July 21 2008

KippsDeSanto & Co. Advises Gray Research, Inc. on Its Sale to MacAulay-Brown, Inc.

KippsDeSanto & Co. is pleased to send you the attached press release announcing the acquisition of our client, Gray Research, Inc. by MacAulay-Brown, Inc. Gray Research, based in Huntsville, AL, is a leading provider of engineering and business solutions to the Department of Defense, Missile Defense Agency and NASA customers. KippsDeSanto & Co. acted as exclusive financial advisor to Gray Research in this transaction.

This transaction represents a number of key trends in defense and government services contracting M&A:

• Continued strong buyer demand for local presence in highly strategic and well-funded contracting communities, especially BRAC beneficiaries (like Huntsville);

• Critical mass, enhanced portfolio of technical capabilities and complementary customer sets that facilitate cross-selling and exchange of operational best practices remain key M&A drivers for both mid-size buyers and sellers;

• Buyers and investors are becoming more sophisticated when evaluating and structuring deals involving sellers with Small Business contracts; and

• The buyer universe for small to mid-size sellers has expanded to include owners and executive teams (and even previous corporate owners) that previously sold and are “getting back in the game” following expiration of their hiring/competitive restrictions.

KippsDeSanto & Co. is an investment bank focused on delivering quality M&A and financing transaction results for leading, growth-oriented companies in IT, Defense, Communications, and Government Contracting. For more information on KippsDeSanto & Co., please visit www.kippsdesanto.com.

We welcome the opportunity to discuss how KippsDeSanto & Co. can help you achieve your strategic objectives. For more information on this particular transaction, please contact one of our senior professionals.

LEAD INVESTMENT BANKERS

Bob Kipps

Kevin P. DeSanto

Marc B. Marlin

Jon Yim