13.03.2007 17:03:00
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MAXIMUS to Provide Program Continuity for Texas Health and Human Services Commission
MAXIMUS (NYSE:MMS), a leading provider of government services, announced
today that the Company is in the process of executing separate
agreements with the Texas Health and Human Services Commission (HHSC) to
administer a long-term Medicaid Enrollment Broker (EB) program and to
provide support services to maintain program continuity on the State’s
Children’s Health Insurance Program (CHIP) on
an interim basis.
The State announced today that it would begin winding down its contract
with the Texas Access Alliance. Details regarding the HHSC announcement
may be found at: http://www.hhs.state.tx.us/news/release.shtml
The Company is working with HHSC to finalize the terms of the
agreements. The contract terms are expected to be finalized shortly and
to be accretive when effective. MAXIMUS has successfully managed the
State’s EB operations since 1997 and currently
expects that it will continue running those operations through June
2010. Separately, under an interim agreement, MAXIMUS will provide
operational support for CHIP, including systems and staffing to process
applications.
Richard Montoni, President and Chief Executive Officer, stated, "MAXIMUS
has had a long and successful relationship with the State of Texas. We
welcome the opportunity to establish a direct contractual agreement with
the State under an appropriate financial structure. We look forward to
working with the State to achieve their operational objectives in the
areas of health and human services on behalf of their constituents.”
MAXIMUS remains in arbitration proceedings with Accenture, the former
prime contractor on the Texas Access Alliance, and cannot provide any
update on this process at this time. The Company cannot predict the
outcome of the arbitration proceeding or the impact it may have on its
operating results or financial condition.
MAXIMUS is one of America’s leading government
services companies devoted to providing program management, consulting
and information technology services. The Company has more than 5,200
employees located in more than 220 offices in the United States, Canada
and Australia. In 1999, 2001, 2002, 2003, and 2005 MAXIMUS was selected
by Forbes Magazine as one of the Best 200 Small Companies in America for
that year. Additionally, MAXIMUS is included in the Russell 2000 Index
and the S&P SmallCap 600 Index.
Statements that are not historical facts, including statements about
the Company's confidence and strategies and the Company's expectations
about revenues, results of operations, profitability, future contracts,
market opportunities, market demand or acceptance of the Company's
products are forward-looking statements that involve risks and
uncertainties. These uncertainties could cause the Company's actual
results to differ materially from those indicated by such
forward-looking statements and include reliance on government clients;
risks associated with government contracting; risks involved in managing
government projects; legislative changes and political developments;
opposition from government unions; challenges resulting from growth;
adverse publicity; and legal, economic, and other risks detailed in
Exhibit 99.1 to the Company's most recent quarterly on Form 10-Q filed
with the Securities and Exchange Commission (file number 001-12997).
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