colspan=3><hr line size=1 noshade></td>
  <td></td>
  <td colspan=2><hr line size=1 noshade></td>
</tr>

<tr><td colspan=9></td></tr>
<tr><td colspan=9></td></tr>

<tr>
  <td></td>
  <td colspan=2><font size=2>Total income taxes</td>
  <td align="right"><font size=2>$</td>
  <td align="right"><font size=2>190,147</td>
  <td colspan=3 align="right"><font size=2>$</td>
  <td align="right"><font size=2>163,140</td>
</tr>

<tr>
  <td colspan=3></td>
  <td colspan=3><hr line size=2 noshade></td>
  <td></td>
  <td colspan=2><hr line size=2 noshade></td>
</tr>
</TABLE>


<p><b><i>Note 13 - Marketable Securities</i></b></p>


<p align=justify>Results of operations for the year ended September 30, 1999, include income of $12,351 for
unrealized holding gains on trading securities.  For the year ending September 30, 1998, the amount
was zero. There were no reclassifications of securities between trading and available-for-sale
categories during either year. Marketable securities consist of equity holdings. There were no realized
gains or losses for either year relating to the sale of marketable securities.</p>


<p><b><i>Note 14 - Contingent Liabilities</i></b></p>


<p align=justify>The Company's contracts with U.S. Government agencies are subject to audit by Federal  audit
agencies. Any anticipated revisions or adjustments in the amount due to or from these agencies are
reflected in the Company's financial statements.</p>

<br wp="br1"><br wp="br2">

<hr line size=1 align=center width=33%>

<br wp="br1"><br wp="br2">


<p align=center>CACI INTERNATIONAL INC<br>UNAUDITED PRO-FORMA
CONSOLIDATED STATEMENT OF OPERATIONS<br>FOR THE YEAR ENDED JUNE 30, 1999</p>

<Table border=0 cellpadding=0 width=87%>
<tr>
  <td width=3%></td>
  <td width=40%></td>
  <td width=2%></td>
  <td width=9%></td>
  <td width=1%></td>
  <td width=3%></td>
  <td width=2%></td>
  <td width=9%></td>
  <td width=5%></td>
  <td width=2%></td>
  <td width=9%></td>
  <td width=1%></td>
</TR>
<tr>
  <TD colspan=2></TD>
  <TD colspan=3 ALIGN=center><font size=2>HISTORICAL</TD>
  <TD></TD>
  <TD COLSPAN=2 ALIGN="center"><font size=2>PRO FORMA<BR>ADJUSTMENTS</TD>
  <TD></TD>
  <TD colspan=3 ALIGN=center><font size=2>PRO FORMA</TD>
</TR>
<TR>
  <TD colspan=2></TD>
  <TD colspan=3><hr line size=1 noshade></TD>
  <TD></TD>
  <TD colspan=2><hr line size=1 noshade></TD>
  <TD></TD>
  <TD colspan=3><hr line size=1 noshade</TD>
</TR>
<tr>
  <td colspan=12></td>
</tr>
<tr>
  <td colspan=12></td>
</tr>
<tr>
  <TD colspan=2><font size=2>REVENUE</TD>
  <TD ALIGN="right"><font size=2>$</TD>
  <TD ALIGN="right"><font size=2>433,449,000</TD>
  <TD colspan=3 ALIGN="right"><font size=2>$</TD>
  <TD ALIGN="right"><font size=2>8,565,000</TD>
  <td><font size=2><sup>1</sup></TD>
  <TD ALIGN="right"><font size=2><font size=2>$</TD>
  <TD ALIGN="right"><font size=2>442,014,000</TD>
  <td></td>
</TR>
<tr>
  <TD colspan=12></TD>
</tr>
<tr>
  <TD colspan=12></TD>
</TR>
<tr>
<TD colspan=12><font size=2>COST AND EXPENSES</TD>
</TR>
<tr>
  <td></td>
  <TD><font size=2>Direct costs</TD>
  <TD colspan=2 ALIGN="right"><font size=2>254,486,000</TD>
  <TD colspan=4 ALIGN="right"><font size=2>5,306,000</TD>
  <TD><font size=2><sup>1</sup></TD>
  <TD colspan=2 ALIGN="right"><font size=2>259,792,000</TD>
  <td></td>
</TR>
<tr>
  <td></td>
  <TD><font size=2>Indirect cost and selling expenses</TD>
  <TD colspan=2 ALIGN="right"><font size=2>140,770,000</TD>
  <TD colspan=4 ALIGN="right"><font size=2>2,615,000</TD>
  <td><font size=2><sup>1</sup></TD>
  <TD colspan=2 ALIGN="right"><font size=2>143,385,000</TD>
  <td></td>
</TR>
<tr>
  <td></td>
  <td><font size=2>Depreciation and amortization</TD>
  <TD colspan=2 ALIGN="right"><font size=2>10,590,000</TD>
  <TD colspan=4 ALIGN="right"><font size=2>189,000</TD>
  <td><font size=2><sup>1&nbsp;2</sup></TD>
  <TD colspan=2 ALIGN="right"><font size=2>10,779,000</TD>
  <td></td>
</TR>
<tr>
  <td colspan=3></td>
  <td colspan=2><hr line size=1 noshade></td>
  <td colspan=2></td>
  <td><hr line size=1 noshade></td>
  <td colspan=2></td>
  <td colspan=2><hr line size=1 noshade></td>
</tr>
<tr>
  <td></td>
  <td><font size=2>Total operating expenses</TD>
  <TD colspan=2 ALIGN="right"><font size=2>405,846,000</TD>
  <TD colspan=4 ALIGN="right"><font size=2>8,110,000</TD>
  <TD colspan=3 ALIGN="right"><font size=2>413,956,000</TD>
  <td></td>
</TR>
<tr>
  <td colspan=3></td>
  <td colspan=2><hr line size=1 noshade></td>
  <td colspan=2></td>
  <td><hr line size=1 noshade></td>
  <td colspan=2></td>
  <td colspan=2><hr line size=1 noshade></td>
</tr>
<tr>
  <td colspan=12></td>
</tr>
<tr>
  <td colpsan=12></td>
</tr>
<tr>
  <td colspan=2><font size=2>INCOME FROM OPERATIONS</TD>
  <TD colspan=2 ALIGN="right"><font size=2>27,603,000</TD>
  <TD colspan=4 ALIGN="right"><font size=2>455,000</TD>
  <TD colspan=3 ALIGN="right"><font size=2>28,058,000</TD>
  <td></td>
</TR>
<tr>
  <td colspan=12></td>
</tr>
<tr>
  <td colspan=12></td>
</tr>
<tr>
  <td></td>
  <td><font size=2>Interest expense</TD>
  <TD colspan=2 ALIGN="right"><font size=2>3,713,000</TD>
  <TD colspan=4 ALIGN="right"><font size=2>111,000</TD>
  <td><font size=2><sup>1&nbsp;2</sup></TD>
  <TD colspan=2 ALIGN="right"><font size=2>3,824,000</TD>
  <td></td>
</TR>
<tr>
  <td colspan=3></td>
  <td colspan=2><hr line size=1 noshade></td>
  <td colspan=2></td>
  <td><hr line size=1 noshade></td>
  <td colspan=2></td>
  <td colspan=2><hr line size=1 noshade></td>
</tr>
<tr>
  <td colspan=2><font size=2>INCOME BEFORE INCOME TAXES</TD>
  <TD colspan=2 ALIGN="right"><font size=2>23,890,000</TD>
  <TD colspan=4 ALIGN="right"><font size=2>344,000</TD>
  <TD colspan=3 ALIGN="right"><font size=2>24,234,000</TD>
  <td></td>
</TR>
<tr>
  <td colspan=12></td>
</tr>
<tr>
  <td colspan=12></td>
</tr>
<tr>
  <td colspan=2><font size=2>INCOME TAXES</TD>
  <TD colspan=2 ALIGN="right"><font size=2>9,336,000</TD>
  <TD colspan=4 ALIGN="right"><font size=2>212,000</TD>
  <td><font size=2><sup>1&nbsp;3</sup> </TD>
  <TD colspan=2 ALIGN="right"><font size=2>9,548,000</TD>
  <td></td>
</TR>
<tr>
  <td colspan=3></td>
  <td colspan=2><hr line size=1 noshade></td>
  <td colspan=2></td>
  <td><hr line size=1 noshade></td>
  <td colspan=2></td>
  <td colspan=2><hr line size=1 noshade></td>
</tr>
<tr>
  <td colspan=12></td>
</tr>
<tr>
  <td colspan=12></td>
</tr>
<tr valign=bottom>
  <td colspan=2><font size=2>INCOME FROM CONTINUING OPERATIONS</TD>
  <TD colspan=2 ALIGN="right"><font size=2>14,554,000</TD>
  <TD colspan=4 ALIGN="right"><font size=2>132,000</TD>
  <TD colspan=3 ALIGN="right"><font size=2>14,686,000</TD>
  <td></td>
</TR>
<tr>
  <td colspan=12></td>
</tr>
<tr>
  <td colspan=12></td>
</tr>
</tr>
<tr>
  <td colspan=2><font size=2>DISCONTINUED OPERATIONS</TD>
  <TD colspan=2 ALIGN="right"><font size=2>(384000</TD>
  <TD ALIGN=><font size=2>)</TD>
  <TD colspan=6 ALIGN="right"><font size=2>(384000</td>
  <td><font size=2>)</TD>
</TR>
<tr>
  <td colspan=3></td>
  <td colspan=2><hr line size=1 noshade></td>
  <td colspan=2></td>
  <td><hr line size=1 noshade></td>
  <td colspan=2></td>
  <td colspan=2><hr line size=1 noshade></td>
</tr>
<tr>
  <td colspan=12></td>
</tr>
<tr>
  <td colspan=2><font size=2>NET INCOME</TD>
  <TD ALIGN="right"><font size=2>$</TD>
  <TD ALIGN="right"><font size=2>14,170,000</TD>
  <TD colspan=3 ALIGN="right"><font size=2>$</TD>
  <TD ALIGN="right"><font size=2>132,000</TD>
  <TD colspan=2 ALIGN="right"><font size=2>$</TD>
  <TD ALIGN="right"><font size=2>14,302,000</TD>
  <td></td>
</TR>
<tr>
  <td colspan=3></td>
  <td colspan=2><hr line size=2 noshade></td>
  <td colspan=2></td>
  <td><hr line size=2 noshade></td>
  <td colspan=2></td>
  <td colspan=2><hr line size=2 noshade></td>
</tr>
<tr>
  <td colspan=12></td>
</tr>
<tr>
  <td colspan=2><font size=2>BASIC EARNINGS PER SHARE</TD>
  <TD ALIGN="right"><font size=2>$</TD>
  <td align=right><font size=2>1.30</TD>
  <TD colspan=3 ALIGN="right"><font size=2>$</TD>
  <TD ALIGN="right"><font size=2>0.01</TD>
  <TD colspan=2 ALIGN="right"><font size=2>$</TD>
  <TD ALIGN="right"><font size=2>1.31</TD>
  <td></td>
</TR>
<tr>
  <td colspan=12></td>
</tr>
<tr>
  <td colspan=12></td>
</tr>
<tr>
  <td colspan=2><font size=2>DILUTED EARNINGS PER SHARE</TD>
  <TD ALIGN="right"><font size=2>$</TD>
  <TD ALIGN="right"><font size=2>1.26</TD>
  <TD colspan=3 ALIGN="right"><font size=2>$</TD>
  <TD ALIGN="right"><font size=2>0.01</TD>
  <TD colspan=2 ALIGN="right"><font size=2>$</TD>
  <TD ALIGN="right"><font size=2>1.27</TD>
  <td></td>
</TR>
<tr>
  <td colspan=12></td>
</tr>
<tr>
  <td colspan=12></td>
</tr>
<tr>
  <td colspan=2><font size=2>AVERAGE SHARES OUTSTANDING</TD>
  <TD colspan=2 ALIGN="right"><font size=2>10,896,000</TD>
  <TD colspan=4 ALIGN="right"><font size=2>10,896,000</TD>
  <TD colspan=3 ALIGN="right"><font size=2>10,896,000</TD>
  <td></td>
</TR>
<tr>
  <td colspan=3></td>
  <td colspan=2><hr line size=2 noshade></td>
  <td colspan=2></td>
  <td><hr line size=2 noshade></td>
  <td colspan=2></td>
  <td colspan=2><hr line size=2 noshade></td>
</tr>
<tr>
  <td colspan=12></td>
</tr>
<tr valign=bottom>
  <td colspan=2><font size=2>AVERAGE SHARES AND<br>EQUIVALENT SHARES OUTSTANDING</TD>
  <TD colspan=2 ALIGN="right"><font size=2>11,220,000</TD>
  <TD colspan=4 ALIGN="right"><font size=2>11,220,000</TD>
  <TD colspan=3 ALIGN="right"><font size=2>11,220,000 </TD>
  <td></td>
</TR>
<tr>
  <td colspan=3></td>
  <td colspan=2><hr line size=2 noshade></td>
  <td colspan=2></td>
  <td><hr line size=2 noshade></td>
  <td colspan=2></td>
  <td colspan=2><hr line size=2 noshade></td>
</tr>
</TABLE>

<br wp="br1"><br wp="br2">

<table border=0 cellpadding=0 width=97%>
<tr>
  <td width=3%></td>
  <td width=94%></td>
</tr>
<tr valign=top>
  <td><font size=2><sup>1</sup></td>
  <td><div align=justify><font size=2>Represents the historical results
of XEN Corporation for the last closed fiscal  year ended September
30, 1999.</div></TD>
</TR>
<tr>
  <td colspan=2></td>
</tr>
<tr>
  <td colspan=2></td>
</tr>
<tr valign=top>
  <td><font size=2><sup>2</sup></td>
  <td><div align=justify><font size=2>Adjustments include estimated interest
expense of $100,000 on the line of credit and an additional $156,000
of goodwill amortization.</div></TD>
</TR>
<tr>
  <td colspan=2></td>
</tr>
<tr>
  <td colspan=2></td>
</tr>
<tr>
  <td valign=top><font size=2><sup>3</sup></td>
  <td><div align=justify><font size=2>To record additional tax for nondeductible
goodwill amortization net of a benefit from additional interest
expense.</div></TD>
</TR>
</TABLE>

<br wp="br1"><br wp="br2">

<hr line size=1 align=center width=33%>

<br wp="br1"><br wp="br2">


<p align=center>CACI INTERNATIONAL INC<br>UNAUDITED PRO FORMA
CONSOLIDATED STATEMENT OF OPERATIONS<br>FOR THE QUARTER ENDED
DECEMBER 31, 1999</p>

<table border=0 cellpadding=0 width=87%>
<tr>
  <td width=3%></td>
  <td width=40%></td>
  <td width=2%></td>
  <td width=9%></td>
  <td width=3%></td>
  <td width=2%></td>
  <td width=9%></td>
  <td width=1%></td>
  <td width=5%></td>
  <td width=2%></td>
  <td width=9%></td>
  <td width=1%></td>
<tr valign=bottom>
  <td colspan=2></td>
  <TD colspan=2 align=center><font size=2>HISTORICAL</TD>
  <TD></TD>
  <TD colspan=3 align=center><font size=2>PRO FORMA<br>ADJUSTMENTS</TD>
  <TD></TD>
  <TD COLSPAN=3 ALIGN="center"><font size=2>PRO FORMA</TD>
</TR>
<tr>
  <td colspan=2></td>
  <td colspan=2><font size=2><hr line size=1 noshade></td>
  <td></td>
  <td colspan=3><font size=2><hr line size=1 noshade></td>
  <td></td>
  <td colspan=3><font size=2><hr line size=1 noshade></td>
<tr>
<tr>
  <TD colspan=12></TD>
</tr>
<tr>
  <TD colspan=12></TD>
</TR>
<tr>
  <td colspan=2><font size=2>REVENUE</TD>
  <TD ALIGN="right"><font size=2>$</TD>
  <TD ALIGN="right"><font size=2>121,071,000 </TD>
  <TD colspan=2 ALIGN="right"><font size=2>$</TD>
  <TD ALIGN="right"><font size=2>2,344,000 </TD>
  <td></td>
  <td><font size=2><sup>1</sup></TD>
  <TD ALIGN="right"><font size=2>$</TD>
  <TD ALIGN="right"><font size=2>123,415,000</TD>
  <td></td>
</TR>
<tr>
  <TD colspan=12></TD>
 </tr>
<tr>
  <TD colspan=12></TD>
</TR>
<tr>
  <td colspan=12><font size=2>COST AND EXPENSES</TD>
</TR>
<tr>
  <td></td>
  <td><font size=2>Direct costs</TD>
  <TD colspan=2 ALIGN="right"><font size=2>71,516,000</TD>
  <TD colspan=3 ALIGN="right"><font size=2>1,497,000</TD>
  <td></td>
  <td><font size=2><sup>1</sup></TD>
  <TD colspan=2 ALIGN="right"><font size=2>73,013,000</TD>
  <td></td>
</TR>
<tr>
  <td></td>
  <td><font size=2>Indirect cost and selling expenses</TD>
  <TD colspan=2 ALIGN="right"><font size=2>38,590,000</TD>
  <TD colspan=3 ALIGN="right"><font size=2>706,000</TD>
  <td></td>
  <td><font size=2><sup>1</sup></TD>
  <TD colspan=2 ALIGN="right"><font size=2>39,296,000</TD>
  <td></td>
</TR>
<tr>
  <td></td>
  <td><font size=2>Depreciation and amortization</TD>
  <TD colspan=2 ALIGN="right"><font size=2>2,795,000</TD>
  <TD colspan=3 ALIGN="right"><font size=2>47,000</TD>
  <td></td>
  <td><font size=2><sup>1&nbsp;2</sup></TD>
  <TD colspan=2 ALIGN="right"><font size=2>2,842,000</TD>
  <td></td>
</TR>
<tr>
  <td colspan=3></td>
  <td><font size=2><hr line size=1 noshade></td>
  <td colspan=2></td>
  <td colspan=2><font size=2><hr line size=1 noshade></td>
  <td colspan=2></td>
  <td colspan=2><font size=2><hr line size=1 noshade></td>
<tr>
  <td></td>
  <td><font size=2>Total operting expenses</TD>
  <TD colspan=2 ALIGN="right"><font size=2>112,901,000</TD>
  <TD colspan=3 ALIGN="right"><font size=2>2,250,000</TD>
  <TD colspan=4 ALIGN="right"><font size=2>115,151,000</TD>
  <td></td>
</TR>
<tr>
  <td colspan=3></td>
  <td><font size=2><hr line size=1 noshade></td>
  <td colspan=2></td>
  <td colspan=2><font size=2><hr line size=1 noshade></td>
  <td colspan=2></td>
  <td colspan=2><font size=2><hr line size=1 noshade></td>
<tr>
<tr>
  <TD colspan=12></TD>
</tr>
<tr>
  <TD colspan=12></TD>
</TR>
<tr>
  <td colspan=2><font size=2>INCOME FROM OPERATIONS</TD>
  <TD colspan=2 ALIGN="right"><font size=2>8,170,000</TD>
  <TD colspan=3 ALIGN="right"><font size=2>94,000</TD>
  <TD colspan=4 ALIGN="right"><font size=2>8,264,000</TD>
  <td></td>
</TR>
<tr>
  <TD colspan=12></TD>
</tr>
<tr>
  <TD colspan=12></TD>
</TR>
<tr>
  <td></td>
  <td><font size=2>Interest expense</TD>
  <TD colspan=2 ALIGN="right"><font size=2>1,046,000</TD>
  <TD colspan=3 ALIGN="right"><font size=2>25,000</TD>
  <td></td>
  <td><font size=2><sup>1&nbsp;2</sup></TD>
  <TD colspan=2 ALIGN="right"><font size=2>1,071,000</TD>
  <td></td>
</TR>
<tr>
  <td colspan=3></td>
  <td><font size=2><hr line size=1 noshade></td>
  <td colspan=2></td>
  <td colspan=2><font size=2><hr line size=1 noshade></td>
  <td colspan=2></td>
  <td colspan=2><font size=2><hr line size=1 noshade></td>
<tr>
<tr>
  <TD colspan=12></TD>
</tr>
<tr>
  <TD colspan=12></TD>
</TR>
</TR>
<tr>
  <td colspan=2><font size=2>INCOME BEFORE INCOME TAXES</TD>
  <TD colspan=2 ALIGN="right"><font size=2>7,124,000</TD>
  <TD colspan=3 ALIGN="right"><font size=2>69,000</TD>
  <TD colspan=4 ALIGN="right"><font size=2>7,193,000</TD>
  <td></td>
</TR>
<tr>
  <TD colspan=12></TD>
</tr>
<tr>
  <TD colspan=12></TD>
</TR>
<tr>
  <td colspan=2><font size=2>INCOME TAXES</TD>
  <TD colspan=2 ALIGN="right"><font size=2>2,779,000</TD>
  <TD colspan=3 ALIGN="right"><font size=2>92,000</TD>
  <td></td>
  <td><font size=2><sup>1&nbsp;3</sup></TD>
  <TD colspan=2 ALIGN="right"><font size=2>115,151,000</TD>
  <td></td>
</TR>

<tr>
  <td colspan=3></td>
  <td><font size=2><hr line size=1 noshade></td>
  <td colspan=2></td>
  <td colspan=2><font size=2><hr line size=1 noshade></td>
  <td colspan=2></td>
  <td colspan=2><font size=2><hr line size=1 noshade></td>
<tr>
<tr>
  <TD colspan=12></TD>
</tr>
<tr>
  <TD colspan=12></TD>
</TR>
<tr valign=bottom>
  <td colspan=2><font size=2>INCOME FROM CONTINUING OPERATIONS</TD>
  <TD colspan=2 ALIGN="right"><font size=2>4,345,000</TD>
  <TD colspan=3 ALIGN="right"><font size=2>(23,000</td>
  <TD ALIGN=left><font size=2>)</TD>
  <td colspan=3 align=right><font size=2>(107,958,000</td>
  <td><font size=2>)</td>
</TR>
<tr>
  <TD colspan=12></TD>
</tr>
<tr>
  <TD colspan=12></TD>
</TR>
<tr>
  <td colspan=2><font size=2>DISCONTINUED OPERATIONS</TD>
  <TD colspan=2 ALIGN="right"><font size=2>21,009,000</TD>
  <TD colspan=7 ALIGN="right"><font size=2>21,009,000</TD>
  <td></td>
</TR>
<tr>
  <td colspan=3></td>
  <td><font size=2><hr line size=1 noshade></td>
  <td colspan=2></td>
  <td colspan=2><font size=2><hr line size=1 noshade></td>
  <td colspan=2></td>
  <td colspan=2><font size=2><hr line size=1 noshade></td>
<tr>
<tr>
  <TD colspan=12></TD>
</tr>
<tr>
  <TD colspan=12></TD>
</TR>
<tr>
  <td colspan=2><font size=2>NET INCOME</TD>
  <TD ALIGN="right"><font size=2>$</TD>
  <TD ALIGN="right"><font size=2>25,354,000</TD>
  <TD colspan=2 ALIGN="right"><font size=2>$</TD>
  <TD ALIGN="right"><font size=2>(23,000</td>
  <td><font size=2>)</td>
  <TD colspan=2 ALIGN="right"><font size=2>$</TD>
  <TD ALIGN="right"><font size=2>(86,949,000</td>
  <td><font size=2>)</TD>
</TR>
<tr>
  <td colspan=3></td>
  <td><font size=2><hr line size=2 noshade></td>
  <td colspan=2></td>
  <td colspan=2><font size=2><hr line size=2 noshade></td>
  <td colspan=2></td>
  <td colspan=2><font size=2><hr line size=2 noshade></td>
<tr>
<tr>
  <TD colspan=12></TD>
</tr>
<tr>
  <TD colspan=12></TD>
</TR>
<tr>
  <td colspan=2><font size=2>BASIC EARNINGS PER SHARE</TD>
  <TD ALIGN="right"><font size=2>$</TD>
  <TD ALIGN="right"><font size=2>2.24</TD>
  <TD colspan=2 ALIGN="right"><font size=2>$</TD>
  <td><font size=2>0.00</td>
  <td></td>
  <TD colspan=2 ALIGN="right"><font size=2>$</TD>
  <TD ALIGN="right"><font size=2>2.24</TD>
  <td></td>
</TR>
<tr>
  <TD colspan=12></TD>
</tr>
<tr>
  <TD colspan=12></TD>
</TR>
<tr>
  <td colspan=2><font size=2>DILUTED EARNINGS PER SHARE</TD>
  <TD ALIGN="right"><font size=2>$</TD>
  <TD ALIGN="right"><font size=2>2.20 </TD>
  <TD colspan=2 ALIGN="right"><font size=2>$</TD>
  <TD ALIGN="right"><font size=2>0.00</td>
  <td></td>
  <TD colspan=2 ALIGN="right"><font size=2>$</TD>
  <TD ALIGN="right"><font size=2>2.20</TD>
  <td></td>
</TR>
<tr>
  <TD colspan=12></TD>
</tr>
<tr>
  <TD colspan=12></TD>
</TR>
<tr>
  <TD colspan=2><font size=2>AVERAGE SHARES OUTSTANDING</TD>
  <TD colspan=2 ALIGN="right"><font size=2>11,308,000</TD>
  <TD colspan=3 ALIGN="right"><font size=2>11,308,000</TD>
  <TD colspan=4 ALIGN="right"><font size=2>11,308,000</TD>
  <td></td>
</TR>
<tr>
  <td colspan=3></td>
  <td><font size=2><hr line size=2 noshade></td>
  <td colspan=2></td>
  <td colspan=2><font size=2><hr line size=2 noshade></td>
  <td colspan=2></td>
  <td colspan=2><font size=2><hr line size=2 noshade></td>
<tr>
<tr>
  <TD colspan=12></TD>
</tr>
<tr>
  <TD colspan=12></TD>
</TR>
<tr valign=bottom>
  <TD colspan=2><font size=2>AVERAGE SHARES AND<br>EQUIVALENT SHARES OUTSTANDING</TD>
  <TD colspan=2 ALIGN="right"><font size=2>11,537,000</TD>
  <TD colspan=3 ALIGN="right"><font size=2>11,537,000</TD>
  <TD colspan=4 ALIGN="right"><font size=2>11,537,000</TD>
  <td></td>
</TR>
<tr>
  <td colspan=3></td>
  <td><font size=2><hr line size=2 noshade></td>
  <td colspan=2></td>
  <td colspan=2><font size=2><hr line size=2 noshade></td>
  <td colspan=2></td>
  <td colspan=2><font size=2><hr line size=2 noshade></td>
<tr>
</TABLE>

