MAXIMUS Signs $72 Million Massachusetts Medicaid Services Contract

RESTON, Va.--(BUSINESS WIRE)--June 21, 2005--MAXIMUS (NYSE: MMS), a leading provider of health and human services consulting, program management, and information technology solutions to government, has been selected by the Commonwealth of Massachusetts Executive Office of Health and Human Services (EOHHS), to provide a full range of customer services for MassHealth members and providers. The MassHealth program provides comprehensive health insurance -- or help in paying for private health insurance -- to nearly one million Massachusetts residents through Medicaid, the State Children's Health Insurance Program (SCHIP), and other state funded health initiatives. For this initiative, MAXIMUS has partnered with EDS and Vecna Technologies. The four-year Massachusetts contract is valued at $72 million. The contract may be extended an additional six years, providing a total contract value of approximately $168 million.

MAXIMUS has provided member services for MassHealth since 1995. This new contract includes operating a contact center, enrolling managed care members, obtaining transportation authorization, processing provider claims, enrolling and credentialing providers, and creating and maintaining self-service options for providers and members over the Internet.

With this project, MAXIMUS and its partners expect to respond to in excess of 1.8 million providers and member contacts annually, through phone calls, e-mail, and the Web. MAXIMUS will provide customer service to more than 950,000 MassHealth recipients and enrollment broker services for managed care eligible MassHealth members. The company will process an estimated 100,000 requests for transportation services annually, as well as process more than 40 million provider claims per year. This project effort will move more providers to a paperless, efficient, HIPAA-compliant EDI Web portal for claims processing. Additionally, MAXIMUS provides outreach, enrollment, and credentialing services in support of more than 27,000 MassHealth providers. The company's efforts will offer providers and members new self-service avenues for conducting business outside of normal business hours via the Internet.

Through this contract, MAXIMUS will serve as the principal means by which EOHHS interacts with its MassHealth members. We will be responsible for accurately and appropriately communicating and promoting EOHHS' goals and objectives. The award of this new contract illustrates the company's ability to integrate its dedication to high quality customer service to a variety of customers with its advanced contact center technology.

As Beth Waldman, Medicaid Director of EOHHS, stated, "MAXIMUS, EDS, and Vecna Technologies have put together a team that combines a dedication to the basics of customer support with new, cutting-edge innovations that will make MassHealth a more welcoming program for our members and a more user-friendly business partner for our providers. This contract will provide a consistent level of excellent customer services for all MassHealth members, enhance efficiency, cut administrative costs, and enhance communication."

Lynn Davenport, CEO of MAXIMUS, commented, "There are significant mutual benefits to expanding our longstanding partnership with Massachusetts EOHHS. This is another major step in implementing the EOHHS vision of moving toward an integrated infrastructure for internal and external customers. We are committed to the Commonwealth's long-term goals and excited to be a part of their continued success in making healthcare accessible to their beneficiaries."

MAXIMUS is one of America's leading government services companies providing consulting, systems, and outsourcing services. The company has approximately 5,100 employees located in more than 220 offices in the United States, Canada, England, and Australia. In 1999, 2001, 2002, 2003, and 2004, MAXIMUS was selected by Forbes Magazine as one of the Best 200 Small Companies in America for that year. MAXIMUS was selected by Business Week Magazine as one of the 100 Best Hot Growth Small Companies in 1999, 2000, 2001, and 2002. Additionally, MAXIMUS is included in the Russell 2000 Index and the S&P SmallCap 600 Index.

EDS (NYSE: EDS) is a leading global technology services company delivering business solutions to its clients. EDS founded the information technology outsourcing industry more than 40 years ago. Today, EDS delivers a broad portfolio of information technology and business process outsourcing services to clients in the manufacturing, financial services, healthcare, communications, energy, transportation, and consumer and retail industries and to governments around the world. With $20.7 billion in 2004 revenue, EDS is ranked 95th on the Fortune 500. Learn more at eds.com.

Vecna Technologies Inc., headquartered in College Park, Md., and with offices in Cambridge, Mass., and Skyline, Va., delivers to its clients technology-based solutions designed to meet today's business management challenges. Vecna surpasses customer expectations with expert, cost effective management and information systems consulting. Key services include enterprise architecture consulting, system integration and interfacing, and enterprise application development. Key areas of research include medical informatics, bioinformatics, artificial intelligence, robotics, and clinical solutions. For more information, visit www.vecna.com.

Statements that are not historical facts, including statements about the company's confidence and strategies and the company's expectations about revenues, results of operations, profitability, future contracts, market opportunities, market demand or acceptance of the company's products are forward-looking statements that involve risks and uncertainties. These uncertainties could cause the company's actual results to differ materially from those indicated by such forward-looking statements and include reliance on government clients; risks associated with government contracting; risks involved in managing government projects; legislative changes and political developments; opposition from government unions; challenges resulting from growth; adverse publicity; and legal, economic, and other risks detailed in Exhibit 99.1 to the company's most recent Annual Report filed with the Securities and Exchange Commission (file number 001-12997).