U.S. Air Force Expands ZMAX Corporation's IV&V Software Contract for All Air Force Systems
ZMAX Also Announces New IV&V Contract With Dillards, Inc.
GERMANTOWN, Md.--(BUSINESS WIRE)--May 13, 1999-- ZMAX CORPORATION (Nasdaq: ZMAX - news) today announced that it has been awarded contracts to license its Year 2000 Independent Verification and Validation (IV&V) software product to two customers--the U.S. Air Force and Dillard's, Inc. (NYSE: DDS - news).
The initial combined value of the two contracts is approximately $600,000.
Michael C. Higgins, president and chief executive officer of ZMAX, explains, ''The high quality and reputation of our Year 2000 products are being recognized across a range of customer types, from government to commercial and from large to small organizations.''
Under the first contract, the U.S. Air Force has exercised options to expand its contract from Maxwell Air Force Base in Alabama to an Air Force wide unlimited license.
The original contract, announced in March 1999, required ZMAX's wholly owned subsidiary, Century Services Inc., to provide an unlimited site license for the use of its IV&V software product to Headquarters Standards Systems Group at Maxwell Air Force Base Gunter Annex.
Awarded competitively through the use of Logicon's Advanced Technology I-CASE contract, ZMAX's IV&V product is being used to perform IV&V on millions of lines of COBOL code at Gunter AFB, and through the contract expansion, its use will be dramatically expanded.
According to Higgins, ''The Air Force's decision to expand the use of our IV&V tool for all Air Force bases continues to support our goal of providing a Department of Defense-wide (IV&V) license.''
Under the second contract, awarded competitively, ZMAX's IV&V software tool will be used by Dillard's corporate wide to IV&V all of their systems.
ZMAX's IV&V software product is one of several Year 2000 products offered by the Company. The Company's IV&V product locates and corrects errors in an organization's Y2K conversion process prior to its undergoing Y2K test strategies, thus reducing compliance costs and schedules. ZMAX also offers Y2K consulting services, either packaged with its software products or on a stand-alone basis.
Headquartered in Germantown, Maryland, ZMAX Corporation is an information technology consulting firm. The company's IT services include enterprise resource planning implementation, client server development, e-business, and Year 2000 software and services.
Statements made in this press release that are not historical or current facts are ''forward looking statements'' made pursuant to the safe harbor provisions of federal securities laws.
Forward looking statements represent management's best judgment as to what may occur in the future, but are subject to certain risks and uncertainties that could cause actual results and events to differ materially from those presently anticipated or projected.
Such factors include adverse economic conditions, entry of new and strong competitors, inadequate capital, unexpected costs, and failure to capitalize upon access of new clientele.
Specific risks and uncertainties which may affect forward looking statements about the business and prospects include the possibility that a competitor will develop a more comprehensive or less expensive service or solution to ZMAX's services or projects and delays in the market awareness of ZMAX and its project and service solutions.
These factors and others are discussed in the ''Management Discussion and Analysis'' section of ZMAX's Annual Report on Form 10-K for the fiscal year ended December 31, 1998, to which reference should be made.
ZMAX CORPORATION is quoted on the NASDAQ Small Cap exchange under the symbol of ''ZMAX'' and on the Frankfurt and Berlin Stock Exchanges under the symbol of ''ZMX''
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