<br wp="br1"<br wp="br2">

<table border=0 width=97% cellpadding=0>
<tr>
  <td width=3%></td>
  <td width=94%></td>
</tr>
<tr valign=top>
  <td><font size=2><sup>1</sup></td>
  <td><div align=justify><font size=2>Represents the historical results of XEN for
the quarter ended December 31, 1999.</div></TD>
</tr>
<tr>
  <td colspan=2></td>
</tr>
<tr>
  <td colspan=2></td>
</tr>
<tr valign=top>
  <td><font size=2><sup>2</sup></td>
  <td><div align=justify><font size=2>Adjustments include estimated interest
expense of $25,000 on the line of credit and an additional $39,000 of
goodwill amortization.</div></TD>
</tr>
<tr valign=top>
  <td><font size=2><sup>3</sup></td>
  <td><div align=justify><font size=2>To record additional tax for nondeductible
goodwill amortization net of a benefit from additional interest
expense.</div></TD>
</TR>
</TABLE>

<br wp="br1"><br wp="br2">

<hr line size=1 align=center width=33%>

<br wp="br1"><br wp="br2">


<p align=center>CACI INTERNATIONAL INC<br>UNAUDITED PRO-FORMA
CONSOLIDATED BALANCE SHEET<br>JUNE 30, 1999</p>

<Table border=0 width=84% cellpadding=0>
<tr>
  <td width=3%></td>
  <td width=40%></td>
  <td width=2%></td>
  <td width=9%></td>
  <td width=3%></td>
  <td width=2%></td>
  <td width=9%></td>
  <td width=5%></td>
  <td width=2%></td>
  <td width=9%></td>
</tr>
<tr>
  <TD COLSPAN=2></TD>
  <TD colspan=2 ALIGN=center><font size=2>HISTORICAL</TD>
  <td></td>
  <TD colspan=2 ALIGN=center><font size=2>PRO FORMA<br>ADJUSTMENTS</td>
  <TD></TD>
  <TD colspan=2 ALIGN=center><font size=2>PRO FORMA</TD>
</TR>
<TR>
  <td colspan=2></td>
  <td colspan=2><hr line size=1 noshade></td>
  <td></td>
  <td colspan=2><hr line size=1 noshade></td>
  <td></td>
  <td colspan=2><hr line size=1 noshade></td>
</tr>

<tr>
  <td colspan=10></td>
</tr>
<tr>
  <TD colspan=10><font size=2>ASSETS</TD>
</tr>
<tr>
  <TD colspan=10></TD>
</TR>
<TR>
  <TD colspan=10></TD>
</TR>
<TR>
  <TD colspan=10><font size=2>Current assets</TD>
</TR>
<tr>
  <td></td>
  <TD><font size=2>Cash and equivalents</TD>
  <TD ALIGN="right"><font size=2>$</TD>
  <TD ALIGN="right"><font size=2>2,403,000</TD>
  <td></td>
  <TD ALIGN="right"><font size=2>$</TD>
  <TD ALIGN="right"><font size=2>1,364,000</TD>
  <TD><font size=2><sup>2</sup></TD>
  <TD ALIGN="right"><font size=2>$</TD>
  <TD ALIGN="right"><font size=2>3,767,000</TD>
</TR>
<tr>
  <td></td>
  <TD><font size=2>Accounts receivable, net</TD>
  <TD colspan=2 ALIGN="right"><font size=2>111,945,000</TD>
  <TD colspan=3 ALIGN="right"><font size=2>1,266,000</TD>
  <TD><font size=2><sup>2</sup></TD>
  <TD colspan=2 ALIGN="right"><font size=2>113,211,000</TD>
</TR>
<tr>
  <td></td>
  <TD ALIGN="left"><font size=2>Income taxes receivable</TD>
  <TD colspan=2 ALIGN="right"><font size=2>948,000</TD>
  <TD colspan=3 ALIGN="right"><font size=2>-</TD>
  <TD colspan=3 ALIGN="right"><font size=2>948,000</TD>
</TR>
<tr>
  <td></td>
  <TD ALIGN="left"><font size=2>Deferred contract costs</TD>
  <TD colspan=2 ALIGN="right"><font size=2>1,543,000</TD>
  <TD colspan=3 ALIGN="right"><font size=2>-</TD>
  <TD colspan=3 ALIGN="right"><font size=2>1,543,000</TD>
</TR>
<tr>
  <td></td>
  <TD ALIGN="left"><font size=2>Deferred income taxes</TD>
  <TD colspan=2 ALIGN="right"><font size=2>-</TD>
  <TD colspan=3 ALIGN="right"><font size=2>64,000</TD>
  <TD ALIGN="left"><font size=2><sup>2</sup></TD>
  <TD colspan=2 ALIGN="right"><font size=2>64,000</TD>
</TR>
<tr>
  <td></td>
  <TD ALIGN="left"><font size=2>Prepaid expenses and other</TD>
  <TD colspan=2 ALIGN="right"><font size=2>5,635,000</TD>
  <TD colspan=3 ALIGN="right"><font size=2>29,000</TD>
  <TD ALIGN="left"><font size=2><sup>2</sup></TD>
  <TD colspan=2 ALIGN="right"><font size=2>5,664,000</TD>
</TR>
<TR>
  <td colspan=3></td>
  <td><hr line size=1 noshade></td>
  <td colspan=2></td>
  <td><hr line size=1 noshade></td>
  <td colspan=2></td>
  <td><hr line size=1 noshade></td>
</tr>
<tr>
  <td></td>
  <TD ALIGN="left"><font size=2>Total current assets</TD>
  <TD colspan=2 ALIGN="right"><font size=2>122,474,000</TD>
  <TD colspan=3 ALIGN="right"><font size=2>2,723,000</TD>
  <TD colspan=3 ALIGN="right"><font size=2>125,197,000</TD>
</TR>
<TR>
  <td colspan=3></td>
  <td><hr line size=1 noshade></td>
  <td colspan=2></td>
  <td><hr line size=1 noshade></td>
  <td colspan=2></td>
  <td><hr line size=1 noshade></td>
</tr>
<tr>
  <TD colspan=2><font size=2>Property and equipment, net</TD>
  <TD colspan=2 ALIGN="right"><font size=2>13,762,000</TD>
  <TD colspan=3 ALIGN="right"><font size=2>79,000</TD>
  <TD><font size=2><sup>2</sup></TD>
  <TD colspan=2 ALIGN="right"><font size=2>13,841,000</TD>
</TR>
<TR>
  <td colspan=3></td>
  <td><hr line size=1 noshade></td>
  <td colspan=2></td>
  <td><hr line size=1 noshade></td>
  <td colspan=2></td>
  <td><hr line size=1 noshade></td>
</tr>
<tr>
  <td></td>
  <TD><font size=2>Accounts receivable, long term</TD>
  <TD colspan=2 ALIGN="right"><font size=2>7,036,000</TD>
  <TD colspan=3 ALIGN="right"><font size=2>-</TD>
  <TD colspan=3 ALIGN="right"><font size=2>7,036,000</TD>
</TR>
<tr>
  <td></td>
  <TD><font size=2>Goodwill</TD>
  <TD colspan=2 ALIGN="right"><font size=2>67,767,000</TD>
  <TD colspan=3 ALIGN="right"><font size=2>2,580,000</TD>
  <TD><font size=2><sup>1&nbsp;2&nbsp;3</sup></TD>
  <TD colspan=2 ALIGN="right"><font size=2>70,347,000</TD>
</TR>
<tr>
  <td></td>
  <TD><font size=2>Deferred income taxes</TD>
  <TD colspan=2 ALIGN="right"><font size=2>3,418,000</TD>
  <TD colspan=3 ALIGN="right"><font size=2>-</TD>
  <TD colspan=3 ALIGN="right"><font size=2>3,418,000</TD>
</TR>
<tr>
  <td></td>
  <TD><font size=2>Deferred contract costs, long term</TD>
  <TD colspan=2 ALIGN="right"><font size=2>989,000</TD>
  <TD colspan=3 ALIGN="right"><font size=2>-</TD>
  <TD colspan=3 ALIGN="right"><font size=2>989,000</TD>
</TR>
<tr>
  <td></td>
  <TD><font size=2>Other assets</TD>
  <td colspan=2 ALIGN="right"><font size=2>6,266,000</td>
  <td colspan=3 ALIGN="right"><font size=2>35,000</td>
  <td><font size=2><sup>2</sup></td>
  <td colspan=2 ALIGN="right"><font size=2>6,301,000</td>
</TR>
<TR>
  <td colspan=3></td>
  <td><hr line size=1 noshade></td>
  <td colspan=2></td>
  <td><hr line size=1 noshade></td>
  <td colspan=2></td>
  <td><hr line size=1 noshade></td>
</tr>
<tr>
  <td></td>
  <TD><font size=2>TOTAL ASSETS</TD>
  <TD ALIGN="right"><font size=2>$</TD>
  <TD ALIGN="right"><font size=2>221,712,000</TD>
  <TD colspan=2 ALIGN="right"><font size=2>$</TD>
  <TD ALIGN="right"><font size=2>5,417,000</TD>
  <TD colspan=2 ALIGN="right"><font size=2>$</TD>
  <TD ALIGN="right"><font size=2>227,129,000</TD>
</TR>
<TR>
  <td colspan=3></td>
  <td><hr line size=2 noshade></td>
  <td colspan=2></td>
  <td><hr line size=2 noshade></td>
  <td colspan=2></td>
  <td><hr line size=2 noshade></td>
</tr>
<tr>
  <TD colspan=10><font size=2>LIABILITIES AND STOCKHOLDERS' EQUITY</TD>
</TR>
<tr>
  <TD colspan=10></TD>
</tr>
<tr>
  <TD colspan=10></td>
</tr>
<tr>
  <TD colspan=10><font size=2>Current liabilities</TD>
</TR>
<tr>
  <td></td>
  <TD><font size=2>Accounts payable and accrued expenses</TD>
  <TD ALIGN="right"><font size=2>$</TD>
  <TD ALIGN="right"><font size=2>32,851,000</TD>
  <TD colspan=2 ALIGN="right"><font size=2>$</TD>
  <TD ALIGN="right"><font size=2>880,000</TD>
  <TD><font size=2><sup>2&nbsp;3</sup></TD>
  <TD ALIGN="right"><font size=2>$</TD>
  <TD ALIGN="right"><font size=2>33,731,000</TD>
</TR>
<tr>
  <td></td>
  <TD><font size=2>Accrued compensation and benefits</TD>
  <TD colspan=2 ALIGN="right"><font size=2>21,304,000</TD>
  <TD colspan=3 ALIGN="right"><font size=2>-</TD>
  <TD colspan=3 ALIGN="right"><font size=2>21,304,000</TD>
</TR>
<tr>
  <td></td>
  <TD><font size=2>Income taxes payable</TD>
  <TD colspan=2 ALIGN="right"><font size=2>-</TD>
  <TD colspan=3 ALIGN="right"><font size=2>255,000 </TD>
  <TD><font size=2><sup>2&nbsp;3</sup></TD>
  <TD colspan=2 ALIGN="right"><font size=2>255,000</TD>
</TR>
<tr>
  <td></td>
  <TD><font size=2>Deferred income taxes</TD>
  <TD colspan=2 ALIGN="right"><font size=2>1,593,000</TD>
  <TD colspan=3 ALIGN="right"><font size=2>-</TD>
  <TD colspan=3 ALIGN="right"><font size=2>1,593,000 </TD>
</TR>
<TR>
  <td colspan=3></td>
  <td><hr line size=1 noshade></td>
  <td colspan=2></td>
  <td><hr line size=1 noshade></td>
  <td colspan=2></td>
  <td><hr line size=1 noshade></td>
</tr>
<tr>
  <td></td>
  <TD><font size=2>Total current liabilities</TD>
  <TD colspan=2 ALIGN="right"><font size=2>55,748,000</TD>
  <TD colspan=3 ALIGN="right"><font size=2>1,135,000</TD>
  <TD colspan=3 ALIGN="right"><font size=2>56,883,000</TD>
</TR>
<TR>
  <td colspan=3></td>
  <td><hr line size=1 noshade></td>
  <td colspan=2></td>
  <td><hr line size=1 noshade></td>
  <td colspan=2></td>
  <td><hr line size=1 noshade></td>
</tr>
<tr>
  <TD colspan=10><font size=2>Long-term liabilities</TD>
</TR>
<tr>
  <td></td>
  <TD><font size=2>Notes payable, long-term</TD>
  <TD colspan=2 ALIGN="right"><font size=2>62,069,000</TD>
  <TD colspan=3 ALIGN="right"><font size=2>4,259,000</TD>
  <TD><font size=2><sup>1</sup></TD>
  <TD colspan=2 ALIGN="right"><font size=2>66,328,000</TD>
</TR>
<tr>
  <td></td>
  <TD><font size=2>Other long term liabilities</TD>
  <TD colspan=2 ALIGN="right"><font size=2>4,820,000</TD>
  <TD colspan=3 ALIGN="right"><font size=2>-</TD>
  <TD colspan=3 ALIGN="right"><font size=2>4,820,000</TD>
</TR>
<tr>
  <td></td>
  <TD><font size=2>Deferred income taxes</TD>
  <td colspan=2 ALIGN="right"><font size=2>138,000</TD>
  <TD colspan=3 ALIGN="right"><font size=2>23,000</TD>
  <TD><font size=2><sup>1</sup></TD>
  <TD colspan=2 ALIGN="right"><font size=2>161,000 </TD>
</TR>
<TR>
  <td colspan=3></td>
  <td><hr line size=1 noshade></td>
  <td colspan=2></td>
  <td><hr line size=1 noshade></td>
  <td colspan=2></td>
  <td><hr line size=1 noshade></td>
</tr>
<tr>
  <td></td>
  <TD><font size=2>Total liabilities</TD>
  <TD colspan=2 ALIGN="right"><font size=2>122,775,000</TD>
  <TD colspan=3 ALIGN="right"><font size=2>5,417,000</TD>
  <TD colspan=3 ALIGN="right"><font size=2>128,192,000</TD>
</TR>
<TR>
  <td colspan=3></td>
  <td><hr line size=1 noshade></td>
  <td colspan=2></td>
  <td><hr line size=1 noshade></td>
  <td colspan=2></td>
  <td><hr line size=1 noshade></td>
</tr>
<tr>
  <TD colspan=2><font size=2>Stockholder's equity</TD>
  <TD colspan=2 ALIGN="right"><font size=2>98,937,000</TD>
  <TD colspan=3 ALIGN="right"><font size=2>-</TD>
  <TD colspan=3 ALIGN="right"><font size=2>98,937,000</TD>
</TR>
<TR>
  <td colspan=3></td>
  <td><hr line size=1 noshade></td>
  <td colspan=2></td>
  <td><hr line size=1 noshade></td>
  <td colspan=2></td>
  <td><hr line size=1 noshade></td>
</tr>
<tr valign=bottom>
  <TD colspan=2><font size=2>TOTAL LIABILITIES<br>AND STOCKHOLDERS' EQUITY</TD>
  <TD ALIGN="right"><font size=2>$</TD>
  <TD ALIGN="right"><font size=2>221,712,000</TD>
  <TD colspan=2 ALIGN="right"><font size=2>$ </TD>
  <TD ALIGN="right"><font size=2>5,417,000</TD>
  <TD colspan=2 ALIGN="right"><font size=2>$</TD>
  <TD ALIGN="right"><font size=2>227,129,000</TD>
</TR>
<TR>
  <td colspan=3></td>
  <td><hr line size=2 noshade></td>
  <td colspan=2></td>
  <td><hr line size=2 noshade></td>
  <td colspan=2></td>
  <td><hr line size=2 noshade></td>
</tr>
</TABLE>

<br wp="br1"><br wp="br2">

<table width=98% cellpadding=0 border=0>
<tr>
  <td width=3%></td>
  <td width=94%></td>
</tr>
<tr valign=top>
  <td><font size=2><sup>1</sup></td>
  <td><div align=justify><font size=2>Represents the allocation of the net purchase
price of $4,259,000 of XEN Corporation. The excess of the purchase
price over the fair value of the net assets acquired was estimated
at $2,448,000 and will be amortized on a straight line basis over
15 years. The preliminary purchase price allocation may change
during the year ending June 30, 2000 as additional information
concerning the net asset valuations is obtained.</div></td>
</TR>
<tr>
  <TD colspan=2></TD>
</tr>
<tr>
  <TD colspan=2></TD>
</tr>
<tr valign=top>
  <TD><font size=2><sup>2</sup></td>
  <td><font size=2>The September 30, balances closely reflect the actual balances
that were acquired.</TD>
</tr>
<tr VALIGN=top>
  <td><font size=2><sup>3</sup></td>
  <td><font size=2>Reflects an increase in interest expense of approximately
$100,000 and goodwill amortization of $156,000.</TD>
</TR>
</TABLE>

<br wp="br1"><br wp="br2">

<hr line size=1 align=center width=33%>

<br wp="br1"><br wp="br2">



<p align=center>CACI INTERNATIONAL INC<br>UNAUDITED PRO-FORMA CONSOLIDATED BALANCE SHEET<br> DECEMBER 31, 1999</p>

<br wp="br1"><br wp="br2">

<Table border=0 cellpadding=0 width=85%>
<TR>
  <td width=3%></td>
  <td width=40%></td>
  <td width=2%></td>
  <td width=9%></td>
  <td width=3%></td>
  <td width=2%></td>
  <td width=9%></td>
  <td width=5%></td>
  <td width=2%></td>
  <td width=9%></td>
</tr>
<tr>
  <td colspan=2></td>
  <td colspan=2 valign=bottom align=center><font size=2>HISTORICAL</TD>
  <td></td>
  <td colspan=2 valign=bottom align=center><font size=2>PRO FORMA<br>ADJUSTMENTS</TD>
  <td></td>
  <td colspan=2 valign=bottom align=center><font size=2>PRO FORMA</td>
</tr>
<tr>
  <td colspan=2></td>
  <td colspan=2><hr line=1 noshade></td>
  <td></td>
  <td colspan=2><hr line=1 noshade></td>
  <td></td>
  <td colspan=2><hr line=1 noshade></td>
</tr>
<tr>
  <td colspan=10></td>
</tr>
<tr>
  <TD colspan=10><font size=2>ASSETS</TD>
</tr>
<tr>
  <td colspan=10></td>
</tr>
<tr>
  <td colspan=10></td>
</tr>
<TR>
  <TD colspan=10><font size=2>Current assets</TD>
</tr>
<TR>
  <TD></td>
  <td><font size=2>Cash and equivalents</TD>
  <TD ALIGN="right"><font size=2>$</TD>
  <TD ALIGN="right"><font size=2>1,374,000</TD>
  <TD colspan=2 align=right><font size=2>$</td>
  <TD ALIGN="right"><font size=2>1,043,000</TD>
  <TD><SUP><font size=1>1</SUP></TD>
  <TD ALIGN="right"><font size=2>$</TD>
  <TD ALIGN="right"><font size=2>2,417,000</TD>
</TR>
<TR>
  <td></td>
  <TD><font size=2>Accounts receivable, net</TD>
  <TD colspan=2 ALIGN="right"><font size=2>116,525,000</TD>
  <TD colspan=3 ALIGN="right"><font size=2>1,654,000</TD>
  <TD><SUP><font size=1>2</SUP></TD>
  <TD colspan=2 ALIGN="right"><font size=2>118,179,000</TD>
</TR>
<TR>
  <td></td>
  <TD><font size=2>Income taxes receivable</TD>
  <TD colspan=2 ALIGN="right"><font size=2>-</TD>
  <td colspan=3 align=right><font size=2>-</td>
  <td colspan=3 align=right><font size=2>-</td>
</tr>
<TR>
  <td></td>
  <TD><font size=2>Deferred contract costs</TD>
  <TD colspan=2 ALIGN="right"><font size=2>1,466,000</TD>
  <TD colspan=3 ALIGN="right"><font size=2>-</TD>
  <TD colspan=3 ALIGN="right"><font size=2>1,466,000</TD>
</TR>
<TR>
  <td></td>
  <TD><font size=2>Deferred income taxes</TD>
  <TD colspan=2 ALIGN="right"><font size=2>185,000</TD>
  <TD colspan=3 ALIGN="right"><font size=2>-</td>
  <td colspan=3 ALIGN="right"><font size=2>185,000</TD>
</TR>
<TR>
  <td></td>
  <TD><font size=2>Prepaid expenses and other</TD>
  <TD colspan=2 ALIGN="right"><font size=2>3,639,000</TD>
  <TD colspan=3 aLIGN="right"><font size=2>80,000</TD>
  <TD><SUP><font size=1>2</SUP></TD>
  <TD colspan=2 ALIGN="right"><font size=2>3,719,000</TD>
</TR>
<tr>
  <td colspan=3></td>
  <td><hr line=1 noshade></td>
  <td colspan=2></td>
  <td><hr line=1 noshade></td>
  <td colspan=2></td>
  <td><hr line=1 noshade></td>
</tr>
<TR>
  <TD></td>
  <td><font size=2>Total current assets</TD>
  <TD colspan=2 ALIGN="right"><font size=2>123,189,000</TD>
  <TD colspan=3 ALIGN="right"><font size=2>2,777,000</TD>
  <TD colspan=3 ALIGN="right"><font size=2>125,966,000</TD>
</TR>
<tr>
  <td colspan=3></td>
  <td><hr line=1 noshade></td>
  <td colspan=2></td>
  <td><hr line=1 noshade></td>
  <td colspan=2></td>
  <td><hr line=1 noshade></td>
</tr>
<tr>
  <td colspan=10></td>
</tr>
<tr>
  <td colspan=10></td>
</tr>

