Updates Fourth Quarter Guidance; Introduces Fiscal 2009 Outlook

MAXIMUS to Host a Conference Call Today at 9:00 a.m. (ET)

MAXIMUS (NYSE:MMS), a leading provider of government services, announced today that it has signed an asset purchase agreement for the sale of its Justice Solutions, Education Systems, and Asset Solutions businesses to Toronto-based Constellation Software, Inc. (TSX: CSU). The transaction is expected to close on September 30, 2008. Total consideration for the transaction is $40 million, including a $35 million cash payment due at closing and a $5 million holdback for one year from closing, subject to a purchase price adjustment and any claims based on representations and warranties.

With the sale of the Justice, Education, and Asset businesses, MAXIMUS will focus principally on its core health and human services program administration and consulting offerings. The ERP division, formerly part of the Systems Segment, will be incorporated into the Consulting Segment, and the three divested Systems businesses will be reported as discontinued operations. The Company will report financial results for its remaining Operations and Consulting Segments as continuing operations.

“Today’s announcement fulfills a promise we made to our shareholders to center our operations around our core health and human services offerings,” commented Richard Montoni, Chief Executive Officer of MAXIMUS. “With increased operational focus, we expect the benefits to include a more predictable base of recurring revenue and stabilized margin performance. We also create the platform to drive future growth as the leading pure-play provider for the administration of government health and human services programs. This concentration will also allow for the accelerated development of leading-edge services and capabilities built upon our market-leading domain expertise.”

Mr. Montoni continued, “We believe this divestiture represents an all around win for MAXIMUS, Constellation, and the employees and clients of both companies. Constellation possesses substantial domain expertise in these specific markets, has a long-standing record of successful software implementations and is therefore best positioned to leverage the core capabilities and opportunities of the intellectual property they are acquiring. We would like to thank the employees of these businesses for their long-standing commitment and dedication to MAXIMUS and we wish them well as part of Constellation.”

In conjunction with today’s announcement, MAXIMUS is updating guidance for its fourth quarter and fiscal 2008 year ending September 30, 2008. As a result of the disposal, MAXIMUS expects a fourth quarter loss from discontinued operations of approximately $0.78 to $0.84. The loss from discontinued operations contains two components, (1) a loss from operations and (2) a loss on disposal which includes non-cash items such as goodwill and capitalized software. For fiscal 2008, MAXIMUS expects a loss from discontinued operations in the range of $1.38 to $1.44 per diluted share. MAXIMUS expects positive cash flow from the divestitures in excess of $20 million, after-tax.

For the fourth quarter, the Company expects revenue from continuing operations in the range of $190 million to $195 million with diluted earnings per share from continuing operations in the range of $0.68 to $0.73. For fiscal 2008, MAXIMUS expects revenue from continuing operations in the range of $745 million to $750 million with diluted earnings per share from continuing operations in the range of $2.91 to $2.96. On a normalized basis, the Company expects pro forma diluted earnings per share from continuing operations in the range of $2.80 to $2.85, which excludes legal and settlement expense, the gain on the sale of the building that occurred in Q3, and interest income before the share repurchase program entered into in November 2007 that is not expected to repeat in fiscal 2009. (See supplemental pro forma table). For year-over-year comparison purposes, the Company will base its fiscal 2009 projections on pro forma results of $2.80 to $2.85 from continuing operations for fiscal 2008.

MAXIMUS is also introducing its fiscal 2009 guidance. The Company expects revenue from continuing operations in the range of $775 million to $800 million and diluted earnings per share in the range of $3.00 to $3.15, excluding any effect of share repurchase activities.

Mr. Montoni concluded, “Fiscal 2008 represented significant growth delivered by the Company’s core operations. Moving into fiscal 2009, we will continue with our ongoing strategic objective to optimize business operations and remain selective in the pursuit of new work. We believe this will help drive consistent operating margins above 10%. In fiscal 2009, we expect 4% to 7% top-line growth over revenue from continuing operations in fiscal 2008. Our fiscal 2009 revenue guidance assumes that $55 million to $60 million in revenue recorded in fiscal 2008 will not repeat in fiscal 2009. This relates to work that MAXIMUS chose not to re-bid, consulting business lines that the Company is winding down, and project life cycles where work is ramping down. Our cultural shift towards more profitable, less volume-driven work has taken hold, and we believe we have greatly improved our overall risk-reward profile. Over the longer term, we still see an abundance of opportunities to accelerate our top and bottom line growth.”

Website Presentation, Conference Call and Webcast Information

MAXIMUS will host a conference call today at 9:00 a.m. (ET). The Company has also posted a presentation on its website, under the Investor Relations page, for analysts to follow along with during the conference call. The call is open to the public and can be accessed under the Investor Relations page of the Company’s website at www.maximus.com or by calling:

MAXIMUS is one of America's leading government services companies devoted to providing program management, consulting and information technology services. The Company has more than 6,000 employees located in more than 220 offices in the United States, Canada and Australia. Additionally, MAXIMUS is included in the Russell 2000 Index and the S&P SmallCap 600 Index.

Statements that are not historical facts, including statements about the Company's confidence and strategies and the Company's expectations about revenues, results of operations, profitability, future contracts, market opportunities, market demand or acceptance of the Company's products, are forward-looking statements that involve risks and uncertainties. These uncertainties could cause the Company's actual results to differ materially from those indicated by such forward-looking statements and include reliance on government clients; risks associated with government contracting; risks involved in managing government projects; legislative changes and political developments; opposition from government unions; challenges resulting from growth; adverse publicity; and legal, economic, and other risks detailed in Exhibit 99.1 of the Company's most recent Annual Report filed with the Securities and Exchange Commission, found on www.maximus.com.