SM&A's Acquisition of PMA

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SM&A Acquires Performance Management Associates
Leader in Earned Value Management Systems Enhances SM&A's Program Services Business Acquisition Expected to Be Accretive

Updated: 5:00 a.m. PT Sept 17, 2007
NEWPORT BEACH, CA - SM&A, Inc. (NASDAQ: WINS), the world's leading provider of business strategy and proposal development services that ensure clients' ability to win competitive procurements and a leading provider of program management services, announced today that it has acquired privately held Performance Management Associates, Inc. (PMA). PMA, based in West Palm Beach, Florida, is a leading provider of Earned Value Management Systems (EVMS) implementation, analysis and training for enterprise project management solutions.

"PMA is widely viewed as the 'best of breed' in EVMS," said Cathy McCarthy, CEO of SM&A. "EVMS is an important project management technique that incorporates cost, scheduling and technical performance measurements to provide an outlook on how a project is progressing and to point out potential issues. The addition of the EVMS product strengthens and diversifies our Program Services business and will help SM&A to build stronger client relationships, by providing a range of value-added services that closely support our clients' needs."

Under the terms of the definitive agreement, SM&A will acquire all of the stock of PMA in a cash and common shares transaction. The transaction is expected to have a neutral impact on SM&A's 2007 outlook and be accretive to 2008.