<TR>
  <TD colspan=2><font size=2>Property and equipment, net</TD>
  <TD colspan=2 ALIGN="right"><font size=2>14,656,000</TD>
  <TD colspan=3 alIGN="right"><font size=2>73,000</TD>
  <TD><SUP><font size=1>2</SUP></TD>
  <TD colspan=2 ALIGN="right"><font size=2>14,729,000</TD>
</TR>
<tr>
  <td colspan=3></td>
  <td><hr line=1 noshade></td>
  <td colspan=2></td>
  <td><hr line=1 noshade></td>
  <td colspan=2></td>
  <td><hr line=1 noshade></td>
</tr>
<tr>
  <td colspan=10></td>
</tr>
<tr>
  <td colspan=10></td>
</tr>
<TR>
  <td></td>
  <TD><font size=2>Accounts receivable, long term</TD>
  <TD colspan=2 ALIGN="right"><font size=2>6,555,000</TD>
  <TD colspan=3 ALIGN="right"><font size=2>-</td>
  <td colspan=3 align=right><font size=2>6,555,000 </TD>
</TR>
<TR>
  <td></td>
  <TD><font size=2>Goodwill</TD>
  <TD colspan=2 ALIGN="right"><font size=2>65,959,000</TD>
  <TD colspan=3 ALIGN="right"><font size=2>2,444,000</TD>
  <TD><SUP><font size=1>1&nbsp;2&nbsp;3&nbsp;</SUP></TD>
  <TD colspan=2 ALIGN="right"><font size=2>68,403,000</TD>
</TR>
<TR>
  <td></td>
  <TD><font size=2>Deferred income taxes</TD>
  <TD colspan=2 ALIGN="right"><font size=2>3,858,000</TD>
  <TD colspan=3 ALIGN="right"><font size=2>-</TD>
  <TD colspan=3 ALIGN="right"><font size=2>3,858,000</TD>
</TR>
<TR>
  <td></td>
  <TD><font size=2>Deferred contract costs, long term</TD>
  <TD colspan=2 ALIGN="right"><font size=2>484,000</TD>
  <TD colspan=3 ALIGN="right"><font size=2>-</TD>
  <TD colspan=3 ALIGN="right"><font size=2>484,000</TD>
</TR>
<TR>
  <td></td>
  <TD><font size=2>Other assets</TD>
  <TD colspan=2 ALIGN="right"><font size=2>9,647,000</TD>
  <TD colspan=3 ALIGN="right"><font size=2>10,000</TD>
  <TD><SUP><font size=1>2</SUP></TD>
  <TD colspan=2 ALIGN="right"><font size=2>9,657,000</TD>
</TR>
<tr>
  <td colspan=3></td>
  <td><hr line=1 noshade></td>
  <td colspan=2></td>
  <td><hr line=1 noshade></td>
  <td colspan=2></td>
  <td><hr line=1 noshade></td>
</tr>
<tr>
  <td colspan=10></td>
</tr>
<tr>
  <td colspan=10></td>
</tr>
<TR>
  <td></td>
  <TD><font size=2>TOTAL ASSETS</TD>
  <TD ALIGN="right"><font size=2>$</TD>
  <TD ALIGN="right"><font size=2>224,348,000 </TD>
  <TD colspan=2 ALIGN="right"><font size=2>$</TD>
  <TD ALIGN="right"><font size=2>5,304,000</TD>
  <TD colspan=2 ALIGN="right"><font size=2>$</TD>
  <TD ALIGN="right"><font size=2>229,652,000</TD>
</TR>
<tr>
  <td colspan=3></td>
  <td><hr line=2 noshade></td>
  <td colspan=2></td>
  <td><hr line=2 noshade></td>
  <td colspan=2></td>
  <td><hr line=2 noshade></td>
</tr>
<tr>
  <td colspan=10></td>
</tr>
<tr>
  <td colspan=10></td>
</tr>
<TR>
  <TD colspan=10 ALIGN="left"><font size=2>LIABILITIES AND STOCKHOLDERS' EQUITY</TD>
</TR>
<tr>
  <td colspan=10></td>
</tr>
<tr>
  <td colspan=10></td>
</tr>
<TR>
  <TD colspan=10 ALIGN="left"><font size=2>Current liabilities</TD>
</tr>
<tr>
  <td></td>
  <TD><font size=2>Accounts payable and accrued expenses</TD>
  <TD ALIGN="right"><font size=2>$</TD>
  <TD ALIGN="right"><font size=2>23,944,000</TD>
  <TD colspan=2 ALIGN="right"><font size=2>$</TD>
  <TD ALIGN="right"><font size=2>858,000</TD>
  <TD><SUP><font size=1>2&nbsp;3</SUP></TD>
  <TD ALIGN="right"><font size=2>$</TD>
  <TD ALIGN="right"><font size=2>24,802,000</TD>
</TR>
<TR>
  <td></td>
  <TD><font size=2>Accrued compensation and benefits</TD>
  <TD colspan=2 ALIGN="right"><font size=2>19,407,000</TD>
  <TD colspan=3 ALIGN="right"><font size=2>-</TD>
  <TD colspan=3 ALIGN="right"><font size=2>19,407,000</TD>
</TR>
<TR>
  <td></td>
  <TD><font size=2>Income taxes payable</TD>
  <TD colspan=2 ALIGN="right"><font size=2>10,110,000</TD>
  <TD colspan=3 ALIGN="right"><font size=2>123,000</TD>
  <TD><SUP><font size=1>2&nbsp;3</SUP></TD>
  <TD colspan=2 ALIGN="right"><font size=2>10,233,000</TD>
</TR>
<TR>
  <td></td>
  <TD><font size=2>Deferred income taxes</TD>
  <TD colspan=2 ALIGN="right"><font size=2>5,143,000</TD>
  <TD colspan=3 ALIGN="right"><font size=2>-</td>
  <td colspan=3 align=right><font size=2>5,143,000</TD>
</TR>
<tr>
  <td colspan=3></td>
  <td><hr line=1 noshade></td>
  <td colspan=2></td>
  <td><hr line=1 noshade></td>
  <td colspan=2></td>
  <td><hr line=1 noshade></td>
</tr>
<tr>
  <td colspan=10></td>
</tr>
<tr>
  <td colspan=10></td>
</tr>
<TR>
  <td></td>
  <TD><font size=2>Total current liabilities</TD>
  <TD colspan=2 ALIGN="right"><font size=2>58,604,000</TD>
  <TD colspan=3 ALIGN="right"><font size=2>981,000</TD>
  <TD colspan=3 ALIGN="right"><font size=2>59,585,000</TD>
</TR>
<tr>
  <td colspan=3></td>
  <td><hr line=1 noshade></td>
  <td colspan=2></td>
  <td><hr line=1 noshade></td>
  <td colspan=2></td>
  <td><hr line=1 noshade></td>
</tr>
<tr>
  <td colspan=10></td>
</tr>
<tr>
  <td colspan=10></td>
</tr>
<TR>
  <TD colspan=10 ALIGN="left"><font size=2>Long-term liabilities</TD>
</TR>
<TR>
  <td></td>
  <TD><font size=2>Notes payable, long-term</TD>
  <TD colspan=2 ALIGN="right"><font size=2>26,253,000</TD>
  <TD colspan=3 ALIGN="right"><font size=2>4,259,000</TD>
  <TD><SUP><font size=1>1</SUP></TD>
  <TD colspan=2 ALIGN="right"><font size=2>30,512,000</TD>
</TR>
<TR>
  <td></td>
  <TD><font size=2>Other long term liabilities</TD>
  <TD colspan=2 ALIGN="right"><font size=2>4,964,000</TD>
  <TD colspan=3 ALIGN="right"><font size=2>64,000</TD>
  <TD><SUP><font size=1>2</SUP></TD>
  <TD colspan=2 ALIGN="right"><font size=2>5,028,000</TD>
</TR>
<TR>
  <td></td>
  <TD><font size=2>Deferred income taxes</TD>
  <TD colspan=2 ALIGN="right"><font size=2>132,000</TD>
  <TD colspan=3 ALIGN="right"><font size=2>-</TD>
  <TD colspan=3 ALIGN="right"><font size=2>132,000</TD>
</TR>
<tr>
  <td colspan=3></td>
  <td><hr line=1 noshade></td>
  <td colspan=2></td>
  <td><hr line=1 noshade></td>
  <td colspan=2></td>
  <td><hr line=1 noshade></td>
</tr>
<tr>
  <td colspan=10></td>
</tr>
<tr>
  <td colspan=10></td>
</tr>
<TR>
  <td></td>
  <TD><font size=2>Total liabilities</TD>
  <TD colspan=2 ALIGN="right"><font size=2>89,953,000</TD>
  <TD colspan=3 ALIGN="right"><font size=2>5,304,000</TD>
  <TD colspan=3 ALIGN="right"><font size=2>95,257,000</TD>
</TR>
<tr>
  <td colspan=3></td>
  <td><hr line=1 noshade></td>
  <td colspan=2></td>
  <td><hr line=1 noshade></td>
  <td colspan=2></td>
  <td><hr line=1 noshade></td>
</tr>
<tr>
  <td colspan=10></td>
</tr>
<tr>
  <td colspan=10></td>
</tr>
<TR>
  <TD colspan=2 ALIGN="left"><font size=2>Stockholder's equity</TD>
  <TD colspan=2 ALIGN="right"><font size=2>134,395,000</TD>
  <TD colspan=3 ALIGN="right"><font size=2>-</td>
  <TD colspan=3 ALIGN="right"><font size=2>134,395,000</TD>
</TR>
<tr>
  <td colspan=3></td>
  <td><hr line=1 noshade></td>
  <td colspan=2></td>
  <td><hr line=1 noshade></td>
  <td colspan=2></td>
  <td><hr line=1 noshade></td>
</tr>
<tr>
  <td colspan=10></td>
</tr>
<tr>
  <td colspan=10></td>
</tr>
<TR>
  <td></td>
  <TD><font size=2>TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY</TD>
  <TD ALIGN="right"><font size=2>$</TD>
  <TD ALIGN="right"><font size=2>224,348,000</TD>
  <TD colspan=2 ALIGN="right"><font size=2>$</TD>
  <TD ALIGN="right"><font size=2>5,304,000</TD>
  <TD colspan=2 ALIGN="right"><font size=2>$</TD>
  <TD ALIGN="right"><font size=2>229,652,000</TD>
</TR>
<tr>
  <td colspan=3></td>
  <td><hr line=2 noshade></td>
  <td colspan=2></td>
  <td><hr line=2 noshade></td>
  <td colspan=2></td>
  <td><hr line=2 noshade></td>
</tr>
</tr>
</TABLE>

<br wp="br1"><br wp="br2">

<table width=98% border=0 cellpadding=1>
<TR>
  <td width=4%></td>
  <td width=94%><td>
</tr>
<tr>
  <TD valign=top><sup><font size=1>1</sup></td>
  <td><font size=2><div align=justify>Represents the allocation of the net purchase price of $4,259,000 of XEN Corporation. The excess of the purchase price over the fair value of the net assets acquired was estimated at $2,448,000 and will be amortized
on a straight line basis over 15 years. The preliminary purchase price allocation may change during the year ending June 30, 2000 as additional information concerning the net asset valuations is obtained.</div></TD>
</tr>
<tr>
  <td colspan=2></td>
</tr>
<tr>
  <td colspan=2></td>
</tr>
<tr>
  <td valign=top><sup><font size=1>2</sup></td>
  <td><font size=2>The December 31, balances closely reflect the actual balances that were acquired.</TD>
</tr>
<tr>
  <td colspan=2></td>
</tr>
<tr>
  <td colspan=2></td>
</tr>
<tr>
  <td valign=top><sup><font size=1>3</sup></td>
  <td><font size=2>Reflects an increase in interest expense of approximately $25,000 and goodwill amortization of $39,000.</TD>
</tr>
</TABLE>
</font>

<br wp="br1"><br wp="br2">

<hr line size=1 noshade width=33% align=center>

<br wp="br1"><br wp="br2">

<basefont size=3>

<p>(c)&nbsp;&nbsp;&nbsp;EXHIBITS.</p>

<p align=justify>99.1&nbsp;&nbsp;&nbsp;Agreement and Plan of Merger by and among CACI International Inc, CACI Acquisition Corporation, and XEN Corporation dated as of January 28, 2000.</p>

<P align=justify>99.2&nbsp;&nbsp;&nbsp;Press Release dated February 2, 2000, announcing completion of the acquisition of XEN Corporation.</P>

<br wp="br1"><br wp="br2">

<p align=center>SIGNATURE</P>

<P align=justify>Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be
signed on its behalf by the undersigned hereunto duly authorized.</P>

<br wp="br1"><br wp="br2">

<p><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CACI International Inc
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u><br>&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Registrant)</p>

<br wp="br1"><br wp="br2">

<table width=35% border=0>
<TR>
  <td width=8%></td>
  <td width=27%></td>
</tr>
<tr>
  <TD>By:</TD>
  <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/</td>
</tr>
  <td></td>
  <td><hr size=1></td>
</tr>
<tr>
  <td></td>
  <td>Jeffrey P. Elefante<BR>Executive Vice President,<BR>General Counsel and Secretary</TD>
</TR>
</TABLE>
</body>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>2
<TEXT>

<HTML>
<head>
<TITLE></TITLE>
</head>
<body text="#000000" link="#0000ff" vlink="#551a8b" alink="#ff0000" bgcolor="#c0c0c0">

<p align=right>Exhibit 99.1</p>

<p align="center">CACI International Inc<br>CACI Acquisition Corporation<br>XEN Corporation<br wp=1 br wp=2>
AGREEMENT and PLAN OF MERGER</strong></p>

<p align="center">Table of Contents

<br wp="br1"><br wp="br2">

<table border=0 width="100%">
<tr>
  <td width=8%></td>
  <td width=8%></td>
  <td width=8%></td>
  <td width=8%></td>
  <td width=68%></td>
</tr>
<tr>
  <td colspan=5>Article 1</td>
</tr>
<tr>
  <td></td>
  <td colspan=4><strong>Definitions</strong></td>
</tr>
<tr>
  <td></td>
  <td></td>
  <td>1.1</td>
  <td colspan="2"><strong>Certain Matters of Construction</strong></td>
</tr>
<tr>
  <td></td>
  <td></td>
  <td>1.2</td>
  <td colspan=2><strong>Cross References</strong></td>
</tr>
<tr>
  <td></td>
  <td></td>
  <td>1.3</td>
  <td colspan=2><strong>Certain Definitions</strong></td>
</tr>
<tr>
  <td colspan=5>Article 2</td>
</tr>
<tr>
  <td></td>
  <td colspan="4"><strong>The Merger</strong></td>
</tr>
<tr>
  <td></td>
  <td></td>
  <td>2.1</td>
  <td colspan="2"><strong>Procedure for the Merger</strong></td>
</tr>
<tr>
  <td></td>
  <td></td>
  <td>2.2</td>
  <td colspan="2"<strong>Surviving Corporation</strong></td>
</tr>
<tr>
  <td></td>
  <td></td>
  <td></td>
  <td>2.2.1</td>
  <td><strong>Corporate Existence</strong></td>
</tr>
<tr>
 <td></td>
 <td></td>
 <td></td>
 <td>2.2.2</td>
 <td><strong>Articles of Incorporation and By-laws</strong></td>
</tr>
<tr>
 <td></td>
 <td></td>
 <td></td>
 <td>2.2.3</td>
 <td><strong>Directors</strong></td>
</tr>
<tr>
 <td></td>
 <td></td>
 <td></td>
 <td>2.2.4</td>
 <td><strong>Effect of the Merger</strong></td>
</tr>
<tr>
  <td></td>
  <td></td>
  <td>2.3</td>
  <td colspan="2"><strong>Conversion of Stock</strong></td>
</tr>
<tr>
  <td></td>
  <td></td>
  <td></td>
  <td>2.3.1</td>
  <td><strong>Stock of the Company</strong></td>
</tr>
<tr>
  <td></td>
  <td></td>
  <td></td>
  <td>2.3.2</td>
  <td><strong>Merger Price and Merger Price Per Share</strong></td>
</tr>
<tr>
  <td></td>
  <td></td>
  <td></td>
  <td>2.3.3</td>
  <td><strong>Stock of the Merger Sub</strong></td>
</tr>
<tr>
  <td></td>
  <td></td>
  <td>2.4</td>
  <td colspan="2"><strong>Appraisal Rights</strong></td>
</tr>
<tr>
  <td></td>
  <td></td>
  <td>2.5</td>
  <td colspan="2"><strong>Payment of Merger Price</strong></td>
</tr>
<tr>
  <td></td>
  <td></td>
  <td>2.6</td>
  <td colspan="2"><strong>Additional Actions</strong></td>
</tr>
<tr>
  <td colspan="5">Article 3</td>
</tr>
<tr>
  <td></td>
  <td colspan="4"><strong>Representations And Warranties Of The Company</strong></td>
</tr>
<tr>
  <td></td>
  <td></td>
  <td>3.1</td>
  <td colspan="3"><strong>Corporate Status of the Company</strong></td>
</tr>
<tr>
  <td></td>
  <td></td>
  <td>3.2</td>
  <td colspan="2"><strong>Capital Stock</strong></td>
</tr>
<tr>
  <td></td>
  <td></td>
  <td></td>
  <td>3.2.1</td>
  <td><strong>Authorized Stock of the Company</strong></td>
</tr>
<tr>
  <td></td>
  <td></td>
  <td></td>
  <td>3.2.2</td>
  <td><strong>Options and Convertible Securities of the Company</strong></td>
</tr>
<tr>
  <td></td>
  <td></td>
  <td>3.3</td>
  <td colspan="2"><strong>Subsidiaries</strong></td>
</tr>
<tr>
  <td></td>
  <td></td>
  <td>3.4</td>
  <td colspan="2"><strong>Authority for Agreement; Noncontravention</strong></td>
</tr>
<tr>
  <td></td>
  <td></td>
  <td></td>
  <td>3.4.1</td>
  <td><strong>Authority</strong></td>
</tr>
<tr>
  <td></td>
  <td></td>
  <td></td>
  <td>3.4.2</td>
  <td><strong>No Conflict</strong></td>
</tr>
<tr>
  <td></td>
  <td></td>
  <td>3.5</td>
  <td colspan="2"><strong>Financial Statements</strong></td>
</tr>
<tr>
  <td></td>
  <td></td>
  <td>3.6</td>
  <td colspan="3"><strong>Absence of Material Adverse Changes</strong></td>
</tr>
<tr>
  <td></td>
  <td></td>
  <td>3.7</td>
  <td colspan="3"><strong>Absence of Undisclosed Liabilities</strong></td>
</tr>
<tr>
  <td></td>
  <td></td>
  <td>3.8</td>
  <td colspan="2"><strong>Compliance with Applicable Law, Charter and By-Laws</strong></td>
</tr>
<tr>
  <td></td>
  <td></td>
  <td>3.9</td>
  <td colspan="2"><strong>Litigation and Audits</strong></td>
</tr>
<tr>
  <td></td>
  <td></td>
  <td>3.10</td>
  <td colspan="2"><strong>Tax Matters</strong></td>
</tr>
<tr>
  <td></td>
  <td></td>
  <td></td>
  <td>3.10.1</td>
  <td><strong>Filing of Returns</strong></td>
</tr>
<tr>
  <td></td>
  <td></td>
  <td></td>
  <td>3.10.2</td>
  <td><strong>Payment of Taxes</strong></td>
</tr>
<tr>
  <td></td>
  <td></td>
  <td></td>
  <td>3.10.3</td>
  <td><strong>Withholding</strong></td>
</tr>
<tr>
  <td></td>
  <td></td>
  <td></td>
  <td>3.10.4</td>
  <td><strong>Assessments</strong></td>
</tr>
<tr>
  <td></td>
  <td></td>
  <td></td>
  <td>3.10.5</td>
  <td><strong>Access to Returns</strong></td>
</tr>
<tr>
  <td></td>
  <td></td>
  <td></td>
  <td>3.10.6</td>
  <td><strong>Definition of Taxes</strong></td>
</tr>
<tr>
  <td></td>
  <td></td>
  <td>3.11</td>
  <td colspan="2"><strong>Employee Benefit Plans</strong></td>
</tr>
<tr>
  <td></td>
  <td></td>
  <td></td>
  <td>3.11.1</td>
  <td><strong>List of Plans</strong></td>
</tr>
<tr>
  <td></td>
  <td></td>
  <td></td>
  <td>3.11.2</td>
  <td><strong>ERISA</strong></td>
</tr>
<tr>
 <td></td>
  <td></td>
  <td></td>
  <td>3.11.3</td>
  <td><strong>Plan Determinations</strong></td>
</tr>
<tr>
  <td></td>
  <td></td>
  <td></td>
  <td>3.11.4</td>
  <td><strong>Funding</strong></td>
</tr>
<tr>
  <td></td>
  <td></td>
  <td>3.12</td>
  <td colspan="2"><strong>Employment-Related Matters</strong></td>
</tr>
<tr>
  <td></td>
  <td></td>
  <td></td>
  <td>3.12.1</td>
  <td><strong>Labor Relations</strong></td>
</tr>
<tr>
  <td></td>
  <td></td>
  <td></td>
  <td>3.12.2</td>
  <td><strong>Employee List</strong></td>
</tr>
<tr>
  <td></td>
  <td></td>
  <td>3.13</td>
  <td colspan="2"><strong>Environmental</strong></td>
</tr>
<tr>
  <td></td>
  <td></td>
  <td></td>
  <td>3.13.1</td>
  <td><strong>Environmental Laws</strong></td>
</tr>
<tr>
  <td></td>
  <td></td>
  <td></td>
  <td>3.13.2</td>
  <td><strong>Environmental Claims</strong></td>
</tr>
<tr>
  <td></td>
  <td></td>
  <td></td>
  <td>3.13.3</td>
  <td><strong>No Basis for Claims</strong></td>
</tr>
<tr>
  <td></td>
  <td></td>
  <td>3.14</td>
  <td colspan="2"><strong>No Broker's or Finder's Fees</strong></td>
</tr>
<tr>
  <td></td>
  <td></td>
  <td>3.15</td>
  <td colspan="2"><strong>Assets Other Than Real Property</strong></td>
</tr>
<tr>
  <td></td>
  <td></td>
  <td></td>
  <td>3.15.1</td>
  <td><strong>Title</strong></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top">3.15.2</td>
  <td><strong>Inventory</strong></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top">3.15.3</td>
  <td><strong>Accounts Receivable</strong></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top">3.15.4</td>
  <td><strong>Condition</strong></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top">3.16</td>
  <td colspan="2" valign="top"><strong>Real Property</strong></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top">3.16.1</td>
  <td valign="top"><strong>Company Real Property</strong></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top">3.16.2</td>
  <td><strong>Company Leases</strong></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top">3.16.3</td>
  <td><strong>Condition</strong></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top">3.17</td>
  <td colspan="2" valign="top"><strong>Agreements, Contracts and Commitments</strong></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top">3.17.1</td>
  <td><strong>Company Agreements</strong></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top">3.17.2</td>
  <td><strong>Validity</strong></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top">3.18</td>
  <td colspan="2" valign="top"><strong>Intellectual Property</strong></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top">3.18.1</td>
  <td><strong>Right to Intellectual Property</strong></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top">3.18.2</td>
  <td><strong>No Conflict</strong></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top">3.18.3</td>
  <td><strong>Employee Agreements</strong></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top">3.19</td>
  <td colspan="2"><strong>Insurance Contracts</strong></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top">3.20</td>
  <td colspan="2"><strong>Banking Relationships</strong></td>
</tr>
<tr>
  <td colspan="5">Article 4</td>
</tr>
<tr>
  <td valign="top"></td>
  <td colspan="4"><strong>Representations And Warranties Of Parent And Merger Sub</strong></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top">4.1</td>
  <td colspan="2"><strong>Corporate Status of Parent and its Subsidiaries</strong></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top">4.2</td>
  <td colspan="2"><strong>Authorized Stock of Merger Sub</strong></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top">4.3</td>
  <td colspan="2"><strong>Authority for Agreement; Noncontravention</strong></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top">4.3.1</td>
  <td><strong>Authority of Parent</strong></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top">4.3.2</td>
  <td><strong>No Conflict</strong></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top">4.4</td>
  <td colspan="2"><strong>SEC Statements, Reports and Documents</strong></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top">4.5</td>
  <td colspan="2"><strong>Absence of Material Adverse Changes</strong></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top">4.6</td>
  <td valign="top"><strong>Litigation and Audits</strong></td>
  <td valign="top"></td></tr>
<tr>
  <td colspan="5">Article 5</td>
</tr>
<tr>
  <td valign="top"></td>
  <td colspan="4"><strong>Conduct Prior To The Closing Date</strong></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top">5.1</td>
  <td colspan="2"><strong>Conduct of Business of the Company</strong></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top">5.2</td>
  <td colspan="2"><strong>Conduct of Business of Parent</strong></td>
</tr>
<tr>
  <td colspan="5">Article 6</td>
</tr>
<tr>
  <td valign="top"></td>
  <td colspan="4"><strong>Additional Agreements</strong></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top">6.1</td>
  <td colspan="2"><strong>Exclusivity</strong></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top">6.2</td>
  <td colspan="2"><strong>Expenses</strong></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top">6.3</td>
  <td colspan="2"><strong>Indemnification</strong></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top">6.3.1</td>
  <td><strong>Indemnification</strong></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top">6.3.2</td>
  <td><strong>Indemnification Representative</strong></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top">6.3.3</td>
  <td><strong>Claims for Indemnification</strong></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top">6.3.4</td>
  <td><strong>Defense by Indemnifying Party</strong></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top">6.3.5</td>
  <td><strong>Limitation on Liability for Indemnity</strong></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top">6.3.6</td>
  <td><strong>Claims Period</strong></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top">6.4</td>
  <td colspan="2"><strong>Access and Information</strong></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top">6.5</td>
  <td colspan="2"><strong>Public Disclosure</strong></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top">6.6</td>
  <td colspan="2"><strong>No Solicitation of Employees</strong></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top">6.7</td>
  <td colspan="2"><strong>Further Assurances</strong></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top">6.7.1</td>
  <td><strong>Generally</strong></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top">6.7.2</td>
  <td><strong>Novation of the Material Contracts</strong></td>
</tr>
<tr>
  <td colspan="5">Article 7</td>
</tr>
<tr>
  <td valign="top"></td>
  <td colspan="4"><strong>Conditions Precedent</strong></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top">7.1</td>
  <td colspan="2" valign="top"><strong>Conditions Precedent to the Obligations of Each Party</strong></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top">7.1.1</td>
  <td><strong>Stockholder Approval</strong></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top">7.1.2</td>
  <td><strong>Board of Directors Consents</strong></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top">7.1.3</td>
  <td><strong>Illegality</strong></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top">7.1.4</td>
  <td><strong>Government Consents</strong></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top">7.1.5</td>
  <td><strong> No Injunction</strong></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top">7.2</td>
  <td colspan="2" valign=top><strong>Conditions Precedent to Obligation of Parent and Merger Sub to Effect the Merger</strong></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top">7.2.1</td>
  <td><strong>Representations and Warranties</strong></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top">7.2.2</td>
  <td><strong>Agreements and Covenants</strong></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top">7.2.3</td>
  <td><strong>Cash Assets</strong></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top">7.2.4</td>
  <td><strong>Legal Opinion</strong></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top">7.2.5</td>
  <td><strong>Closing Documents</strong></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top">7.2.6</td>
  <td><strong>Third Party Consents</strong></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top">7.2.7</td>
  <td><strong>Payment List</strong></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top">7.2.8</td>
  <td><strong>Diligence Review</strong></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top">7.2.9</td>
  <td><strong>Consulting Agreement</strong></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top">7.3</td>
  <td colspan="2" valign="top"><strong>Conditions to Obligations of the Company to Effect the Merger</strong></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top">7.3.1</td>
  <td valign="top"><strong>Representations and Warranties</strong></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top">7.3.2</td>
  <td valign="top"><strong>Agreements and Covenants</strong></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top">7.3.3</td>
  <td valign="top"><strong>Legal Opinion</strong></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top">7.3.4</td>
  <td valign="top"><strong>Closing Documents</strong></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top">7.3.5</td>
  <td valign="top"><strong>Material Adverse Effect</strong></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top">7.3.6</td>
  <td valign="top"><strong>Payment of Purchase Price</strong></td>
</tr>
<tr>
  <td></td>
  <td></td>
  <td></td>
  <td>7.3.7</td>
  <td><strong>Indemnification Insurance</td>
</tr>
<tr>
  <td colspan="5" valign="top">Article 8</td></tr>
<tr>
  <td valign="top"></td>
  <td colspan="4" valign="top"><strong>Survival Of Representations</strong></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top">8.1</td>
  <td colspan="2" valign="top"><strong>Survival Of Representations</strong></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top">8.1.1</td>
  <td valign="top"><strong>The Company's Representations</strong></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top">8.1.2</td>
  <td valign="top"><strong>Parent's Representations</strong></td>
</tr>
<tr>
  <td colspan="5" valign="top">Article 9</td>
</tr>
<tr>
  <td valign="top"></td>
  <td colspan="4" valign="top"><strong>Other Provisions</strong></td>
</tr>
<tr>
  <td valign="top"></td>
  <td></td>
  <td valign="top">9.1</td>
  <td colspan="2" valign="top"><strong>Termination Events</strong></td>
</tr>
<tr>
  <td valign="top"></td>
  <td></td>
  <td valign="top">9.2</td>
  <td colspan="2" valign="top"><strong>Notices</strong></td>
</tr>
<tr>
  <td valign="top"></td>
  <td></td>
  <td valign="top">9.3</td>
  <td colspan="2" valign="top"><strong>Entire Agreement</strong></td>
</tr>
<tr>
  <td valign="top"></td>
  <td></td>
  <td valign="top">9.4</td>
  <td colspan="2" valign="top"><strong>Assignability</strong></td>
</tr>
<tr>
  <td valign="top"></td>
  <td></td>
  <td valign="top">9.5</td>
  <td colspan="2" valign="top"><strong>Validity</strong></td>
</tr>
<tr>
  <td valign="top"></td>
  <td></td>
  <td valign="top">9.6</td>
  <td colspan="2" valign="top"><strong>Specific Performance</strong></td>
</tr>
<tr>
  <td valign="top"></td>
  <td></td>
  <td valign="top">9.7</td>
  <td colspan="2" valign="top"><strong>Governing Law</strong></td>
</tr>
<tr>
  <td valign="top"></td>
  <td></td>
  <td valign="top">9.8</td>
  <td colspan="2" valign="top"><strong>Counterparts</strong></td>
</tr>
</TABLE>

