Key highlights include:

Third quarter revenue of $185.2 million,

Net income from continuing operations of $15.0 million, or $0.84 per diluted share, which includes $0.16 per diluted share of legal and settlement recovery. Excluding this recovery, earnings per diluted share from continuing operations was $0.68, a penny ahead of consensus estimates,

Third quarter cash provided by operating activities from continuing operations of $12.4 million and free cash flow of $6.3 million; healthy cash and cash equivalents at June 30, 2009 of $91.7 million,

Strong signed fiscal year-to-date awards of $877 million, which includes wins related to the American Reinvestment and Recovery Act (ARRA), and a robust pipeline of $1.2 billion at August 4, 2009, and,

Notification of award as the preferred bidder for a new five-year contract, estimated to be valued at approximately $200 million (USD), to provide employment services under the Flexible New Deal in the United Kingdom.

Revenue for the third quarter was $185.2 million versus $189.4 million reported for the same period last year. On a constant currency basis, fiscal 2009 third quarter revenue increased 1% from the prior-year period. For the third quarter, net income from continuing operations was $15.0 million or $0.84 per diluted share compared to $17.3 million or $0.92 per diluted share reported for the third quarter last year. Fiscal 2009 third quarter earnings included $0.16 per diluted share of legal and settlement recovery from an insurance reimbursement. Earnings in the prior-year period included a one-time gain of $0.13 per diluted share from the sale of a property in McLean, Virginia.

The Company also announced that its United Kingdom subsidiary, MAXIMUS Employment & Training, has been selected as the preferred bidder by the United Kingdom Department of Work & Pensions for the delivery of employment services in southeast England. The five-year contract, valued at approximately $200 million (USD) is expected to be executed within a week and operations are expected to launch in October 2009.

Richard A. Montoni, Chief Executive Officer, commented, "Our solid results for the period reflect the integral role MAXIMUS plays in the administration of vital health and human services programs. Recent new wins, successful rebids and program expansions have offset some reductions in the domestic business resulting from the challenging state budgetary environment. We are actively working with our government partners to meet increased program demand with scalable solutions while best positioning the Company for emerging opportunities. With the recent doubling of our Australia operations and today's announced win in the UK, we are excited to expand the reach of our thought leadership and program administration expertise in the global market."

Operations Segment

Operations Segment revenue increased 4.8% (8.3% on a constant currency basis) to $165.5 million in the fiscal 2009 third quarter compared to $157.9 million in the prior-year period, driven by the contribution of new and expanding contracts. Operating income was $20.0 million for the third quarter of fiscal 2009 with segment operating margin of 12.1%. Segment operating income compared to last year was lower due to less favorable currency rates, start up expenses on new work and the transition to a new contract that was rebid and launched in the second quarter of fiscal 2009.

Consulting Segment

For the fiscal 2009 third quarter, Consulting Segment revenue was $19.7 million, compared to $31.4 million last year. The year-over-year revenue decline was related to the ongoing planned transition of the Segment's business, including the exit of the federal health care claiming (RevMax) business, and lower revenue from ERP projects that are winding down. As expected, the Segment lost $146,000 in the third quarter of fiscal 2009. On a sequential basis, losses were lower reflecting the Company's efforts to improve the Segment's overall performance.

Sales and Pipeline

Year-to-date signed contract wins at August 4, 2009, totaled $877 million, compared to the $684 million reported last year.