Annandale, VA —  April 4, 2007 —  QSMI, a leading provider of IT services and solutions, announced today that a major component of the Office of the Secretary of Defense (OSD) has exercised the second option year of a five-year contract with QSMI. Under the contract, QSMI will complete the migration of the OSD end-user community from a legacy budgeting system to a newly deployed n-tier and Web-based program with a planning, budget, and execution (PPBE) system that was designed and implemented under the prior contract period. QSMI will also provide applications development support as well as develop, test, and deploy additional system modules to incorporate expanded functionality requirements identified during the previous contract period.

The newly implemented system incorporates a best-of-breed technology platform that allows for enhanced functionality to better support the OSD directorates’ business processes. It also enables end-users to generate and maintain their internal budgets, spend plans, contracts, and business travel plans. Additionally, the application better enables the user community to answer ad-hoc budget inquiries, both internally and through data calls, from the comptroller. Other services under the contract include requirements analysis, data modeling, Tier II database administration, and end-user training and outreach.

About QSMI

Founded in 1997, QSMI offers a broad range of technology-based solutions to clients in defense, national security, healthcare, law, and civil government. QSMI’s services include: strategic consulting; systems design, development, and integration; and operations management. The company, a veteran-owned small business, also delivers business solutions for enterprise systems management and planning, and forecasting systems. For more information, visit www.qsmi.com.

Media Contact: Carrington Thomson, QSMI- 703.658.9700 ext. 102, thomson@qsmi.com