<br wp="br1"><br wp="br2">

<hr line=1 noshade width=25% align=center>

<br wp="br1"><br wp="br2">

<p align="center"><strong>AGREEMENT AND PLAN OF MERGER</strong></p>

<br wp="br1"><br wp="br2">

<p align=justify>Agreement and Plan of Merger, dated as of January 28, 2000 (the "Agreement"), by and among
<strong>CACI International Inc</strong>, a Delaware corporation ("Parent"), <strong>CACI Acquisition Corporation</strong>, a Delaware corporation and wholly-owned subsidiary of Parent ("Merger Sub") and <strong>XEN
Corporation</strong>, a Delaware corporation (the "Company").  Merger Sub and the Company together are sometimes referred to herein as the "Constituent Corporations."</p>

<p align="center"><em>W I T N E S S E T H</em></p>


<p align=justify>WHEREAS, the respective boards of directors of Parent, Merger Sub and the Company have determined that it is advisable that the Merger Sub be merged with and into the Company (the "Merger") on the terms and conditions set forth herein and
in accordance with the provisions of the General Corporation Law of the State of Delaware (the "DGCL");</p


<p align=justify>WHEREAS, Parent, Merger Sub and the Company desire to make certain representations and
warranties and other agreements in connection with the Merger;</p>


<p>NOW, THEREFORE, Parent, Merger Sub and the Company hereby agree as follows:</p>

<p align="center"><strong>ARTICLE 1</strong></p>

<p align="center"><strong>DEFINITIONS</strong></p>

<table border=0 width="100%">
<tr>
  <td width=8%></td>
  <td width=62%></td>
  <td width=30%></td>
</tr>
<tr>
  <td valign="top">1.1</td>
<td colspan="2" align=justify><strong>Certain Matters of Construction</strong>.  A reference to an Article, Section, Exhibit or Schedule shall mean an Article of, a Section in, or Exhibit or Schedule to, this Agreement unless otherwise expressly stated.
The titles and headings herein are for reference purposes only and shall not in any manner limit the construction of this Agreement which shall be considered as a whole.  The words "include," "includes" and "including" when used herein shall be deemed in
each case to be followed by the words "without limitation."</td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td valign="top">1.2</td>
  <td colspan="2" align=justify><strong>Cross References</strong>.  The following terms defined elsewhere in this Agreement in the Sections set forth below shall have the respective meanings therein defined:</td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top"><em><strong>Term</em></strong></td>
  <td valign="top"><strong><em>Definition</em></strong></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">Acquisition Proposals</td>
  <td valign="top">Section 6.3</td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">Agreement</td>
  <td valign="top">Preamble</td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">Certificate of Merger</td>
  <td valign="top">Section 2.1</td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">Closing</td>
  <td valign="top">Section 2.1</td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">Closing Date</td>
  <td valign="top">Section 2.1</td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">Company </td>
  <td valign="top">Preamble</td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">Company Balance Sheet</td>
  <td valign="top">Section 3.5</td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">Company Common Stock</td>
  <td valign="top">Section 2.3.1</td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">Company Expenses</td>
  <td valign="top">Section 6.4</td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">Company Financial Statements</td>
  <td valign="top">Section 3.5</td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">Company Insurance Contracts</td>
  <td valign="top">Section 3.19</td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">Company Meeting</td>
  <td valign="top">Section 3.21</td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">Company Proprietary Rights</td>
  <td valign="top">Section 3.18.1</td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">Company Plans</td>
  <td valign="top">Section 3.11.1</td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">Constituent Corporations</td>
  <td valign="top">Preamble</td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">Demand Notice</td>
  <td valign="top">Section 6.3</td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">Dissenting Shares</td>
  <td valign="top">Section 2.4</td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">Due Diligence Costs</td>
  <td valign="top">Section 6.3</td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">Effective Date</td>
  <td valign="top">Section 2.1</td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">Effective Time</td>
  <td valign="top">Section 2.1</td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">Employee List</td>
  <td valign="top">Section 3.12.2</td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">Encumbrances</td>
  <td valign="top">Section 3.15.1</td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">GAAP</td>
  <td valign="top">Section 3.5</td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">DGCL</td>
  <td valign="top">Preamble</td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">Governmental Entity</td>
  <td valign="top">Section 3.4.2</td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">Indemnified Party</td>
  <td valign="top">Section 6.5.1</td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">Indemnification Insurance</td>
  <td valign="top">Section 6.3.2(b)</td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">Indemnification Representative</td>
  <td valign="top">Section 6.5.2</td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">Indemnifying Party</td>
  <td valign="top">Section 6.5.2</td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">Indemnity Threshold</td>
  <td valign="top">Section 6.5.5</td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">Liabilities</td>
  <td valign="top">Section 3.7</td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">Merger</td>
  <td valign="top">Preamble</td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">Merger Price Per Share</td>
  <td valign="top">Section 2.3.2</td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">Merger Sub</td>
  <td valign="top">Preamble</td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">Merger Sub Stock</td>
  <td valign="top">Section 2.3.3</td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">Parent</td>
  <td valign="top">Preamble</td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">Parent Balance Sheet</td>
  <td valign="top">Section 4.4</td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">Parent Reports</td>
  <td valign="top">Section 4.4</td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">Permits</td>
  <td valign="top">Section 3.8</td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">Stockholder List</td>
  <td valign="top">Section 2.5.1</td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">Stockholders</td>
  <td valign="top">Section 2.5.1</td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">Surviving Corporation</td>
  <td valign="top">Section 2.1</td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">Taxes</td>
  <td valign="top">Section 3.10.6</td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">Third Party Claims</td>
  <td valign="top">Section 6.5.3</td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top"></td>
</tr>
<tr>
  <td valign="top">1.3</td>
  <td colspan="2" valign="top"><div align=justify><strong>Certain Definitions</strong>. As used herein, the following terms shall have the following meanings:</div></td>
</tr>
<tr>
  <td valign="top"></td>
  <td colspan="2" valign="top"><div align=justify><em>Affiliate:</em> with respect to any Person, any Person which, directly or indirectly, controls, is controlled by, or is under common control with, such.</div></td>
</tr>
<tr>
  <td valign="top"></td>
  <td colspan="2" valign="top"><div align=justify><em>COBRA</em>:  the provisions of Section 4980B of the Code and Part 6 of Title I of ERISA.</div></td>
</tr>
<tr>
  <td valign="top"></td>
  <td colspan="2" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td colspan="2" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td colspan="2" valign="top"><div align=justify><em>Code</em>:  the U.S. Internal Revenue Code of 1986, as amended from time to time.</div></td>
</tr>
<tr>
  <td valign="top"></td>
  <td colspan="2" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td colspan="2" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td colspan="2" valign="top"><div align=justify><em>Commercial Software</em>:  packaged commercial software programs generally available to the public through retail dealers in computer software or directly from the manufacturer
which have been licensed to the Company and which are used in the Company's business but are in no way a component of or incorporated in or specifically required to develop or support any of the Company's products and related trademarks, technology and
know-how.</div></td>
</tr>
<tr>
  <td valign="top"></td>
  <td colspan="2" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td colspan="2" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td colspan="2" valign="top"><div align=justify><em>Company Leases</em>: each lease, sublease, license or other agreement under which the Company uses, occupies or has the right to occupy any real property or interest therein
that (a) provides for future minimum payments of $50,000 or more (ignoring any right of cancellation or termination) or (b) the cancellation or termination of which would have a Company Material Adverse Effect.</div></td>
</tr>
<tr>
  <td valign="top"></td>
  <td colspan="2" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td colspan="2" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td colspan="2" valign="top"><div align=justify><em>Company Material Adverse Effect</em>: any materially adverse change in or effect on the financial condition, business, operations, assets, properties, results of operations of the
Company.</div></td>
</tr>
<tr>
  <td valign="top"></td>
  <td colspan="2" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td colspan="2" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td colspan="2" valign="top"><div align=justify><em>Company Equity Plan</em>:  the Company's Equity Sharing Plan adopted on July 15, 1988, pursuant to which the Company reserved 1,000,000 shares of Common Stock for sale to its selected officers and key
employees, who are in a position to contribute substantially to the success of the Company, for the price equal to the greater of (i) the par value per share and (ii) the book value per share as determined from the financial statements of the Company for
the fiscal half-year immediately preceding the date of the grant and pursuant to which the shares of Common Stock so granted shall be subject to an agreement by their holder not to sell, assign, transfer, pledge, hypothecate or otherwise dispose of or
encumber such shares. Shares of Common Stock granted pursuant to the Company Equity Plan may be repurchased by the Company for the price and under the terms thereof.</div></td>
</tr>
<tr>
  <td valign="top"></td>
  <td colspan="2" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td colspan="2" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td colspan="2" valign="top"><div align=justify><em>Control</em> (including with correlative meaning, controlled by and under common control with): as used with respect to any Person, the possession, directly or indirectly, of the
power to direct or cause the direction of the management and policies of such Person, whether through the ownership of voting securities, by contract or otherwise.</div></td>
</tr>
<tr>
  <td valign="top"></td>
  <td colspan="2" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td colspan="2" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td colspan="2" valign="top"><div align=justify><em>Environmental Claim</em>: any notice alleging potential liability (including, without limitation, potential liability for investigatory costs, cleanup costs, response or remediation costs, natural
resources damages, property damages, personal injuries, fines or penalties) arising out of, based on or resulting from (a) the presence, or release of any Material of Environmental Concern at any location, whether or not owned by that party or (b)
circumstances forming the basis of any violation, or alleged violation, of any
Environmental Law.</div></td>
</tr>
<tr>
  <td valign="top"></td>
  <td colspan="2" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td colspan="2" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td colspan="2" valign="top"><div align=justify><em>Environmental Laws</em>: any and all statutes, regulations and ordinances relating to the protection of public health, safety or the environment.</div></td>
</tr>
<tr>
  <td valign="top"></td>
  <td colspan="2" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td colspan="2" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td colspan="2" valign="top"><div align=justify><em>ERISA</em>: the Employee Retirement Income Security Act of 1974, as amended.</div></td>
</tr>
<tr>
  <td valign="top"></td>
  <td colspan="2" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td colspan="2" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td colspan="2" valign="top"><div align=justify><em>ERISA Affiliate</em>: with respect to a party, any member (other than that party) of a controlled group of corporations, group of trades or businesses under common control or affiliated service group
that includes that party (as defined for purposes of Section 414(b), (c) and (m) of the Code).</div></td>
</tr>
<tr>
  <td valign="top"></td>
  <td colspan="2" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td colspan="2" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td colspan="2" valign="top"><div align=justify><em>Exchange Act</em>: the Securities Exchange Act of 1934, as amended.</div></td>
</tr>
<tr>
  <td valign="top"></td>
  <td colspan="2" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td colspan="2" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td colspan="2" valign="top"><div align=justify><em>Letter of Intent</em>: the letter dated October 15, 1999 from the Executive Vice President and Chief Financial Officer of Parent to the Chairman and Chief Executive Officer of the
Company expressing the companies' intention to effect the merger and related transactions, subject to execution of this Agreement and other matters.</div></td>
</tr>
<tr>
  <td valign="top"></td>
  <td colspan="2" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td colspan="2" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td colspan="2" valign="top"><div align=justify ><em>Losses:  </em>the amount of any actual damages, liabilities, obligations, deficiencies, losses, expenditures, costs or expenses (including without limitation reasonable attorneys' fees and
disbursements).  For purposes of determining the amount of any Loss, the amount of any Loss shall be reduced by any insurance proceeds received in respect thereof (in each case net of costs of recovery).</div></td>
</tr>
<tr>
  <td valign="top"></td>
  <td colspan="2" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td colspan="2" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td colspan="2" valign="top"><div align=justify><em>Materials of Environmental Concern</em>:  petroleum and its by-products and all substances or constituents that are regulated by, or form the basis of liability under, any
Environmental Law.</div></td>
</tr>
<tr>
  <td valign="top"></td>
  <td colspan="2" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td colspan="2" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td colspan="2" valign="top"><div align=justify ><em>Parent Material Adverse Effect</em>: any materially adverse change in or effect on the financial condition, business, operations, assets, properties, results of operations or prospects of Parent and
its Subsidiaries considered on a consolidated basis.</div></td>
</tr>
<tr>
  <td valign="top"></td>
  <td colspan="2" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td colspan="2" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td colspan="2" valign="top"><div align=justify><em>Permitted Encumbrances</em>: (a) liens for current taxes and other statutory liens and trusts not yet due and payable or that are being contested in good faith, (b) liens that were
incurred in the ordinary course of business, such as carriers', warehousemen's, landlords' and mechanics' liens and other similar liens arising in the ordinary course of business, (c) liens on personal property leased under operating leases, (d) liens,
pledges or deposits incurred or made in connection with workmen's compensation, unemployment insurance and other social security benefits, or securing the performance of bids, tenders, leases, contracts (other than for the repayment of borrowed money),
statutory obligations, progress payments, surety and appeal bonds and other obligations of like nature, in each case incurred in the ordinary course of business, (e) pledges of or liens on manufactured products as security for any drafts or bills of
exchange drawn in connection with the importation of such manufactured products in the ordinary course of business, (f) liens under Article 2 of the Uniform Commercial Code that are special property interests in goods identified as goods to which a
contract refers, (g) liens under Article 9 of the Uniform Commercial Code that are purchase money security interests, and (h) such imperfections or minor defects of title, easements, rights-of-way and other similar restrictions (if any) as are
insubstantial in character, amount or extent, do not materially detract from the value or interfere with the present or proposed use of the properties or
assets of the party subject thereto or affected thereby, and do not otherwise adversely affect or impair the business or operations of such party.</div></td>
</tr>
<tr>
  <td valign="top"></td>
  <td colspan="2" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td colspan="2" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td colspan="2" valign="top"><div align=justify ><em>Person</em>: an individual, a corporation, an association, a partnership, an estate, a trust and any other entity or organization.</div></td>
</tr>
<tr>
  <td valign="top"></td>
  <td colspan="2" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td colspan="2" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td colspan="2" valign="top"><div align=justify><em>SEC</em>: the Securities and Exchange Commission, or any Governmental Entity succeeding to its functions.</div></td>
</tr>
<tr>
  <td valign="top"></td>
  <td colspan="2" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td colspan="2" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td colspan="2" valign="top"><div align=justify<em>Securities Act</em>: the Securities Act of 1933, as amended.</div></td>
</tr>
<tr>
  <td valign="top"></td>
  <td colspan="2" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td colspan="2" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td colspan="2" valign="top"><div align=justify><em>Subsidiary</em>: any corporation, association, or other business entity a majority (by number of votes on the election of directors or persons holding positions with similar
responsibilities) of the shares of capital stock (or other voting interests) of which is owned by Parent, the Company or their respective Subsidiaries, as the case may be.</div></td>
</tr>
</TABLE>

