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USIS' Combined Government Services Business Creates New Growth Opportunities

FALLS CHURCH, Va.-(Business Wire)-July 3, 2008 - US Investigations Services, Inc. (USIS) has announced that it will combine its two government-sector businesses into a new unified business called the Government Services Group (GSG). The GSG will include USIS' Investigative Services Division (ISD), which is the largest provider of security investigations for the federal government, and the National Security Division (NSD), which is a global supplier of national security services supporting critical federal programs.

The new Government Services Group will have approximately 6,500 employees, provide services to a wide range of high-profile customers, have a customer base that spans multiple federal, state, and local government agencies, and produce annual revenues in 2008 of approximately $660 million. The transition effort, which will take place over the next several months, will concentrate on leveraging the talents of the employees from the two businesses and developing new business growth through a single business development approach and refined go-to-market strategy.

"By combining our ISD and NSD government businesses, we will have the employee talent, necessary business size and scope, and business development resources to make a major impact in the government business sector," said Randy Dobbs, USIS CEO. "As our improved market position accelerates new growth opportunities, this strategic combination of two successful businesses into one combined team will also enhance the career opportunities for our employees."

William Mixon, who has been the ISD president since May 2005, will lead the new GSG and become USIS' Chief Operating Officer. Michael Fraser, who has been the NSD president since July 2006, will continue in this leadership position. Christopher Tillery, currently the Business Unit Director for the ISD Southern Business Unit, will become the ISD President. The promotions will be effective on Monday, July 7.

"This is a great opportunity for our two government businesses and USIS," said Mixon. "As a unified team with a single approach to growth, using the great talent in this newly combined business, the new Government Services Group will demonstrate an even stronger focus in terms of opportunities for our people, capturing new business, and creating a stronger financial future for USIS."

Commenting on the strategic combination, Dobbs said, "Thanks to the leadership in our two government businesses, both ISD and NSD have made significant improvements over the past several years and proven their abilities to provide high quality services to our government customers. This is the logical next-step to leverage this earlier progress and take our overall government business performance and growth potential to the next level."

USIS' commercial businesses, the Commercial Services Division headquartered in Tulsa, Okla., which is one of the nation's largest employment and drug screening companies, and Explore Information Services headquartered in Eagan, Minn., which provides data and information services to the top insurance companies in the U.S., are not directly impacted by the strategic combination of the two government businesses.

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