Jacobs Receives Contract Option at NASA’s Stennis and Marshall Space Centers

Jacobs Engineering Group Inc. announced today that a subsidiary company received a 2-year option on a contract to provide test operations services at NASA’s John C. Stennis Space Center near Bay St. Louis, Miss., and at Marshall Space Flight Center in Huntsville, Ala.

The option, with an estimated value of $42 million, extends the contract from September 1, 2006 through August 31, 2008, and follows an original 2-year base period that commenced on September 1, 2004.

The contract also has a potential second 2-year option period that could extend the contract through August 31, 2010, and bring the potential total value to $128 million.

Jacobs serves as the prime contractor, drawing support from two subcontractors: Engineering, Research, and Consulting (ERC), Inc.; and Smith Research Corporation (SRC), Inc. The team’s workforce consists of approximately 300 personnel.

The team supports rocket propulsion system and component testing at both sites, including test planning and test operations; test facility management, design, and modification; technology development and insertion; and maintenance of test facility systems and support systems.

Jacobs holds the bulk of the U.S. government’s major rocket testing contracts. In addition to this contract at Stennis and Marshall, other contracts include work at the U.S. Air Force’s Arnold Engineering Development Center (AEDC) at Arnold AFB, Tenn.; the Air Force Research Laboratory (AFRL) at Edwards AFB, Calif.; the Naval Air Warfare Center Weapons Division (NAWCWD) at China Lake, Calif.; and NASA’s White Sands Test Facility near Las Cruces, N.M.

In making the announcement, Jacobs President Craig Martin stated, “In the course of our 55-year history supporting the nation’s rocket propulsion test community, we have developed a long-standing relationship with NASA at both Stennis and Marshall. We are proud to have a meaningful role in the future of these critical propulsion test centers, especially with the advancement of the Constellation Program, which will build upon mankind’s exploration of our galaxy.”

Jacobs, with over 42,000 employees and revenues approaching $7.0 billion, provides technical, professional, and construction services globally.

Any statements made in this release that are not based on historical fact are forward-looking statements. Although such statements are based on management’s current estimates and expectations, and currently available competitive, financial, and economic data, forward-looking statements are inherently uncertain. We, therefore, caution the reader that there are a variety of factors that could cause business conditions and results to differ materially from what is contained in our forward-looking statements. For a description of some of the factors which may occur that could cause actual results to differ from our forward-looking statements please refer to our 2005 Form 10-K, and in particular the discussions contained under Items 1 – Business, 3 – Legal Proceedings, and 7 – Management’s Discussion and Analysis of Financial Condition and Results of Operations. We also caution the readers of this release that we do not undertake to update any forward-looking statements made herein.