<br wp="br1"><br wp="br2">

<p align="center"><strong>ARTICLE 2</strong></p>

<p align="center"><strong>THE MERGER</strong></p>

<table border=0 width="100%">
<tr>
  <td width=8%></td>
  <td width=8%></td>
  <td width=84%></td>
</tr>
<tr>
  <td valign="top">2.1</td>
  <td colspan="2" valign="top"><div align=justify><strong>Procedure for the Merger</strong>.  The closing of the transactions contemplated by this Agreement ("Closing")  shall take place at the offices of Parent in Arlington, Virginia, commencing at 10:00
a.m. local time on January 28, 2000, or on such other date as the parties may agree after the satisfaction or waiver of all conditions to the obligations of the parties to consummate the transactions contemplated hereby ("Closing Date").  At the Closing,
the Merger Sub shall be merged, in accordance with section 251 of the DGCL, with and into the Company, which shall be and is sometimes referred to herein to as the "Surviving Corporation".  The Merger shall be effected by filing an agreement of merger,
substantially in the form of Exhibit 2.1 attached hereto (the "Agreement of Merger"), with the Secretary of State of  Delaware in accordance with section 251(c) of the DGCL.  The Agreement of Merger filed shall provide that the Merger will be effective at
12:01 A.M. EST on February 1, 2000 (the "Effective Time").</div></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td valign="top">2.2</td>
  <td colspan="2" valign="top"><strong>Surviving Corporation</strong>.</td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">2.2.1</td>
  <td valign="top"><div align=justify><strong>Corporate Existence</strong>.  The Surviving Corporation shall continue its corporate existence under the laws of the State of Delaware.  The separate corporate existence of the Merger Sub shall cease at the
Effective Time.</div></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">2.2.2</td>
  <td valign="top"><div align=justify><strong>Articles of Incorporation and By-laws</strong>.  The articles of incorporation of the Company, as in effect immediately prior to the Effective Time, shall be the articles of incorporation of the Surviving
Corporation until the same shall be amended thereafter in accordance with the DGCL and such articles of incorporation. The by-laws of the Company, as in effect immediately prior to the Effective Time, shall be the by-laws of the Surviving Corporation
until the same shall be amended thereafter in accordance with the DGCL, the articles of incorporation of the Surviving Corporation and such by-laws.</div></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">2.2.3</td>
  <td valign="top"><div align=justify><strong>Directors</strong>.  As of the Effective Time, Dr. J. P. London and Jeffrey P. Elefante shall be the directors of the Surviving Corporation, to hold office in accordance with the articles of incorporation and
by-laws of the Surviving Corporation.</div></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">2.2.4</td>
  <td valign="top"><div align=justify><strong>Effect of the Merger</strong>.  As of the Effective Time, the effect of the Merger shall be as provided in this Agreement and the applicable provisions of the DGCL.  Without limiting the generality of the
foregoing, at the Effective Time, all the property, rights, privileges, powers and franchises of the Company and Merger Sub shall vest in the Surviving Corporation, and all debts, liabilities and duties of the Company and Merger Sub shall become the
debts, liabilities and duties of the Surviving Corporation.</div></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td valign="top">2.3</td>
  <td colspan="2" valign="top"><strong>Conversion of Stock</strong>.</td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">2.3.1</td>
  <td valign="top"><div align=justify><strong>Stock of the Company</strong>.  At the Effective Time, by virtue of the Merger and without any action on the part of the holders thereof, each share of Common Stock, $0.01 par value per share, of the Company
("Company Common Stock") issued and outstanding immediately prior to the Effective Time (other than Company Common Stock held in the Company's treasury and except any Dissenting Shares) will be canceled and extinguished and be converted automatically into
the right to receive payment of the Merger Price Per Share in
accordance with the terms and provisions of this Agreement.</div></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">2.3.2</td>
  <td valign="top"><div align=justify><strong>Merger Price and Merger Price Per Share</strong>.  The aggregate Merger Price shall be Four Million Two Hundred Fifty-Eight Thousand Five Hundred Dollars ($4,258,500).  The Merger Price Per Share shall be
Seven Dollars and Eighty-eight and Six-Tenths Cents ($7.886) Per Share.</div></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">2.3.3</td>
  <td valign="top"><div align=justify><strong>Stock of the Merger Sub</strong>.  At the Effective Time, each share of the Common Stock, par value $.10 per share, of the Merger Sub ("Merger Sub Stock") issued and outstanding immediately prior to the
Effective Time shall, by virtue of the Merger and without any action on the part of the holder thereof, be converted into and become one validly issued, fully paid and nonassessable share of Common Stock, $0.01 par value per share, of the Surviving
Corporation.</div></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td valign="top">2.4</td>
  <td colspan="2" valign="top"><div align=justify><strong>Appraisal Rights.  </strong>  Notwithstanding any other provision herein to the contrary, if appraisal rights are available under the DGCL to holders of shares of Company Common Stock in connection
with the Merger, shares of Company Common Stock that are outstanding immediately prior to the Effective Time and that are held by any shareholder who shall have taken the necessary steps under the Delaware Statute to seek appraisal of, and demand payment
for, the shares and is otherwise entitled to payment under the
DGCL ("Dissenting Shares") shall not be converted into the right to receive the Merger Price Per Share at or after the Effective Time, unless and until the holder of the Dissenting Shares withdraws his or her demand for appraisal or ceases to have a right
of appraisal (through failure to perfect or otherwise).  If a holder of Dissenting Shares shall
withdraw his or her demand for appraisal or shall cease to have a right of appraisal, then, as of the later of the Effective Time or the occurrence of such event, the holder's Dissenting Shares shall be automatically converted into and represent the right
to receive the Merger Price Per Share as provided above.  Except to the extent otherwise required by the DGCL, Dissenting Shares shall not, after the Effective Time, be entitled to vote for any purpose or be entitled to the payment of dividends or other
distributions (except dividends or other distributions payable to stockholders of record prior to the Effective Time).</div></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td valign="top">2.5</td>
  <td colspan="2" valign="top"><div align=justify><strong>Payment of Merger Price</strong>.  At or promptly after the Effective Time, Parent on behalf of the Surviving Corporation will send or deliver to each Stockholder two or more copies of a Letter of
Transmittal in a form prepared by Parent and approved by the Company.  Thereafter, the Parent on behalf of the Surviving Corporation shall pay to each Stockholder who submits a properly completed and executed Letter of Transmittal accompanied by surrender
of the certificate or certificates for shares of Company Common Stock for which that Stockholder claims payment, the aggregate amount of the Merger Price Per Share to which that Stockholder is entitled based on the number of shares of Company Common Stock
held by such Stockholder [setoff] as set forth in the
list provided to Parent by the Company as provided in Section 7.2.7.</div></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td valign="top">2.6</td>
  <td colspan="2" valign="top"><div align=justify><strong>Additional Actions</strong>.  If, at any time after the Closing Date, any further action is necessary or desirable to carry out the purposes of this Agreement or to vest, perfect or confirm in the
Surviving Corporation title to or ownership or possession of any property, right, privilege, power, franchise or other asset of either Constituent Corporation acquired or to be acquired by reason of, or as a result of, the Merger, the officers and
directors of the Company and Merger Sub are fully authorized in the name of their respective corporations or otherwise to take, and will take, all such lawful and necessary action, so long as such action is consistent with this Agreement.</div></td>
</tr>
</TABLE>

