MAXIMUS Reports 4th Quarter Revenues Up 65%; EarningsPer Share Up 53%.

MCLEAN, Va.--(BUSINESS WIRE)--Nov. 18, 1998--MAXIMUS, Inc. (NYSE:MMS) closed out its fiscal year by reporting $.26 earnings per share in the fourth quarter vs. $.17 earnings per share in the same quarter a year ago, an increase of 53%. Before one-time charges, the comparison is $.30 for this quarter

Revenues increased 65% to $71.4 million for the fourth quarter of fiscal 1998 as compared to $43.2 million for the fourth quarter of fiscal 1997. Revenues from the Government Operations Group increased 84% from $23.0 million in the quarter ended September 30, 1997 to $42.5 million in the current quarter. Consulting Group revenues increased 43% from $20.1 million in the quarter ended September 30, 1997 to $28.9 million this quarter. Net income is $4.9 million this quarter vs. $2.8 million in the same quarter a year ago, an increase of 72%.

Dr. David V. Mastran, the Company's CEO, observed that this quarter's revenues and earnings reflect the continued increasing demand for MAXIMUS services by state and local governments.

MAXIMUS is one of America's largest government services companies devoted to providing state and local governments with program management services. The Company has over 2,900 employees located in more than 100 offices across the United States.

Statements that are not historical facts, including statements about the Company's confidence and strategies and the Company's expectations about revenues, results of operations, profitability, future contracts, market opportunities, market demand or acceptance of the Company's products are forward-looking statements that involve risks and uncertainties. These uncertainties could cause the Company's actual results to differ materially from those indicated by such forward-looking statements and include reliance on government clients; risks associated with government contracting; risks involved in managing government projects; legislative changes and political developments; opposition from government unions; challenges resulting from growth; adverse publicity; and legal, economic, and other risks detailed in Exhibit 99.1 to the Company's most recent Quarterly or Annual Report filed with the Securities and Exchange Commission (file number 001-12997).

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                            MAXIMUS, Inc.
          Statements of Income (In thousands, except per share data)
                             (Unaudited)

                       Quarters       Fourth         Years           Year
                        Ended           Qtr.         Ended         Increase
                       September      Increase      September      (Decrease)
                          30,         (Decrease)       30,
                     1997    1998                  1997    1998

Revenues
 Government        $23,019 $42,458      84.45%   $65,757  $139,263   111.78%
  Operations Group
 Consulting Group   20,142  28,899      43.48%    69,955    94,210    34.67%
 SSA (1)                 0       0                31,612         0
Total               43,161  71,357      65.33%   167,324   233,473    39.53%
 revenues

Cost                30,988  52,294      68.76%   121,968   172,900    41.76%
 of revenues
Gross               12,173  19,063      56.60%    45,356    60,573    33.55%
 profit

Selling,             7,372  10,129      37.40%    25,323    33,783    33.41%
 general and
 administrative
 expenses
Stock option
 compensation,
 merger,               394     325     -17.51%     7,372     3,671   -50.20%
 deferred
 compensation
 and ESOP
 expense(2)
Operating            4,407   8,609      95.35%    12,661    23,119    82.60%
 income

Other                  547     338     -38.21%       777     1,775   128.44%
 income (expense),
 net
Income               4,954   8,947      80.60%    13,438    24,894    85.25%
 before
 income
 taxes

Income               2,115   4,062      92.06%     4,104    10,440   154.39%
 tax(3)
Net                 $2,839  $4,885      72.07%    $9,334   $14,454    54.85%
 income
Earnings
 per share:
  Basic              $0.18   $0.27                 $0.69     $0.84
  Diluted            $0.17   $0.26                 $0.67     $0.82
Shares used
 in computing
 earnings per
 share:
 Basic              15,992  18,225                13,508    17,237
 Diluted            16,377  18,602                13,893    17,596

Impact, net
 of taxes,
 of stock
 option
 compensation,        $133    $678                $2,253    $2,150
 merger expenses,
 and tax
 normalization at
 40%

Earnings             $0.18   $0.30                 $0.75     $0.95
 per share
 before above
 one-time costs

(1) Revenue from a contract with the Social Security Administration
(SSA) which was terminated as a result of an amendment to the Social
Security Act of 1935, signed into law effective January 1, 1997.

(2) Stock option compensation, merger, deferred compensation and ESOP
    expense consists of:
    Stock option compensation    $0      $0            $5,874       $0
    Merger related expenses       0     325                 0    2,780
    Deferred compensation and   394       0             1,498      891
    ESOP expenses
      Total                    $394    $325            $7,372   $3,671

(3) The Company recorded $559 of additional income tax expense in
the fourth quarter of 1998 due primarily to the nondeductable nature
of certain merger related expenses.

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              Summary Balance Sheet Data (Dollars in thousands)
         (September 30, 1997 audited; September 30, 1998 unaudited)

                                                       September 30,
                                                       1997      1998
                                                   ---------  --------

Cash and cash equivalents and short-term investments  $51,869  $32,977
Working capital                                        65,389   77,022
Total Assets                                          111,497  120,543
Total Liabilities                                      43,584   35,844
Total Shareholders' Equity                             67,913   84,699

Portions of the above information is unaudited and should be read
in conjunction with the Company's prospectus and Form 10-K filed with
the Securities and Exchange Commission.

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