Internal Letter to all USA Employess from Russ Truner Re: SFOC Extension Update

Date: August 29, 2002 Internal Letter No. RDT-136-02

To: All USA Employees From: Russ Turner

Subject: SFOC Extension Update

Recently we announced that NASA had decided to exercise the first of our two-year contract options and to begin negotiating the second. NASA has indeed exercised the first option, which guarantees the continuation of the SFOC through FY 2004. We have more recently been informed by NASA that they do not intend to begin negotiations on the second two-year option at this time. We are hopeful that they will reinitiate negotiations in the near future. In the meantime, our best argument for exercising the second option is our continued outstanding performance. Please continue your focus on safety and mission assurance and I will continue to work on contract extension.

Sincerely,

Original Signed by

Russ Turner

President & Chief Executive Officer