Venture Management Client Acquires LEADS Corporation

Contact: Mark B. Shappee
Phone: 805.644.5335
Fax: 805.644.0790
Email: Mark@VentureManagement.com
Location: Ventura, CA

January 17, 2006

Venture Management, Inc. announced that ITS Corporation (ITS) has acquired The LEADS Corporation, a Virginia-based company providing information technology and management consulting services to the federal government with a focus on program management, web application development, enterprise architecture, business process improvement and acquisition management. The investment banking firm of Venture Management provided advisory services to ITS related to completing the LEADS transaction. The terms of the acquisition were not disclosed.

Currently headquartered in Arlington, Va., LEADS (www.leadscorp.com) has approximately 90 employees and an estimated FY 2005 revenue of $15 million. The acquisition will introduce ITS to the U.S. Patent and Trademark Office and the U.S. Department of Treasury, and will strengthen its presence within the Departments of Defense, throughout the intelligence community and in the Department of Homeland Security.

"Acquisition of LEADS is another key component toward achieving our strategic goal, said Thomas D. Sundling, President and CEO of ITS.

For over thirty years, ITS has provided information technology services and engineering solutions to support federal government customers. The synergy created with the combination of our two businesses will broaden our mutual capabilities across the entire spectrum of information and engineering solutions for federal, intelligence and homeland security agencies, Sundling said. The suite of service offerings and expertise reflected throughout the LEADS organization will bolster our systems acquisition and technology management services and establishes core capabilities in enterprise modernization.

Mr. Joseph Tagliareni, the current CEO of LEADS, will continue to lead this organization as Senior Vice President of ITS LEADS Business Unit.

Both Mr. Tagliareni and I are excited about the future because of the synergy created between our two companies. Like ITS, LEADS is a solutions-oriented, customer-focused company with an excellent reputation in its target industry. We see this as a triple win for ITS, LEADS and our customers.

Tagliareni agreed, observing that the transaction also fulfilled an important part of LEADS long-term strategic plan. It will help strengthen both organizations by enabling expert LEADS personnel to provide specialized capabilities to our valued federal customers, as well as offering them infinitely more professional growth opportunities, he said.

Mark Shappee, Managing Principal of Venture Management, Inc., noted that, The acquisition of LEADS is the third major step taken by ITS to implement the growth strategy developed following its engagement of Venture Management. LEADS significantly enhances the opportunities for ITS in the federal market.

ITS (www.itscorporation.com), headquartered in Oxnard, California, is a provider of award-winning IT and engineering solutions to the U.S. military; intelligence homeland security and other agencies of the Federal government throughout the United States. ITS core competencies include systems development and integration, IT security, business information management, studies and analyses, and enterprise management for a broad spectrum of government customers.

Venture Management, Inc. is an investment banking and consulting firm focused on supporting owners and management in the building of professional services firms value. Venture Management provides advisory services related to mergers and acquisitions, divestitures and corporate finance. Additional information regarding Venture Management, Inc.'s services and background on its team may be found at www.venturemanagement.com.