A PROFILE OF THE U.S. OFFICE PRODUCTS IN THE TOP 200 EDITION OF WASHINGTON BUSINESS REPORTED THAT CHIEF FINANCIAL OFFICER DONALD PLATT HAD LEFT THE COMPANY. HE IS NOW THE COMPANY'S EXECUTIVE VICE PRESIDENT OF STRATEGIC PLANNING. (PUBLISHED 05/24/99)

1

Mobil Corp.

3225 Gallows Rd.

Fairfax, Va. 22037

703-846-3000

http://www.mobil.com

FOUNDED: 1866

FISCAL YEAR: Dec. 31

REVENUE: $53.53 billion

PROFIT: $1.70 billion

EARNINGS PER SHARE: $2.92

DIVIDEND: $2.28

STOCKHOLDERS' EQUITY: $18.37 billion

RETURN ON EQUITY: 9 percent

STOCK: MOB (NYSE)

ASSETS: $42.75 billion

MARKET CAPITALIZATION: $79.39 billion

52-WEEK HIGH: $101.87 1/2 (4/16/99)

52-WEEK LOW: $62.43 3/4 (8/6/98)

CHAIRMAN: Lucio A. Noto (CEO)

PRESIDENT: Eugene A. Renna

EMPLOYEES: 43,000

LOCAL EMPLOYEES: 2,040

DESCRIPTION: Mobil, the nation's second-largest oil company and the biggest company in the Washington area as measured by revenue, is engaged in every aspect of the energy business, including exploration, production, refining and marketing. The company also is a chemical manufacturer and marketer.

DEVELOPMENTS: The major development for Mobil last year is the one that probably will make this the company's last appearance in the Top 200. Mobil and Exxon Corp. announced Dec. 1 that they had agreed to an $81 billion merger that would create the world's largest nongovernment oil company and the largest U.S. corporation.

The merger agreement, designed to reduce costs and allow the firm to compete with state-owned giants such as Saudi Aramco and Petroleos de Venezuela, is awaiting regulatory and shareholder approval this spring or summer. The new company would be called Exxon Mobil.

If the deal goes through, the merged company's headquarters will be in Irving, Tex., and Mobil's offices in Fairfax will become the company's refining and marketing headquarters.

Along with the rest of the oil industry, Mobil struggled because of low oil prices in 1998. Adjusted for inflation, crude oil prices reached the lowest levels since the 1940s. In November, the company announced plans to cut $500 million in expenses.

The company also formed a strategic alliance with Ford Motor Co. to do research in automotive fuel and power-train technology aimed at improving integration of new fuel and vehicle technology.

In other developments, Mobil and its partners in Turkmenistan announced their first shipment of Caspian Sea oil. Mobil also sold a New Jersey refinery to an independent refiner, and the company, in partnership with Qatar General Petroleum Corp., was chosen to supply liquefied natural gas to India.

Mobil also swapped offshore properties in the Gulf of Mexico for oil and gas assets in five Atlantic Richfield Co. fields in California and an interest in an electric cogeneration facility there.

2

Lockheed Martin Corp.

6801 Rockledge Dr.

Bethesda, Md. 20817

301-897-6000

http://www.lmco.com

FOUNDED: 1995

FISCAL YEAR: Dec. 31

REVENUE: $26.27 billion

PROFIT: $1.00 billion

EARNINGS PER SHARE: $2.63

DIVIDEND: 82 cents

STOCKHOLDERS' EQUITY: $6.14 billion

RETURN ON EQUITY: 22 percent

STOCK: LMT (NYSE)

ASSETS: $28.74 billion

MARKET CAPITALIZATION: $17.04 billion

52-WEEK HIGH: $58.50 (4/23/98)

52-WEEK LOW: $34.62 1/2 (1/29/99)

CHAIRMAN: Vance Coffman (CEO)

PRESIDENT: Peter B. Teets

EMPLOYEES: 165,000

LOCAL EMPLOYEES: 9,500

DESCRIPTION: Bethesda-based Lockheed Martin is the country's largest defense contractor. Its products include the F-16 and F-22 fighter jets, the Titan rocket and the Aegis combat system for Navy ships. The company also is a principal contractor to NASA and provides information technology services for state governments and private customers, running telecommunications and computer networks for large users.

DEVELOPMENTS: Lockheed Martin began the year on a sour note, reporting 1998 earnings 23 percent below those reported a year earlier. For a company whose executives like to boast of "mission success," there were a number of glaring miscues, not the least of which was misleading Wall Street analysts about how the company was performing.

If there is one goal for Lockheed this year, it is to restore credibility with shareholders. Chairman Vance Coffman implored managers at the company's annual executive meeting to "roll up our sleeves . . . and go to work."

That will mean less emphasis on acquisitions -- which have dominated the past six years -- except for completing the planned $2.7 billion purchase of satellite services company Comsat Corp. It also means intense focus on improving relations with the Defense Department, which have become strained over cost overruns and the alleged arrogance of Lockheed program managers.

And it means trying to find creative ways to increase the financial returns at the company's space and missile systems unit, as well as its commercial information technology businesses.

Other top goals for the year include completing a $5 billion deal to sell F-16 fighters to the United Arab Emirates -- which is stalled over the type of electronics the plane will carry -- and successfully testing an antimissile weapon. Lockheed also will closely monitor development of the F-22 fighter, whose cost has some in Congress concerned, as well as its design work on the Joint Strike Fighter. The company also hopes to mount a major push with its Global Telecommunications subsidiary, formed in 1998 to chase the rapidly expanding market for corporate data networks.

Company President Peter B. Teets will lead the effort to reduce overhead and improve profit margins through budget-cutting and some layoffs. Last month, the company announced plans to lay off 1,200 workers at its Denver astronautics division.

The overall plan, insiders say, is for the company to focus on the "blocking and tackling" of business rather than some of the more glamorous technological and strategic moves the company made in the early 1990s when it was the leading consolidator of the industry.

3

US Airways Group Inc.

2345 Crystal Dr.

Arlington, Va. 22227

703-872-7000

http://www.usairways.com

FOUNDED: 1939

FISCAL YEAR: Dec. 31

REVENUE: $8.69 billion

PROFIT: $538.0 million

EARNINGS PER SHARE: $5.60

DIVIDEND: None

STOCKHOLDERS' EQUITY: $593.0 million

RETURN ON EQUITY: 74 percent

STOCK: U (NYSE)

ASSETS: $7.87 billion

MARKET CAPITALIZATION: $4.3 billion

52-WEEK HIGH: $83.25 (7/7/98)

52-WEEK LOW: $34.75 (10/8/98)

CHAIRMAN: Stephen M. Wolf

PRESIDENT: Rakesh Gangwal (CEO)

EMPLOYEES: 40,635

LOCAL EMPLOYEES: 4,125

DESCRIPTION: US Airways Group is the holding company for US Airways and several subsidiaries, including the new low-fare MetroJet and the US Airways Shuttle between Washington, New York and Boston. Most of its service is in the East, with hubs at Baltimore, Charlotte, Pittsburgh and Philadelphia.

DEVELOPMENTS: During 1998 US Airways took delivery of an aircraft that serves as a symbol for its future: its first Airbus A320. Dozens of other new Airbus products are coming, including the long-range A330 for European service. This fulfills a promise Chairman Stephen M. Wolf made to his union employees -- give me concessions in contract negotiations, and I'll give you a new airline.

The new low-fare MetroJet appears to be doing well from its Baltimore hub. Beginning with service to five cities last June 1, MetroJet now flies to 21 cities throughout the East and Midwest, stretching from Florida to St. Louis and Manchester, N.H., and has added Dulles International Airport as a hub to 10 cities. Its red jets are distinct from the more subdued colors of its parent; the color was chosen deliberately by MetroJet over Wolf's initial objections as a way to assert that it intends to be an upstart worthy of major competitor Southwest Airlines.

But the new subsidiary is under attack not only from the established Southwest and Delta Express, but also from United Airlines, which plans to vastly expand its East Coast service from its Dulles Airport hub.

A slow changing of the guard appears to be underway at the airline. Although Wolf remains as chairman, airline President Rakesh Gangwal took on the additional position of chief executive of the parent company. Wolf is reported to be spending less time in day-to-day airline operations as Gangwal assumes more responsibility.

4

Marriott International Inc.

10400 Fernwood Rd.

Bethesda, Md. 20817

301-380-3000

http://www.marriott.com

FOUNDED: 1927

FISCAL YEAR: Jan. 1

REVENUE: $7.97 billion

PROFIT: $390.0 million

EARNINGS PER SHARE: $1.46

DIVIDEND: 20 cents

STOCKHOLDERS' EQUITY: $2.57 billion

RETURN ON EQUITY: 27 percent

STOCK: MAR (NYSE)

ASSETS: $6.23 billion

MARKET CAPITALIZATION: $9.66 billion

52-WEEK HIGH: $39.93 3/4 (2/22/99)

52-WEEK LOW: $19.37 1/2 (10/6/98)

CHAIRMAN: J.W. Marriott Jr. (CEO)

PRESIDENT: William J. Shaw

EMPLOYEES: 133,000

LOCAL EMPLOYEES: 12,225

DESCRIPTION: Marriott International operates and manages hotels under brands names that include Ritz-Carlton, Marriott, Courtyard, Fairfield Inn, Residence Inn, TownePlace Suites, Renaissance, Ramada International, New World and SpringHill Suites. The company also operates time-share units and senior citizen housing.

DEVELOPMENTS: As one of Maryland's largest employers, Marriott used its prominence to negotiate the richest publicly funded incentive package in state history. The lodging company had considered moving across the river to regional rival Virginia but last month announced its intention to stay. In keeping its corporate headquarters in Montgomery County, Marriott will add 700 jobs over five years and receive a variety of tax credits and job training grants worth as much as $44.2 million.

Despite criticism that he was blackmailing Maryland officials, Chairman J.W. "Bill" Marriott Jr. defended the company's actions, saying that he had to consider the lower costs of doing business in Virginia for the sake of his shareholders.

During a year in which lodging stocks took a beating from Wall Street, Marriott International kept shining. In January, Marriott announced its acquisition of ExecuStay Corp. of Gaithersburg, the nation's second-largest provider of interim housing, for $128 million in cash, stock and assumed debt. That came on top of a strong performance in 1998, when Marriott reported a 23 percent increase in net income and a 10 percent increase in revenue.

Marriott's revenue per available room -- the key measure of financial performance for hotel companies -- rose an average of 6 percent across all of the company's brands, even as occupancy dipped one-half of a percentage point to a still robust 78 percent. Marriott added 176 properties, or 27,800 rooms, to its lodging system in 1998. Among the company's strongest-performing brands were full-service properties carrying the Marriott, Ritz-Carlton, Renaissance and Courtyard flags.

Marriott's only soft spot: international hotel operations. Economic crises in the Asian/Pacific region and reduced travel to the Middle East caused lower revenues and were offset only by strong growth in Europe and Latin America.

5

Columbia Energy Group

13880 Dulles Corner Lane

Herndon, Va. 20171

703-561-6000

http://www.columbiaenergygroup.com

FOUNDED: 1837

FISCAL YEAR: Dec. 31

REVENUE: $6.57 billion

PROFIT: $269.2 million

EARNINGS PER SHARE: $3.21

DIVIDEND: 80 cents

STOCKHOLDERS' EQUITY: $2.01 billion

RETURN ON EQUITY: 15 percent

STOCK: CG (NYSE)

ASSETS: $6.97 billion

MARKET CAPITALIZATION: $4.03 billion

52-WEEK HIGH: $60.75 (11/4/98)

52-WEEK LOW: $44.62 1/2 (2/11/99)

CHAIRMAN, PRESIDENT: Oliver G. Richard III (CEO)

EMPLOYEES: 9,000

LOCAL EMPLOYEES: 400

DESCRIPTION: Columbia Energy is a holding company that includes oil and natural gas production operations, interstate pipelines, local gas distribution companies, independent power production, national gas marketing, propane distribution, electricity trading and sales, and energy management services. Its local gas distribution companies include Columbia Gas of Virginia and Columbia Gas of Maryland, which serves Western Maryland.

DEVELOPMENTS: Columbia Energy flexed its muscle last week when it made an unsolicited $9 billion bid for Consolidated Natural Gas Co., a Pittsburgh company.

In doing so, Columbia raised the prospect of a hostile takeover effort because Consolidated already had agreed to be acquired by Dominion Resources, the parent company of Virginia Power. Columbia's offer for Consolidated expires May 3.

In other developments, subsidiary Columbia Electric announced plans in June to build a 550 megawatt-equivalent cogenerating plant in Texas with LG&E Energy Corp. Columbia Energy also began selling electricity to retail customers in 1998.

On the gas side, the company continued to expand in programs that allow customers to choose their natural gas supplier from among competing firms. Those programs are now available to all of the customers of Columbia Gas of Ohio, where approximately 357,000 out of 1.3 million have opted for the service, and began in Virginia this past year in a pilot program that 6,200 customers have joined.

Columbia Energy Services also began using Amway to market natural gas and electricity to customers in Georgia and Ohio.

In its exploration and production operations, Columbia drilled 188 new wells, of which approximately 80 percent are producing.

In its fourth quarter, the company reported a drop in net income, in part because warm weather reduced demand for natural gas, but also because the company's marketing division lost $6.5 million when one of its traders misstated prices on some natural gas futures contracts. The trader was subsequently fired and the company's auditing processes were tightened.

6

U.S. Foodservice

9755 Patuxent Woods Dr.

Columbia, Md. 21046

410-312-7100

http://www.usfoodservice.com

FOUNDED: 1989

FISCAL YEAR: June 26

REVENUE: $5.51 billion

LOSS: $47.0 million

LOSS PER SHARE: $1.04

DIVIDEND: None

STOCKHOLDERS' EQUITY: $584.7 million

RETURN ON EQUITY: NA

STOCK: UFS (NYSE)

ASSETS: $1.82 billion

MARKET CAPITALIZATION: $2.11 billion

52-WEEK HIGH: $53.06 1/4 (1/29/99)

52-WEEK LOW: $31.31 1/4 (5/27/98)

CHAIRMAN, PRESIDENT: James L. Miller (CEO)

EMPLOYEES: 11,500

LOCAL EMPLOYEES: 500

DESCRIPTION: U.S. Foodservice is the nation's second-largest food distribution and restaurant supply business, stocking the pantries at restaurants, hotels, hospitals, nursing homes and child-care centers throughout much of the United States. The company distributes more than 40,000 private-label and name-brand products. Its clients include the Pizzeria Uno, Ruby Tuesday, Subway and Perkins Family Restaurants chains.