<br wp="br1"><br wp="br2">

<p align="center"><strong>ARTICLE 3</strong>

<p align="center"><strong>REPRESENTATIONS AND WARRANTIES OF THE COMPANY</strong>

<table border=0 width="100%">
<tr>
  <td width=8%></td>
  <td width=8%></td>
  <td width=8%></td>
  <td width=76%></td>
</tr>
<tr>
  <td colspan="4" valign="top">The Company represents and warrants to Parent and Merger Sub as follows:</td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td valign="top">3.1</td>
  <td colspan="3" valign="top"><div align=justify><strong>Corporate Status of the Company</strong>.  Except as set forth on Schedule 3.1 hereto, the Company is a corporation duly organized, validly existing and in good standing under the laws of the
jurisdiction of its incorporation, with the requisite corporate power to own, operate and lease its properties and to carry on its business as now being conducted.  Except as set forth on Schedule 3.1 hereto, the Company is duly qualified or licensed to
do business as foreign corporations and are in good standing in all jurisdictions in which the character of the properties owned or held under lease by each or the nature of the
business transacted by each makes qualification necessary, except where failure to be so qualified would not have a Company Material Adverse Effect.  All jurisdictions in which the Company is qualified to do business are set forth on Schedule 3.1 hereto.
</div></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td valign="top">3.2</td>
  <td colspan="3" valign="top"><strong>Capital Stock</strong>.</td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">3.2.1</td>
  <td colspan="2" valign="top"><div align=justify><strong>Authorized Stock of the Company</strong>.  The authorized capital stock of the Company consists of 1,000,000 shares of Company Common Stock, of which
540,000 shares were issued and outstanding (excluding 234,650 shares held in
Treasury) as of January 28, 2000.  All of the outstanding shares of Company
Common Stock have been duly authorized and validly issued, were not issued
in violation of any person's preemptive rights, and are fully paid and
nonassessable.</div></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">3.2.2</td>
  <td colspan="2" valign="top"><div align=justify><strong>Options and Convertible Securities of the Company</strong>.  Except as set forth on
Schedule 3.2, there are no outstanding subscriptions, options, warrants,
conversion rights or other rights, securities, agreements or commitments
obligating the Company to issue, sell or otherwise dispose of shares of its capital
stock, or any securities or obligations convertible into, or exercisable or
exchangeable for, any shares of its capital stock.  Since March 31, 1999, the
Company has not issued, sold or otherwise disposed of any shares of its capital
stock, other than pursuant to the Company Equity Plan.  Except as set forth on
Schedule 3.2, there are no voting trusts or other agreements or understandings
to which the Company or any Stockholder is a party with respect to the voting
of the shares of Company Common Stock and the Company is not a party to or
bound by any outstanding restrictions, options or other obligations, agreements
or commitments to sell, repurchase, redeem or acquire any outstanding shares
of Company Common Stock or other equity securities of the Company.</div></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td valign="top">3.3</td>
  <td colspan="3" valign="top"><strong>Subsidiaries</strong>.  The Company has no Subsidiaries.</td></tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td valign="top">3.4</td>
  <td colspan="3" valign="top"><strong>Authority for Agreement; Noncontravention</strong></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">3.4.1</td>
  <td colspan="2" valign="top"><div align=justify><strong>Authority</strong>.  The Company has the corporate power and authority to enter into
this Agreement and to consummate the transactions contemplated hereby and
thereby .  The execution and delivery of this Agreement and the consummation
of the transactions contemplated hereby and thereby have been duly and validly
authorized by the board of directors of the Company and no other corporate
proceedings on the part of the Company are necessary to authorize the
execution and delivery of this Agreement and the consummation of the transactions contemplated hereby and thereby.  This Agreement has been duly
executed and delivered by the Company and constitutes valid and binding
obligation of the Company, enforceable against the Company in accordance with
its terms, subject to the qualifications that enforcement of the rights and
remedies created hereby is subject to (a) bankruptcy, insolvency, reorganization,
fraudulent conveyance, moratorium and other laws of general application
affecting the rights and remedies of creditors and (b) general principles of equity
(regardless of whether enforcement is considered in a proceeding in equity or at
law).</div></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">3.4.2</td>
  <td colspan="2" valign="top"><div align=justify><strong>No Conflict</strong>.  Except as set forth on Schedule 3.4 hereto, neither the execution
and delivery of this Agreement by the Company, nor the performance by the
Company of its obligations hereunder, nor the consummation by the Company
of the transactions contemplated hereby will (a) conflict with or result in a
violation of any provision of the charter documents or by-laws of the Company,
(b) with or without the giving of notice or the lapse of time, or both, conflict
with, or result in any violation or breach of, or constitute a default under, or
result in any right to accelerate or result in the creation of any lien, charge or
encumbrance pursuant to, or right of termination under, any provision of any
note, mortgage, indenture, lease, instrument or other agreement, permit,
concession, grant, franchise, license, judgment, order, decree, statute, ordinance,
rule or regulation to which the Company is a party or by which any of them or
any of their assets or properties is bound or which is applicable to any of them
or any of their assets or properties.  No authorization, consent or approval of,
or filing with or notice to, any United States or foreign governmental or public
body or authority (each a "Governmental Entity") is necessary for the execution
and delivery of this Agreement by the Company or the consummation by the
Company of the transactions contemplated hereby, except for (<em>i</em>) the filing of the
Certificate of Merger with the Secretary of the State of Delaware and <em>(ii)</em> such
other consents, authorizations, filings, approvals and registrations which if not
obtained or made would not have a Company Material Adverse Effect.</div></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td valign="top">3.5</td>
  <td colspan="3" valign="top"><div align=justify><strong>Financial Statements</strong>.  The Company has previously furnished Parent with an accurate
and complete copy of the balance sheets of the Company as of September 30, 1999, 1998,
1997, and 1996 and the two-month period ended November 30, 1999 and the statements
of operations, cash flows and changes in stockholders' equity of the Company for the
respective years and the two-month period then ended. The annual financial statements
were compiled by Ableson &amp; Company, the Company's certified public accountants.
Collectively, the financial statements referred to in the immediately preceding sentence are
sometimes referred to herein as the "Company Financial Statements" and the balance sheet
of the Company as of September 30, 1999 is referred to herein as the "Company Balance
Sheet."  Each of the balance sheets included in the Company Financial Statements
(including any related notes) fairly presents in all material respects the financial position
of the Company as of its date, and the other statements included in the Company Financial
Statements (including any related notes) fairly present in all material respects the results
of operations, cash flows and stockholders' equity, as the case may be, of the Company
for the periods therein set forth, in each case in accordance with United States generally
accepted accounting principles ("GAAP") consistently applied, subject, in the case of the
two-month period, to normal year-end adjustments (all except as otherwise stated therein).</div></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td valign="top">3.6</td>
  <td colspan="3" valign="top"><div align=justify><strong>Absence of Material Adverse Changes</strong>.  Except as set forth on Schedule 3.6 hereto,
since the date of the Letter of Intent, the Company has not suffered any Company Material
Adverse Effect, nor has there occurred or arisen any event, condition or state of facts of
any character that could reasonably be expected to result in a Company Material Adverse
Effect; <em>provided, however</em>, that any change arising out of conditions affecting the economy
or industry of the Company in general which does not affect the Company in a materially
disproportionate manner relative to other participants in the economy or such industry
shall not be deemed to constitute a Company Material Adverse Effect. Since the date of
the Letter of Intent,  there have been no dividends or other distributions declared or paid
in respect of, or any repurchase or redemption by the Company of, any of the shares of
capital stock of the Company, or any commitment relating to any of the foregoing.</td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td valign="top">3.7</td>
  <td colspan="3" valign="top"><div align=justify><strong>Absence of Undisclosed Liabilities</strong>.  Except as set forth on Schedule 3.7, neither the
Company has any material liabilities or obligations, fixed, accrued, contingent or otherwise
(collectively, "Liabilities"), that are not fully reflected or provided for on, or disclosed in
the notes to, the balance sheets included in the Company Financial Statements, except (i)
Liabilities incurred in the ordinary course of business since the date of the Company
Balance Sheet, none of which individually or in the aggregate has had or could reasonably
be expected to have a Company Material Adverse Effect, (ii) Liabilities permitted or
contemplated by this Agreement, and (iii) Liabilities expressly disclosed on the Schedules
delivered hereunder.</div></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td valign="top">3.8</td>
  <td colspan="3" valign="top"><div align=justify><strong>Compliance with Applicable Law, Charter and By-Laws</strong>.  Each of the Company has
all requisite licenses, permits and certificates from all Governmental Entities (collectively,
"Permits") necessary to conduct its business as currently conducted, and to own, lease and
operate its properties in the manner currently held and operated, except as set forth on
Schedule 3.8 hereto or except where the failure to have such Permit could not reasonably
be expected to have a Company Material Adverse Effect. All of the Company's Permits
are in full force and effect.  Each of the Company is in compliance in all material respects
with all the terms and conditions related to such Permits.  There are no proceedings in
progress, pending or, to the knowledge of the Company, threatened, which may result in
revocation, cancellation, suspension, or any material adverse modification of any of such
Permits.  The business of the Company is not being conducted in violation of any
applicable law, statute, ordinance, regulation, rule, judgment, decree, order, Permit,
concession, grant or other authorization of any Governmental Entity, except for any
violations that, in the aggregate, do not and could not reasonably be expected to have a
Company Material Adverse Effect or prevent or materially delay the consummation of the
transactions contemplated hereby.  The Company is not in default or violation of any
material provision of its charter documents or its by-laws.</div></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td valign="top">3.9</td>
  <td colspan="3" valign="top"><div align=justify><strong>Litigation and Audits</strong>.  Except for any claim, action, suit or proceeding set forth on
Schedule 3.9 or 3.10 hereto, (a) there is no investigation by any Governmental Entity with
respect to the Company pending or, to the knowledge of the Company, threatened, nor
has any Governmental Entity indicated to the Company an intention to conduct the same;
(b) there is no claim, action, suit, arbitration or proceeding pending or, to the knowledge
of the Company, threatened against or involving the Company, or any of its or their assets
or properties, at law or in equity, or before any arbitrator or Governmental Entity, that,
if adversely determined, either singly or in the aggregate, would have a Company Material
Adverse Effect or prevent or materially delay the consummation of the transactions
contemplated hereby; and (c) there are no judgments, decrees, injunctions or orders of any
Governmental Entity or arbitrator outstanding against the Company.</div></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td valign="top">3.10</td>
  <td colspan="2" valign="top"><strong>Tax Matters</strong>.</td>
  <td valign="top" width="72%"></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">3.10.1</td>
  <td colspan="2" valign="top"><div align=justify><strong>Filing of Returns</strong>.  Except as set forth on Schedule 3.10 hereto, the Company
have prepared and filed on a timely basis with all appropriate governmental
authorities all material returns in respect of Taxes that they are required to file
on or prior to the Closing, and all such returns are correct and complete in all
material respects.</div></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">3.10.2</td>
  <td colspan="2" valign="top"><div align=justify><strong>Payment of Taxes</strong>.  Except as set forth on Schedule 3.10, the Company have
paid in full all Taxes due on or before the Closing and, in the case of Taxes
accruing on or before the Closing that are not due on or before the Closing, the
Company has made adequate provision in its books and records and financial
statements for such payment.</div></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">3.10.3</td>
  <td colspan="2" valign="top"><div align=justify><strong>Withholding</strong>.  Except as set forth on Schedule 3.10, the Company have
withheld from each payment made to any of its present or former employees,
officers and directors all amounts required by law to be withheld and has, where
required, remitted such amounts within the applicable periods to the appropriate
governmental authorities.</div></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
<td valign="top"></td>
<td valign="top">3.10.4</td>
<td colspan="2" valign="top"><div align=justify><strong>Assessments</strong>.  Except as set forth on Schedule 3.10, there are no assessments
of the Company with respect to Taxes that have been issued and are
outstanding.  Except as set forth on Schedule 3.10, no Governmental Entity has
examined or audited the Company in respect of Taxes.  Except as set forth on
Schedule 3.10, neither the Company has received any indication in writing from
any Governmental Entity that an assessment in respect of the Company is
proposed.  Except with respect to the matters set forth on Schedule 3.10 hereof,
neither the Company has executed or filed any agreement extending the period
of assessment or collection of any Taxes.</div></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">3.10.5</td>
  <td colspan="2" valign="top"><div align=justify><strong>Access to Returns</strong>.  Parent has been provided with a copy of or access to all
federal, state, local and foreign income Tax returns filed by the Company since
January 1, 1997.  Parent has been provided with a copy of or access to all
assessments, extensions and waivers resulting from any audits of the Company
by a Governmental Entity in respect of Taxes, and all such assessments and
related penalties and interest have been paid in full unless being contested in
good faith by the Company.</div></td>
</tr>
<tr>
 <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">3.10.6</td>
  <td colspan="2" valign="top"><div align=justify><strong>Definition of Taxes</strong>.  As used herein, "Taxes" means all taxes, levies and other
assessments, including all income, sales, use, goods and services, value added,
capital, capital gains, net worth, transfer, profits, withholding, payroll, employer
health, excise, real property and personal property taxes, and any other taxes,
assessments or similar charges in the nature of a tax including unemployment
insurance payments and workers compensation premiums, together with any
installments with respect thereto, and any interest, fines and penalties, imposed
by any Governmental Entity (including federal, state, municipal and foreign
Governmental Entities), and whether disputed or not.</div></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td valign="top">3.11</td>
  <td colspan="3" valign="top"><strong>Employee Benefit Plans</strong>.</td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">3.11.1</td>
  <td colspan="2" valign="top"><div align=justify><strong>List of Plans</strong>.  Schedule 3.11 hereto contains a correct and complete list of all
pension, profit sharing, retirement, deferred compensation, welfare, legal
services, medical, dental or other employee benefit or health insurance plans, life
insurance or other death benefit plans, disability, stock option, stock purchase,
stock compensation, bonus, vacation pay, severance pay and other similar plans,
programs or agreements, and every material written personnel policy, relating
to any persons employed by the Company or in which any person employed by
the Company is eligible to participate and which is currently maintained or that
was maintained at any time in the last five calendar years by the Company or any
ERISA Affiliate (collectively, the "Company Plans").  The Company has made
available to Parent complete copies, as of the date hereof, of all of the Company
Plans that have been reduced to writing, together with all documents establishing
or constituting any related trust, annuity contract, insurance contract or other
funding instrument, and summaries of those that have not been reduced to
writing.  The Company has made available to Parent complete copies of current
plan summaries, employee booklets, personnel manuals and other material
documents or written materials concerning the Company Plans that are in the
possession of the Company as of the date hereof.  Except as set forth on
Schedule 3.11, the Company does not have any "defined benefit plans" as
defined in Section 3(35) of ERISA.</div></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">3.11.2</td>
  <td colspan="2" valign="top"><div align=justify><strong>ERISA</strong>.  Neither the Company nor any ERISA Affiliate of the Company has
incurred any "withdrawal liability" calculated under Section 4211 of ERISA and
there has been no event or circumstance which would cause them to incur any
such liability.  Except as set forth in Schdule 3.11, neither the Company nor any
ERISA Affiliate of the Company has ever maintained a Company Plan providing
health or life insurance benefits to former employees, other than as required
pursuant to Section 4980B of the Code or to any state law conversion rights.
No plan previously maintained by the Company or its ERISA Affiliates which
was subject to Title IV of ERISA has been terminated; no proceedings to
terminate any such plan have been instituted within the meaning of Subtitle C of
Title IV of ERISA; and no reportable event within the meaning of Section 4043
of said Subtitle C of Title IV of ERISA with respect to which the requirement
to file a notice with the Pension Benefit Guaranty Corporation has not been
waived has occurred with respect to any such Company Plan, and no liability to
the Pension Benefit Guaranty Corporation has been incurred by the Company
or its ERISA Affiliates.  Except as set forth on Schedule 3.11, with respect to
all the Company Plans, the Company and every ERISA Affiliate of the Company
are in material compliance with all requirements prescribed by all statutes,
regulations, orders or rules currently in effect, and have in all material respects
performed all obligations required to be performed by them.  Neither the
Company nor any ERISA Affiliate of the Company, nor to the Company's
knowledge any of their directors, officers, employees or agents, nor any trustee
or administrator of any trust created under the Company Plans, has engaged in
or been a party to any "prohibited transaction" as defined in Section 4975 of the
Code and Section 406 of ERISA which could subject the Company or its
Affiliates, directors or employees or the Company Plans or the trusts relating
thereto or any party dealing with any of the Company Plans or trusts to any tax
or penalty on "prohibited transactions" imposed by Section 4975 of the Code.
Except as set forth on Schedule 3.11, neither the Company Plans nor the trusts
created thereunder has incurred any "accumulated funding deficiency," as such
term is defined in Section 412 of the Code and regulations issued thereunder,
whether or not waived.</div></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">3.11.3</td>
  <td colspan="2" valign="top"><div align=justify><strong>Plan Determinations</strong>.  Except as set forth in Schedule 3.11, each Company
Plan intended to qualify under Section 401(a) of the Code has been determined
by the Internal Revenue Service to so qualify, and the trusts created thereunder
have been determined to be exempt from tax under Section 501(a) of the Code;
copies of all determination letters have been delivered to the Company; and, to
the knowledge of the Company, nothing has occurred since the date of such
determination letters which might cause the loss of such qualification or
exemption.  With respect to each Company Plan which is a qualified profit
sharing plan, all employer contributions accrued for plan years ending prior to
the Closing under the Company Plan terms and applicable law have been made.</div></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">3.11.4</td>
  <td colspan="2" valign="top"><strong>Funding</strong>.  Except as set forth on Schedule 3.11:</td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top">(a)</td>
  <td valign="top"><div align=justify>all contributions, premiums or other payments due or required to be
made to the Company Plans as of the date hereof have been made as
of the date hereof or are properly reflected on the Company Balance
Sheet;</div></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top">(b)</td>
  <td valign="top"><div align=justify>there are no actions, liens, suits or claims pending or, to the
knowledge of the Company, threatened (other than routine claims for
benefits) with respect to any Company Plan;</div></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top">(c)</td>
  <td valign="top"><div align=justify>to the knowledge of the Company, no event has occurred, and there
exists no condition or set of circumstances, which presents a material
risk of a partial termination (within the meaning of Section 411(d)(3)
of the Code) of any Company Plan;</div></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top">(d)</td>
  <td valign="top"><div align=justify>each Company Plan that is a "group health plan" (as defined in Section
607(1) of ERISA) has been operated at all times in substantial
compliance with the provisions of COBRA and any applicable, similar
state law; and</div></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top">(e)</td>
  <td valign="top"><div align=justify>with respect to any Company Plan that is qualified under Section
401(k) of the Code, individually and in the aggregate, no event has
occurred, and to the knowledge of the Company, there exists no
condition or set of circumstances in connection with which the
Company could be subject to any liability that is reasonably likely to
have a Company Material Adverse Effect (except liability for benefits
claims and funding obligations payable in the ordinary course) under
ERISA, the Code or any other applicable law.</div></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td valign="top">3.12</td>
  <td colspan="3" valign="top"><strong>Employment-Related Matters</strong>.</td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">3.12.1</td>
  <td colspan="2" valign="top"><div align=justify><strong>Labor Relations</strong>.  Except to the extent set forth on Schedule 3.12 hereto: (a)
neither the Company is a party to any collective bargaining agreement or other
contract or agreement with any labor organization or other representative of any
of the employees of the Company; (b) there is no labor strike, dispute,
slowdown, work stoppage or lockout that is pending or threatened against or
otherwise affecting the Company, and neither the Company has experienced the
same; (c) neither the Company has closed any plant or facility, effectuated any
layoffs of employees or implemented any early retirement or separation program
at any time, nor has the Company planned or announced any such action or
program for the future with respect to which the Company has any material
liability; and (d) all salaries, wages, vacation pay, bonuses, commissions and
other compensation due from the Company to the employees of the Company
before the date hereof have been paid or accrued in all material respects as of the
date hereof.</div></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">3.12.2</td>
  <td colspan="2" valign="top"><div align=justify><strong>Employee List</strong>.  The Company has heretofore delivered to Parent a list (the
"Employee List") dated as of January 7, 2000 containing the name of each
employee of the Company and each such employee's position, starting
employment date and annual salary.  The Employee List is correct and complete
as of the date of the Employee List.  No third party has asserted any claim, or,
to the knowledge of the Company, has any reasonable basis to assert any valid
claim, against the Company that either the continued employment by, or
association with, the Company of any of the present officers or employees of,
or consultants to, the Company contravenes any agreements or laws applicable
to unfair competition, trade secrets or proprietary information.</div></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td valign="top">3.13</td>
  <td colspan="3" valign="top"><strong>Environmental</strong>.</td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">3.13.1</td>
  <td colspan="2" valign="top"><div align=justify><strong>Environmental Laws</strong>.  Except for matters which, individually or in the
aggregate, would not have a Company Material Adverse Effect, (a) the
Company is in compliance with all applicable Environmental Laws in effect on
the date hereof; (b) the Company has not received any written communication
that alleges that the Company is not in compliance in all material respects with
all applicable Environmental Laws in effect on the date hereof; (c) to the
knowledge of the Company, there are no circumstances that may prevent or
interfere with compliance in the future with all applicable Environmental Laws;
(d) all material Permits and other governmental authorizations currently held by
the Company pursuant to the Environmental Laws are in full force and effect,
the Company are in compliance with all of the terms of such Permits and
authorizations, and no other Permits or authorizations are required by the
Company for the conduct of its and their business on the date hereof; and (e) the
management, handling, storage, transportation, treatment, and disposal by the
Company of all Materials of Environmental Concern has been in compliance
with all applicable Environmental Laws.</div></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">3.13.2</td>
  <td colspan="2" valign="top"><div align=justify><strong>Environmental Claims</strong>.  Except as set forth on Schedule 3.13 hereto and
except for Environmental Claims which, individually or in the aggregate, would
not have a Company Material Adverse Effect, there is no Environmental Claim
pending or, to the knowledge of the Company, threatened against or involving
the Company  or against any person or entity whose liability for any
Environmental Claim the Company  has or may have retained or assumed either
contractually or by operation of law.</div></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">3.13.3</td>
  <td colspan="2" valign="top"><div align=justify><strong>No Basis for Claims</strong>.  Except for matters which, individually or in the
aggregate, would not have a Company Material Adverse Effect, to the
knowledge of the Company, there are no past or present actions or activities by
the Company, or any circumstances, conditions, events or incidents, including
the storage, treatment, release, emission, discharge, disposal or arrangement for
disposal of any Material of Environmental Concern, that could reasonably form
the basis of any Environmental Claim against the Company or against any person
or entity whose liability for any Environmental Claim the Company  may have
retained or assumed either contractually or by operation of law.</div></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td valign="top">3.14</td>
  <td colspan="3" valign="top"><div align=justify><strong>No Broker's or Finder's Fees</strong>.  Except as disclosed in Schedule 3.14, the Company has
not paid or become obligated to pay any fee or commission to any broker, finder, financial
advisor, intermediary, employee, or director in connection with the transactions
contemplated by this Agreement.</div></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td valign="top">3.15</td>
  <td colspan="3" valign="top"><strong>Assets Other Than Real Property</strong>.</td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">3.15.1</td>
  <td colspan="2" valign="top"><div align=justify><strong>Title</strong>.  The Company has good and marketable title to all of the tangible assets
shown on the Company Balance Sheet, in each case, free and clear of any
mortgage, pledge, lien, security interest, lease or other encumbrance
(collectively, "Encumbrances"), except for (a) assets disposed of since the date
of the Company Balance Sheet in the ordinary course of business and in a
manner consistent with past practices, (b) liabilities, obligations and
Encumbrances reflected in the Company Balance Sheet or otherwise in the
Company Financial Statements, (c) Permitted Encumbrances, and (d) liabilities,
obligations and Encumbrances set forth on Schedule 3.15 hereto.</div></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">3.15.2</td>
  <td colspan="2" valign="top"><div align=justify><strong>Inventory.  </strong>Except as set forth on Schedule 3.15,  the inventory reflected on the
Company Balance Sheet contains no material amount of slow-moving or
obsolete amount items that have not been reserved for.  The value at which such
inventories are carried on the Company Balance Sheet reflect the normal
inventory valuation policies of the Company and are carried in accordance with
GAAP, consistently applied.</div></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">3.15.3</td>
  <td colspan="2" valign="top"><div align=justify><strong>Accounts Receivable</strong>.  Except as set forth on Schedule 3.15, all receivables
shown on the Company Balance Sheet and all receivables accrued by the
Company since the date of the Company Balance Sheet, have been collected or
are collectible in all material respects in the aggregate amount shown, less any
allowances for doubtful accounts reflected therein, and, in the case of
receivables arising since the date of the Company Balance Sheet, any additional
allowance in respect thereof calculated in a manner consistent with the
allowance reflected in the Company Balance Sheet.</div></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">3.15.4</td>
  <td colspan="2" valign="top"><div align=justify><strong>Condition</strong>.   All material plant, equipment and personal property owned by the
Company and regularly used in its and their businesses is in good operating
condition and repair, ordinary wear and tear excepted.</div></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td valign="top">3.16</td>
  <td colspan="3" valign="top"><strong>Real Property</strong>.</td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">3.16.1</td>
  <td colspan="2" valign="top"><strong>Company Real Property</strong>. The Company does not own any real property.</td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">3.16.2</td>
  <td colspan="2" valign="top"><div align=justify><strong>Company Leases</strong>.  Schedule 3.16 hereto lists all of the Company Leases.
Complete copies of the Company Leases, and all material amendments thereto
(which are identified on Schedule 3.16), have been made available by the
Company to Parent.  The Company Leases grant leasehold estates free and clear
of all Encumbrances granted by or caused by the actions of the Company.  To
the knowledge of the Company, the Company Leases are in full force and effect
and are binding and enforceable against each of the parties thereto in accordance
with their respective terms.  Except as set forth on Schedule 3.16, neither the
Company nor, to the knowledge of the Company, any other party to a Company
Lease, has committed a material breach or default under any Company Lease,
nor has there occurred any event that with the passage of time or the giving of
notice or both would constitute such a breach or default, nor are there any facts
or circumstances that would reasonably indicate that the Company  is likely to
be in material breach or default thereunder.  Schedule 3.16 correctly identifies
each Company Lease the provisions of which would be materially and adversely
affected by the transactions contemplated hereby and each Company Lease that
requires the consent of any third party in connection with the transactions
contemplated hereby.  No material construction, alteration or other leasehold
improvement work with respect to the real property covered by any of the
Company Leases remains to be paid for or to be performed by the Company.
No Company Leases have an unexpired term which including any renewal or
extensions of such term provided for in the Company Lease could exceed fifty
years.</div></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">3.16.3</td>
  <td colspan="2" valign="top"><div align=justify><strong>Condition</strong>.  All buildings, structures and fixtures, or parts thereof, used by the
Company  in the conduct of its business are in good operating condition and
repair, ordinary wear and tear excepted, and are insured with coverages that are
usual and customary for similar properties and similar businesses or are required,
pursuant to the terms of the Company Leases, to be insured by third parties.</div></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td valign="top">3.17</td>
  <td colspan="3" valign="top"><strong>Agreements, Contracts and Commitments</strong>.</td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">3.17.1</td>
  <td colspan="2" valign="top"><div align=justify><strong>Company Agreements</strong>.  Except as set forth on Schedule 3.17 hereto or any
other Schedule hereto, the Company is not a party to:</div></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top">(a)</td>
  <td valign="top"><div align=justify>any bonus, deferred compensation, pension, severance, profit-sharing,
stock option, employee stock purchase or retirement plan, contract or
arrangement or other employee benefit plan or arrangement;</div></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top">(b)</td>
  <td valign="top"><div align=justify>any employment agreement with any present employee, officer,
director or consultant (or former employees, officers, directors and
consultants to the extent there remain at the date hereof obligations to
be performed by the Company);</div></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top">(c)</td>
  <td valign="top"><div align=justify>any agreement for personal services or employment with a term of
service or employment specified in the agreement or any agreement for
personal services or employment in which the Company  has agreed on
the termination of such agreement to make any payments greater than
those that would otherwise be imposed by law;</div></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top">(d)</td>
  <td valign="top"><div align=justify>any agreement of guarantee or indemnification in an amount that is
material to the Company taken as a whole;</div></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top">(e)</td>
  <td valign="top"><div align=justify>any agreement or commitment containing a covenant limiting or
purporting to limit the freedom of the Company  to compete with any
person in any geographic area or to engage in any line of business;</div></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top">(f)</td>
  <td valign="top"><div align=justify>any lease other than the Company Leases under which the Company
is lessee that involves payments of $25,000 or more per annum or is
material to the conduct of the business of the Company;</div></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top">(g)</td>
  <td valign="top"><div align=justify>any joint venture or profit-sharing agreement (other than with
employees);</div></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top">(h)</td>
  <td valign="top"><div align=justify>except for trade indebtedness incurred in the ordinary course of
business and equipment leases entered into in the ordinary course of
business, any loan or credit agreements providing for the extension of
credit to the Company  or any instrument evidencing or related in any
way to indebtedness incurred in the acquisition of companies or other
entities or indebtedness for borrowed money by way of direct loan,
sale of debt securities, purchase money obligation, conditional sale,
guarantee, or otherwise that individually is in the amount of $25,000
or more;</div></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top">(i)</td>
  <td valign="top"><div align=justify>any license agreement, either as licensor or licensee, involving
payments (including past payments) of $25,000 in aggregate or more,
or any material distributor, dealer, reseller, franchise, manufacturer's
representative, or sales agency or any other similar material contract
or commitment;</div></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top">(j)</td>
  <td valign="top"><div align=justify>any agreement granting exclusive rights to, or providing for the sale
of, all or any portion of the Company Proprietary Rights;</div></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top">(k)</td>
  <td valign="top"><div align=justify>any agreement or arrangement providing for the payment of any
commission based on sales other than to employees of the Company;</div></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top">(l)</td>
  <td valign="top"><div align=justify>any agreement for the sale by the Company or its Subsidiaries of
materials, products, services or supplies that involves future payments
to the Company of more than $25,000;</div></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top">(m)</td>
  <td valign="top"><div align=justify>any agreement for the purchase by the Company of any materials,
equipment, services, or supplies, that either (i) involves a binding
commitment by the Company  to make future payments in excess of
$25,000 and cannot be terminated by it without penalty upon less than
three months' notice or (ii) was not entered into in the ordinary course
of business;</div></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top">(n)</td>
  <td valign="top"><div align=justify>any agreement or arrangement with any third party to develop any
intellectual property or other asset expected to be used or currently
used or useful in the business of the Company;</div></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top">(o)</td>
  <td valign="top"><div align=justify>any agreement or commitment for the acquisition, construction or sale
of fixed assets owned or to be owned by the Company  that involves
future payments by it of more than $25,000;</div></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top">(p)</td>
  <td valign="top"><div align=justify>any agreement or commitment to which present or former directors,
officers or Affiliates of the Company (or directors or officers of an
Affiliate of the Company) are also parties;</div></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top">(q)</td>
  <td valign="top"><div align=justify>any agreement not described above (ignoring, solely for this purpose,
any dollar amount thresholds in those descriptions) involving the
payment or receipt by the Company  of more than $100,000, other
than the Company Leases; or</div></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top">(r)</td>
  <td valign="top"><div align=justify>any agreement not described above that was not made in the ordinary
course of business and that is material to the financial condition,
business, operations, assets, results of operations or prospects of the
Company.</div></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">3.17.2</td>
  <td colspan="2" valign="top"><div align=justify><strong>Validity</strong>.  Except as set forth on Schedule 3.17, to the knowledge of the
Company, all contracts, leases, instruments, licenses and other agreements
required to be set forth on Schedule 3.17 are valid and in full force and effect
and the Company has not, nor, to the knowledge of the Company, has any other
party thereto, breached any provision of, or defaulted under the terms of any
such contract, lease, instrument, license or other agreement, except for any
breaches or defaults that, in the aggregate, would not be expected to have a
Company Material Adverse Effect or have been cured or waived.  Schedule 3.17
identifies each contract and other document set forth on Schedule 3.17 or
disclosed by the Company on another Schedule hereto that requires the consent
of a third party in connection with the transactions contemplated hereby.</div></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td valign="top">3.18</td>
  <td colspan="3" valign="top"><strong>Intellectual Property</strong>.</td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">3.18.1</td>
  <td colspan="2" valign="top"><div align=justify><strong>Right to Intellectual Property</strong>.  Except as set forth on Schedule 3.18 hereto,
the Company owns, or has perpetual, fully paid, worldwide rights to use, all
patents, trademarks, trade names, service marks, copyrights, and any
applications therefor, maskworks, net lists, schematics, technology, know-how,
computer software programs or applications (in both source code and object
code form), and tangible or intangible proprietary information or material
(excluding Commercial Software) that are used in the business of the Company
as currently conducted (the "Company Proprietary Rights").</div></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">3.18.2</td>
  <td colspan="2" valign="top"><div align=justify><strong>No Conflict</strong>.  Set forth on Schedule 3.18 is a complete list of all patents,
trademarks, registered copyrights, trade names and service marks, and any
applications therefor, included in the Company Proprietary Rights, specifying,
where applicable, the jurisdictions in which each such Company Proprietary
Right has been issued or registered or in which an application for such issuance
and registration has been filed, including the respective registration or
application numbers and the names of all registered owners.  Except as set forth
on Schedule 3.18, none of the Company's currently marketed software products
has been registered for copyright protection with the United States Copyright
Office or any foreign offices nor has the Company  been requested to make any
such registration.  Set forth on Schedule 3.18 is a complete list of all material
licenses, sublicenses and other agreements as to which the Company  is a party
and pursuant to which the Company or any other person is authorized to use any
Company Proprietary Right (excluding End-User Licenses) or other trade secret
material to the business of the Company, and includes the identity of all parties
thereto, a description of the nature and subject matter thereof, the applicable
royalty and the term thereof.  The Company is not in violation of any license,
sublicense or agreement described on such list except such violations as do not
materially impair the Company rights under such license, sublicense or
agreement.  Except as disclosed in this Article 3, the execution and delivery of
this Agreement by the Company, and the consummation of the transactions
contemplated hereby, will neither cause the Company to be in violation or
default under any such license, sublicense or agreement, nor entitle any other
party to any such license, sublicense or agreement to terminate or modify such
license, sublicense or agreement.  Except as set forth on Schedule 3.18, the
Company is the sole and exclusive owner or licensee of, with all right, title and
interest in and to (free and clear of any and all liens, claims and encumbrances),
the Company Proprietary Rights, and has sole and exclusive rights (and is not
contractually obligated to pay any compensation to any third party in respect
thereof) to the use thereof or the material covered thereby in connection with the
services or products in respect of which the Company Proprietary Rights are
being used.  No claims with respect to the Company Proprietary Rights have
been asserted or, to the knowledge of the Company, are threatened by any
person nor are there any valid grounds for any bona fide claims to the effect that
the manufacture, sale, licensing or use of any of the products of the Company
as now manufactured, sold or licensed or used or proposed for manufacture,
use, sale or licensing by the Company infringes on any copyright, patent,
trademark, service mark or trade secret, against the use by the Company of any
trademarks, service marks, trade names, trade secrets, copyrights, patents,
technology, know-how or computer software programs and applications used
in the Company's business as currently conducted or as proposed to be
conducted by the Company, or challenging the ownership by the Company, or
the validity or effectiveness of any of the Company Proprietary Rights.  All
material registered trademarks, service marks and copyrights held by the
Company are valid and subsisting.  To the knowledge of the Company there is
no material unauthorized use, infringement or misappropriation of any of the
Company Proprietary Rights by any third party, including any employee or
former employee of the Company.  No Company Proprietary Right or product
of the Company is subject to any outstanding decree, order, judgment, or
stipulation restricting in any manner the licensing thereof by the Company.
Except as set forth in Schedule 3.18, the Company has not entered into any
agreement (other than exclusive distribution agreements) under which the
Company are restricted from selling, licensing or otherwise distributing any of
its products to any class of customers, in any geographic area, during any period
of time or in any segment of the market.  The Company's products, packaging
and documentation contain copyright notices sufficient to maintain copyright
protection on the copyrighted portions of the Company Proprietary Rights.</div></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">3.18.3</td>
  <td colspan="2" valign="top"><div align=justify><strong>Employee Agreements</strong>.  Except as set forth on Schedule 3.18, each employee,
officer and consultant of the Company has executed a confidentiality agreement
in substantially the form attached hereto as Schedule 3.18.3, providing the
Company with title and ownership to the Company Proprietary Rights
developed or used by the Company in its business.  To the knowledge of the
Company, no employee, officer or consultant of the Company is in violation of
any term of any employment or consulting contract, proprietary information and
inventions agreement, non-competition agreement, or any other contract or
agreement relating to the relationship of any such employee, officer or
consultant with the Company or any previous employer.</div></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td valign="top">3.19</td>
  <td colspan="3" valign="top"><div align=justify><strong>Insurance Contracts</strong>.  Schedule 3.19 hereto lists all contracts of insurance and indemnity
in force at the date hereof with respect to the Company.  Such contracts of insurance and
indemnity and those shown in other Schedules to this Agreement (collectively, the
"Company Insurance Contracts") insure against such risks, and are in such amounts, as
appropriate and reasonable considering the Company's property, business and operations.
All of the Company Insurance Contracts are in full force and effect, with no default
thereunder by the Company which could permit the insurer to deny payment of claims
thereunder.  The Company has not received notice from any of its insurance carriers that
any insurance premiums will be materially increased in the future or that any insurance
coverage provided under the Company Insurance Contracts will not be available in the
future on substantially the same terms as now in effect.  The Company has not received
or given a notice of cancellation with respect to any of the Company Insurance Contracts.</div></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td valign="top">3.20</td>
  <td colspan="3" valign="top"><div align=justify><strong>Banking Relationships</strong>.  Schedule 3.20 hereto shows the names and locations of all
banks and trust companies in which the Company or any of its Subsidiaries has accounts,
lines of credit or safety deposit boxes and, with respect to each account, line of credit or
safety deposit box, the names of all persons authorized to draw thereon or to have access
thereto.</div></td>
</tr>
</TABLE>

<br wp="br1"><br wp="br2">

<p align="center"><strong>ARTICLE 4</strong>

<p align="center"><strong>REPRESENTATIONS AND WARRANTIES OF PARENT AND MERGER SUB</strong>

<table border=0 width="100%">
<tr>
  <td width=8%></td>
  <td width=8%></td>
  <td width=84%></td>
</tr>
<tr>
  <td colspan="3" valign="top"><div align=justify>Parent and Merger Sub, jointly and severally, represent and warrant to the Company as follows:</div></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td valign="top">4.1</td>
  <td colspan="2" valign="top"><div align=justify><strong>Corporate Status of Parent and its Subsidiaries</strong>.  Parent and each of its Subsidiaries
is a corporation duly organized, validly existing and in good standing under the laws of
the jurisdiction of its incorporation, with the requisite corporate power to own, operate
and lease its properties and to carry on its business as now being conducted.</div></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td valign="top">4.2</td>
  <td colspan="2" valign="top"><div align=justify><strong>Authorized Stock of Merger Sub</strong>.  The authorized capital stock of Merger Sub consists
of 1,000 shares of Merger Sub Stock, of which 100 shares are issued and outstanding.
All of the outstanding shares of Merger Sub Stock have been duly authorized and validly
issued, were not issued in violation of any person's preemptive rights, and are fully paid
and nonassessable.</div></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td valign="top">4.3</td>
  <td colspan="2" valign="top"><strong>Authority for Agreement; Noncontravention</strong>.</td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">4.3.1</td>
  <td valign="top"><div align=justify><strong>Authority of Parent</strong>.  Each of Parent and Merger Sub has the corporate power
and authority to enter into this Agreement and to consummate the transactions
contemplated hereby.  The execution and delivery of this Agreement and the
consummation of the transactions contemplated hereby have been duly and
validly authorized by the boards of directors of Parent and Merger Sub<em> </em>and no
other corporate proceedings on the part of Parent or Merger Sub are necessary
to authorize the execution and delivery of this Agreement and the consummation
of the transactions contemplated hereby.  This Agreement and the other
agreements contemplated hereby to be signed by Parent or Merger Sub have
been duly executed and delivered by Parent and Merger Sub, as the case may be,
and constitute valid and binding obligations of Parent and Merger Sub, as the
case may be, enforceable against Parent and Merger Sub in accordance with
their terms, subject to the qualifications that enforcement of the rights and
remedies created hereby and thereby are subject to (a) bankruptcy, insolvency,
reorganization, fraudulent conveyance, moratorium and other laws of general
application affecting the rights and remedies of creditors and (b) general
principles of equity (regardless of whether enforcement is considered in a
proceeding in equity or at law).</div></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">4.3.2</td>
  <td valign="top"><div align=justify><strong>No Conflict</strong>.  Except as set forth on Schedule 4.3.2 hereto, neither execution
and delivery of this Agreement by Parent or Merger Sub, nor the performance
by Parent or Merger Sub of its obligations hereunder, nor the consummation by
Parent or Merger Sub of the transactions contemplated hereby will (a) conflict
with or result in a violation of any provision of the charter documents or by-laws
of Parent (including Merger Sub), or (b) with or without the giving of notice or
the lapse of time, or both, conflict with, or result in any violation or breach of,
or constitute a default under, or result in any right to accelerate or result in the
creation of any lien, charge or encumbrance pursuant to, or right of termination
under, any provision of any note, mortgage, indenture, lease, instrument or other
agreement, Permit, concession, grant, franchise, license, judgment, order,
decree, statute, ordinance, rule or regulation to which Parent, Merger Sub or
any of Parent's other Subsidiaries is a party or by which any of them or any of
their assets or properties is bound or which is applicable to any of them or any
of their assets or properties.  No authorization, consent or approval of, or filing
with or notice to, any Governmental Entity is necessary for the execution and
delivery of this Agreement by Parent or Merger Sub or the consummation by
Parent or Merger Sub of the transactions contemplated hereby, except for (<em>i</em>) the
filing of the Certificate of Merger with the Secretary of State of the State of
Delaware and <em>(ii)</em> such other consents, authorizations, filings, approvals and
registrations which if not obtained or made would not have a Parent Material
Adverse Effect.</div></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td valign="top">4.4</td>
  <td colspan="2" valign="top"><div align=justify><strong>SEC Statements, Reports and Documents</strong>.  Parent has timely filed all required forms,
reports, statements and documents with the SEC since January 1, 1993.  Parent heretofore
has delivered or made available to the Company true and complete copies of (a) its Annual
Reports on Form 10-K for the fiscal years ended June 30, 1998 and 1999, respectively,
(b) its Quarterly Report on Form 10-Q for the fiscal quarter September 30, 1999,
respectively, (c) all proxy statements relating to Parent's meetings of stockholders
(whether annual or special) held since June 30, 1997, (d) all other forms, reports,
statements and documents filed or required to be filed by it with the SEC since June 30,
1997, and (e) all amendments and supplements to all such reports and registration
statements filed by Parent with the SEC (the documents referred to in clauses (a), (b), (c),
(d) and (e) being hereinafter referred to as the "Parent Reports").  As of their respective
dates, the Parent Reports complied in all material respects with all applicable requirements
of the Securities Act and the Exchange Act and the rules and regulations promulgated
thereunder, and did not contain any untrue statement of a material fact or omit to state a
material fact required to be stated therein or necessary to make the statements therein, in
light of the circumstances under which they were made, not misleading.  The financial
statements (including any related notes) of Parent included in the Parent Reports were
prepared in conformity with GAAP applied on a consistent basis (except as otherwise
stated in the financial statements), and present fairly the consolidated financial position,
results of operations and changes in financial position of Parent and its consolidated
Subsidiaries as of the dates and for the periods indicated, subject, in the case of unaudited
interim consolidated financial statements, to (i) the absence of certain notes thereto and
(ii) normal year-end audit adjustments which are not in the aggregate material.  The
consolidated balance sheet of Parent and its subsidiaries at June 30, 1999, including the
notes thereto, is hereinafter referred to as the "Parent Balance Sheet."</div></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td valign="top">4.5</td>
  <td colspan="2" valign="top"><div align=justify><strong>Absence of Material Adverse Changes</strong>.  Since the date of the Parent Balance Sheet,
Parent has not suffered any Parent Material Adverse Effect, nor has there occurred or
arisen any event, condition or state of facts of any character that could reasonably be
expected to result in a Parent Material Adverse Effect.</div></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td valign="top">4.6</td>
  <td colspan="2" valign="top"><div align=justify><strong>Litigation and Audits</strong>.  Except for any claim, action, suit or proceeding disclosed in the
Parent Reports or set forth on Schedule 4.6 hereto, (a) there is no investigation by any
Governmental Entity with respect to Parent pending or, to the knowledge of Parent,
threatened, nor has any Governmental Entity indicated to Parent or any of its Subsidiaries
an intention to conduct the same, and (b) there is no claim, action, suit, arbitration or
proceeding pending or threatened against or involving Parent or any of its Subsidiaries,
or any of its or their assets or properties, at law or in equity, or before any arbitrator or
Governmental Entity, in each case that, if adversely determined, either singly or in the
aggregate, would prevent or materially delay the consummation of the transactions
contemplated hereby.</div></td>
</tr>
</TABLE>

