VFA WINS $5 MILLION CONTRACT WITH NAVY BUREAU OF MEDICINE AND SURGERY

Boston-based Software and Services Company Awarded Record Contract; Investment Underscores Company’s Proven Expertise in Capital Planning Solutions

Boston, MA – September 22, 2003 – As testament to its industry leadership, VFA, Inc. today announced it has won a $5 million contract with the U.S. Navy’s Bureau of Medicine and Surgery (BUMED). Through the one-year agreement, VFA will provide BUMED its Capital Planning and Asset Management suite of offerings, including its Web-based software VFA.facility, and facilities condition assessment services across more than 45 million square feet of space worldwide. Based on the discretion of the Navy, BUMED has the option to extend its contract and award additional work to VFA over the next four years.

This landmark contract signifies VFA’s largest win to date, and reinforces its position as the leading provider of capital planning software and assessment services to the U.S. federal government market. BUMED provides high quality healthcare services to 700,000 active duty Navy and Marine Corps members and to 2.6 million retired and family members while supporting contingency, humanitarian and joint operations around the world. The U.S. Navy’s medical agency is the latest addition to VFA’s growing roster of U.S. federal customers, which includes the General Services Administration, the Federal Emergency Management Association, the U.S. Department of Agriculture, the U.S. Army, the U.S. Coast Guard and the National Institutes of Health. In addition to its achievements in the federal government market, VFA has also deployed its solutions at marquis institutions nationwide, from Fortune 500 companies and financial organizations to colleges and universities and state government agencies.

“Effective facility planning requires a long-term commitment to support and address building needs. When done correctly, facility management will bolster an organization’s ability to carry out its mission, and enable it to achieve its goals. BUMED clearly recognizes the immediate and long-term benefits we deliver to our clients, and this contract validates our position as a strong, proven market leader,” said Jerry Kokos, president and CEO, VFA. “We look forward to working with BUMED and the U.S. Navy and building a long-term relationship.”

BUMED selected VFA based on the functionality and decision-support capabilities of its capital planning software. VFA.facility features built-in cost data from R.S. Means and enables users to create “what-if” funding scenarios, generate reports and easily access, analyze and update large amounts of facility data. The renowned Navy medical institution plans to leverage VFA.facility to enable increased communication among its sites and improve the accuracy of estimated costs of facility repair and maintenance projects. In addition to deploying VFA.facility at 45 sites worldwide, BUMED will use VFA’s facility assessment services to audit conditions of more than 45 million square feet of space. VFA will also work closely with BUMED to enable VFA.facility to interface directly with BUMED’s Defense Medical Logistics Standard Support software.

“With close to 1,700 capital assets around the world, it’s important that we have a centralized capital planning tool for more effective management of our facilities. VFA.facility will enable us to monitor trends in BUMED’s facility conditions and deficiencies as well as analyze numerous funding scenarios and their resulting impact on our entire facility portfolio,” said Lieutenant Eddie Alexander, CEC, USNR, facilities maintenance engineer, Navy Bureau of Medicine. “We expect VFA and its software will play a key role in our capital planning initiatives in the future.”

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