DEVELOPMENTS: U.S. Foodservice is growing quickly by gobbling up other food distribution companies.

In the past year, it has acquired J.H. Haar & Sons Co. of Kearny, N.J., a food distribution firm with $57 million in annual sales, and Westlund Provisions Inc., a custom meat specialist based in Minneapolis that had annual sales of $58 million. The firm also announced plans to acquire San Diego-based Joseph Webb Foods, a food distribution company with annual sales of $157 million.

The company has spent much time integrating its old and new operations. It is developing a computer system to improve communication company-wide and management of its ever-growing distribution routes. It also has eliminated some operations and is consolidating facilities in the Baltimore, Boston and Minneapolis areas.

7

Gannett Co.

1100 Wilson Blvd.

Arlington, Va. 22234

703-284-6000

http://www.gannett.com

FOUNDED: 1906

FISCAL YEAR: Dec. 27

REVENUE: $5.12 billion

PROFIT: $999.9 million

EARNINGS PER SHARE: $3.50

DIVIDEND: 80 cents

STOCKHOLDERS' EQUITY: $3.98 billion

RETURN ON EQUITY: 29 percent

STOCK: GCI (NYSE)

ASSETS: $6.98 billion

MARKET CAPITALIZATION: $19.54 billion

52-WEEK HIGH: $74.50 (4/15/98)

52-WEEK LOW: $47.62 1/2 (10/8/98)

CHAIRMAN: John J. Curley (CEO)

PRESIDENT: Douglas H. McCorkindale

EMPLOYEES: 39,000

LOCAL EMPLOYEES: 2,500

DESCRIPTION: Gannett is one of the biggest names in the media business and the biggest name in the newspaper business. Most people know its flagship paper, USA Today, but Gannett also publishes 74 other dailies. Gannett owns 21 TV stations, including WUSA (Channel 9) in Washington. It also operates cable TV systems throughout the United States.

DEVELOPMENTS: Gannett racked up another year of higher profit, as its papers and TV stations continued to enjoy robust ad spending.

The company shuffled its TV-station lineup in February when it agreed to swap its Austin station for A.H. Belo Corp.'s Sacramento station and $55 million in cash.

Gannett in March named Karen Jurgensen as the next editor of USA Today, effective on the retirement later this year of David Mazzarella. Jurgensen will be only the second woman to lead the news operations of a national newspaper.

Gannett found itself in the hot seat last year after its Cincinnati Enquirer newspaper ran a series of articles critical of Chiquita Banana Inc. The Enquirer renounced the stories a month later and apologized to Chiquita on the front page after discovering that the lead reporter on the articles had allegedly stolen information by tapping into Chiquita's voice-mail system. Gannett paid Chiquita more than $10 million to settle the matter.

8

General Dynamics Corp.

3190 Fairview Park Dr.

Falls Church, Va. 22042

703-876-3000

http://www.generaldynamics.com

FOUNDED: 1952

FISCAL YEAR: Dec. 31

REVENUE: $4.97 billion

PROFIT: $364.0 million

EARNINGS PER SHARE: $2.86

DIVIDEND: 96 cents

STOCKHOLDERS' EQUITY: $2.22 billion

RETURN ON EQUITY: 19 percent

STOCK: GD (NYSE)

ASSETS: $4.57 billion

MARKET CAPITALIZATION: $8.85 billion

52-WEEK HIGH: $71 (4/14/99)

52-WEEK LOW: $40.25 (4/27/98)

CHAIRMAN: Nicholas D. Chabraja (CEO)

PRESIDENT: James E. Turner Jr.

EMPLOYEES: 31,000

LOCAL EMPLOYEES: 140

DESCRIPTION: General Dynamics is a defense contractor, whose Electric Boat subsidiary is the primary supplier of nuclear-powered submarines to the Navy. Its Bath Iron Works unit builds Navy destroyers. The company also makes tanks and armored vehicles for the Army and the Marines as well as for some foreign militaries.

DEVELOPMENTS: General Dynamics Chairman and chief executive Nicholas D. Chabraja has a reputation in the defense industry for making smart acquisitions, picking up niche players in the defense industry at bargain prices.

In February, Chabraja showed he also relishes playing the role of spoiler. He made a surprise, unsolicited bid for Newport News Shipbuilding Inc. as Newport News was close to acquiring rival shipyard Avondale Industries Inc. The General Dynamics-Newport News deal ultimately was rejected by the Department of Defense, and General Dynamics withdrew its bid earlier this month.

Avoiding conventional industry behavior has long been a General Dynamics hallmark, and this year should be no different. Although Chabraja was unsuccessful in acquiring Newport News for $2 billion in cash and assumed debt, he roiled the country's $6 billion-plus naval shipbuilding industry, and analysts expect he'll try another defense industry deal.

Meanwhile, the company's core business -- building nuclear-powered submarines for the Navy and tanks and armored vehicles for the Army and Marines -- is on track. General Dynamics has a strong balance sheet and the respect of Wall Street, and is still awaiting payment on its share of a $1.8 billion award stemming from the 1991 cancellation of the A-12 aircraft. The case is on appeal, but General Dynamics so far has won at every step.

9

Sodexho Marriott

Services Inc.

9801 Washingtonian Blvd.

Gaithersburg, Md. 20878

301-987-4333

http://www.sodexhomarriott.com

FOUNDED: 1998

FISCAL YEAR: Aug. 28

REVENUE: $4.31 billion

PROFIT: $33.0 million

EARNINGS PER SHARE: 52 cents

DIVIDEND: None

STOCKHOLDERS' EQUITY: ($555.0 million)

RETURN ON EQUITY: NA

STOCK: SDH (NYSE)

ASSETS: $1.34 billion

MARKET CAPITALIZATION: $1.29 billion

52-WEEK HIGH: $33.37 1/2 (11/2/98)

52-WEEK LOW: $18.87 1/2 (3/25/99)

CHAIRMAN: William Shaw

PRESIDENT: Charles D. O'Dell (CEO)

EMPLOYEES: 100,000

LOCAL EMPLOYEES: 4,691

DESCRIPTION: Sodexho Marriott Services is the nation's largest provider of cafeteria, janitorial and maintenance services. It was formed last year when Marriott International Inc. reorganized, splitting off its food and office management services businesses and combining them with the North American division of Sodexho Alliance SA of France. A majority of the firm's stock is held by Sodexho Alliance and by Marriott family members.

DEVELOPMENTS: In August, the five-month-old company chose Gaithersburg as its corporate headquarters after receiving more than $1 million in tax and financial incentives from Maryland and Montgomery County. Foreshadowing a similar move this year by its parent, Marriott International, Sodexho Marriott weighed a possible move to Northern Virginia, upping the ante for Maryland officials.

The company has spent the past year trying to successfully combine executives and employees from parent companies with very different corporate cultures. The Sodexho side of the partnership is considered more entrepreneurial than Marriott's, company officials say. The headquarters staff of several hundred people oversees an organization of 100,000 employees worldwide.

The company is aiming to take over catering, cafeteria and office services from schools, universities, health care facilities, companies and government agencies that choose to outsource these functions, a trend the company believes is accelerating. It is testing the installation of food kiosks in cafeterias to offer Pizza Hut pizza, TCBY yogurt and other brand-name items as an alternative to cafeteria fare.

A second challenge for Sodexho Marriott executives is whittling $1.2 billion in corporate debt, most of it inherited from Marriott International when it reorganized to concentrate on hotel operations. The company's goal is to cut that debt in half over the next six years.

10

Host Marriott Corp.

10400 Fernwood Rd.

Bethesda, Md. 20817

301-380-9000

http://www.hostmarriott.com

FOUNDED: 1927

FISCAL YEAR: Dec. 31

REVENUE: $3.51 billion

PROFIT: $47.0 million

EARNINGS PER SHARE: 27 cents

DIVIDEND: None

STOCKHOLDERS' EQUITY: $1.31 billion

RETURN ON EQUITY: 4 percent

STOCK: HMT (NYSE)

ASSETS: $8.27 billion

MARKET CAPITALIZATION: $2.89 billion

52-WEEK HIGH: $22.12 1/2 (4/17/98)

52-WEEK LOW: $9.87 1/2 (10/8/98)

CHAIRMAN: Richard E. Marriott

PRESIDENT: Terence C. Golden (CEO)

EMPLOYEES: 192

LOCAL EMPLOYEES: 161

DESCRIPTION: Host Marriott is a real estate investment trust that owns 126 upscale and luxury full-service hotels operated primarily under the Marriott, Ritz-Carlton, Four Seasons, Hyatt and Swissotel brand names.

DEVELOPMENTS: Host Marriott spent most of last year spinning off its operations and converting to a real estate investment trust. The REIT conversion allows the company to own property as long as it disburses most of its income in the form of dividends.

As a REIT, Host Marriott considers funds from operation to be the best measure of its performance. The company reported a 33 percent increase in FFO to $402 million ($1.81 cents per share) in 1998.

As part of the conversion, Host Marriott purchased $1.5 billion in luxury hotel properties from the Blackstone Group L.P. The portfolio consisted of 12 upscale and luxury hotels, including the Ritz-Carlton at Amelia Island, Fla., the Four Seasons Philadelphia and the Drake in New York. But last month, the company announced its acquisition pace would slow appreciably this year because of the lackluster performance of its stock.

In other developments, Host Marriott refinanced about $2.2 billion of debt at lower interest rates, raised an additional $1 billion in equity and completed public and private partnership roll-ups representing $650 million in hotel purchases.

Host Marriott spun off its nursing homes into a separate company, Crestline Capital Corp.

11

Danaher Corp.

1250 24th St. NW

Washington, D.C. 20037

202-828-0850

http://www.danaher.com

FOUNDED: 1969

FISCAL YEAR: Dec. 31

REVENUE: $2.91 billion

PROFIT: $182.9 million

EARNINGS PER SHARE: $1.32

DIVIDEND: 6 cents

STOCKHOLDERS' EQUITY: $1.35 billion

RETURN ON EQUITY: 20 percent

STOCK: DHR (NYSE)

ASSETS: $2.74 billion

MARKET CAPITALIZATION: $8.83 billion

52-WEEK HIGH: $66.50 (4/15/99)

52-WEEK LOW: $28 (10/1/98)

CHAIRMAN: Steven M. Rales

PRESIDENT: George M. Sherman (CEO)

EMPLOYEES: 18,000

LOCAL EMPLOYEES: 17

DESCRIPTION: Danaher is a rapidly expanding conglomerate whose businesses are broadly grouped into two segments -- tools and components; and process and environmental controls. The tool business includes the Craftsman line of hand tools sold by Sears, Roebuck and Co., and the controls include devices such as leak sensors for fuel tanks. The company has been built through acquisitions financed largely with borrowed money or Danaher common stock.

DEVELOPMENTS: Danaher has continued to grow through acquisitions and maintains high earnings.

Last week, Danaher Corp. agreed to buy the Hach Co. of Loveland, Colo., a maker of equipment for measuring water quality, for about $325 million in Danaher stock.

In late April 1998, the company announced it would pay $625 million in stock to buy Fluke Corp. of Everett, Wash., which makes tools that technicians and engineers use to install and service such products as computer networks, cars and electrical systems. In June, the company bought Dr. Bruno Lange GmbH, a European manufacturer of environmental products with revenue of approximately $60 million.

In November, Danaher's stock was incorporated into the Standard & Poor's 500 index, replacing Stone Container Corp. That helped buoy the stock, because many mutual funds buy shares of companies in the index to mimic its performance.

12

U.S. Office Products Co.

1025 Thomas Jefferson St. NW

Suite 600E

Washington, D.C. 20007

202-339-6700

http://www.usop.com

FOUNDED: 1994

FISCAL YEAR: April 25, 1998

REVENUE: $2.61 billion

PROFIT: $67.2 million

EARNINGS PER SHARE: $2.20

DIVIDEND: None

STOCKHOLDERS' EQUITY: $1.49 billion

RETURN ON EQUITY: 7 percent

STOCK: OFIS (Nasdaq)

ASSETS: $2.54 billion

MARKET CAPITALIZATION: $185.4 million

52-WEEK HIGH: $40.48 7/16 (5/5/98)

52-WEEK LOW: $3.25 (3/26/99)

CHAIRMAN: Charles P. Pieper (CEO)

EMPLOYEES: 14,000

LOCAL EMPLOYEES: 400

DESCRIPTION: U.S. Office Products began as a "roll-up," after founder Jonathan J. Ledecky conceived of combining many small and medium-size office supply companies under a single corporate umbrella. The company also owns Mail Boxes Etc., a chain of shipment and packaging stores.

DEVELOPMENTS: U.S. Office Products has had a couple of rocky years recently, garnering negative publicity and lawsuits as its share price plummeted and key executives departed.

Ledecky relinquished his role as chairman to pursue other roll-up ventures and was replaced by Charles Pieper, a principal of Clayton, Dubilier & Rice, the investment firm that is U.S. Office Products' largest shareholder. Pieper also became chief executive, replacing Thomas Morgan, who left the company in February. Chief financial officer Donald Platt also departed. In the past two years, the company has spun off a number of businesses, including travel agencies, educational supply houses and print management and technology services. It is now concentrating on selling office supplies and sending packages.

Earlier this month, the company got a boost when eBay, an online auction house, announced that it would use Mail Boxes Etc. as its preferred shipper.

13

America Online Inc.

22000 AOL Way

Dulles, Va. 20166

703-448-8700

http://www.aol.com

FOUNDED: 1985

FISCAL YEAR: June 30

REVENUE: $2.60 billion

PROFIT: $92.0 million

EARNINGS PER SHARE: 35 cents

DIVIDEND: None

STOCKHOLDERS' EQUITY: $598.0 million

RETURN ON EQUITY: 66 percent

STOCK: AOL (NYSE)

ASSETS: $2.21 billion

MARKET CAPITALIZATION: $130.52 billion

52-WEEK HIGH: $175.50 (4/6/99)

52-WEEK LOW: $17.25 (9/1/98)

CHAIRMAN: Stephen M. Case (CEO)

PRESIDENT: Robert Pittman

EMPLOYEES: 12,000

LOCAL EMPLOYEES: 2,950

DESCRIPTION: With 17 million members, America Online is the largest online service provider in the world. For a monthly rate of $21.95, users get unlimited use of e-mail, access to the Internet and AOL's own content, which includes material in such areas as travel and personal finance. AOL owns Netscape Communications Corp. and online service CompuServe Inc., which has 2 million users and is headquartered in Columbus, Ohio. Other AOL properties include the Web site AOL.com, regional guides service Digital City Inc. and instant messaging service ICQ.

