DLH Holdings Corp. : DLH ISSUES STATEMENT REGARDING FEDERAL GOVERNMENT SEQUESTRATION

    DLH Holdings Corp. : DLH ISSUES STATEMENT REGARDING FEDERAL GOVERNMENT
                                SEQUESTRATION

             DLH addresses continuing uncertainty in Washington

Atlanta, Georgia - March 6, 2013 - DLH Holdings Corp. (NASDAQ: DLHC), a
leading healthcare and logistics services provider to the Federal Government,
including the Departments of Defense and Veterans Affairs, issued a statement
today by Zach Parker, Chief Executive Officer, regarding the impact of
sequestration.

DLH President and Chief Executive Officer, Zach Parker, commented: On March 1,
2013, as expected, the Federal Government budget "Sequestration" mechanism
went into effect. As the fiscal posture of the government significantly
impacts our long-term strategy and near-term tactics, our leadership team,
since the implementation of the Budget Control Act of 2011, has closely
tracked the pulse of the Sequestration deliberations and plans. In the recent
months we have met with house and senate representatives and staffers,
military and civilian leaders, and principals of trade associations such as
the Professional Services Council in Washington DC. It is our management
team's view that a keen awareness of the flow of funding is essential to
effectively navigating our company to continued progress and success in this
industry, particularly during periods of greater uncertainty regarding the
Federal Government's budgetary priorities.

Recently, we have received numerous inquiries regarding the impact of the
"Sequestration" upon our company. While I addressed this topic during our
recent investor call, the following provides added context to our previous
assessment. Please note that the Company does not publically give "guidance"
or any form of financial forecasts and investors and other interested parties
are referred to our Safe Harbor Statement, below.

Mr. Parker added, "The combination of Sequestration and the current Continuing
Resolution creates a paralysis for many government program managers and
contracting officials as their budgets experience a substantial reduction.
This is compounded by the Sequestration taking effect two-thirds into the
government's second fiscal quarter. Consequently, the Department of Defense
impacted agencies will see an estimated 13% reduction (OMB estimate). While a
substantial portion of DLH's targeted growth lies within DoD budget accounts,
less than 5% of its current revenue is derived from impacted DoD accounts.
More importantly, the Department of Veterans Affairs funds the largest number
of DLH's current contracts. Programs administered by the Department of
Veterans Affairs are exempt from the Sequestration funding reductions that are
estimated to be 9% for non-defense programs for the remainder of the fiscal
year.

Fortunately, as we have been anticipating this government budget evolution,
presently, we see only "measured" impacts to our business throughout FY2013
due to the impact of Sequestration. While many others in the industry are
re-forecasting to indicate modest reductions in revenue year-over-year, we
believe that is not the case for DLH. The timing of the implementation of our
Project L.E.A.N. is also a plus for DLH in weathering the storms of the
federal budget battles as we continue our progress on re-aligning our
operating costs with our steady-state revenue.

However, despite the limited impact that we expect Sequestration will have on
our current revenue, the pace at which we will be able to execute our
long-term strategy to leverage our core competencies within the DoD will have
to be adjusted. This is also impacted by the lingering uncertainty as to how
the government will address the March 27, 2013 expiration of the continuing
resolution through which it has been funded since October 2012. We will
continue to closely track the near-term actions by the house and senate as
well as the prioritizations of the Defense Department for potential impact,
and we will provide updates during our quarterly reporting and any ad hoc
communications as appropriate.

About DLH 

DLH Holdings Corp. (Nasdaq: DLHC) serves clients throughout the United States
as a full-service provider of healthcare, logistics, and technical support
services to the Department of Veteran Affairs, DoD and Federal agencies.

For more information about DLH, visit the corporate website at
http://www.dlhcorp.com. 

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of
1995:
This press release may contain forward-looking statements. These statements
relate to future events or DLH`s future financial performance. Any statements
that are not statements of historical fact (including without limitation
statements to the effect that the Company or its management "believes",
"expects", "anticipates", "plans" (and similar expressions) should be
considered forward looking statements. There are a number of important factors
that could cause DLH`s actual results to differ materially from those
indicated by the forward looking statements. Such risks and uncertainties
include, among other things our ability to secure contract awards, including
the ability to secure renewals of contracts under which we currently provide
services; our ability to enter into contracts with United States Government
facilities and agencies on terms attractive to us and to secure orders related
to those contracts; changes in the timing of orders for and our placement of
professionals and administrative staff; the effect of existing or future
government legislation and regulation; changes in government and customer
priorities and requirements (including changes in funding to respond to the
priorities of Congress and the Administration, budgetary constraints, and
cost-cutting initiatives, such as the implementation of spending cuts
(sequestration) under the Budget Control Act of 2011); economic, business and
political conditions domestically (including the impact of uncertainty
regarding U.S. debt limits and actions taken related thereto); the overall
level of demand for the services we provide; the variation in pricing of the
contracts under which we place professionals; government contract procurement
(such as bid protest, small business set asides, loss of work due to
organizational conflicts of interest, etc.) and termination risks; the results
of government audits and reviews; our ability to manage growth effectively;
the performance of our management information and communication systems; the
impact of medical malpractice and other claims asserted against us; the
disruption or adverse impact to our business as a result of a terrorist
attack; the loss of key officers, and management personnel; the competitive
environment for our services; the effect of recognition by us of an impairment
to goodwill and intangible assets; other tax and regulatory issues and
developments; the effect of adjustments by us to accruals for self-insured
retentions; our ability to obtainany needed financing; and the effect of
other events and important factors disclosed previously and from time-to-time
in our filings with the U.S. Securities Exchange Commission. For a discussion
of such risks and uncertainties which could cause actual results to differ
from those contained in the forward-looking statements, see "Risk Factors" in
the company's periodic reports filed with the SEC, including our Annual Report
on Form 10-K for the fiscal year ended September 30, 2012. Given these risks
and uncertainties, you are cautioned not to place undue reliance on
forward-looking statements. DLH undertakes no obligation to publicly update or
revise any forward-looking statement as a result of new information, future
events, changes in expectation or otherwise, except as required by law.

CONTACTS:

Zachary C. Parker, President and Chief Executive Officer
Kathryn M. JohnBull, Chief Financial Officer
DLH
1776 Peachtree Street, NW
Atlanta, GA 30309
866-952-1647

Christy N. Buechler, Marketing & Communications Manager (Media)
DLH 
678-935-1531
christy.buechler@dlhcorp.com



(Investor Relations)
Donald C. Weinberger/Adam Lowensteiner
Wolfe Axelrod Weinberger Associates, LLC
212-370-4500
don@wolfeaxelrod.com
adam@wolfeaxelrod.com
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Source: DLH Holdings Corp. via Thomson Reuters ONE
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