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Paul Serotkin, President, Minuteman Ventures, LLC
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SM&A, Inc. Signs Definitive Agreement to Acquire Project Planning, Inc.
Published: 2/9/2007

SM&A, Inc. (NASDAQ_GM: WINS) agreed to acquire privately held Project Planning Inc. (PPI).

Andover, Massachusetts-based PPI is a leading provider of consulting, education, implementation and support services for enterprise project management solutions. Founded in 1992, PPI serves a diverse group of clients in the aerospace & defense and non-A&D sectors.

SM&A president and COO Cathy McCarthy stated: "PPI is 'best of breed' in program planning services and we are very pleased the company will join the SM&A organization. SM&A's strategy is to provide end-to-end support for our clients from helping them win programs through execution. PPI's expertise in cost and scheduling management was an area that we had identified as being of strong interest to our clients. The acquisition of PPI will enhance the service that SM&A provides to our clients and provides us with another avenue for growth."

SM&A senior vice president and CFO Steve Handy stated: "We believe this acquisition will be accretive to our full year results and also provides an opportunity for further leverage over the next two to three years. With the strong similarities in our products and services, we expect to be able to smoothly integrate PPI's business with ours, enabling our combined program services segment to continue its growth."

Project Planning, Inc. president and founder Rick Bowe stated: "We are excited to join forces with SM&A, a winning team that shares our commitment to client service and project solutions. The management team has been very committed to our employees during this process, and we are eager to embark on new challenges, expand on the services we offer our customers, and impact SM&A's growing business."

TERMS

On February 9, 2007 SM&A, Inc. announced it had acquired Project Planning, Inc.

Under the terms of the definitive agreement with PPI, SM&A will acquire all of the stock of PPI in a cash and common shares transaction, the terms of which were not disclosed.

During 2006, PPI generated approximately $7.5 million in revenue and the transaction is expected to increase SM&A's 2007 earnings per share by approximately $0.06. The Board of Directors for SM&A has unanimously approved the terms of the transaction, which is expected to close on February 9, 2007.