DEVELOPMENTS: AOL made a dizzying array of mergers, alliances and product releases during the year as it pursued its goal to be the worldwide, mass-market brand of choice for the Internet.

Last month it completed its acquisition of Netscape Communications Corp. of Mountain View, Calif., for $10 billion in stock, giving AOL control of one of the best-known companies on the Web and new ability to tap into the business market. As part of the Netscape deal, AOL said it would work with Sun Microsystems Inc. in hopes of increasing sales of software to businesses. That partnership, known as the Sun-Netscape Alliance, will be staffed by 2,000 AOL and Sun employees assigned to the project in Mountain View.

Also last month, as a result of the merger, AOL laid off 850 employees, equally divided between Netscape and AOL. About 250 people in the Washington area lost their jobs.

In February, AOL acquired MovieFone Inc., the largest movie listing and ticketing service, for $388 million in stock.

In the fourth quarter, as the company introduced version 4.0 of the online service's software, net income rose 340 percent from the same quarter the year before, to $88 million. The 1998 holiday shopping season helped push up that number, with AOL estimating that 1 million of its customers shopped online for the first time. Also in December, AOL became the first Internet company to join the Standard & Poor's 500-stock index.

AOL has been diversifying its business, no longer relying only on subscriber fees, but taking in more electronic-commerce dollars. It's receiving millions of dollars from its many commerce partners -- including MCI WorldCom Inc., media company CNet Inc., financial services firm First USA and online auctioneer eBay Inc. -- which pay large fees for a presence on AOL's services.

In the quarter that ended Dec. 31, AOL took in $126 million in advertising and commerce revenue, $50 million more than its closest competitor, Yahoo Inc.

As AOL has grown quickly, it also has expanded its reach, becoming more political, philanthropic and involved in the Washington technology community.

Industry analysts are now watching AOL closely to see how it will manage a bicoastal company, what new deals it will make and how it will try to further burrow into American households and businesses.

14

Lafarge Corp.

11130 Sunrise Valley Dr.

Reston, Va. 20191

703-264-3600

http://www.lafargecorp.com

FOUNDED: 1983

FISCAL YEAR: Dec. 31

REVENUE: $2.45 billion

PROFIT: $235.5 million

EARNINGS PER SHARE: $3.24

DIVIDEND: 51 cents

STOCKHOLDERS' EQUITY: $1.42 billion

RETURN ON EQUITY: 19 percent

STOCK: LAF (NYSE)

ASSETS: $2.90 billion

MARKET CAPITALIZATION: $2.47 billion

52-WEEK HIGH: $42.12 1/2 (4/22/98)

52-WEEK LOW: $23.75 (10/9/98)

CHAIRMAN: Bertrand Collomb

PRESIDENT: John M. Piecuch (CEO)

EMPLOYEES: 10,000

LOCAL EMPLOYEES: 900

DESCRIPTION: Lafarge produces about 11.7 million tons of cement annually, making it the third-largest U.S. cement maker behind Holnam Inc. and Southdown Inc. Lafarge's products, which also are sold in Canada, include construction materials such as asphalt and gypsum wallboard. Lafarge SA, based in Paris, owns 52 percent of the company.

DEVELOPMENTS: Lafarge continues to benefit from what company officials describe as historically high demand for construction materials in North America. The company's U.S. earnings increased 42 percent in 1998, and chief executive John Piecuch expects the company to benefit from highway projects included in the recently passed federal transportation spending bill.

Lafarge announced in 1998's fourth quarter that it will build a $90 million wallboard plant in Kentucky that will use only recycled materials, including wastepaper. The company also continues to pay off $650 million it borrowed to finance recent plant acquisitions.

15

AES Corp.

1001 N. 19th St.

Arlington, Va. 22209

703-522-1315

http://www.aesc.com

FOUNDED: 1981

FISCAL YEAR: Dec. 31

REVENUE: $2.40 billion

PROFIT: $311.0 million

EARNINGS PER SHARE: $1.69

DIVIDEND: None

STOCKHOLDERS' EQUITY: $1.79 billion

RETURN ON EQUITY: 21 percent

STOCK: AES (NYSE)

ASSETS: $10.78 billion

MARKET CAPITALIZATION: $9.10 billion

52-WEEK HIGH: $58 (4/22/98)

52-WEEK LOW: $23 (9/4/98)

CHAIRMAN: Roger W. Sant

PRESIDENT: Dennis W. Bakke (CEO)

EMPLOYEES: 10,700

LOCAL EMPLOYEES: 50

DESCRIPTION: AES is the world's largest global power company. A very fast-growing concern, it owns or has an interest in about 100 power-generation plants worldwide, plus several power distribution companies.

DEVELOPMENTS: The global financial crisis buffeted AES's investments in emerging markets, particularly Brazil. AES owns or has an interest in four Brazilian power plants that have provided roughly a quarter of the company's profit. The company announced in February that it may have to take a charge of more than $100 million in the first quarter because of the devaluation of the Brazil's currency, the real. AES also said it may try to increase the stakes in the Brazilian utilities it co-owns to gain greater control over its investments there.

Meanwhile, after years of putting primary emphasis on investments overseas, AES continued a major shift of its resources to the U.S. market because of the growing opportunities presented by the deregulation of electric power in the United States. For example, AES bought three electric generating stations from Southern California Edison, won a bid to acquire six coal-fired plants in New York and announced plans to build a power plant near Hartford.

At the same time, AES continued its expansion abroad. The company completed an acquisition in Argentina and won a bid to own and operate a power plant in Bangladesh. It won bids to acquire shares of power companies in the former Soviet republic of Georgia and in Panama. Earlier this month, AES acquired a 50 percent stake in a distribution company in the Dominican Republic.

16

Coventry Health Care Inc.

6705 Rockledge Dr.

Bethesda, Md. 20817

301-581-0600

http://www.cvty.com

FOUNDED: 1998

FISCAL YEAR: Dec. 31

REVENUE: $2.11 billion

LOSS: $11.7 million

LOSS PER SHARE: 22 cents

DIVIDEND: None

STOCKHOLDERS' EQUITY: $436.5 million

RETURN ON EQUITY: NA

STOCK: CVTY (Nasdaq)

ASSETS: $1.09 billion

MARKET CAPITALIZATION: $478.1 million

52-WEEK HIGH: $19.12 1/2 (4/21/98)

52-WEEK LOW: $3.87 1/2 (8/27/98)

CHAIRMAN: John H. Austin

PRESIDENT: Allen F. Wise (CEO)

EMPLOYEES: 2,700

LOCAL EMPLOYEES: 175

DESCRIPTION: Coventry Health Care is a managed care company that runs health maintenance organizations, preferred provider organizations and point-of-service health plans. As of Dec. 31, it provided health care for 1.4 million people, including 54,329 members in the Delaware/Baltimore market and 55,259 members in the Richmond area. Most of its business is in other parts of the country.

DEVELOPMENTS: Coventry Corp. last April merged with Principal Health Care Inc., a subsidiary of the Principal Financial Group, to form Coventry Health Care Inc. Coventry spent $330.2 million, including $5.7 million in transaction costs, on the deal, which gave its shareholders 60 percent ownership of the new company. It was then that Coventry moved its headquarters from Tennessee to Bethesda. At the time, Coventry Corp. provided health care for 897,758 people and Principal Health Care had almost 674,000 HMO members.

In November, Coventry sold its Illinois subsidiary for $4.3 million. That was followed by the sale of its Florida subsidiary for $95 million in December. As of Dec. 31 the company stopped participating in Medicare, the federal program for the elderly and disabled, in several counties.

In the second quarter of 1998, Coventry took a $55 million charge against earnings to establish a reserve after one of its major health care providers, Pennsylvania-based Allegheny Health, Education and Research Foundation, filed for bankruptcy protection.

17

The Washington Post Co.

1150 15th St. NW

Washington, D.C. 20071

202-334-6000

http://www.washpostco.com

FOUNDED: 1877

FISCAL YEAR: Jan. 3

REVENUE: $2.11 billion

PROFIT: $417.3 million

EARNINGS PER SHARE: $41.10

DIVIDEND: $5.00

STOCKHOLDERS' EQUITY: $1.59 billion

RETURN ON EQUITY: 35 percent

STOCK: WPO (NYSE)

ASSETS: $2.69 billion

MARKET CAPITALIZATION: $5.45 billion

52-WEEK HIGH: $605.50 (7/14/98)

52-WEEK LOW: $481.31 1/4 (10/8/98)

CHAIRMAN: Donald E. Graham (CEO)

PRESIDENT: Alan G. Spoon

EMPLOYEES: 8,600

LOCAL EMPLOYEES: 3,700

DESCRIPTION: The Washington Post Co. publishes The Washington Post and Newsweek magazine. It also owns cable television systems; six TV stations in Florida, Texas and Michigan; the Gazette newspapers in Maryland; the Legi-Slate Inc. database company; and Kaplan Educational Centers, an educational and career services company. Through Washingtonpost.Newsweek Interactive, the company also offers news, features and advertising on two Web sites, washingtonpost.com and Newsweek.com.

DEVELOPMENTS: Last year, the company put the finishing touches on a $230 million renovation of The Post's printing operations, constructing a new printing plant in Prince George's County, renovating its existing Springfield plant and installing eight new presses in the two plants.

With the new presses on line in January, The Post began publishing front-page color photos while expanding the use of color elsewhere in the newspaper. The presses also significantly increased the newspaper's capability to target advertising and editorial content to particular areas in the Washington region.

The rapid expansion of Internet activity in 1998 was both a challenge and an opportunity for the company.

Facing growing competition from Web-based classified and recruiting advertising, the company expanded its news and advertising offerings on the washingtonpost.com Web site, which in February won several top awards for newspaper industry online services. The site receives 65 million page views a month.

Circulation at The Post declined by 1.3 percent for both daily and Sunday editions from 1997 averages, continuing a trend of the past three years. Although advertising revenue increased, higher costs for newsprint and expenses associated with installation of the new presses contributed to a 4 percent decline in newspaper division operating income.

Earlier this month, the newspaper won the Pulitzer Prize for public service for a series on the unusually high rate of police shootings in the District.

The strongest of the company's major divisions was its cable television subsidiary, whose systems are concentrated in rural areas. The division's operating income rose 19 percent last year through an increase in rates and greater numbers of subscribers. Broadcast division operating income rose 5 percent.

The company's other growth leader was its Kaplan educational unit, which helps students prepare for college entrance exams and other tests and provides recruiting and training services to companies and individuals. Acquisitions by Kaplan helped boost its revenue by 66 percent.

Early this year, the company sold $400 million of 10-year notes, its first sale of public debt, to provide long-term financing for the investments in printing plants and to repay short-term borrowing used for expansions at Kaplan and the cable operations.

18

Potomac Electric Power Co. 1900 Pennsylvania Ave. NW

Washington, D.C. 20068

202-833-7500

http://www.pepco.com

FOUNDED: 1896

FISCAL YEAR: Dec. 31

REVENUE: $2.06 billion

PROFIT: $226.3 million

EARNINGS PER SHARE: $1.73

DIVIDEND: $1.66

STOCKHOLDERS' EQUITY: $1.88 billion

RETURN ON EQUITY: 11 percent

STOCK: POM (NYSE)

ASSETS: $6.65 billion

MARKET CAPITALIZATION: $3.20 billion

52-WEEK HIGH: $27.81 1/4 (10/8/98)

52-WEEK LOW: $23 (2/2/99)

CHAIRMAN: Edward F. Mitchell

PRESIDENT: John M. Derrick Jr. (CEO)

EMPLOYEES: 4,036

LOCAL EMPLOYEES: 4,036

DESCRIPTION: Potomac Electric Power is an investor-owned utility that serves 693,000 customers in the Washington area. Its six generating plants supply the District, 94 percent of Montgomery County and 78 percent of Prince George's County. It also supplies electricity at wholesale prices to Southern Maryland Electric Cooperative Inc.

DEVELOPMENTS: During 1998, Pepco continued to prepare itself for electric power deregulation and the resulting competition within the industry. It reorganized into three core business units -- generating services, transmission, and customer service and power distribution. But earlier this year the company announced it will sell its power generating plants to concentrate on delivering and marketing, and on retailing products and services.

Pepco has expanded the array of services it offers retail customers through its Starpower venture with RCN Corp. of Princeton, N.J., which sells cable television, long-distance telephone service and Internet connections.

During 1998, Starpower received approval from regulators that allows it to offer competing cable television service to customers in the District and Gaithersburg. A similar step is under consideration by the Montgomery County government.

Pepco's plans to sell its generating plants are tied to Maryland regulators and the General Assembly approving the opening of markets in the state to retail competition.

The company has spent $14 million to address potential year 2000 problems, an effort it has been working on since 1995, and anticipates having completed its tests and making all necessary corrections by this summer.

In November, Pepco, Maryland regulators and other parties announced an agreement authorizing a $19 million, or 2 percent, increase in base rates in the state to cover increases in the cost of Pepco's purchased power contracts and year 2000 compliance costs.

The company also phased out its conservation programs, including rebates for the purchase of energy-efficient appliances in 1998.

This year began with difficulties, when a January ice storm knocked out service for 230,000 Pepco customers. It took about five days to get service restored to everyone, although more than half of those customers had power again within 24 hours. The company defended its performance in the wake of customer criticism that followed.

19

Nextel Communications Inc. 1505 Farm Credit Dr.

McLean, Va. 22102

703-394-3000

http://www.nextel.com

FOUNDED: 1987

FISCAL YEAR: Dec. 31

REVENUE: $1.85 billion

LOSS: $1.80 billion

LOSS PER SHARE: $6.46

DIVIDEND: None

STOCKHOLDERS' EQUITY: $229.5 million

RETURN ON EQUITY: NA

STOCK: NXTL (Nasdaq)

ASSETS: $11.57 billion

MARKET CAPITALIZATION: $11.10 billion

52-WEEK HIGH: $42.50 (4/6/99)

52-WEEK LOW: $15.37 1/2 (10/15/98)

CHAIRMAN: Daniel F. Akerson (CEO)

PRESIDENT: Timothy M. Donahue

EMPLOYEES: 9,600

LOCAL EMPLOYEES: 1,000

DESCRIPTION: Nextel provides digital wireless communications in 92 of the 100 largest U.S. metropolitan areas. Its flagship product is a digital pocket phone that also handles two-way walkie-talkie-style communications among groups of workers. The company sets itself apart from other wireless carriers by charging no fees for "roaming" outside the user's home area and rounding call pricing down to the nearest second, rather than rounding up to the next minute. Nextel's international division has wireless operations and investments in Canada, Mexico, Argentina, Brazil, the Philippines, Peru, Japan and China.

