DynCorp International Inc.
Sep 28, 2009
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DynCorp Agrees to Acquire Phoenix Consulting Group, Inc.

Acquisition Expected to Expand DynCorp International's Services to Intelligence Community and National Security Clients

FALLS CHURCH, Va., Sep 28, 2009 (BUSINESS WIRE) -- DynCorp International LLC, a wholly-owned subsidiary of DynCorp International Inc. (NYSE:DCP), has entered into a definitive agreement to acquire 100% of the stock of Phoenix Consulting Group, Inc. Phoenix provides its proprietary training courses and materials and management consulting and augmentation services to the intelligence community. Terms of the transaction were not disclosed. The acquisition is expected to expand DynCorp International's services to the intelligence community and national security clients. DynCorp International intends to fund the purchase price with cash on hand.

Phoenix is a private company headquartered in Alexandria, Virginia. Phoenix has offices in Virginia and Arizona and employs approximately 400 full-time and part-time professionals. Most of these employees possess security clearances, many at the Top Secret level. Phoenix's offerings include:

Phoenix will operate as a wholly-owned subsidiary and be consolidated as a business unit within the Global Stabilization and Development Solutions division (GSDS).

"This acquisition is consistent with our goal of accelerating growth, expanding service offerings and penetrating new segments," said DynCorp International President and CEO William L. Ballhaus. "Phoenix's talent complements DynCorp International's business and extends our ability to deliver compelling services to the intelligence community and national security clients. This acquisition will continue to strengthen DynCorp International as a leading provider of specialized mission-critical services to civilian and military government agencies worldwide."

"We are extremely pleased and look forward to joining DynCorp International. This combination will provide us opportunities for expansion of our training and services to meet the changing and challenging conditions our Nation faces in the coming years. DynCorp International and Phoenix share a common commitment to serve willingly, perform relentlessly, and act ethically," said John A. Nolan, III, Chief Executive Officer of Phoenix.

KippsDeSanto & Co. acted as exclusive financial advisor to Phoenix Consulting Group.

The transaction is subject to customary closing conditions and is expected to close during October 2009.

About Phoenix Consulting Group, Inc.

Phoenix Consulting Group, Inc. and its over 400 employees provide intelligence training, consultative and augmentation services to a wide range of client organizations. Phoenix Consulting Group's offerings include:

Phoenix Consulting Group is headquartered in Alexandria, VA. For more information, visit www.intellpros.com.

About DynCorp International

DynCorp International Inc. (NYSE:DCP), through its wholly-owned subsidiary DynCorp International LLC, is a provider of specialized mission-critical services to civilian and military government agencies worldwide, and operates major programs in law enforcement training and support, security services, base operations, aviation services, contingency operations, and logistics support. DynCorp International is headquartered in Falls Church, Va. For more information, visit www.dyn-intl.com.

Safe Harbor Language

Some of the statements contained in this press release are considered "forward-looking statements" under the federal securities laws. These forward-looking statements are based on estimates and assumptions made by DynCorp International's (the "Company") management that, although believed by the Company to be reasonable, are inherently uncertain. Forward-looking statements involve risks and uncertainties, including, but not limited to, economic, competitive, governmental, and technological factors outside of the Company's control that may cause its business, strategy or actual results or events to differ materially from the statements made herein. These risks and uncertainties may include, but are not limited to, the following: our ability to close the acquisition of Phoenix on a timely basis; our ability to integrate Phoenix into our operations; our substantial level of indebtedness; policy and/or spending changes implemented by the Obama administration; termination of key U.S. government contracts; changes in the demand for services the Company provides; pursuit of new commercial business in the U.S. and abroad; activities of competitors including bid protests; changes in significant operating expenses; changes in availability of or cost of capital; general political, economic and business conditions in the U.S. and abroad; acts of war or terrorist activities; variations in performance of financial markets; the inherent difficulties of estimating future contract revenue; anticipated revenue from indefinite delivery, indefinite quantity contracts; expected percentages of future revenue represented by fixed-price and time-and-materials contracts; and other risks detailed from time to time in the Company's reports filed with the Securities and Exchange Commission. Given these risks and uncertainties, you are cautioned not to place undue reliance on forward-looking statements. The Company's actual results could differ materially from those contained in the forward-looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as required by law.

SOURCE: DynCorp International

DynCorp International
Douglas Ebner, 817-224-7822

Copyright Business Wire 2009