SRX Sra International

William Blair & Company Initiates Coverage of SRA International, Inc. With Outperform Rating CHICAGO, Jan. 7 /PRNewswire/ -- William Blair & Company today announced that it initiated research coverage of SRA International, Inc. (NYSE:SRX) ($60.45), a leading provider of IT solutions to the Defense Department, the intelligence community, the National Guard, and civilian agencies within the federal government, with an Outperform rating and company profile of Core Growth. Analyst Laura Lederman estimated that the company would earn $1.89 per share in fiscal 2005 and $2.22 per share in fiscal 2006. "SRA has delivered 26 years of organic growth and profitability," Lederman said. "Over the last 10 years the company has posted 18% average revenue growth, with 16% over the last five years. The company has developed many important longstanding relationships with defense agencies and military branches during this period. Through internal growth and, to a lesser degree, acquisitions, the company has built a broad portfolio of value-added services that include strategic consulting, systems design and integration, outsourcing, and operations management." "The company delivers its services through long-term contracts that average five years," she added. "These programs provide a steady flow of recurring revenue, resulting in superior visibility and limited near-term earnings volatility. High contract renewal rates of nearly 95% add to the predictably of the company's revenue and earnings. These factors taken together provide significant visibility heading into any given quarter. SRA enters each year with about 75%-80% of its revenue already signed, in our estimation." William Blair & Company, L.L.C. ( http://www.williamblair.com/ ) is a Chicago-based investment firm, founded in 1935, offering investment banking, asset management, equity research, institutional and private brokerage, and private capital to individual, institutional, and issuing clients. As an independent, employee-owned firm, our philosophy is to serve our clients' interests first and foremost. William Blair & Company, L.L.C. has received compensation for investment banking services from the company within the past 12 months, or expects to receive or intends to seek compensation for investment banking services in the next 3 months. For important disclosures and information regarding the firm's rating system, valuation methods and potential conflicts of interest, please visit: http://www.williamblair.com/pages/eqresearch_home.asp?uid=775 Additional information is available upon request. William Blair & Company, L.L.C. is a member of the National Association of Securities Dealers, CRD number 1252. DATASOURCE: William Blair & Company, L.L.C. CONTACT: Tony Zimmer, William Blair & Company, L.L.C., +1-312-364-8611, Web site: http://www.williamblair.com/

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