DEVELOPMENTS: Nextel continued the rapid expansion of its customer base and network in a year that was capped by ambitious forays into the wireless data market through an alliance with Netscape Communications Corp.

Nextel, which serves primarily a business clientele, more than doubled the number of subscribers on its digital network in 1998, to 2.96 million. Subscribers used their phones an average of 400 minutes every month, according to the company.

The company secured $1 billion in new financing during the fourth quarter, which it plans to spend on building new wireless systems and expanding established ones.

In February, Nextel announced a partnership with Netscape and Unwired Planet to develop services that will allow Nextel's phones to handle e-mail and Web browsing and access corporate networks. The companies are also developing an Internet site called Nextel Online that aims to offer electronic commerce using Nextel's phones. Plans call for the Internet services to be offered in six markets, including the Washington region, by year's end.

Also in February, Nextel formed Nextel Partners, which has funding from Nextel, several investment banks, Motorola and others. Using federal licenses purchased from Nextel, the partnership is intended to build digital wireless systems in 39 small and mid-sized markets that have 33 million potential customers.

Also during the past year, Nextel launched commercial service in Buenos Aires and Sao Paolo.

Earlier this month, it was reported that Nextel and MCI WorldCom Inc. are in talks to have MCI acquire Nextel. Such a move would give MCI a foothold in the wireless industry.

20

Ryland Group Inc.

11000 Broken Land Pkwy.

Columbia, Md. 21044

410-715-7000

http://www.ryland.com

FOUNDED: 1967

FISCAL YEAR: Dec. 31

REVENUE: $1.77 billion

PROFIT: $40.3 million

EARNINGS PER SHARE: $2.58

DIVIDEND: 16 cents

STOCKHOLDERS' EQUITY: $346.3 million

RETURN ON EQUITY: 13 percent

STOCK: RYL (NYSE)

ASSETS: $1.22 billion

MARKET CAPITALIZATION: $386.0 million

52-WEEK HIGH: $29.37 1/2 (12/10/98)

52-WEEK LOW: $19.43 3/4 (5/27/98)

CHAIRMAN, PRESIDENT: R. Chad Dreier (CEO)

EMPLOYEES: 1,886

LOCAL EMPLOYEES: 397

DESCRIPTION: Ryland is one of the nation's largest home builders. In 1998 it sold 9,430 houses in 252 new-home communities located in 18 states. The average price paid for a new Ryland home in 1998 was $182,000.

A subsidiary, Ryland Mortgage Corp., offers its buyers mortgages and also services their loans. For the year, it originated mortgages worth $1.7 billion.

DEVELOPMENTS: As the Washington market has grown more competitive, more lucrative markets -- such as California, Florida and Chicago -- have attracted Ryland's interest. As a result, Ryland's activity in the region has been declining, from 552 houses in 1997 to 438 in 1998. Ryland was the Washington area's 12th-largest builder in 1998.

During 1998 Ryland acquired Regency Communities of Tampa, a strong housing market, and eliminated its holdings in three weaker markets: Portland, Ore., Salt Lake City and the Delaware Valley of eastern Pennsylvania. It also combined several divisions to increase operating efficiencies.

The acquisitions, divestitures and efficiency measures have had a combined impact on the company's gross profit margin, which was 15.9 percent in 1998, up from 13.5 percent in 1997. Increased sales at newer communities and more cost-effective building techniques also improved the company's performance.

21

NVR Inc.

7601 Lewinsville Rd., Suite 300

McLean, Va. 22102

703-761-2000

No Web site

FOUNDED: 1987

FISCAL YEAR: Dec. 31

REVENUE: $1.56 billion

PROFIT: $56.7 million

EARNINGS PER SHARE: $4.26

DIVIDEND: None

STOCKHOLDERS' EQUITY: $165.7 million

RETURN ON EQUITY: 39 percent

STOCK: NVR (Amex)

ASSETS: $724.4 million

MARKET CAPITALIZATION: $484.2 million

52-WEEK HIGH: $50.25 (12/30/98)

52-WEEK LOW: $23.25 (10/13/98)

CHAIRMAN: Dwight C. Schar (CEO)

EMPLOYEES: 3,070

LOCAL EMPLOYEES: 450

DESCRIPTION: NVR is the holding company for Ryan Homes and NV Homes, which build detached houses and town houses in 16 cities in 10 states along the Atlantic seaboard from New York to South Carolina and west to Ohio. NVR Mortgage Co., with loan offices nationwide, is a subsidiary of NVR.

DEVELOPMENTS: Despite bristling competition, NVR remains the leading home builder in the Washington area. It sold 3,354 houses here last year, giving NVR a 14.5 percent share of the market and more than three times the share held by its nearest competitor. The firm saw a 25 percent jump in sales in 1998 given the combination of continued low mortgage rates, strong buyer demand and efficient production.

With an increased appetite for new houses, NVR's year-end backlog of 4,573 homes (worth $958 million) -- houses ordered but not settled -- increased by 43 percent from 3,195 homes at the end of 1997. And its gross profit margins grew to 15.3 percent in 1998, from 13.7 percent.

22

Harman International Industries Inc.

1101 Pennsylvania Ave. NW

Washington, D.C. 20004

202-393-1101

http://www.harman.com

FOUNDED: 1980

FISCAL YEAR: June 30

REVENUE: $1.51 billion

PROFIT: $50.2 million

EARNINGS PER SHARE: $2.67

DIVIDEND: 20 cents

STOCKHOLDERS' EQUITY: $511.9 million

RETURN ON EQUITY: 11 percent

STOCK: HAR (NYSE)

ASSETS: $1.13 billion

MARKET CAPITALIZATION: $690.4 million

52-WEEK HIGH: $46.43 3/4 (5/14/98)

52-WEEK LOW: $31.50 (10/16/98)

CHAIRMAN: Sidney Harman

PRESIDENT: Bernard A. Girod (CEO)

EMPLOYEES: 10,010

LOCAL EMPLOYEES: 12

DESCRIPTION: Harman International produces high-end audio products for homes, cars, concert halls and recording studios under labels that include JBL, Infinity and Harman Kardon. It makes substantial amounts of consumer electronics components at its Northridge, Calif., plant. It also has major plants in Britain, Germany and Austria.

DEVELOPMENTS: Harman continues to experience pain as it remakes itself from a consumer electronics company into one that increasingly focuses on providing sound and recording equipment for professionals and high-end sound systems and other electronic equipment for automakers here and abroad.

Hobbled by continuing weakness in Asian consumer markets and its own inefficient marketing strategies, Harman cut more than 600 jobs, closed facilities in El Paso, Tex.; Sunnyvale, Calif.; and Nagoya, Japan, and slashed the number of products in its JBL line by about two-thirds. The company took a $66.4 million pretax charge to reflect plant closings, inventory write-downs and other costs, which helped create a loss of $22.1 million in the last six months of 1998, compared with a profit of $20.9 million for the same period in 1997.

Company officials said the worst of the restructuring of their consumer business is behind them, and analysts are bullish on prospects for Harman's other business, chiefly its original-equipment manufacturing work for carmakers such as DaimlerChrysler, Toyota, Audi, BMW, Porsche and others.

23

USEC Inc.

6903 Rockledge Dr.

Bethesda, Md. 20817

301-564-3200

http://www.usec.com

FOUNDED: 1998

FISCAL YEAR: June 30

REVENUE: $1.42 billion

PROFIT: $68.4 million

EARNINGS PER SHARE: 68 cents

DIVIDEND: $1.10

STOCKHOLDERS' EQUITY: $2.42 billion

RETURN ON EQUITY: NA

STOCK: USU (NYSE)

ASSETS: $3.47 billion

MARKET CAPITALIZATION: $1.37 billion

52-WEEK HIGH: $16.31 1/4 (9/11/98)

52-WEEK LOW: $12.81 1/4 (4/12/99)

CHAIRMAN: James R. Mellor

PRESIDENT: William H. Timbers Jr. (CEO)

EMPLOYEES: 5,000

LOCAL EMPLOYEES: 145

DESCRIPTION: USEC Inc. is the world's leading seller of uranium enrichment services to commercial nuclear power plants. Among its businesses is the megatons to megawatts program, which converts uranium from decommissioned Russian nuclear warheads into fuel sold to nuclear power plant customers, including Baltimore Gas and Electric Co. The company supplies about three-fourths of the domestic market and one-third of the world market for uranium enrichment services.

DEVELOPMENTS: USEC began as a federal corporation in 1993, created by Congress to take over the government's uranium enrichment activities and to prepare it for privatization. In July 1998, the company went public, with shares trading on the New York Stock Exchange. Since then, its stock has hovered near its initial public offering price of just over $14, while paying a 7.5 percent dividend.

The company has been working to reduce its costs by taking operating control of its two plants, which have so far been run under contract with Lockheed Martin Corp. of Bethesda. The company also began renegotiating its power contracts -- USEC is an enormous consumer of electricity -- and renegotiated its $500 million bank debt to gain better terms.

24

Host Marriott Services Corp.

6600 Rockledge Dr.

Bethesda, Md. 20817

301-380-7000

http://www.hmscorp.com

FOUNDED: 1995

FISCAL YEAR: Jan. 1

REVENUE: $1.38 billion

PROFIT: $24.1 million

EARNINGS PER SHARE: 68 cents

DIVIDEND: None

STOCKHOLDERS' EQUITY: ($72.6 million)

RETURN ON EQUITY: NA

STOCK: HMS (NYSE)

ASSETS: $567.0 million

MARKET CAPITALIZATION: $235.5 million

52-WEEK HIGH: $15.06 1/4 (5/6/98)

52-WEEK LOW: $6.37 1/2 (3/17/99)

CHAIRMAN: William J. Shaw

PRESIDENT: William W. McCarten (CEO)

EMPLOYEES: 24,000

LOCAL EMPLOYEES: 700

DESCRIPTION: Host Marriott Services is a provider of food, beverage and retail concessions at more than 200 airports, travel plazas, malls and sports and entertainment attractions.

DEVELOPMENTS: The company managed to turn a profit even though selling food and clothing in airports was more difficult in 1998. The pilots' strike against Northwest Airlines and the slowdown in the Asian economy hurt the company's bottom line. In addition, start-up costs associated with Host Marriott Services' entrance into the mall food-court business dampened year-end earnings.

Still, the year held some bright spots for the company. Host Marriott Services received contract extensions and new deals worth $90 million on airport contract concessions. The company also was awarded its first food and beverage contract in China.

Host Marriott Services entered the mall food-court business with five new contracts valued at $50 million. These include a 12-year agreement to manage nearly 27,000 square feet of food court space at the new MacArthur Center in Norfolk, as well as 1.3 million square feet of food court operations at the Jersey Gardens Value MegaMall in Elizabeth, N.J.

A stalwart line of business for the company -- roadside travel plazas -- also posted strong revenue as a result of moderate increases in menu prices and more travelers on the road because of lower gasoline prices.

25

ICF Kaiser International Inc.

9300 Lee Hwy.

Fairfax, Va. 22031

703-934-3000

http://www.icfkaiser.com

FOUNDED: 1914

FISCAL YEAR: Dec. 31

REVENUE: $1.21 billion

LOSS: $100.5 million

LOSS PER SHARE: $4.17

DIVIDEND: None

STOCKHOLDERS' EQUITY: ($63.1 million)

RETURN ON EQUITY: NA

STOCK: ICF (NYSE)

ASSETS: $419.9 million

MARKET CAPITALIZATION: $18.2 million

52-WEEK HIGH: $3.18 3/4 (5/11/98)

52-WEEK LOW: 50 cents (4/1/99)

CHAIRMAN: Tony Coelho

PRESIDENT: James J. Maiwurm (CEO)

EMPLOYEES: 5,000

LOCAL EMPLOYEES: 825

DESCRIPTION: ICF Kaiser provides engineering and construction management services for various industry sectors. The company specializes in infrastructure, which includes mass transit systems, highways and bridges, and basic industries engineering, which includes manufacturing facilities for the semiconductor industry.

DEVELOPMENTS: ICF Kaiser has had a tough year with changes in its top executive ranks, the loss of a major contract and the intended sale of its consulting group and its environment and facilities management group. When those sales are completed, the company will essentially be left with its basic engineering and construction businesses.

In the past year, ICF replaced its longtime chairman and chief executive, James O. Edwards; its president, Marc Tipermas; and its president of the engineering and construction group, David Watson. Earlier this month the company named James J. Maiwurm to be its third chief executive in five months. Maiwurm, a partner at the D.C. law firm of Squire, Sanders & Dempsey, has never run a corporation before but has advised ICF Kaiser for nine years. He replaces Keith M. Price, who remains on the board.

The financially troubled firm was forced to set aside $67 million in reserves because of cost overruns on contracts to build nitric acid plants. ICF also lost a job worth about $200 million to supervise construction and renovation of a Maine shipyard for General Dynamics Corp.

The company signed a letter of intent last month to sell its consulting practice -- which specializes in energy, the environment and information technology -- for $75 million. The practice will be sold to the group's management and to CM Equity Partners L.P.

The company also said it will sell its environment and facilities management group to IT Group, a Pittsburgh-based company, for $82 million.

26

Mid Atlantic Medical Services Inc.

4 Taft Ct.

Rockville, Md. 20850

301-762-8205

http://www.mamsi.com

FOUNDED: 1986

FISCAL YEAR: Dec. 31

REVENUE: $1.19 billion

PROFIT: $12.2 million

EARNINGS PER SHARE: 20 cents

DIVIDEND: None

STOCKHOLDERS' EQUITY: $191.2 million

RETURN ON EQUITY: 6 percent

STOCK: MME (NYSE)

ASSETS: $363.0 million

MARKET CAPITALIZATION: $399.5 million

52-WEEK HIGH: $14 (5/12/98)

52-WEEK LOW: $4.43 3/4 (10/8/98)

CHAIRMAN: Mark D. Groban

PRESIDENT: Thomas P. Barbera (CEO)

EMPLOYEES: 2,100

LOCAL EMPLOYEES: 1,800

DESCRIPTION: Mid Atlantic Medical Services is a managed-care company whose subsidiaries include the M.D.-Individual Practice Association and Optimum Choice health maintenance organizations and the Alliance preferred provider organization. MAMSI, as it is called, provides medical coverage for 1.8 million people, many in the Washington region.

DEVELOPMENTS: MAMSI spent much of the past year consumed with "the mother of all wars when it comes to boardroom struggles," as its interim chairman, Mark D. Groban, put it.

