Statement by Gene W.
Ray, chairman, president and chief executive officer, Titan Corporation on Lockheed Martin Corporation’s announcement to terminate the Merger
Agreement with Titan:
“I envision Titan’s future with great confidence.
“Since the merger was announced with Lockheed Martin in September of 2003,
Titan has continued to operate successfully as one of the country’s largest
Information Technology contractors providing national security solutions, with
annualized revenues of approximately $2 billion.
“We expect continued growth and record revenues for 2004. This will follow
a 2003 year-over-year organic growth of 26% that yielded revenues totaling
$1.8 billion, and 21% year-over-year organic growth in the first quarter of
2004, resulting in revenues of $459 million.
“The offer of a merger came from Lockheed Martin, not Titan. Our people
put in a tremendous effort supporting the merger over the past several months,
while continuing to deliver strong growth and customer satisfaction. I am
disappointed that we were not able to complete the merger as we set out to do
nine months ago. Going forward, we will be able to focus all our energy and
resources on providing the highest quality product and services to our
customers for the benefit of our country.
“Many of our customers are pleased that Titan retains its creative
independence. Our senior management team looks forward to the next few years
with a great deal of enthusiasm, and I find that is true with all our senior
executives and our employees as a whole. All of the general managers in
charge of our business units have stayed in place through this proposed merger
period, and are enthusiastically looking forward to the Titan opportunities
ahead. We are dedicated to building an even more successful company with a
blend of existing and new programs that we believe will provide our
shareholders with significant value growth going forward.
“Titan is financially strong, and today has a backlog in excess of $5
billion in U.S. Government contracts. We are proud of our entrepreneurial
culture, which has made us a leader in many high technology areas of critical
national importance. Titan has successfully competed against the largest
defense contractors on numerous occasions, including most recently the large
‘US-VISIT’ contract won by the Accenture team, in which Titan is a major
subcontractor. This win will further bolster our backlog in 2004.
“Titan now begins executing on its future. I know that I speak for all
Titan employees when I say that we look to that future with great confidence
and the anticipation of great success. We look forward to resuming our normal
communications program and intend to re-establish relations with the investing
community in the coming days.
“From Titan’s point of view, all systems are go.”
“Safe Harbor” Statement under the Private Securities Litigation Reform Act
of 1995: The statements contained in this release, which are not historical
facts, are forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.
Examples of such forward-looking statements include Titan’s expecedt record
growth in 2004, that Titan’s backlog will be bolstered by being part of the
US-VISIT/Accenture team, and that Titan’s blend of existing and future
programs will result in significant value growth to stockholders. These
statements are subject to risks and uncertainties that could cause actual
results to differ materially from those set forth in or implied by forward-
looking statements. These risks and uncertainties include the risks associated
with the Company’s dependence on continued funding of U.S. Department of
Defense and federal civilian agency programs, contract termination risks,
risks associated with acquiring other companies, including integration risks,
and other risks described in the Company’s Securities and Exchange Commission
filings.