<br wp="br1"><br wp="br2">

<p align="center"><strong>ARTICLE 5</strong>

<p align="center"><strong>CONDUCT PRIOR TO THE EFFECTIVE TIME</strong>

<table border=0 width="100%">
<tr>
  <td width=8%></td>
  <td width=8%></td>
  <td width=84%></td>
</tr>
<tr>
  <td valign="top">5.1</td>
  <td colspan="2" valign="top"><div align=justify><strong>Conduct of Business of the Company</strong>.  Except as set forth on Schedule 5.1 hereto,
between the date of this Agreement and the Effective Time or the date, if any, on which
this Agreement is earlier terminated pursuant to its terms, the Company and each of its
Subsidiaries shall, except to the extent that Parent shall otherwise consent in writing, (i)
carry on its business in the usual, regular and ordinary course in substantially the same
manner as heretofore conducted, pay its debts and taxes when due subject to good faith
disputes over such debts or taxes, pay or perform other material obligations when due
subject to good faith disputes over such obligations, and use all reasonable efforts
consistent with past practices and policies to preserve intact the Company's present
business organizations, keep available the services of its present officers and employees
and preserve its relationships with customers, suppliers and others having business
relationships with it, to the end that the Company's and each of its Subsidiaries' goodwill
and ongoing business be unimpaired at the Effective Time, and (ii) promptly notify Parent
of any event or occurrence not in the ordinary course of business of the Company and
each of its Subsidiaries which will have or could reasonably be expected to have a
Company Material Adverse Effect.  In addition, between the date of this Agreement and
the Effective Time or the date, if any, on which this Agreement is earlier terminated
pursuant to its terms, the Company and each of its Subsidiaries shall not, except to the
extent that Parent shall otherwise consent in writing:</div></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">(a)</td>
  <td valign="top">amend its charter documents or by-laws;</td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">(b)</td>
  <td valign="top"><div align=justify>declare or pay any dividends or distributions on the Company's
outstanding shares of capital stock nor purchase, redeem or otherwise
acquire for consideration any shares of the Company's capital stock or
other securities except in accordance with agreements existing as of the
date hereof;</div></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">(c)</td>
  <td valign="top"><div align=justify>issue or sell any shares of its capital stock, effect any stock split or
otherwise change its capitalization as it exists on the date hereof, or
issue, grant, or sell any options, stock appreciation or purchase rights,
warrants, conversion rights or other rights, securities or commitments
obligating it to issue or sell any shares of its capital stock, or any
securities or obligations convertible into, or exercisable or exchangeable
for, any shares of its capital stock, other than the issuance of shares of
Company Common Stock pursuant to the conversion, exercise or
exchange of securities therefor outstanding as of the date hereof in
accordance with their terms;</div></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">(d)</td>
  <td valign="top"><div align=justify>borrow or agree to borrow any funds or voluntarily incur, or assume or
become subject to, whether directly or by way of guaranty or otherwise,
any obligation or Liability, except obligations incurred in the ordinary
course of business consistent with past practices;</div></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">(e)</td>
  <td valign="top"><div align=justify>pay, discharge or satisfy any claim, obligation or Liability in excess of
$25,000 (in any one case) or $50,000 (in the aggregate), other than the
payment, discharge or satisfaction in the ordinary course of business of
obligations reflected on or reserved against in the Company Balance
Sheet, or incurred since the date of the Company Balance Sheet in the
ordinary course of business consistent with past practices or in
connection with this transaction;</div></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">(f)</td>
  <td valign="top"><div align=justify>except as required by applicable law, adopt or amend in any material
respect, any agreement or plan (including severance arrangements) for
the benefit of its employees;</div></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">(g)</td>
  <td valign="top"><div align=justify>sell, mortgage, pledge or otherwise encumber or dispose of any of its
assets which are material, individually or in the aggregate, to the
business of the Company and its Subsidiaries, except in the ordinary
course of business consistent with past practices;</div></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">(h)</td>
  <td valign="top"><div align=justify>acquire by merging or consolidating with, or by purchasing any equity
interest in or a material portion of the assets of, any business or any
corporation, partnership interest, association or other business
organization or division thereof, or otherwise acquire any assets which
are material, individually or in the aggregate, to the business of the
Company and its Subsidiaries, except in the ordinary course of business
consistent with past practices;</div></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">(i)</td>
  <td valign="top"><div align=justify>subject to Section 5.1(o), increase the following amounts payable or to
become payable: (i) the salary of any of its directors or officers, other
than increases in the ordinary course of business consistent with past
practices and not exceeding, in any case, ten percent (10%) of the
director's or officer's salary on the date hereof, (ii) any other
compensation of its directors or officers, including any increase in
benefits under any bonus, insurance, pension or other benefit plan made
for or with any of those persons, other than increases that are provided
in the ordinary course of business consistent with past practices to broad
categories of employees and do not discriminate in favor of the
aforementioned persons, and (iii) the compensation of any of its other
employees, consultants or agents except in the ordinary course of
business consistent with past practices;</div></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">(j)</td>
  <td valign="top"><div align=justify>dispose of, permit to lapse, or otherwise fail to preserve the rights of the
Company or any of its Subsidiaries to use the Company Proprietary
Rights or enter into any settlement regarding the breach or infringement
of, any Company Proprietary Rights, or modify any existing rights with
respect thereto, other than in the ordinary course of business consistent
with past practices, and other than any such disposal, lapse, failure,
settlement or modification that does not have and could not reasonably
be expected to have a Company Material Adverse Effect;</div></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">(k)</td>
  <td valign="top"><div align=justify>sell, or grant any right to exclusive use of, all or any part of the
Company Proprietary Rights;</div></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">(l)</td>
  <td valign="top"><div align=justify>enter into any contract or commitment or take any other action that is
not in the ordinary course of its business or could reasonably be
expected to have an adverse impact on the transactions contemplated
hereunder or that would have or could reasonably be expected to have
a Company Material Adverse Effect;</div></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">(m)</td>
  <td valign="top"><div align=justify>amend in any material respect any agreement to which the Company or
any of its Subsidiaries is a party the amendment of which will have or
could reasonably be expected to have a Company Material Adverse
Effect;</div></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">(n)</td>
  <td valign="top"><div align=justify>waive, release, transfer or permit to lapse any claims or rights (i) that has
a value, or involves payment or receipt by it, of more than $25,000 or
(ii) the waiver, release, transfer or lapse of which would have or could
reasonably be expected to have a Company Material Adverse Effect;</div></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">(o)</td>
  <td valign="top"><div align=justify>take any action that would materially decrease the Company's net worth,
<em>provided, however</em>, that payments by the Company of reasonable legal
and accounting fees related to the Merger shall not be deemed to be a
breach of this Section 5.1(o);</div></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">(p)</td>
  <td valign="top"><div align=justify>make any change in any method of accounting or accounting practice
other than changes required to be made in order that the Company's
financial statements comply with GAAP; or</div></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">(q)</td>
  <td valign="top"><div align=justify>agree, whether in writing or otherwise, to take any action described in
this Section 5.1.</div></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td valign="top">5.2</td>
  <td colspan="2" valign="top"><div align=justify><strong>Conduct of Business of Parent</strong>.  Between the date of this Agreement and the Effective
Time or the date, if any, on which this Agreement is earlier terminated pursuant to its
terms, Parent and each of its Subsidiaries shall not, except to the extent that the Company
shall otherwise consent in writing, take any action that would materially impair Parent's
ability to pay the aggregate Merger Price or otherwise to perform its obligations under this
Agreement.</div></td>
</tr>
</TABLE>

<br wp="br1"><br wp="br2">

<p align="center"><strong>ARTICLE 6</strong>

<p align="center"><strong>ADDITIONAL AGREEMENTS</strong>

<table border=0 width="100%">
<tr>
  <td width=8%></td>
  <td width=8%></td>
  <td width=8%></td>
  <td width=76%></td>
</tr>
<tr>
  <td valign="top">6.1</td>
  <td colspan="3" valign="top"><div align=justify><strong>Exclusivity</strong>.  From and after the date of this Agreement until the earlier of the  Effective
Time or the termination of this Agreement in accordance with Article 9 hereof, [but in any
event at least seventy-five (75) days after the date of the Letter of Intent,] the Company
and its Subsidiaries will not, directly or indirectly, through their respective affiliates,
agents, officers and directors, directly or indirectly, solicit, initiate, or participate in
discussions or negotiations or otherwise cooperate in any way with, or provide any
information to, any corporation, partnership, person, or other entity or group concerning
any tender offer, exchange offer, merger, business combination, sale of substantial assets,
sale of shares of capital stock, or similar transaction involving the Company or any of its
Subsidiaries (all such transactions being referred to herein as "Acquisition Proposals").
Notwithstanding the foregoing, the Company may furnish information concerning its
business, properties, or assets to and enter into negotiations with a corporation,
partnership, person, or other entity or group, if the party receives an unsolicited
Acquisition Proposal and outside counsel to the Company advises the Company's board
of directors in writing that the board's fiduciary responsibilities under applicable law
require that such information be provided or negotiations be held with the person
presenting the Acquisition Proposal in order to avoid a breach of such fiduciary
responsibilities. Notwithstanding the foregoing, in the event that the Company at any time
after the date of the Letter of Intent and before the earlier of the Effective Time or the
termination of this Agreement in accordance with Article 9 hereof, accepts an Acquisition
Proposal from any person or entity other than Parent, or the board of directors of the
Company fails, for any reason, to authorize and recommend to the stockholders of the
Company the entering into this Agreement and the consummation of the transactions
contemplated hereby, or the board of directors of the Company withdraws or modifies
such authorization or recommendation, the Parent shall be entitled, upon demand
submitted in a form of a notice to the Company (the "Demand Notice") setting forth the
costs and expenses incurred by the Parent or Merger Sub in connection with the due
diligence efforts related to transactions contemplated hereby (the "Due Diligence Costs"),
to the payment of the Due Diligence Costs up to the total amount  of $50,000. The
Company shall pay Due Diligence Costs within ten (10) days of the receipt of the Demand
Notice.</div></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td valign="top">6.2</td>
  <td colspan="3" valign="top"><div align=justify><strong>Expenses</strong>.  If the Company pays or incurs in connection with the Merger any costs and
expenses for fees and disbursement of consultants, investment bankers and other financial
advisors, counsel and accountants, in excess of $30,000, the amount of the excess over
$30,000 shall be deducted from the aggregate Merger Price and shall reduce <em>pro rata</em> the
Merger Price Per Share, so that the stockholders of the Company shall bear the excess
cost. Parent shall be responsible for  the costs and expenses incurred by the Parent and the
Merger Sub in connection with the Merger, including fees and disbursements of
consultants, investment bankers and other financial advisors, counsel and accountants.
None of the parties of any of their Affiliates shall be responsible for any of the costs and
expenses of the other parties, except that Parent, Merger Sub and/or any of their Affiliates
may in their sole discretion determine the manner in which they wish to share the costs and
expenses incurred by Parent and Merger Sub in connection with the Merger.</div></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td valign="top">6.3</td>
  <td colspan="3" valign="top"><strong>Indemnification. </strong></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">6.3.1</td>
  <td colspan="2" valign="top"><div align=justify><strong>Indemnification.  </strong>Subject to the terms of this Section 6.3, from and after the
Closing Date, Parent, the Surviving Corporation, each Subsidiary or Affiliate of
Parent and their respective directors, officers, employees, Affiliates,
representatives, successor and assigns (collectively "Indemnified Parties") shall
be entitled to payment and reimbursement of the full amount of Loss suffered,
incurred or paid by any Indemnified Party, by reason of, in whole or in part, any
misrepresentation or inaccuracy in, or breach of, any representation or warranty
made by the Company in this Agreement or any Exhibits or Schedules hereto or
the certificates delivered pursuant to this Agreement (each such representation
or warranty would read as if all qualifications as to materiality and knowledge
were deleted therefrom and each such representation or warranty would read as
if made by such Stockholder).</div></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">6.3.2</td>
  <td colspan="2" valign="top"><div align=justify><strong>Indemnification Representative.</strong>  The Company hereby appoints, and by
adopting and approving this Agreement and the Merger, the Stockholders shall
be deemed to appoint, David Deltano (the "Stockholder Representative"), with
full and unqualified power to delegate to one or more Persons the authority
granted to him hereunder, to act as each of their agent and attorney-in-fact, with
full power of substitution, with authority.</div></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top">(a)</td>
  <td valign="top" width="74%"><div align=justify>to receive and to accept on behalf of each Stockholder any notice from
the Company given in accordance with the terms of this Section 6.3 (and
any notice given to the Stockholder Representative shall be deemed to
have been given to each Stockholder);</div></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top">(b)</td>
  <td valign="top"><div align=justify>to give on behalf of each Stockholder any notice, representation,
demand, or other communication that it may be necessary, desirable, or
otherwise appropriate to give to secure and to preserve for each
Stockholder the benefit of any policy or policies of insurance, surety,
indemnification, or other reimbursement for any amount for which the
Stockholder may be liable directly or indirectly under this Agreement
("Indemnification Insurance");</div></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top">(c)</td>
  <td valign="top"><div align=justify>to cooperate with any and all Indemnified Parties to investigate,
negotiate, settle, and compromise any claim of any Indemnified Party
asserted under this Agreement <em>to the extent and only to the extent</em> that
any liability of any Stockholder established or confirmed thereby is
covered by Indemnification Insurance, and to execute on behalf of any
Stockholder any agreement, instrument, or other document that, in the
sole discretion of the Stockholder Representative, is necessary, desirable,
or otherwise appropriate to effect any such settlement or compromise;</div></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td colspan="4" valign="top"><div align=justify><em>provided, however</em>, that the Stockholder Representative shall have no liability or obligation to any
Indemnified Party otherwise than and to the extent his individual liability as a Stockholder.</div></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">6.3.3</td>
  <td colspan="2" valign="top"><div align=justify><strong>Claims for Indemnification.</strong> Upon obtaining knowledge of any facts, claim or
demand which has given rise to, or could reasonably give rise to, a claim for
indemnification hereunder (referred to herein as an "Indemnification Claim"), the
Indemnified Party shall promptly give written notice of such facts, claim or
demand ("Notice of Claim") to the party from whom indemnification is sought
(the "Indemnifying Party"). So long as the Notice of Claim is given by the
Indemnified Party in the Claims Period specified in Section 6.3.6, no failure or
delay by the Indemnified Party in the giving of a Notice of Claim shall reduce or
otherwise affect the Indemnified Party's right to indemnification except to the
extent that the Indemnifying Party has been prejudiced thereby.</div></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
<td valign="top"></td>
<td valign="top">6.3.4</td>
<td colspan="2" valign="top"><div align=justify><strong>Defense by Indemnifying Party.  </strong>In the event of a claim or demand asserted by
a third party (a "Third Party Claim"), the Indemnifying Party acting through the
Indemnification Representative, if applicable, shall have the right, but not the
obligation, exercisable by written notice to the Indemnified Party within 10 days
of the date of the Notice of Claim concerning the commencement or assertion of
any Third Party Claim, to participate in the defense of such Third Party Claim.
The Indemnified Party shall not settle such Third Party Claim without the prior
written consent of the Indemnifying Party, which consent shall not be
unreasonably withheld or delayed.</div></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">6.3.5</td>
  <td colspan="2" valign="top"><div align=justify><strong>Limitation on Liability for Indemnity</strong>.  The Indemnified Parties shall not be
entitled to indemnification pursuant to this Section 6.5 until the aggregate
amount of all losses, expenses, liabilities and other damages suffered by the
Indemnified Parties exceeds $100,000 (including attorney's fees and expenses
incurred in connection therewith) (the "Indemnity Threshold") whereupon the
Indemnified Parties shall be entitled to indemnification hereunder for the
aggregate amount of all of such losses, expenses, liabilities and other damages
suffered by the Indemnified Parties or any Indemnified Party, in excess of
$100,000 in the aggregate. The Indemnity Threshold shall be determined without
regard to any materiality qualification contained in any representation or
warranty. The liability of any Stockholder with respect to any claim under this
Section 6.3 shall not exceed a <em>pro rata</em> portion of the amount of the claim equal
to that Stockholder's proportion of the total Merger Price; and the aggregate
liability of any Stockholder under this Section 6.3 shall not in any event exceed
the aggregate Merger Price Per Share to which that Stockholder is entitled
pursuant to Section 2.3.1. The aggregate liability of all the Stockholders for
indemnification under this Section 6.3 shall not exceed $1,000,000.</div></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">6.3.6</td>
  <td colspan="2" valign="top"><div align=justify><strong>Claims Period</strong>.  Any claim for indemnification under this Section 6.5 must be
asserted by written notice on or before the date that is 18 months after the
Closing Date<em> </em>with respect to all other Losses.</div></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td valign="top">6.4</td>
  <td colspan="3" valign="top"><div align=justify><strong>Access and Information</strong>.  The parties shall afford to each other and to their respective
officers, employees, accountants, counsel and other authorized representatives full and
complete access, upon 24 hours advance telephone notice, during regular business hours,
throughout the period prior to the earlier of the Effective Time or the termination of this
Agreement pursuant to its terms, to their offices, properties, books and records and shall
use reasonable efforts to cause their respective representatives and independent public
accountants to furnish to each other such additional financial and operating data and other
information as to their respective businesses, customers, vendors and properties and those
of their Subsidiaries as either party may from time to time reasonably request. In the event
of a claim for indemnification pursuant to Section 6.3, the parties shall cooperate in any
investigation of relevant facts, and each Indemnified Party shall afford to the Indemnifying
Parties (and to any authorized representative of an insurer providing applicable
Indemnification Insurance) reasonable access as provided in the first sentence of this
paragraph.</div></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td valign="top">6.5</td>
  <td colspan="3" valign="top"><div align=justify><strong>Public Disclosure</strong>.  Except as otherwise required by law, any press release or other public
disclosure of information regarding the proposed transaction (including the negotiations
with respect to the Merger and the terms and existence of this Agreement) shall be
developed by Parent, subject to the Company's review.  The Company and Parent agree
that each party's non-disclosure obligations contained in the Letter of Intent shall remain
in full force and effect in accordance with the terms thereof and hereof.</div></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td valign="top">6.6</td>
  <td colspan="3" valign="top"><div align=justify><strong>No Solicitation of Employees</strong>.  Parent and the Company agree that between the date of
this Agreement and the Effective Time or the date one year after the date, if any, on which
this Agreement is earlier terminated pursuant to its terms, whichever period is longer,
neither party shall solicit, induce or recruit any of the other party's employees to leave
their employment, otherwise than in response to general advertisements or solicitations
not directed specially to employees of the other party.</div></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td valign="top">6.7.</td>
  <td colspan="3" valign="top"><strong>Further Assurances</strong>.</td></tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">6.7.1</td>
  <td colspan="2" valign="top"><div align=justify><strong>Generally</strong>.  Subject to terms and conditions herein provided and to the fiduciary
duties of the board of directors and officers of any party, each of the parties
agrees to use its commercially reasonable efforts to take, or cause to be taken,
all action and to do, or cause to be done, all things necessary, proper or advisable
under applicable laws and regulations to consummate and make effective this
Agreement and the transactions contemplated hereby.  In case at any time any
further action, including, without limitation, the obtaining of waivers and
consents under any agreements, material contracts or leases and the execution
and delivery of any licenses or sublicenses for any software, is necessary, proper
or advisable to carry out the purposes of this Agreement, the proper officers and
directors of each party to this Agreement are hereby directed and authorized to
use their reasonable best efforts to effectuate all required action.</div></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td colspan="4" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">6.7.2</td>
  <td colspan="2" valign="top"><div align=justify><strong>Novation of the Material Contracts</strong>.  Each party agrees to use its best
reasonable efforts to effect the novation of each contract of the Company, if any,
that may require novation under its terms or under applicable laws or regulations
as a result of the transactions contemplated by this Agreement, and further agrees
to provide all documentation necessary to effect each such novation, including,
without limitation, all instruments, certifications, requests, legal opinions, audited
financial statements, and other documents required by Part 42 of the Federal
Acquisition Regulation to effect a novation of any contract with the Government
of the United States.  In particular and without limiting the generality of the
foregoing, the Company shall continue to communicate with responsible officers
of the Government of the United States from time to time as may be appropriate
and permissible, to request speedy action on any and all requests for consent to
novation.</div></td>
</tr>
</TABLE>