In October, the board split evenly on a vote of confidence in its longtime chairman and chief executive, George T. Jochum. After the vote, Jochum told executives he would resign, but soon changed his mind and fought to hold onto his job.

In December five board members sued to oust Jochum, accusing him of making bad business decisions, "dishonesty" in his dealings with the MAMSI board, "a pattern of personal misbehavior . . . involving female employees," "tyrannical behavior" toward subordinates and "manipulation of corporate compensation to reward his allies and punish those not obeisant to him."

A lawyer for Jochum said the allegations were "completely without merit."

Jochum resigned in January, averting a trial on the matter.

Groban, a psychiatrist, board member and MAMSI executive vice president who had sought Jochum's ouster, became interim chairman. Thomas P. Barbera, a former lawyer, vice chairman of the company and a Jochum protege, became acting chief executive.

Addressing investors in New York in February, Groban promised "a new direction -- the right direction." He said the company would strengthen the medical side of its management and improve relations with doctors, who "were really viewing MAMSI as a negative."

The company said it was searching for permanent leadership.

In other developments, MAMSI withdrew from Medicare, the federal program for the elderly and disabled.

27

MeriStar Hotels

& Resorts Inc.

1010 Wisconsin Ave. NW

Washington, D.C. 20007

202-965-4455

http://www.meristar.com

FOUNDED: 1988

FISCAL YEAR: Dec. 31

REVENUE: $1.08 billion

PROFIT: $3.3 million

EARNINGS PER SHARE: 13 cents

DIVIDEND: None

STOCKHOLDERS' EQUITY: $53.0 million

RETURN ON EQUITY: NA

STOCK: MMH (NYSE)

ASSETS: $250.0 million

MARKET CAPITALIZATION: $79.5 million

52-WEEK HIGH: $4 (8/4/98)

52-WEEK LOW: $1.81 1/4 (10/8/98)

CHAIRMAN: Paul W. Whetsell (CEO)

PRESIDENT: David E. McCaslin

EMPLOYEES: 30,000

LOCAL EMPLOYEES: 1,600

DESCRIPTION: MeriStar Hotels & Resorts leases or manages 216 hotels under the brand names Marriott, Westin, Sheraton, Doubletree, Radisson and Hilton.

DEVELOPMENTS: MeriStar Hotels & Resorts is the operating arm of MeriStar Hospitality, the "paper-clipped" real estate investment trust that emerged from the combination of CapStar Hotel Co. and American General Hospitality Corp. MeriStar controls 44,831 rooms, the majority of which are owned by its sister company. MeriStar Hotels is now the nation's fourth-largest independent hotel management company.

Toward the end of 1998, MeriStar added five management contracts and signed an additional five to manage properties under construction. Early this year Bass Group, which includes heirs to the Texas oil fortune, disclosed that it had acquired a 12.7 percent stake in the company.

28

American Management Systems Inc.

4050 Legato Rd.

Fairfax, Va. 22033

703-267-5000

http://www.amsinc.com

FOUNDED: 1970

FISCAL YEAR: Dec. 31

REVENUE: $1.06 billion

PROFIT: $51.8 million

EARNINGS PER SHARE: $1.21

DIVIDEND: None

STOCKHOLDERS' EQUITY: $282.9 million

RETURN ON EQUITY: 22 percent

STOCK: AMSY (Nasdaq)

ASSETS: $533.0 million

MARKET CAPITALIZATION: $1.20 billion

52-WEEK HIGH: $40.25 (12/31/98)

52-WEEK LOW: $19.25 (10/2/98)

CHAIRMAN: Paul A. Brands (CEO)

EMPLOYEES: 8,126

LOCAL EMPLOYEES: 3,684

DESCRIPTION: American Management Systems is an international business and technology consulting firm. Its clients include telecommunications companies, financial organizations, gas and electric utilities, health-care organizations, and government agencies.

DEVELOPMENTS: In February, AMS announced that its annual revenue had exceeded $1 billion for the first time. This was the latest milestone in a run of growth that has placed the company among the 20 largest consulting firms in the world. In the past four years, AMS has more than doubled its revenue, and it has increased its staff from 3,500 to 8,100.

Also in February, AMS said it would acquire privately held Budget Technologies Inc. of Bethesda in a cash deal, the terms of which were not disclosed.

In September, the company's No. 2 executive, Philip M. Guintini, resigned unexpectedly after 28 years with the company. Guintini has not yet been replaced. A few months later, AMS named a new chief financial officer, Ron Shillereff.

In July, Virginia awarded the company a $122.9 million, five-year contract to modernize the state's tax-collection operations.

29

Washington Gas Light Co.

1100 H St. NW

Washington, D.C. 20080

703-750-1000

http://www.washgas.com

FOUNDED: 1848

FISCAL YEAR: Sept. 30

REVENUE: $1.04 billion

PROFIT: $68.6 million

EARNINGS PER SHARE: $1.54

DIVIDEND: $1.20

STOCKHOLDERS' EQUITY: $636.2 million

RETURN ON EQUITY: 11 percent

STOCK: WGL (NYSE)

ASSETS: $1.68 billion

MARKET CAPITALIZATION: $1.04 billion

52-WEEK HIGH: $28.75 (10/19/98)

52-WEEK LOW: $21 (4/8/99)

CHAIRMAN: James H. DeGraffenreidt Jr. (CEO)

PRESIDENT: Joseph M. Schepis

EMPLOYEES: 2,169

LOCAL EMPLOYEES: 2,169

DESCRIPTION: Washington Gas Light distributes natural gas and consumer services to approximately 820,000 customers in a 6,648 square-mile territory that includes the Washington metropolitan area and stretches from West Virginia to the Chesapeake Bay. The company also has nearly 22,000 miles of gas lines.

DEVELOPMENTS: The company added nearly 21,000 customer meters during the year, a growth rate of 2.6 percent, compared with the national average over the past five years of 1.3 percent. Washington Gas Light won a contract to install individual gas heating systems in 46 buildings at the Patuxent River Air Station in Southern Maryland. Its pilot programs that allow customers to choose among natural gas suppliers were expanded from Maryland into the District and Virginia.

30

U.S.A. Floral Products Inc.

1025 Thomas Jefferson St. NW

Suite 300 East

Washington, D.C. 20007

202-333-0800

http://www.usafp.com

FOUNDED: 1997

FISCAL YEAR: Dec. 31

REVENUE: $999.8 million

PROFIT: $9.2 million

EARNINGS PER SHARE: 56 cents

DIVIDEND: None

STOCKHOLDERS' EQUITY: $187.1 million

RETURN ON EQUITY: 11 percent

STOCK: ROSI (Nasdaq)

ASSETS: $499.0 million

MARKET CAPITALIZATION: 107.6 million

52-WEEK HIGH: $23.62 1/2 (4/15/98)

52-WEEK LOW: $5 (10/1/98)

CHAIRMAN, PRESIDENT: Robert Poirier (CEO)

EMPLOYEES: 4,500

LOCAL EMPLOYEES: 30

DESCRIPTION: U.S.A. Floral was founded by industry veteran Robert J. Poirier with the financial support of Washington entrepreneur Jonathan J. Ledecky. U.S.A. Floral consolidates small companies into one larger chain so they can take advantage of their combined buying power and economic efficiencies. It is one of the nation's largest distributors of bouquets and floral products. U.S.A. Floral imports and distributes flowers to regional wholesalers, supermarkets and discount retailers including Wal-Mart Stores Inc., Safeway Inc. and Costco Cos.

DEVELOPMENTS: U.S.A. Floral, the country's only national flower company when it was founded in 1997, now has competition from Dole Food Co. of California, which entered the fray last year and began consolidating the supply side of the flower business. U.S.A. Floral countered by acquiring Florimex Worldwide, one of the largest flower importers and distributors, for $90 million in cash and assumed debt.

U.S.A. Floral licensed the right to sell flowers under the Sunkist brand name and is using that name in several regions of the country. Each bunch of Sunkist flowers carries a seven-day freshness guarantee.

31

Rouse Co.

10275 Little Patuxent Pkwy.

Columbia, Md. 21044

410-992-6000

http://www.therousecompany.com

FOUNDED: 1939

FISCAL YEAR: Dec. 31

REVENUE: $977.2 million

PROFIT: $104.9 million

EARNINGS PER SHARE: $1.34

DIVIDEND: $1.12

STOCKHOLDERS' EQUITY: $628.9 million

RETURN ON EQUITY: 23 percent

STOCK: RSE (NYSE)

ASSETS: $5.78 billion

MARKET CAPITALIZATION: $1.73 billion

52-WEEK HIGH: $32.25 (7/8/98)

52-WEEK LOW: $21.12 1/2 (4/12/99)

CHAIRMAN, PRESIDENT: Anthony W. Deering (CEO)

EMPLOYEES: 4,126

LOCAL EMPLOYEES: 700

DESCRIPTION: Rouse is a real estate investment trust that develops, owns and manages more than 300 commercial properties in 24 states. These facilities include 62 regional and community shopping centers, five mixed-use developments and 10 million square feet of office, research and industrial space, most of which is located in the Baltimore and Washington areas and near Las Vegas. The company is known for its development of such urban marketplaces as Faneuil Hall in Boston and Harborplace in Baltimore, as well as the large planned communities of Columbia in Howard County and Summerlin in Las Vegas.

DEVELOPMENTS: Rouse spent $1.6 billion to supplement its already-large portfolio of income-producing properties. These acquisitions included five regional shopping centers -- Towson Town Center near Baltimore, for one -- 57 office and industrial buildings and 107 acres of commercial land. It also sold 10 smaller shopping centers; two hotels; office buildings and land in Los Angeles; and two industrial buildings.

Rouse's retail division has developed multimedia kiosks that let shoppers access the Internet and get information about community activities, new products and special offers at its malls across the country. The first kiosks were installed in 11 locations, including the Mall in Columbia, and White Marsh and Owings Mills near Baltimore.

Funds from operations, an accepted measure of earnings for real estate firms, totaled $204.8 million ($2.69 a share) in 1998, up from $181.4 million ($2.47) in 1997. The increase reflects growth among its major segments: retail; office, mixed-use and other properties; and community developments. Higher rents and occupancy levels as well as strong land sales fueled the growth in these divisions.

32

Snyder

Communications Inc.

6903 Rockledge Dr.

Bethesda, Md. 20817

301-468-1010

http://www.snyder.com

FOUNDED: 1988

FISCAL YEAR: Dec. 31

REVENUE: $815.0 million

PROFIT: $73.0 million

EARNINGS PER SHARE: $1.02

DIVIDEND: None

STOCKHOLDERS' EQUITY: $357.0 million

RETURN ON EQUITY: 62 percent

STOCK: SNC (NYSE)

ASSETS: $696.0 million

MARKET CAPITALIZATION: $2.01 billion

52-WEEK HIGH: $54.18 3/4 (4/20/98)

52-WEEK LOW: $24.37 1/2 (3/26/99)

CHAIRMAN: Daniel M. Snyder (CEO)

PRESIDENT: Michele D. Snyder

EMPLOYEES: 9,400

LOCAL EMPLOYEES: 850

DESCRIPTION: Snyder Communications prepares and carries out marketing and advertising campaigns aimed at targeted audiences. Its businesses include sales campaigns for pharmaceutical products; telemarketing directed at minority groups and other special audiences; product sampling; market research; and advertising services. Its clients include International Business Machines Corp., McDonald's Corp., GTE Corp. and Procter & Gamble Co.

DEVELOPMENTS: Snyder Communications' rapid growth in this country and Europe had begun to attract industry attention last year. But it was founder Daniel M. Snyder's $200 million bid to become one of the new owners of the Washington Redskins football team that pushed him and his company onto center stage. Snyder's entry into the bidding for the Redskins illuminated the details of his against-the-odds emergence from a business failure at age 24 to the head of a New York Stock Exchange-listed company a decade later.

The offer for the Redskins by Snyder and New York investors Howard and Edward Milstein was withdrawn earlier this month when rejection by National Football League owners, after a lengthy review, seemed apparent. Snyder and a group of investors, including media and real estate mogul Mortimer Zuckerman and Zuckerman associate Fred Drasner, have mounted a bid to buy the team for approximately $800 million. Snyder's Redskins bid was financed by assets and borrowings not linked to his Snyder Communications holdings, he said.

Since the company's initial public offering in 1996, Snyder has acquired more than a dozen companies, most of them closely held firms providing specialized advertising or marketing services. The company's health products unit provides sales teams to major drug companies seeking to outsource new product distributions. With its acquisition of the Response Marketing Group in October, Snyder expanded its inventory of consumer and small business databases used in clients' marketing campaigns.

To finance its acquisitions, Snyder has doubled the number of its shares outstanding since its IPO. That has put downward pressure on its stock price, which has fallen from a high of more than $54 a share a year ago to $28.87 1/2 on Friday. The challenge now facing Snyder and his sister Michele, the company's president, is to tie the disparate pieces of the company together, analysts say. That process began earlier this month when the company announced that it had combined a variety of direct-marketing-services businesses into one group aimed at Snyder's Fortune 500 companies.

33

Building One Services Corp.

800 Connecticut Ave. NW, Suite 1111

Washington, D.C. 20006

202-261-6000

http://www.building1.com

FOUNDED: 1997

FISCAL YEAR: Dec. 31

REVENUE: $809.6 million

PROFIT: $47.5 million

EARNINGS PER SHARE: $1.16

DIVIDEND: None

STOCKHOLDERS' EQUITY: $837.5 million

RETURN ON EQUITY: 9 percent

STOCK: BOSS (Nasdaq)

ASSETS: $1.04 billion

MARKET CAPITALIZATION: $851.9 million

52-WEEK HIGH: $25.93 3/4 (4/17/98)

52-WEEK LOW: $7.87 1/2 (10/7/98)

CHAIRMAN: Jonathan J. Ledecky

PRESIDENT: Joseph Ivey (CEO)

EMPLOYEES: 14,400

LOCAL EMPLOYEES: 100

DESCRIPTION: Building One Services, formerly Consolidation Capital Corp., provides a range of facilities services and maintenance management. This includes electrical, mechanical, janitorial and other services for commercial buildings, industrial companies and large retail chains throughout the country.

DEVELOPMENTS: The brainchild of Washington entrepreneur Jonathan J. Ledecky, Building One is less than two years old and has acquired 34 companies expected to generate $1.5 billion in revenue over the next year. They include large electrical, plumbing, janitorial and maintenance management companies.

Early this month, the company offered to buy back most of the stock owned by public shareholders for $22.50 a share. Apollo Management L.P., a New York buyout firm, agreed to put up $100 million to help finance the transaction. Building One said it plans to sell $200 million in junk bonds and borrow another $350 million to pay for the remainder of the stock.

