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GLASGOW, SCOTLAND and SAN DIEGO, CA., May 8, 2000 - Science Applications International Corporation (SAIC), through its wholly owned United Kingdom subsidiary SAIC Ltd., and ScottishPower's Information Systems Division today announced the formation of a joint venture (JV) between the two organizations.

The JV company, called CALANAIS, will be 50 percent owned by ScottishPower and 50 percent owned by SAIC Ltd. The new company will exploit the growing demand for information technology (IT) expertise in the rapidly changing global utilities sector.
While continuing to focus on providing IT services toScottishPower, the JV will seek to develop external IT service business with customers within the multi-service utility sector. CALANAIS, exploiting the combined strengths of both companies, also will market expertise in business change and Internet-enabling strategies aimed specifically at the utility sector.
Initially based in Glasgow and Chester, Scotland, CALANAIS will employ approximately 600 people, mainly drawn from existing ScottishPower staff who will transfer towork in the new enterprise.

CALANAIS will provide a unique commercial framework breaking new ground in developing and sustaining mutually beneficial customer-supplier relationships founded upon the sharing of risk and reward.

Commenting on the JV with SAIC Ltd., David Jones, group chief information officer of ScottishPower, said, "We considered a dozen potential partners for this exciting venture, but SAIC fitted the bill perfectly. They add well-established commercial experience and enhanced delivery ability to our own expertise in specialist utility systems. The JV will help ScottishPower manage its costs and provide a degree of flexibility, which will enhance our ability to meet our evolving business needs, underpinned by an agreed £420,000,000 preferred status contract. Whilst initially focusing internally with ScottishPower, we expect that within three years outside work will provide most of CALANAIS' revenue."

Peter Stocks, a member of the Board of Directors of SAIC Ltd., said, "ScottishPower and SAIC Ltd. are pioneering a unique way of working together within this JV. I am convinced this approach will deliver long term benefits to all stakeholders within the two organizations. SAIC is delighted to be participating in this initiative with one of the U.K.'s most successful multi service utilities."

About SAIC
SAIC is the nation's largest employee-owned research and engineering company, providing information technology and systems integration products and services togovernment and commercial customers. SAIC scientists and engineers work to Solve complex technical problems in telecommunications, national security, health care, transportation, energy, the environment and financial services. With annual revenues of more than $5.5 billion, SAIC and its subsidiaries, including Telcordia Technologies, have more than 39,000 employees at offices in more than 150 cities worldwide. More information about SAIC can be found on the Internet at www.saic.com.

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