<br wp="br1"><br wp="br2">

<p align="center"><strong>ARTICLE 7</strong>

<p align="center"><strong><center>CONDITIONS PRECEDENT</strong>

<table border=0 width="100%">
<tr>
  <td width=8%></td>
  <td width=8%></td>
  <td width=84%></td>
</tr>
<tr>
  <td valign="top">7.1</td>
  <td colspan="2" valign="top"><div align=justify><strong>Conditions Precedent to the Obligations of Each Party</strong>.  The obligations of the parties
hereto to effect the Merger shall be subject to the fulfillment at or prior to the Closing of
the following conditions:</div></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">7.1.1</td>
  <td valign="top"><div align=justify><strong>Stockholder Approval</strong>.  This Agreement and the transactions contemplated hereby shall have been approved by the requisite vote under applicable law of the stockholders of the Company.</div></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">7.1.2</td>
  <td valign="top"><div align=justify><strong>Board of Directors Consents</strong>. This Agreement and the Merger and the other
transactions contemplated hereby shall have been approved by the board of
directors of each of Company, Parent and Merger Sub.</div></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">7.1.3</td>
  <td valign="top"><div align=justify><strong>Illegality.  </strong>There shall not have been any action taken, and no statute, rule or regulation shall have been enacted, by any state or federal government agency since the date of this Agreement that
would prohibit or materially restrict the Merger or any other material transaction contemplated hereby.</div></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">7.1.4</td>
  <td valign="top"><div align=justify><strong>Government Consents.  </strong>All filings with and notifications to, and all approvals and authorizations of, third parties (including, without limitation, Governmental
Entities) required for the consummation of the Merger and the other material
transactions contemplated hereby shall have been made or obtained and all such
approvals and authorizations obtained shall be effective and shall not have been
suspended, revoked or stayed by action of any Governmental Entity.</div></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">7.1.5</td>
  <td valign="top"><div align=justify><strong> No Injunction</strong>.  No injunction or restraining or other order issued by a court
of competent jurisdiction that prohibits or materially restricts the consummation
of the Merger or the other transactions contemplated hereby shall be in effect
(each party agreeing to use all reasonable efforts to have any injunction or other
order immediately lifted), and no action or proceeding shall have been
commenced or threatened in writing seeking any injunction or restraining or
other order that seeks to prohibit, restrain, invalidate or set aside consummation
of the Merger or any of the other transactions contemplated hereby.</div></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td></tr>
<tr>
  <td colspan="3" valign="top"></td></tr>
<tr>
  <td valign="top">7.2</td>
  <td colspan="2" valign="top"><strong>Conditions Precedent to Obligation of Parent and Merger Sub to Effect the Merger</strong>.
The obligation of Parent and Merger Sub to effect the Merger shall be subject to the
fulfillment or waiver at or prior to the Closing of the following additional conditions:</td></tr>
<tr>
  <td colspan="3" valign="top"></td></tr>
<tr>
  <td colspan="3" valign="top"></td></tr>
<tr>
  <td valign="top"></td>
  <td valign="top">7.2.1</td>
  <td valign="top"><strong>Representations and Warranties</strong>.  The representations and warranties of the
Company contained in this Agreement shall be true and correct in all material
respects on and as of the Closing Date, except for changes contemplated by this
Agreement and except for those representations and warranties which address
matters only as of a particular date (which shall remain true and correct as of
such date), with the same force and effect as if made on and as of the Closing
Date, except in all such cases, for such breaches, inaccuracies or omissions of
such representations and warranties which have neither had nor reasonably
would be expected to have a Company Material Adverse Effect; and the
Company shall have delivered to Parent a certificate to that effect, dated the date
of the Closing and signed on behalf of the Company by the President and Chief
Financial Officer of the Company.</td></tr>
<tr>
  <td colspan="3" valign="top"></td></tr>
<tr>
  <td colspan="3" valign="top"></td></tr>
<tr>
  <td valign="top"></td>
  <td valign="top">7.2.2</td>
  <td valign="top"><div align=justify><strong>Agreements and Covenants</strong>.  The Company shall have performed in all
material respects all of its agreements and covenants set forth herein that are
required to be performed at or prior to the Closing Date; and the Company shall
have delivered to Parent a certificate to that effect, dated as of the Closing Date
and signed on behalf of the Company by the President and Chief Financial
Officer of the Company.</div></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">7.2.3</td>
  <td valign="top"><div align=justify><strong>Cash Assets.</strong>  The Company shall at the Closing Date have cash assets of at least $1,300,000.</div></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">7.2.4</td>
  <td valign="top"><div align=justify><strong>Legal Opinion</strong>.  Parent and Merger Sub shall have received an opinion from Testa, Hurwitz &amp; Thibeault LLP, counsel to the Company, in substantially the form attached hereto as Exhibit 7.2.4 hereto.
</div></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">7.2.5</td>
  <td valign="top"><div align=justify><strong>Closing Documents</strong>. The Company shall have delivered to Parent the Company closing certificate and such closing documents as the Parent shall reasonably
request (other than additional opinions of counsel). The Company closing
certificate, dated as of the Closing Date, duly executed by the Company's
secretary, shall certify as to (i) the signing authority, incumbency and specimen
signature of the signatories of this Agreement and other documents signed on
behalf of the Company in connection herewith, (ii) the resolutions adopted by
the board of directors of the Company authorizing and approving the execution,
delivery and performance of this Agreement and the other documents executed
in connection herewith and the consummation of the transactions contemplated
hereby and thereby and state that such resolutions have not been modified,
amended, revoked or rescinded and remain in full force and effect, and (iii) the
certificate of incorporation and by-laws of the Company.</div></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">7.2.6</td>
  <td valign="top"><div align=justify><strong>Third Party Consents</strong>.  All third party consents or approvals listed in Schedule 7.2.6 hereto shall have been obtained by the Company and shall be effective and
shall not have been suspended, revoked, or stayed by action of any such third party.</div></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">7.2.7</td>
  <td valign="top"><div align=justify><strong>Payment List</strong>.  The Company shall have delivered to Parent a list (the "Payment List") of the persons entitled to payment of any of the Merger Price as of the
Closing Date, showing for each such person the amount of Common Stock
owned of record, the amount of any promissory note or other monetary
obligation of the person to the Company which may be set off against or
otherwise deducted from the payment otherwise due to that person, and the
address to which documentation relating to the transaction contemplated by this
Agreement should be sent.</div></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">7.2.8</td>
  <td valign="top"><div align=justify><strong>Diligence Review</strong>. Parent and its accountants and attorneys shall have conducted a diligence investigation of all maters related to the business of the
Company and its Subsidiaries deemed relevant by Parent or its accountants and
attorneys to such diligence investigation, and the results of such diligence
investigation shall have been satisfactory to  Parent.</div></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">7.2.9</td>
  <td valign="top"><div align=justify><strong>Consulting Agreement</strong>.  The Company shall have entered into written consulting agreement with George Adaniya, in form and substance reasonably satisfactory to Parent.</div></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td valign="top">7.3</td>
  <td colspan="2" valign="top"><div align=justify><strong>Conditions to Obligations of the Company to Effect the Merger</strong>.  The obligation of
the Company to effect the Merger shall be subject to the fulfillment or waiver at or prior
to the Closing of the following additional conditions:</div></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">7.3.1</td>
  <td valign="top"><div align=justify><strong>Representations and Warranties</strong>.  The representations and warranties of
Parent and Merger Sub contained in this Agreement shall be true and correct in
all material respects on and as of the Closing Date, except for changes
contemplated by this Agreement and except for those representations and
warranties which address matters only as of a particular date (which shall remain
true and correct as of such date), with the same force and effect as if made on
and as of the Closing Date, except in all such cases, for such breaches,
inaccuracies or omissions of such representations and warranties which have
neither had nor reasonably would be expected to have a Parent Material Adverse
Effect; and Parent shall have delivered to the Company a certificate to that
effect, dated the date of the Closing and signed on behalf of Parent by the
President and Chief Financial Officer of Parent.</div></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">7.3.2</td>
  <td valign="top"><div align=justify><strong>Agreements and Covenants</strong>.  Parent and Merger Sub shall have performed in
all material respects all of their agreements and covenants set forth herein that
are required to be performed at or prior to the Closing Date; and Parent shall
have delivered to the Company a certificate to that effect, dated as of the
Closing Date and signed on behalf of Parent by the President and Chief Financial
Officer of Parent.</div></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">7.3.3</td>
  <td valign="top"><div align=justify><strong>Legal Opinion</strong>.  The Company shall have received opinions from Jeffrey P. Elefante, Executive Vice President of Parent, and Foley, Hoag &amp; Eliot <font size="-1">LLP</font>,
counsel to Parent, in substantially the forms attached hereto as Exhibit 7.3.3.</div></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">7.3.4</td>
  <td valign="top"><div align=justify><strong>Closing Documents</strong>.  Parent and Merger Sub shall have delivered to the Company closing certificates of Parent and Merger Sub and such other closing
documents as the Company shall reasonably request (other than additional
opinions of counsel). Each of the closing certificates of Parent and Merger Sub,
dated as of the Closing Date, duly executed by the secretary of Parent and
Merger Sub, respectively, shall certify as to (i) the signing authority, incumbency
and specimen signature of the signatories of this Agreement and other
documents signed on behalf of Parent and Merger Sub in connection herewith,
(ii) the resolutions adopted by the board of directors of the Parent and Merger
Sub authorizing and approving the execution, delivery and performance of this
Agreement and the other documents executed in connection herewith and the
consummation of the transactions contemplated hereby and thereby and state
that such resolutions have not been modified, amended, revoked or rescinded
and remain in full force and effect, and (iii) the Certificate of Incorporation and
By-Laws of the Parent and Articles of Incorporation and By-Laws Merger Sub.</div></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">7.3.5</td>
  <td valign="top"><div align=justify><strong>Material Adverse Effect</strong>.  Since the date of this Agreement, Parent shall not have suffered a Parent Material Adverse Effect.</div></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">7.3.6</td>
  <td valign="top"><div align=justify><strong>Payment of Purchase Price</strong>.  The Parent shall have made provisions acceptable
to the Company for payment of the aggregate Merger Price pursuant to the
provisions of Section 2.4.2 hereof.</div></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">7.3.7</td>
  <td valign="top"><div align=justify><strong>Indemnification Insurance</strong>.  The Company or the Stockholders shall have
obtained Indemnification Insurance with respect to their respective obligations
under Section 6.3 on terms satisfactory to the Stockholder Representative.</div></td>
</tr>
</TABLE>

<br wp="br1"><br wp="br2">

<p align="center"><strong>ARTICLE 8<center></strong>

<p align="center"><strong>SURVIVAL OF REPRESENTATIONS</strong>

<table border=0 width="100%">
<tr>
  <td width=8%></td>
  <td width=8%></td>
  <td width=84%></td>
</tr>
<tr>
  <td valign="top">8.1</td>
  <td colspan="2" valign="top"><strong>Survival of Representations</strong></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">8.1.1</td>
  <td valign="top"><div align=justify><strong>The Company's Representations</strong>.  All representations and
warranties made by the Company in this Agreement or any certificate or other
writing delivered by the Company or any of its Affiliates pursuant hereto or in
connection herewith shall survive the Closing and any investigation at any time
made by or on behalf of Parent and shall terminate on the date which is 18
months after the Effective Time (except that Indemnified Party claims pending
on such date  continue until resolved).  The covenants made by the Company in
this Agreement or any certificate or other writing delivered by the Company or
any of its Affiliates pursuant hereto or in connection herewith shall survive the
Closing and any investigation at any time made by or on behalf of Parent.</div></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">8.1.2</td>
  <td valign="top"><div align=justify><strong>Parent's Representations</strong>.  All representations and warranties made by Parent and Merger Sub in this Agreement or any certificate or other writing delivered
by Parent, Merger Sub or any of their respective Affiliates pursuant hereto or in
connection herewith shall survive the Closing and any investigation at any time
made by or on behalf of the Company and shall terminate on date that is eighteen
(18) months after the Effective Time (except that Company claims pending on
that date shall continued until resolved).  The covenants made by the Parent in
this Agreement or any certificate or other writing delivered by the Parent,
Merger Sub and their respective Affiliates pursuant hereto or in connection
herewith shall survive the Closing and any investigation at any time made by or
on behalf of the Company.</div></td>
</tr>
</TABLE>

<br wp="br1"><br wp="br2">

<p align="center"><strong>ARTICLE 9</strong></p>

<p align="center"><strong>OTHER PROVISIONS</strong></p>

<table border=0 width="100%">
<tr>
  <td width=8%></td>
  <td width=8%></td>
  <td width=84%></td>
</tr>
<tr>
  <td valign="top">9.1</td>
  <td colspan="2" valign="top"></div align=justify><strong>Termination Events</strong>.  This Agreement may be terminated and the Merger abandoned at any time prior to the Effective Time:</div></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td></td>
  <td valign="top">(a)</td>
  <td valign="top">by mutual written consent of Parent and the Company;</td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td></td>
  <td valign="top">(b)</td>
  <td valign="top"><div align=justify>by Parent if there has been a breach of any representation, warranty,
covenant or agreement contained in this Agreement on the part of the
Company and such breach has not been cured within ten business days
after written notice to the Company (provided, that neither Parent nor
Merger Sub is in material breach of the terms of this Agreement, and
provided further, that no cure period shall be required for a breach
which by its nature cannot be cured) such that the conditions set forth
in Section 7.2.1 or Section 7.2.2 hereof, as the case may be, will not
be satisfied;</div></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td></td>
  <td valign="top">(c)</td>
  <td valign="top"><div align=justify>by Parent, if the Company or its board of directors shall have
(<em>i</em>) withdrawn, modified or amended in any material respect its
approval of this Agreement or the transactions contemplated herein,
or (<em>ii</em>) taken any public position inconsistent with its approval or
recommendation, including, without limitation, having failed
(without the consent of Parent) after a reasonable period of time to
reject or disapprove any Acquisition Proposal (or after a reasonable
period of time to recommend to its shareholders such rejection or
disapproval), and in that event the Company shall pay to Parent the
Due Diligence Costs pursuant to Section 6.3; </div></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td></td>
  <td valign="top">(d)</td>
  <td valign="top"><div align=justify>by the Company if there has been a breach of any representation,
warranty, covenant or agreement contained in this Agreement on the
part of Parent or Merger Sub and such breach has not been cured
within ten business days after written notice to Parent (provided, that
the Company is not in material breach of the terms of this Agreement,
and provided further, that no cure period shall be required for a breach
which by its nature cannot be cured) such that the conditions set forth
in Section 7.3.1 or Section 7.3.2 hereof, as the case may be, will not
be satisfied;</div></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td></td>
  <td valign="top">(e)</td>
  <td valign="top"><div align=justify>by the Company, if the Company accepts an Acquisition Proposal for
any reason, including pursuant to a good-faith determination by its
Board of Directors, after consulting with counsel, that not to accept
the Acquisition Proposal would constitute a breach of the Directors'
fiduciary duty under DGCL  <em>provided, however,</em> that in that event the
Company shall pay to Parent the Due Diligence Costs pursuant to
Section 6.3;</div></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td></td>
  <td valign="top">(f)</td>
  <td valign="top"><div align=justify>by any party hereto if: (i) there shall be a final, non-appealable order of
a federal or state court in effect preventing consummation of the
Merger; (ii) there shall be any final action taken, or any statute, rule,
regulation or order enacted, promulgated or issued or deemed
applicable to the Merger by any Governmental Entity which would
make consummation of the Merger illegal or which would prohibit
Parent's or Merger Sub's ownership or operation of all or a material
portion of the business or assets of the Company, or compel Parent or
Merger Sub to dispose of or hold separate all or a material portion of
the business or assets of the Company or Parent or Merger Sub as a
result of the Merger; (iii) if the Company's stockholders do not
approve this Agreement and the transactions contemplated hereby at
the Company Meeting; or</div></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td></td>
  <td valign="top">(g)</td>
  <td valign="top"><div align=justify>by any party hereto if the Merger shall not have been consummated by
February 29, 2000, provided that the right to terminate this Agreement
under this Section 9.1(g) shall not be available to any party whose
failure to fulfill any material obligation under this Agreement has been
the cause of, or resulted in, the failure of the Effective Time to occur
on or before such date.</div></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td valign="top">9.2</td>
  <td colspan="2" valign="top"><div align=justify><strong>Notices</strong>. All notices and other communications hereunder shall be in writing and shall
be deemed given if delivered by hand sent via a reputable nationwide courier service or
mailed by registered or certified mail (return receipt requested) to the parties at the
following addresses (or at such other address for a party as shall be specified by like
notice) and shall be deemed given on the date on which so hand-delivered or on the third
business day following the date on which so mailed or sent:</div></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td colspan="2" valign="top"><em>To Parent and Merger Sub</em>:</td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top">CACI International Inc<br>1100 North Glebe Road<br>Arlington, VA  22201<br>Attention:  Dr. J. P. London, Chairman</td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td colspan="2" valign="top">with copies to:</td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td colspan="2" valign="top"></td>
  <td valign="top">Jeffrey P. Elefante<br>Executive Vice President, General Counsel and Secretary<br>CACI International Inc<br>1100 North Glebe Road<br>Arlington, VA  22201</td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td colspan="2" valign="top"></td>
  <td valign="top">David W. Walker, Esq.<br>Foley, Hoag &amp; Eliot LLP<br>One Post Office Square<br>Boston, MA 02109</td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td colspan="2" valign="top"><em>To the Company</em>:</td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top">XEN Corporation<br>9990 Lee Highway<br>Suite 530<br>Fairfax, VA  22030<br>Attention:</td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td colspan="2" valign="top">with copies to:</td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top">Kathy A. Fields, Esq.<br>Testa, Hurwitz &amp; Thibeault, LLP<br>125 High Street<br>Boston, MA  02110</td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td valign="top">9.3</td>
  <td colspan="2" valign="top"><div align=justify><strong>Entire Agreement</strong>.  This Agreement and the documents and instruments and other
agreements among the parties hereto as contemplated by or referred to herein constitute
the entire agreement among the parties with respect to the subject matter hereof and
supersede all other prior agreements and understandings, both written and oral, between
the parties with respect to the subject matter hereof, including the Letter of Intent.  Each
party hereto acknowledges that, in entering this Agreement and completing the
transactions contemplated hereby, such party is not relying on any representation,
warranty, covenant or agreement not expressly stated in this Agreement or in the
agreements among the parties contemplated by or referred to herein.</div></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td valign="top">9.4</td>
  <td colspan="2" valign="top"><div align=justify><strong>Assignability</strong>.  This Agreement is not intended to confer upon any person other than the
parties hereto any rights or remedies hereunder, except as otherwise expressly provided
herein.  Neither this Agreement nor any of the rights and obligations of the parties
hereunder shall be assigned or delegated, whether by operation of law or otherwise,
without the written consent of all parties hereto, except that certain rights and obligations
of Merger Sub and the Company may be assigned and delegated to the Surviving
Corporation as a result of the Merger without any further consent hereunder.</div></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td valign="top">9.5</td>
  <td colspan="2" valign="top"><div align=justify><strong>Validity</strong>.  The invalidity or unenforceability of any provisions of this Agreement shall not affect the validity or enforceability of any other provisions of this Agreement, each of which
shall remain in full force and effect.</div></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td valign="top">9.6</td>
  <td colspan="2" valign="top"><div align=justify><strong>Specific Performance</strong>.  The parties hereto acknowledge that damages alone may not adequately compensate a party for violation by another party of this Agreement. Accordingly, in addition to
all other remedies that may be available hereunder or under
applicable law, any party shall have the right to any equitable relief that may be
appropriate to remedy a breach or threatened breach by any other party hereunder,
including the right to enforce specifically the terms of this Agreement by obtaining
injunctive relief in respect of any violation or non-performance hereof.</div></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td valign="top">9.7</td>
  <td colspan="2" valign="top"><div align=justify><strong>Governing Law</strong>. This Agreement shall take effect and shall be construed as a contract under the laws of the State of Delaware.</div></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td valign="top">9.8</td>
  <td colspan="2" valign="top"><strong>Counterparts</strong>.  This Agreement may be executed in one or more counterparts, all of which together shall constitute one and the same agreement.</div></td>
</tr>
</TABLE>

<br wp="br1"><br wp="br2">

<p align=justify>IN WITNESS WHEREOF, the parties have duly executed this Agreement and Plan of Merger under
seal as of the date first above written.</p>

<br wp="br1"><br wp="br2">

<table border=0 width="90%">
<tr>
  <td width=44%></td>
  <td width=6%></td>
  <td width=40%></td>
</tr>
<tr>
  <td valign="top"></td>
  <td colspan="2" valign="top"><strong>CACI International Inc</strong></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">By:</td>
  <td valign="top"align="center">/s/  Jeffrey P. Elefante</td>
</tr>
<tr>
  <td colspan=2></td>
  <td><hr line=1 noshade></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">Title:</td>
  <td valign=top>Executive Vice President<br>General Counsel & Secretary</td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td colspan="2" valign="top"><strong>CACI Acquisition Corporation</strong></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">By:</td>
  <td valign="top" align="center">/s/  Jeffrey P. Elefante</td>
</tr>
<tr>
  <td colspan=2></td>
  <td><hr line=1 noshade></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">Title:</td>
  <td valign=top>Executive Vice President<br>General Counsel & Secretary</td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td colspan="2" valign="top"><strong>XEN Corporation</strong></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td colspan="3" valign="top"></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">By:</td>
  <td valign="top" align="center">/s/  Randall H. Millar</td>
</tr>
<tr>
  <td colspan=2></td>
  <td><hr line=1 noshade></td>
</tr>
<tr>
  <td valign="top"></td>
  <td valign="top">Title:</td>
  <td valign=top>President</td>
</tr>
</TABLE>
</body>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>3
<TEXT>

<HTML>
<HEAD>
<TITLE></TITLE>
</HEAD>
<BODY LINK="#0000ff" VLINK="#800080">

<p align=right>Exhibit 99.2</p>

<FONT SIZE=5><P ALIGN="center"><b>CACI Completes Acquisition of XEN Corporation</b></P></font>

<font size=3><P ALIGN="CENTER"><b><I>Synergies in Information Security and Electronic Commerce<BR>for Growth in Intelligence Markets</I></b></P></font>

<br wp="br1"><br wp="br2">

<P ALIGN="JUSTIFY">Arlington, Va., February 2, 2000 -- CACI International Inc (NASDAQ: CACI) announced today it has completed the acquisition of all of the
outstanding shares of XEN Corporation (XEN), a privately held Delaware company.</P>

<P ALIGN="JUSTIFY">XEN is headquartered in Fairfax, Virginia, with other offices in Denver, Colorado. XEN provides quality systems engineering,
engineering design, distance learning, training development, multimedia support, electronic commerce, and data security services to national intelligence
organizations, the Department of Defense, and the U.S. Navy.  XEN's revenues for its fiscal year ending September 30, 1999 were $8.5 million.</P>


<P ALIGN="JUSTIFY">L. Kenneth Johnson, President, CACI, Inc., stated that "This addition of XEN's capabilities to ours will enable us to continue the growth of
our work for the intelligence community. We continue to see significant opportunity for CACI in this area as the breadth of our offerings expands."</P>


<P ALIGN="JUSTIFY">CACI International Inc (http://www.caci.com) is an information technology products and services provider specializing in developing and
integrating systems, software, and networks and providing intelligence, e-commerce, and information assurance services to government agencies
and commercial enterprises worldwide.  Celebrating 38 years in business, the company has approximately 4,300 employees and operates out of more than
90 offices in the U.S. and Europe.</P>

<P ALIGN="JUSTIFY"><I>There are statements made above which do not address historical facts and, therefore, could be interpreted to be forward-looking
statements as that term is defined in the Private Securities Litigation Reform Act of 1995.  Such statements are subject to factors that could cause actual
results to differ materially from anticipated results.  The factors that could cause actual results to differ materially from those anticipated include, but are not
limited to, the following: changes in interest rates; the risks and uncertainties associated with client interest in and purchases of new products
and/or services; continued funding of U.S. Government or other public sector projects in the event of a priority need for funds; government contract
procurement (such as bid protest) and termination risks; individual business decisions of our clients; paradigm shifts in technology; competitive factors
such as pricing pressures and/or competition to hire and retain employees; our ability to complete acquisitions and/or divestitures appropriate to achievement
of our strategic plans; and other risks described in the Company's Securities and Exchange Commission filings.</I></P>

<P ALIGN="CENTER"># # #</P>

<table width=95% border=0>
<tr>
  <td width=35%></td>
  <td width=25%></td>
  <td width=35%></td>
</tr>
<tr>
  <td>For investor information contact:<br><br>David Dragis<br>Investory Relations Director<br>(703) 841-7835<br>ddragics@caci.com</td>
  <td></td>
  <td>For other information contact:<br><br>Jody Brown<br>Vice President Public Relations<br>(703) 841-7801<br>jbrown@caci.com<td>
</tr>
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