The firm combined its mechanical and electrical groups into one entity that will be headed by Bill Love, former president of the electrical group. Joseph Ivey, formerly the president of the mechanical group, is now the president and chief executive of Building One.

The company has agreements to provide electrical services and a 24-hour emergency hot line to retailers including Wal-Mart, Kmart, Sam's Club and Marshall's. Building One Service Solutions, the janitorial group, is the largest company in the country providing janitorial services to retailers.

34

Fairchild Corp.

45025 Aviation Dr.

Dulles, Va. 20166

703-478-5800

http://www.fairchildcorp.com

FOUNDED: 1920

FISCAL YEAR: June 30

REVENUE: $747.7 million

PROFIT: $101.1 million

EARNINGS PER SHARE: $5.14

DIVIDEND: None

STOCKHOLDERS' EQUITY: $473.6 million

RETURN ON EQUITY: 43 percent

STOCK: FA (NYSE)

ASSETS: $1.16 billion

MARKET CAPITALIZATION: $232.1 million

52-WEEK HIGH: $23.87 1/2 (7/7/98)

52-WEEK LOW: $10 (3/31/99)

CHAIRMAN: Jeffrey J. Steiner (CEO)

PRESIDENT: Eric I. Steiner

EMPLOYEES: 3,600

LOCAL EMPLOYEES: 100

DESCRIPTION: Fairchild is a global manufacturer and distributor of aerospace fasteners. It also owns commercial real estate and an equity stake in a Turkish aluminum can company. Earlier this month, Fairchild bought the 15 percent stake in Banner Aerospace that it did not already own.

DEVELOPMENTS: In February, Fairchild announced it had bought 77.3 percent of SNEP SA, a French maker of precision aerospace nuts and fasteners. The move is part of Fairchild's attempt to develop an international presence in sales of specialty fasteners to airlines. In January, Fairchild said it had reached agreement with Banner to merge on a stock-for-stock basis the remaining 15 percent of Banner still in public ownership. Both moves are part of Fairchild's plan to focus primarily on the aerospace parts market; it has discontinued making equipment for the manufacture of semiconductors.

35

Orbital Sciences Corp.

21700 Atlantic Blvd.

Dulles, Va. 20166

703-406-5000

http://www.orbital.com

FOUNDED: 1982

FISCAL YEAR: Dec. 31

REVENUE: $734.0 million

LOSS: $6.4 million

LOSS PER SHARE: 18 cents

DIVIDEND: None

STOCKHOLDERS' EQUITY: $511.0 million

RETURN ON EQUITY: NA

STOCK: ORB (NYSE)

ASSETS: $973.0 million

MARKET CAPITALIZATION: $1.01 billion

52-WEEK HIGH: $50 (4/22/98)

52-WEEK LOW: $17.37 1/2 (9/1/98)

CHAIRMAN, PRESIDENT: David W. Thompson (CEO)

EMPLOYEES: 4,500

LOCAL EMPLOYEES: 2,237

DESCRIPTION: Orbital primarily is known for the design and manufacturing of satellites and launch vehicles. It also offers satellite ground systems and software; transportation management systems, which use satellite-based global positioning; and other space-related products and services.

DEVELOPMENTS: Orbital increased its orders last year, bringing its total backlog of business to $4 billion. In November, Orbital's data messaging services subsidiary, Orbcomm Global L.P., completed its network of low-flying satellites and began offering its services commercially. It has more than 45,000 subscribers. The company lost $6.4 million for the year, compared with earnings of $23 million in 1997, because of accounting adjustments that changed the way the company recognizes contract revenue from three of its subsidiaries. The announcement of the adjustments and the lower-than-anticipated earnings launched the company's stock on a bumpy ride and have spawned a number of shareholder lawsuits.

Orbital anticipates it will add several new office buildings and a manufacturing facility to its Loudoun County headquarters over the next several years.

36

Fortress Group Inc.

1650 Tysons Blvd., Suite 600

McLean, Va. 22102

703-442-4545

No Web site

FOUNDED: 1995

FISCAL YEAR: Dec. 31

REVENUE: $692.6 million

PROFIT: $12.8 million

EARNINGS PER SHARE: 42 cents

DIVIDEND: None

STOCKHOLDERS' EQUITY: $91.2 million

RETURN ON EQUITY: 20 percent

STOCK: FRTG (Nasdaq)

ASSETS: $449.9 million

MARKET CAPITALIZATION: $22.3 million

52-WEEK HIGH: $7 (8/18/98)

52-WEEK LOW: $1.25 (10/8/98)

CHAIRMAN: J. Marshall Coleman

PRESIDENT: George C. Yeonas (CEO)

EMPLOYEES: 1,190

LOCAL EMPLOYEES: 40

DESCRIPTION: Fortress Group was founded as a holding company to buy regional home-building firms and consolidate them as a single national entity, providing the builders with greater and cheaper financing plus marketing clout with suppliers. Even as Fortress does this from its McLean office, each of the regional companies retains its local name, management, character and expertise.

DEVELOPMENTS: A publicly financed buying binge helped the firm grow from an initial four builders to 12 in 1998. The company added three builders, including Westbrook Homes in Loudoun County. Fortress has builders in 13 states and operates a mortgage division, based in McLean.

Last year Fortress Group affiliates sold 4,016 houses, a 45 percent increase over the 2,762 houses sold in 1997. Its year-end backlog of houses -- ordered but not delivered -- was 1,606 units, with a value of $308.8 million, compared with 1,056 homes worth $198.2 million in 1997. Although several affiliates saw improved margins, the company's overall gross profit margin was flat compared with 1997.

This year, the company says it will slow its acquisition plans. Instead, it will focus on improving margins by reducing overhead costs, increasing the number of national buying programs and improving operational efficiencies. It also hopes to increase the number of mortgages it provides.

37

Comsat Corp.

6560 Rock Spring Dr.

Bethesda, Md. 20817

301-214-3000

http://www.comsat.com

FOUNDED: 1963

FISCAL YEAR: Dec. 31

REVENUE: $616.5 million

PROFIT: $26.4 million

EARNINGS PER SHARE: 50 cents

DIVIDEND: 20 cents

STOCKHOLDERS' EQUITY: $659.0 million

RETURN ON EQUITY: 5 percent

STOCK: CQ (NYSE)

ASSETS: $1.79 billion

MARKET CAPITALIZATION: $1.63 billion

52-WEEK HIGH: $42.75 (4/24/98)

52-WEEK LOW: $21.75 (8/31/98)

CHAIRMAN: Edwin I. Colodny

PRESIDENT: Betty C. Alewine (CEO)

EMPLOYEES: 1,730

LOCAL EMPLOYEES: 850

DESCRIPTION: Comsat provides satellite communications to and from the United States and sells information-networking services and products. It is the largest owner and user of the global Intelsat and Inmarsat satellite systems, which carry voice, data and video signals for Comsat customers, most of them other telecommunications companies. Its digital networking business provides computer and communications systems abroad. Comsat Laboratories designs satellite systems and provides consulting services.

DEVELOPMENTS: In September, Comsat announced it had reached a deal to be purchased by its Bethesda neighbor Lockheed Martin Corp. for $2.7 billion. But completing the acquisition will require an act of Congress: The 1963 law that established Comsat sets a maximum stake of 50 percent that a single outside investor can hold, and only if that company is designated a telecommunications provider. Lockheed Martin has applied to the Federal Communications Commission for such a designation but is pressing for congressional action to allow it to own all of Comsat.

In 1998 Comsat rebounded somewhat from the losses it reported after selling off peripheral lines of business in 1997. It also was aided by regulatory freedoms it won early in 1998 that allow it to combine service offerings and change its prices more flexibly.

In February of this year, Comsat won more regulatory freedoms in so-called thin-route markets where it has few competitors, such as communications channels to countries in West Africa. In return, Comsat agreed to cap or lower prices on services along these routes, which bring in about $19 million in revenue for the company annually.

Lockheed Martin plans to make Comsat the centerpiece of a new division focusing on global communications for high-volume business customers. Comsat shareholders are scheduled to vote on the merger June 18.

38

CarrAmerica Realty Corp.

1850 K St. NW, Suite 500

Washington, D.C. 20006

202-729-7500

http://www.carramerica.com

FOUNDED: 1962

FISCAL YEAR: Dec. 31

REVENUE: $614.0 million

PROFIT: $126.0 million

EARNINGS PER SHARE: $1.32

DIVIDEND: $1.85

STOCKHOLDERS' EQUITY: $1.81 billion

RETURN ON EQUITY: 8 percent

STOCK: CRE (NYSE)

ASSETS: $3.79 billion

MARKET CAPITALIZATION: $1.82 billion

52-WEEK HIGH: $30.12 1/2 (4/15/98)

52-WEEK LOW: $19 (10/8/98)

CHAIRMAN: Oliver T. Carr Jr.

PRESIDENT: Thomas A. Carr (CEO)

EMPLOYEES: 1,844

LOCAL EMPLOYEES: 508

DESCRIPTION: CarrAmerica Realty is a real estate investment trust that develops and owns office properties across the country. Its OmniOffices subsidiary runs shared-office executive suites in the United States and Europe. Although CarrAmerica's roots are in the District, where it remains the largest private office landlord, most of its portfolio consists of suburban office buildings. The company and its affiliates own about 280 buildings in 15 markets, with more than 45 more buildings under construction.

DEVELOPMENTS: Like many other companies in its industry, CarrAmerica in 1998 faced a paradox: While real estate market fundamentals were the strongest in a decade, real estate companies were out of favor on Wall Street.

In the spring, REIT stock prices plunged and the market for secondary stock offerings dried up. Without that ready source of capital, CarrAmerica and other REITs halted the buying binge of previous years and instead concentrated on operating the buildings they owned and on building new ones.

During the year, the company spent $893.2 million on acquisitions, mostly in the first half, including $226.5 million to acquire and develop executive-suite properties. It sold $180 million in property, for a gain of $38.2 million, much of which has been reinvested in buildings being developed. The building sales continue: In January, CarrAmerica sold four buildings for $130 million, including Ballston Plaza III in Northern Virginia.

Nationally, CarrAmerica in 1998 started construction on 3 million square feet of office space and placed 2 million square feet into service. In this region, the company began construction on a 12-story speculative office building at 1201 F St. NW. Chief executive Thomas Carr said the company does not plan to buy or build any more buildings "in the near future."

As with other REITs, investors and analysts typically evaluate CarrAmerica's financial results not by net income but by funds from operations, a measure that takes into account such real estate-related items as depreciation and amortization. In 1998 funds from operations rose to $2.63 a diluted share, up 13 percent from $2.32 in 1997.

39

Government Technology Services Inc.

3901 Stonecroft Blvd.

Chantilly, Va. 20151

703-502-2000

http://www.gtsi.com

FOUNDED: 1983

FISCAL YEAR: Dec. 31

REVENUE: $605.9 million

PROFIT: $2.3 million

EARNINGS PER SHARE: 26 cents

DIVIDEND: None

STOCKHOLDERS' EQUITY: $55.3 million

RETURN ON EQUITY: 6 percent

STOCK: GTSI (Nasdaq)

ASSETS: $161.8 million

MARKET CAPITALIZATION: $28.8 million

52-WEEK HIGH: $5.50 (11/16/98)

52-WEEK LOW: $2.50 (10/14/98)

CHAIRMAN, PRESIDENT: M. Dendy Young (CEO)

EMPLOYEES: 500

LOCAL EMPLOYEES: 450

DESCRIPTION: Government Technology Services is the biggest reseller of computer products to the federal government. It offers computing goods from about 2,000 manufacturers to government agencies and departments. GTSI also provides computer systems services, including installing and configuring equipment and establishing local area networks.

DEVELOPMENTS: GTSI reported an annual profit for the first time in four years, an accomplishment that chief executive M. Dendy Young attributed to tightened control of operating costs and the company's purchase of BTG Inc.'s computer product division. GTSI earned $2.3 million in 1998 compared with a loss of $5.1 million in the previous year.

In November, GTSI moved its headquarters from Lafayette Drive in Chantilly to a newly built facility nearby, on Stonecroft Road.

Last July, GTSI announced that investor Linwood A. Lacy acquired an 11.2 percent stake in the company. Lacy purchased 1.1 million shares of restricted stock from BTG, which acquired the shares through the sale of its division to GTSI last February.

Through this and other sales, BTG's ownership interest in GTSI has been reduced to 13.3 percent, compared with a 30 percent stake when the division sale was completed. Also in February, BTG chief executive Ed Bersoff resigned from GTSI's board of directors.

40

BTG Inc.

3877 Fairfax Ridge Rd.

Fairfax, Va. 22030

703-383-8000

http://www.btg.com

FOUNDED: 1982

FISCAL YEAR: March 31, 1998

REVENUE: $588.9 million

LOSS: $35.2 million

LOSS PER SHARE: $4.12

DIVIDEND: None

STOCKHOLDERS' EQUITY: $33.1 million

RETURN ON EQUITY: NA

STOCK: BTGI (Nasdaq)

ASSETS: $212.4 million

MARKET CAPITALIZATION: $49.0 million

52-WEEK HIGH: $10.62 1/2 (5/7/98)

52-WEEK LOW: $4.12 1/2 (10/8/98)

CHAIRMAN, PRESIDENT: Edward H. Bersoff (CEO)

EMPLOYEES: 1,350

LOCAL EMPLOYEES: 605

DESCRIPTION: BTG is an information systems and technical services company that provides an array of computing technologies to government and commercial clients. The company specializes in intelligence systems, "knowledge management" and network security.

DEVELOPMENTS: BTG enjoyed a year of relative calm after a run of losses and management turmoil in 1997. After losing almost $3 million in the last nine months of 1997, BTG returned to profitability with three consecutive quarters in the black over the same period in 1998.

In January, BTG acquired a Fairfax neighbor, technology service contractor Stac Inc., for $5.1 million in cash. In December, the company named longtime BDM International Inc. executive Todd Stottlemyer to be its chief financial officer; Stottlemyer replaced Jack Hughes, who had resigned a few months earlier.

In November, BTG was one of four prime contractors selected to provide $353 million in engineering support systems to the Air Force.

BTG said that in July it would sell in a private placement 1.1 million of the 3 million shares of common stock it held in Government Technology Services Inc. of Chantilly. The stock was part of payments valued at $23 million that BTG received from the sale of its computer sales division to GTSI in February. BTG said it would use the $5 million in proceeds from the stock sale to reduce its debt.

