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In The Boardroom With...

Mr. Larry Cox
Senior Vice President
Intelligence and Information Solutions
Business Unit General Manager
NYSE:SAI Thank you for joining us today, Larry. You’ve had a really interesting background in business and on Capitol Hill as a professional staff member with the House Permanent Select Committee on Intelligence. Please give us an overview of your background and your role with SAIC.

Larry Cox: I was recruited by the U.S. Defense Department right out of college and spent over a decade doing analytic and technical work in the U.S. and abroad, living overseas for quite a while. Searching for more, I joined General Electric Aerospace just as Jack Welch took over all of GE. I had a series of wonderful jobs in systems engineering, spacecraft and ground systems development, program management and business development. I probably could have stayed at GE forever, but I got an opportunity to compete for a rare professional staff member job on the HPSCI doing program and budget oversight for intelligence community programs. After working for three chairmen and two parties, I went to the Sarnoff Labs as a VP, to create a Washington based operation to focus on defense and intelligence work. It turns out I probably learned more about commercialization than anything else at Sarnoff. Most improbably in the middle of all this, I worked for Touchstone Pictures, Jerry Bruckheimer and Tony Scott as a technical advisor for the film, “Enemy of the State”. I had a small role in the film typecast as a government executive.

ORINCON Corporation of La Jolla, Calif., decided to move into the intelligence business and brought me in, in 1997 to do it. Six years later we sold ORINCON and three subsidiaries to Lockheed Martin, where I stayed for two years doing strategy development. In April 2005 SAIC asked me to take over the business unit headquarted in Columbia MD and here I am today. Please give our audience an overview of your business unit at SAIC.

Larry Cox: My organization, of approximately 2100 people, does systems engineering, architecture, software and hardware development and production, information assurance services and products and electronic records management for government and commercial customers. Congratulations on the recent announcement regarding the award of a contract from the Department of Homeland Security to provide security services to Customs and Border Protection. Can you tell us about the solution SAIC will provide here?

Larry Cox: The single-award time and materials contract has a one-year base period, four one-year options and a total value of $39.2 million, if the customer exercises all options. For the DHS CBP Security and technology Branch, SAIC will perform work including certification and accreditation, security risk assessments, security test and evaluation, system architecture, communication security services, and technology policy and administration. One will read on that, "SAIC's national security efforts reach across all branches of the military and support the full spectrum of military operations – from peace keeping and humanitarian missions to major conflicts. SAIC also helps the Department of Defense, the FBI, and other agencies combat terrorism, cybercrime, and the proliferation of weapons of mass destruction.” Are there one or two other “wins” in this space you’d like to mention?

Larry Cox: We need to win a significant amount of new business each day to sustain an organization this size. Besides the $39M DHS Customer and Border Protection win, other recent contract wins include the Quest team’s Networx win. My business unit will provide network security for opportunities resulting from Networx. We understand that SAIC will also have a role in the General Services Administration's Networx Universal program as a member of the team headed by Qwest Communications. Seems like a really significant project with an estimated value of the multiple-award prime contracts at $20 billion over the next 10 years. Can you elaborate on SAIC’s role here?

Larry Cox: SAIC is providing Managed Security Services and Solutions for Qwest’s Networx Universal and Enterprise contracts. As a leader in Cyber Security, SAIC will provide Managed Firewall, Intrusion Detection and Prevention, Managed E-Authentication, Vulnerability Scanning, Anti-Virus Management, Incident Response, Secure Managed E-mail and Managed Tiered Security services. SAIC will also provide support in Dedicated Hosting Services, Managed Network, and Customer Specific design and Engineering. In addition to the Qwest relationship are there one or two other key strategic relationships you’d like to mention?

Larry Cox: SAIC is a platform agnostic company. By that I mean we are not wedded to any proprietary or vendor specific solutions or products, So we are free to evaluate and select the best for our customer’s needs. Therefore we work with and for the best including the top aerospace firms, the leading integrators of which we are one, and the best vendors. We have relationships with Lockheed Martin, Northrop Grumman, Boeing, Raytheon, Booz Allen Hamilton, General Dynamics, Adobe, Sun and many others. Regarding SAIC’s Business IT Consulting, one will also read on that, “….SAIC professionals assess and design a holistic technical and organizational framework that effectively supports strategic requirements. “ Care to elaborate on this?

Larry Cox: Sure. From assessing mission needs through architecture design and development to supplying tools and applications, SAIC people provide solutions to allow our customers to tackle their most difficult problems. We try to achieve the right balance of performance and cost to deliver what our customers want in time to be useful. What is your perspective on the market drivers for SAIC Intelligence and Information Solutions at this time?

Larry Cox: For government business in general, I see the market flattening. However, for our addressable market, I believe the prospects remain excellent as agencies recapitalize and seek more efficient solutions. To find the growth opportunities I want for my business unit, we are sharpening our focus on state and local governments and offshore relationships. What resources such as streaming video, webinars, webcasts, podcasts, “white papers” and “case studies” are available for end-users on

Larry Cox: Our Website contains extensive information on the history and status of SAIC. You can sample our business, examine our structure, read our financial reports, learn about our leadership, look for a job and read our investment literature. The site is simple to use, with URLs to the large variety of information sources. Note also we celebrate the accomplishments of our people routinely. Our people are everything to us; we highlight them at every opportunity. Thanks again for joining us today, Larry. Are there any other subjects you’d like to discuss?

Larry Cox: Yes, I want to describe SAIC for you in a different way. We are truly a 21st century company. By developing technical and scientific solutions for our customers in an independent way unwedded to existing platforms or processes, we can challenge our people to be clever and resourceful using the best of that Yankee ingenuity Americans are famous for. There are few companies like that today and SAIC wears that style consciously.