Engility Awarded Prime Position on $899.5 Million Multiple Award Pillar Contract to Provide SPAWAR Production, Installation, and

  Engility Awarded Prime Position on $899.5 Million Multiple Award Pillar
  Contract to Provide SPAWAR Production, Installation, and In-Service Support

               Second Win in the “Pillars” Program for Engility

Business Wire

CHANTILLY, Va. -- January 15, 2013

Engility Holdings, Inc. (NYSE: EGL) today announced that it has been selected
as a prime contractor for a multi-million dollar contract to provide
Production, Installation, and In-Service Support (PII) services to the Space
and Naval Warfare Systems Center (SPAWARSYSCEN) Atlantic, Charleston, SC. The
potential cumulative value of this indefinite delivery/indefinite quantity
(IDIQ) multi-award contract is $899,543,000, if all options are exercised.

Engility will provide a wide array of support services, including design,
acquisition, production, integration, testing, installation, lifecycle
support, and configuration management of certified Command, Control,
Communications, Computers, Combat Systems, Intelligence, Surveillance, and
Reconnaissance (C5ISR) capabilities. The company will also offer support for
integrated systems and subsystems operating in sub-surface and surface
platforms. In addition, Engility’s work will support submarine and shore-based
new construction and modernization.

“The PII pillar contract represents an important win for Engility, and we are
very proud and honored to have been selected for this award,” said Tony
Smeraglinolo, President and CEO of Engility. “Our exceptional team of
professionals, who have been working side-by-side to support SPAWARSYSCEN
Atlantic and its customers on other programs for several years, are looking
forward to the opportunity to contribute to this critical military mission.”

About Engility Corporation

Engility is a pure-play government services contractor providing highly
skilled personnel wherever, whenever they are needed in a cost-effective
manner. Headquartered in Chantilly, Virginia, Engility is a leading provider
of systems engineering services, training, program management, and operational
support for the U.S. Government with about 7,800 employees worldwide and
estimated sales of $1.6 billion for 2012. To learn more about Engility, please
visit www.engilitycorp.com.

FORWARD-LOOKING STATEMENTS

This release contains forward-looking statements within the meaning of Section
27A of the Securities Act of 1933 and Section 21E of the Securities Exchange
Act of 1934 (the Exchange Act) relating to our operations, results of
operations, and other matters that are based on our current expectations,
estimates, assumptions, and projections. Words such as “may,” “will,”
“should,” “likely,” “anticipates,” “expects,” “intends,” “plans,” “projects,”
“believes,” “estimates,” and similar expressions are used to identify these
forward-looking statements. These statements are not guarantees of future
performance and involve risks, uncertainties, and assumptions that are
difficult to predict. Forward-looking statements are based on assumptions as
to future events that may not prove to be accurate.

Actual outcomes and results may differ materially from what is expressed or
forecast in these forward-looking statements. Risks, uncertainties, and other
factors that might cause such differences, some of which could be material,
include, but are not limited to: (a) the loss or delay of a significant number
of our contracts; (b) a decline in or a redirection of the U.S. defense
budget; (c) the U.S. Department of Defense’s (DoD) wide-ranging efficiencies
initiative, which targets affordability and cost growth; (d) the intense
competition for contracts in our industry, as well as the frequent protests by
unsuccessful bidders; (e) our indefinite delivery, indefinite quantity (IDIQ)
contracts, which are not firm orders for services and could generate limited
or no revenue; (f) our Government contracts, which contain unfavorable
termination provisions and are subject to audit and modification; (g) the mix
of our cost plus time and material and fixed-price type contracts; (h) our
ability to attract and retain key management and personnel; (i) the impairment
of our goodwill, which represents a significant portion of the assets on our
balance sheet; (j) changes in regulations or any negative findings from a U.S.
Government audit or investigation; (k) current and future legal and regulatory
proceedings; (l) risks associated with our international operations; (m)
security threats and other disruptions; (n) U.S. Federal income tax
liabilities that relate to the distribution in the spinoff of Engility; (o)
our ability to meet the financial reporting and other requirements to which we
are now subject following the spinoff due to inadequate accounting and other
management systems and resources; (p) our ability to achieve some or all of
the benefits that we expect to achieve from the spinoff; (q) our ability to
achieve the expected benefits from our strategic realignment plan; (r) the
reluctance of our customers, prospective customers, and suppliers that may be
uncertain as to our financial stability as a stand-alone entity to continue to
do business with us; (s) the level of indebtedness that we incurred in
connection with the spinoff, our ability to comply with the terms of our debt
agreements, and our ability to finance our future operations, if necessary;
(t) potential liabilities arising out-of-State and Federal fraudulent
conveyance laws and legal distribution requirements as a result of the
spinoff; and (u) the additional costs that we may incur as an independent
company. For a more detailed discussion of these factors, see the information
under the heading “Risk Factors” in the Information Statement included in our
Registration Statement on Form 10, as amended and filed with the Securities
and Exchange Commission (SEC) on June 27, 2012, and other filings with the
SEC. Forward-looking statements are made only as of the date hereof, and we
undertake no obligation to update or revise the forward-looking statements,
whether as a result of new information, future events, or otherwise, except as
required by law. In addition, historical information should not be considered
as an indicator of future performance.

Contact:

Engility Holdings, Inc.
Corporate Communications
Eric Ruff, 703-375-6463
eric.ruff@engilitycorp.com
or
Investor Relations
Dave Spille, 703-375-4221
dave.spille@engilitycorp.com
 
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