Also, in February, BTG chief executive Ed Bersoff resigned from GTSI's board of directors. Earlier this month, BTG named former BDM International Inc. executive Paul Leslie to the newly created position of chief operating officer.

41

Metrocall Inc.

6677 Richmond Hwy.

Alexandria, Va. 22306

703-660-6677

http://www.metrocall.com

FOUNDED: 1965

FISCAL YEAR: Dec. 31

REVENUE: $467.7 million

LOSS: $137.9 million

LOSS PER SHARE: $3.36

DIVIDEND: None

STOCKHOLDERS' EQUITY: $45.6 million

RETURN ON EQUITY: NA

STOCK: MCLL (Nasdaq)

ASSETS: $1.26 billion

MARKET CAPITALIZATION: $140.8 million

52-WEEK HIGH: $7.62 1/2 (4/30/98)

52-WEEK LOW: $2.68 3/4 (10/8/98)

CHAIRMAN: Richard M. Johnston

PRESIDENT: William L. Collins III (CEO)

EMPLOYEES: 3,743

LOCAL EMPLOYEES: 573

DESCRIPTION: Metrocall is the nation's second-largest paging and wireless messaging company.

DEVELOPMENTS: Metrocall completed the final phase of an aggressive acquisition strategy last year with the purchase of AT&T Corp.'s electronic messaging unit for $205 million in stock and cash in June. That deal added 1.2 million subscribers, giving Metrocall a total subscriber base of 5.7 million by year's end.

The company also struck a series of marketing alliances. It began selling pagers in AT&T Wireless's retail stores, under a five-year deal. It formed a partnership with America Online Inc. to market pagers on the consumer-oriented computer service.

Another five-year alliance, with rival PageMart Inc., allows Metrocall to market PageMart's two-way paging services, in which pagers can send messages as well as receive them. That deal is designed to help Metrocall ease into the two-way business. For the long run, Metrocall chose Motorola Inc. and Glenayre Technologies Inc. to build its own two-way messaging network, initially in the Washington/Baltimore and Seattle regions.

42

Genicom Corp.

14800 Conference Center Dr.

Chantilly, Va. 20151

703-802-9200

http://www.genicom.com

FOUNDED: 1983

FISCAL YEAR: Jan. 3

REVENUE: $452.5 million

LOSS: $22.1 million

LOSS PER SHARE: $1.91

DIVIDEND: None

STOCKHOLDERS' EQUITY: $24.6 million

RETURN ON EQUITY: NA

STOCK: GECM (Nasdaq)

ASSETS: $230.0 million

MARKET CAPITALIZATION: $20.3 million

52-WEEK HIGH: $12.75 (4/22/98)

52-WEEK LOW: $1.09 3/8 (4/7/99)

CHAIRMAN: Don E. Ackerman

PRESIDENT: Paul T. Winn (CEO)

EMPLOYEES: 1,500

LOCAL EMPLOYEES: 100

DESCRIPTION: Genicom designs and markets a range of computer printers for corporations. It also repairs office equipment and supplies ticket and bag tag printers for airlines, travel agencies and rail and cruise lines.

DEVELOPMENTS: Genicom says it was fourth overall last year in U.S. shipments in the mid-range printer market, but first in production of 400-plus-characters-per-second matrix printers and in shipments of mid-range impact printers.

Among its new ventures was a January deal under which it will collaborate with Compaq Computer Corp. to produce two Compaq-branded laser printers and print management software. Late last year, Genicom announced it would create a 32-page-per-minute laser printer.

Genicom also opened a 320,000-square-foot rapid repair center in Louisville at which the firm will repair computer monitors, printers and laptops.

43

Primus Telecommunications Group Inc.

1700 Old Meadow Rd.

McLean, Va. 22102

703-902-2800

http://www.primustel.com

FOUNDED: 1994

FISCAL YEAR: Dec. 31

REVENUE: $421.6 million

LOSS: $63.6 million

LOSS PER SHARE: $2.61

DIVIDEND: None

STOCKHOLDERS' EQUITY: $114.9 million

RETURN ON EQUITY: NA

STOCK: PRTL (Nasdaq)

ASSETS: $674.0 million

MARKET CAPITALIZATION: $443.7 million

52-WEEK HIGH: $30.25 (4/21/98)

52-WEEK LOW: $5.25 (10/8/98)

CHAIRMAN, PRESIDENT: K. Paul Singh (CEO)

EMPLOYEES: 900

LOCAL EMPLOYEES: 200

DESCRIPTION: Primus provides domestic and international long-distance voice, data, Internet, private network and other telecommunications services using its own switching facilities. The company's clients number 450,000 and include corporations, small and medium-size businesses and residential customers. Primus serves North America, Latin America, Europe and the Pacific Rim.

DEVELOPMENTS: In 1998, the number of Primus customers more than doubled and revenue jumped by about 50 percent, but the company's losses widened as it continued to spend heavily to establish more of its own infrastructure. At year end, founder K. Paul Singh proclaimed that Primus had met its performance targets.

Nearly half of the company's business was in the wholesale market, reselling long-distance service, which in the United States is extremely competitive. But analysts expect the company to expand its own network and its retail penetration in Europe and Australia.

Much of the company's revenue comes from Australia, where last year it added Internet access for customers. But revenue growth there is slower than elsewhere and the decline in the value of the Australian dollar hurt results.

In January, Primus sold $200 million of high-yield notes to institutional buyers, giving it money to fund the installation of 11 additional switches in Europe, one in the United States and another in Japan, as well as the acquisition of additional capacity on fiber-optic cable systems. This will help accommodate more traffic, cut costs and improve service.

Analysts consider this company a good takeover target, if it performs well. Singh has twice before started and sold communications firms. Like many small firms in this industry, its stock price fluctuated wildly, reaching a peak of $30.25 last April and bottoming out at $5.25 in October. Shares ended trading Friday at $15.50.

44

PHP Healthcare Corp.

11440 Commerce Park Dr.

Reston, Va. 20191

703-758-3600

No Web site

FOUNDED: 1975

FISCAL YEAR: April 30

REVENUE: $400.1 million

LOSS: $44.8 million

LOSS PER SHARE: $3.30

DIVIDEND: None

STOCKHOLDERS' EQUITY: $52.3 million

RETURN ON EQUITY: NA

STOCK: PHPC (Nasdaq)

ASSETS: $253.6 million

MARKET CAPITALIZATION: $580,000

52-WEEK HIGH: $17.93 3/4 (4/20/98)

52-WEEK LOW: 1 cent (11/25/98)

CHAIRMAN: Charles P. Reilly

PRESIDENT: Kenneth H. Weixel (acting president and CEO)

EMPLOYEES: 2,400

LOCAL EMPLOYEES: NA

DESCRIPTION: PHP Healthcare is the parent company of D.C. Chartered Health Plan, the District's largest Medicaid HMO. It manages health-care centers for governments and businesses.

DEVELOPMENTS: PHP filed for bankruptcy protection in November after its most ambitious venture, a deal to provide medical care to about 200,000 members of a New Jersey HMO, collapsed amid bitter recriminations.

In 1997, PHP entered a 20-year deal to provide medical services for members of HIP Health Plan of New Jersey, and it paid HIP $72.6 million for its 18 health centers. Under the deal, PHP was to treat HMO members at those centers and pay their doctors and hospital bills. In return, the HMO promised PHP a cut of its premiums -- initially, 91.5 cents of every dollar.

In November, HIP said it was terminating the deal because PHP owed doctors and hospitals at least $30 million in unpaid claims. PHP blamed the HMO, saying HIP owed it about $23 million. New Jersey regulators took control of the HMO.

In its bankruptcy filing, PHP listed assets of $252.4 million and liabilities of $279.1 million.

PHP chief executive Jack M. Mazur was "terminated for cause," though he "reserved any rights he may have to contest" his dismissal, the company said in a news release.

In December, Ambulatory Healthcare of Manassas said it had tentatively agreed to merge with PHP, but last month it withdrew the offer.

45

Life Technologies Inc.

9800 Medical Center Dr.

Rockville, Md. 20850

301-610-8000

http://www.lifetech.com

FOUNDED: 1983

FISCAL YEAR: Dec. 31

REVENUE: $364.2 million

PROFIT: $31.3 million

EARNINGS PER SHARE: $1.29

DIVIDEND: 20 cents

STOCKHOLDERS' EQUITY: $276.1 million

RETURN ON EQUITY: 15 percent

STOCK: LTEK (OTC)

ASSETS: $353.6 million

MARKET CAPITALIZATION: $876.2 million

52-WEEK HIGH: $40.75 (1/4/99)

52-WEEK LOW: $29.37 1/2 (10/8/98)

CHAIRMAN: K. Grahame Walker

PRESIDENT: J. Stark Thompson (CEO)

EMPLOYEES: 1,900

LOCAL EMPLOYEES: 700

DESCRIPTION: Life Technologies is a supplier to the burgeoning life-sciences industry. The company sells thousands of products that biologists in industry and academia use to manipulate genes and conduct other research. Like the entrepreneurs of yore who made their fortunes selling picks and dungarees to gold-rush miners, Life Technologies has found a way to prosper regardless of whether its customers are making money.

DEVELOPMENTS: The big news of the last year was a battle for control of Life Technologies that left the company in a sort of limbo as far as investors are concerned. Technically, Life Technologies is still a public company, but at this point nearly all the stock is controlled by two hostile camps located far from Washington.

At the beginning of the year, Dexter Corp. of Windsor Locks, Conn., owned a little more than half the stock in Life Technologies. The saga began in midsummer when Dexter offered to buy the rest of the shares at $37 apiece. Some minority shareholders thought this price too low, as did a committee of independent directors. When the Dexter-controlled board ignored these objections, two independent directors, protesting what they saw as Dexter's "heavy-handed" and "inappropriate" actions, resigned from the board.

Dexter's plans for a full acquisition were foiled when a competing group headed by Samuel Heyman, chief executive of International Specialty Products Inc. of Wayne, N.J., snapped up shares and demanded a higher price. Dexter was forced to raise its offer and revise the terms, but it still wound up with only 71 percent of the shares. Most of the rest are now controlled by the New Jersey group.

After the dust settled, Life Technologies was removed from the Nasdaq Stock Market, effective Feb. 1, in part for having too few stockholders. But there's still thin trading -- typically a few hundred shares a day -- in the stock.

The business fundamentals of Life Technologies improved last year, as revenue climbed 9 percent over 1997. However, expenses associated with the Dexter brouhaha undermined Life Technologies' earnings, which fell 4 percent.

46

MeriStar Hospitality Corp.

1010 Wisconsin Ave. NW

Washington, D.C. 20007

202-295-1000

http://www.meristar.com

FOUNDED: 1988

FISCAL YEAR: Dec. 31

REVENUE: $332.6 million

PROFIT: $96.2 million

EARNINGS PER SHARE: $1.40

DIVIDEND: $2.02

STOCKHOLDERS' EQUITY: $1.15 billion

RETURN ON EQUITY: 19 percent

STOCK: MHX (NYSE)

ASSETS: $3.0 billion

MARKET CAPITALIZATION: $1.14 billion

52-WEEK HIGH: $22.81 1/4 (4/16/99)

52-WEEK LOW: $12.25 (10/8/98)

CHAIRMAN: Paul W. Whetsell (CEO)

PRESIDENT: Bruce Wiles

EMPLOYEES: 20

LOCAL EMPLOYEES: 20

DESCRIPTION: MeriStar Hospitality Corp. didn't exist in its current form until August, after the merger of CapStar Hotel Co. and American General Hospitality Corp. The company owns 117 hotels with 29,337 rooms, mostly full-service properties with the brand names of Hilton, Sheraton, Marriott, Westin, Radisson and Doubletree.

DEVELOPMENTS: Soon after striking out on its own, MeriStar Hospitality closed on $1.25 billion in debt refinancing to provide working capital. Then, the company completed its first acquisitions: the 290-room Forrestal at Princeton Hotel & Conference Center in Princeton, N.J.

It recently began a $1.5 million refurbishment of the property. The company also completed the purchase of the South Seas Properties Co., the largest beachfront resort owner and operator on Florida's West Coast. The properties acquired include the 570-unit South Seas Plantation Resort on Captiva Island, and the 30-unit Song of the Sea, European-style bed and breakfast on Sanibel Island. MeriStar Hospitality plans $24 million in renovations.

As a real estate investment trust, MeriStar considers funds from operations the key measure of its performance. MeriStar reported $199.4 million in FFO ($3.57 cents per share) in 1998.

47

CACI International Inc.

1100 N. Glebe Rd.

Arlington, Va. 22201

703-841-7800

http://www.caci.com

FOUNDED: 1962

FISCAL YEAR: June 30

REVENUE: $326.0 million

PROFIT: $11.7 million

EARNINGS PER SHARE: $1.05

DIVIDEND: None

STOCKHOLDERS' EQUITY: $84.3 million

RETURN ON EQUITY: 15 percent

STOCK: CACI (Nasdaq)

ASSETS: $163.1 million

MARKET CAPITALIZATION: $179.6 million

52-WEEK HIGH: $22.25 (4/30/98)

52-WEEK LOW: $14.62 1/2 (10/8/98)

CHAIRMAN: J.P. London (CEO)

PRESIDENT: Ronald R. Ross

EMPLOYEES: 4,200

LOCAL EMPLOYEES: 2,000

DESCRIPTION: CACI International has specialized in developing and integrating computer systems and software for government agencies and companies for 37 years. Recently it also has been advising clients on fixes for the year 2000 computer bug. Clients include the Department of Defense, the Department of Justice and the National Retail Federation.

DEVELOPMENTS: In November, CACI completed its $42 million acquisition of QuesTech Inc., a Falls Church-based engineering and computer services company that develops information technology systems for defense and national security clients. Since then, CACI has received new business worth nearly $29 million from clients of QuesTech, which has been renamed CACI Technologies Inc.

CACI last summer also acquired the assets of Information Decision Systems of San Diego, which provides geo-demographic data to companies in the retail, restaurant and real estate industries. The purchase price was $2.6 million.

Among the new contracts CACI received during the year were an award of an undisclosed amount from the Department of Defense in March for database re-engineering; a $14.3 million contract from the U.S. Naval Surface Warfare Center in September for weapon-system documentation services; and a $43 million order from the Department of Justice last May to provide computer systems technology for the agency's automated debt-collection management program.

In another initiative, the company started a new division to handle electronic commerce and "data mining," the collection and interpretation of disparate data that now goes to waste.

48

Trak Auto Corp.

3300 75th Ave.

