DRC Reports Debt Pay Down and Loan Amendments

DRC Reports Debt Pay Down and Loan Amendments

Strong Cash Flow Enables $58 Million of Debt Repayment Over Past 18 Months

ANDOVER, Mass., Jan. 7, 2013 (GLOBE NEWSWIRE) -- Dynamics Research Corporation
(Nasdaq:DRCO), a leading provider of innovative management consulting,
engineering, science and technology solutions to federal and state
governments, today reported the repayment of $15 million of the principal with
respect to its subordinated debt and the amendment of its loan agreements to
permit the repayment of all remaining subordinated debt. The debt payment and
loan amendments were effective December 31, 2012.

"Over the past 18 months strong cash generation has enabled us to repay nearly
forty percent of the debt put in place a year and a half ago for the High
Performance Technologies, Inc. merger," said Jim Regan, DRC's chairman and
chief executive officer."With DRC's strengthened balance sheet we have
established a clear path for the payoff of all of our subordinated debt."

The Company also reported that approximately $315 thousand of amortizable
non-cash deferred financing costs associated with the early repayment would be
accelerated to the fourth quarter of 2012. Also, a make whole payment of
approximately $1.7 million was paid to the subordinated lender.These charges
were not included in the Company's most recent guidance for the fourth quarter
and full year 2012 issued on October 31, 2012.

About Dynamics Research Corporation

Dynamics Research Corporation (DRC) provides measurable performance
improvements for government customers through the delivery of innovative
management consulting, engineering, science and technology solutions.DRC
offers the capabilities of a large company and the responsiveness of a small
company, backed by a history of excellence and customer satisfaction. Founded
in 1955, DRC is a publicly held corporation (Nasdaq:DRCO) and maintains more
than 25 offices nationwide with major offices in Andover, Massachusetts and
the Washington, D.C. region.For more information please visit our website at
www.drc.com.

Certain statements contained in this news release, which are not historical
facts or are related to future plans, events, revenues and earnings
expectations, objectives and outlooks are forward looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995 and, by
their nature, are uncertain and subject to a number of risks and uncertainties
that could adversely affect the Company's results.We can provide no assurance
that these statements will prove to be correct.Consequently, actual results
could materially differ from these statements.For more detailed information
concerning how these risks and uncertainties could affect the Company's
financial results, please refer to DRC's most recent forms 10-K and 10-Q and
other documents filed with the Securities and Exchange Commission.Further,
the Company is under no duty or obligation to update or revise any forward
looking statements as a result of events or new information.

CONTACT: Investors:
         Chris Witty
         Darrow Associates, Inc.
         646.438.9385
         cwitty@darrowir.com
        
         Media:
         Ilina Dimitrova
         Sage Communications (for DRC)
         703.531.8256
         ilinad@aboutsage.com
 
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