Landover, Md. 20785

301-226-1200

No Web site

FOUNDED: 1983

FISCAL YEAR: Jan. 31, 1998

REVENUE: $319.4 million

LOSS: $17.7 million

LOSS PER SHARE: $2.99

DIVIDEND: None

STOCKHOLDERS' EQUITY: $65.7 million

RETURN ON EQUITY: NA

STOCK: TRKA (Nasdaq)

ASSETS: $173.5 million

MARKET CAPITALIZATION: $51.3 million

52-WEEK HIGH: $12.50 (5/8/98)

52-WEEK LOW: $6.25 (9/16/98)

CHAIRMAN: Richard B. Stone (CEO)

PRESIDENT: R. Keith Green

EMPLOYEES: 2,500

LOCAL EMPLOYEES: 1,000

DESCRIPTION: Trak Auto operates a chain of 175 auto parts stores in the Washington, Richmond, Milwaukee and Chicago markets. Richfood Holdings Inc., a wholesale food distributor, purchased the company from the Dart Group Corp. in May 1998. It plans to sell Trak Auto later this year to privately held HalArt LLC.

DEVELOPMENTS: Richfood Holdings made no secret about it: It wanted Dart Group's shining star, Shoppers Food Warehouse, but did not want to keep Trak Auto and other Dart divisions.

In March, the food distributor announced plans to sell Trak Auto for $53.2 million to HalArt, run by Arthur M. Hawkins. Hawkins helped turn Exide Corp. of Bloomfield Hills, Mich., into the world's biggest maker of automobile batteries.

Like its sister company, Crown Books, Trak Auto has struggled to adapt to evolving consumer tastes. Busy customers no longer want to lift up the hoods of their cars, and even if they wanted to, the computerized engines built into their automobiles make it increasingly difficult to tinker.

The chain of auto parts stores is enduring another difficult year. Preliminary sales figures for the year ended Jan. 30 declined 31 percent, to $220.7 million, primarily because of the sale of 82 stores in the California market in late 1997, and the closings of 15 Pittsburgh-area stores in January 1998.

Sales at stores open at least a year -- an industry barometer -- declined 2.2 percent for the year.

49

Cort Business Services Corp.

4401 Fair Lakes Ct., Suite 300

Fairfax, Va. 22033

703-968-8500

http://www.cort1.com

FOUNDED: 1979

FISCAL YEAR: Dec. 31

REVENUE: $319.0 million

PROFIT: $23.4 million

EARNINGS PER SHARE: $1.73

DIVIDEND: None

STOCKHOLDERS' EQUITY: $175.7 million

RETURN ON EQUITY: 16 percent

STOCK: CBZ (NYSE)

ASSETS: $332.9 million

MARKET CAPITALIZATION: $308.5 million

52-WEEK HIGH: $44.43 3/4 (4/15/98)

52-WEEK LOW: $14.12 1/2 (10/20/98)

CHAIRMAN: Charles M. Egan

PRESIDENT: Paul N. Arnold (CEO)

EMPLOYEES: 2,700

LOCAL EMPLOYEES: 350

DESCRIPTION: Cort is the nation's largest office and residential furniture rental company. The company has 119 rental showrooms, 83 furniture clearance centers and 75 warehouses in 32 states and the District.

DEVELOPMENTS: Cort announced last month that the company would go private in a management-led buyout. A group including company executives and the New York private investment firm Bruckmann, Rosser, Sherrill & Co. will buy the company for $453 million. Cort said it was going private as a way to increase the company's value to shareholders. Cort stock had been battered in the last year, going from a high of $48 on April 1, 1998, to the $15 range before the deal to privatize the company at $26.50 a share was announced.

Cort continued its acquisition spree last year, snapping up four companies in the traditional rental furniture business and one in the trade show operation area. The company continued to strengthen its position in the New York-to-Washington corridor, in Cleveland and in smaller markets.

50

Crown Books Corp.

3300 75th Ave.

Landover, Md. 20785

301-226-1200

No Web site

FOUNDED: 1983

FISCAL YEAR: Jan. 31, 1998

REVENUE: $297.5 million

LOSS: $48.7 million

LOSS PER SHARE: $9.20

DIVIDEND: None

STOCKHOLDERS' EQUITY: $35.8 million

RETURN ON EQUITY: NA

STOCK: CRWNQ (Nasdaq)

ASSETS: $126.9 million

MARKET CAPITALIZATION: $2.2 million

52-WEEK HIGH: $13.50 (4/21/98)

52-WEEK LOW: 6 1/4 cents (10/12/98)

CHAIRMAN: Richard B. Stone (CEO)

PRESIDENT: Anna Currence

EMPLOYEES: 2,000

LOCAL EMPLOYEES: 600

DESCRIPTION: Crown Books is a discount bookstores chain with 92 stores, including about two dozen in the Washington area. The retailer, a former Dart Group Corp. division, is now largely owned by wholesale food distributor Richfood Holdings Inc.

DEVELOPMENTS: First ignored during its owners' family feud and then ravaged by book titans, Crown Books spent much of last year operating under bankruptcy protection.

The biggest question facing Crown Books is what Richfood, which bought Dart primarily to acquire Shoppers Food Warehouse, will do with the book chain. Richfood wants to sell Crown. But the food distributor recognizes that it will have a difficult time doing that. Richfood has sold Total Beverage and last month announced plans to sell Trak Auto.

Crown Books filed for bankruptcy reorganization in July and then announced plans to close 79 stores, including 14 in the Washington area.

In its third quarter, Crown Books significantly cut its losses. It reported a $6 million loss in the three-month period ended Oct. 31, compared with a loss of $25.6 million in the same quarter a year earlier.

For the first nine months of the fiscal year 1999, the retailer reported a $45 million loss, compared with a $32.5 million loss in the same period a year earlier. Sales dropped 20 percent, to $160.2 million from $199.2 million.

Last month Crown President Anna Currence said she would continue to fight for a plan to allow the chain to emerge from bankruptcy protection by giving ownership to its creditors. The creditors committee had rejected the plan.

51

Atlantic Coast Airlines Holdings Inc.

515 Shaw Rd.

Dulles, Va. 20166

703-925-6000

http://www.atlanticcoast.com

FOUNDED: 1989

FISCAL YEAR: Dec. 31

REVENUE: $290.0 million

PROFIT: $30.4 million

EARNINGS PER SHARE: $1.49

DIVIDEND: None

STOCKHOLDERS' EQUITY: $110.4 million

RETURN ON EQUITY: 87 percent

STOCK: ACAI (Nasdaq)

ASSETS: $227.6 million

MARKET CAPITALIZATION: $595.7 million

52-WEEK HIGH: $35.87 1/2 (1/14/99)

52-WEEK LOW: $11.75 (10/8/98)

CHAIRMAN: C. Edward Acker

PRESIDENT: Kerry B. Skeen (CEO)

EMPLOYEES: 2,500

LOCAL EMPLOYEES: 2,000

DESCRIPTION: Atlantic Coast Airlines, the Loudoun County-based carrier that flies under the United Express banner, has its hub at Washington Dulles International Airport, where it has more daily flights than any other airline. It serves 48 cities from Maine to Florida and as far west as the Dakotas. The company operates under a partnership agreement with United Airlines with a fleet of 16 regional jets and 60 turboprop aircraft.

DEVELOPMENTS: United Airlines signed a 10-year marketing agreement with Atlantic Coast, retaining the regional airline as an exclusive express carrier. The agreement, which expires in 2009, gives Atlantic Coast long-term stability.

Atlantic Coast received another boost when United announced earlier this year that it plans to make Dulles its major hub on the East Coast, initially doubling its flight operations from the airport. About 35 percent of Atlantic Coast's business is serving connecting United flights.

Atlantic Coast will be the sole occupant of the new regional terminal at Dulles that will open next month. The airline is discussing whether to add service out of Chicago, but it has no plans to establish a western hub.

The airline continued to expand its regional jet fleet, giving the company the ability to fly farther and faster carrying more passengers. The airline plans to increase its fleet of regional jets to 23 by the end of 1999 and to 43 by the end of 2001. The company also has an option to purchase 27 more planes. Atlantic Coast flew 2.5 million passengers in 1998, a 7.4 percent increase from the previous year.

52

Micros Systems Inc.

12000 Baltimore Ave.

Beltsville, Md. 20705

301-210-6000

http://www.micros.com

FOUNDED: 1977

FISCAL YEAR: June 30

REVENUE: $280.2 million

PROFIT: $19.6 million

EARNINGS PER SHARE: $1.18

DIVIDEND: None

STOCKHOLDERS' EQUITY: $91.7 million

RETURN ON EQUITY: 27 percent

STOCK: MCRS (Nasdaq)

ASSETS: $204.6 million

MARKET CAPITALIZATION: $510.0 million

52-WEEK HIGH: $39.50 (7/21/98)

52-WEEK LOW: UE1UE1STYL CALLUE1UE1UE1$$FOUNDED: 1948

FISCAL YEAR: Dec. 31

REVENUE: $271.1 million

LOSS: $11.0 million

LOSS PER SHARE: $1.54

DIVIDEND: None

STOCKHOLDERS' EQUITY: ($23.6 million)

RETURN ON EQUITY: NA

STOCK: WLDA (Nasdaq)

ASSETS: $116.4 million

MARKET CAPITALIZATION: $11.4 million

52-WEEK HIGH: $6.00 (4/17/98)

52-WEEK LOW: 81 1/4 cents (10/1/98)

CHAIRMAN, PRESIDENT: Russell L. Ray Jr. (CEO)

EMPLOYEES: 844

LOCAL EMPLOYEES: 200

DESCRIPTION: World Airways operates a fleet of 12 MD-11 and DC-10 wide-body aircraft in lease and charter service for passengers and freight. It is the Defense Department's largest contract supplier of charter services, and is regularly the largest charter service for hajj, the pilgrimage of Muslims to Mecca.

DEVELOPMENTS: World Airways is struggling to return to profitability by trying to structure its operations to meet market demand. Among other things, the carrier is planning to place more emphasis on cargo operations, where there is a growing world demand. The airline was hurt by the economic slide in Asia, but appears to be finding clients in other parts of the world.

WorldCorp, which owns about half of World Airways, filed for Chapter 11 bankruptcy protection in February. But the airline's president at the time, Russell L. Ray Jr., said the filing will have no effect on the airline. He said, in fact, that he had asked WorldCorp to change its name to avoid any confusion with the airline.

Earlier this month, World Airways named Hollis L. Harris president, replacing Ray, effective May 1. Ray will continue as a director of the company.

54

PSINet Inc.

510 Huntmar Park Dr.

Herndon, Va. 20170

703-904-4100

http://www.psinet.com

FOUNDED: 1989

FISCAL YEAR: Dec. 31

REVENUE: $259.6 million

LOSS: $212.9 million

LOSS PER SHARE: $4.34

DIVIDEND: None

STOCKHOLDERS' EQUITY: ($71.2 million)

RETURN ON EQUITY: NA

STOCK: PSIX (Nasdaq)

ASSETS: $1.28 billion

MARKET CAPITALIZATION: $3.28 billion

52-WEEK HIGH: $73.75 (4/13/99)

52-WEEK LOW: $8.37 1/2 (10/8/98)

CHAIRMAN: William L. Schrader (CEO)

PRESIDENT: Harold Wills

EMPLOYEES: 1,899

LOCAL EMPLOYEES: 500

DESCRIPTION: PSINet is one of the world's largest Internet service providers. The company sells access to the global computer network to businesses and other, smaller Internet service providers. PSINet also provides a variety of Internet-related technology services, including operating customers' World Wide Web sites and installing network-security software.

DEVELOPMENTS: PSINet began 1998 by deciding to remain independent, spurning a proposal from a small Annapolis firm called USinternetworking Inc. to buy a controlling stake. Instead, PSINet's shareholders voted to strike a deal with IXC Communications Inc., a Texas telecommunications firm that has given PSINet the right to use 10,000 miles of IXC's high-speed fiber-optic data cables. That capacity has been instrumental in PSINet's growth over the past year.

PSINet also introduced several Internet-related technologies last year, including a service that allows corporate customers to connect their phone networks to PSINet's data network, enabling them to conduct long-distance interoffice phone calls over the Internet. In Florida, the company began providing Internet services to businesses through a microwave radio system.

PSINet's revenue more than doubled as the Internet's popularity continued to soar. Although the company has yet to turn a profit, its stock, which was hovering under $20 for most of the past year and hit its 52-week high this month.

This year PSINet's name recognition will expand well beyond the technology community: The company has paid several million dollars to attach its name to the Baltimore Ravens' football stadium.

55

Charles E. Smith Residential Realty Inc.

2345 Crystal Dr.

Arlington, Va. 22202

703-920-8500

http://www.smithreit.com

FOUNDED: 1946

FISCAL YEAR: Dec. 31

REVENUE: $250.2 million

PROFIT: $41.1 million

EARNINGS PER SHARE: $1.85

DIVIDEND: $2.10

STOCKHOLDERS' EQUITY: $265.0 million

RETURN ON EQUITY: 26 percent

STOCK: SRW (NYSE)

ASSETS: $1.19 billion

MARKET CAPITALIZATION: $1.01 billion

52-WEEK HIGH: $34 (7/9/98)

52-WEEK LOW: $28.12 1/2 (3/24/99)

CHAIRMEN: Robert H. Smith and Robert P. Kogod (CEOs)

PRESIDENT: Ernest A. Gerardi Jr.

EMPLOYEES: 1,820

LOCAL EMPLOYEES: 1,720

DESCRIPTION: Charles E. Smith Residential Realty is a real estate investment trust that develops, owns and manages apartment buildings in the Washington area, Chicago, Boston and South Florida. It also provides services including property management, engineering and construction to other building owners. The core of its holdings are buildings developed by the Charles E. Smith Cos. Smith Residential owns more than 20,000 apartment units, has another 3,000 under construction, and manages more than 3,500 units for other owners.

DEVELOPMENTS: Smith Residential continued to grow through both acquisition of buildings and development of new ones in 1998. Its most aggressive buying spree was in Chicago, where it added more than 3,400 downtown high-rise units to bring its holdings there to more than 4,600 units built or under construction. The company increased its Boston area holdings and branched out to South Florida by acquiring a 240-unit building under construction in Fort Lauderdale. It also purchased several buildings in the Washington region and began construction of apartment complexes in the District and Northern Virginia.

With Wall Street reluctant to entertain public offerings of real estate company stock, Smith instead turned to the private markets in 1998 for money to grow. It completed $134 million in private equity placements and refinanced its debt to lock in low rates. The company now has $300 million in loan availability to draw on.

As with other real estate investment trusts, investors and analysts typically evaluate Smith's financial results not by net income but by funds from operations, a measure that takes into account such real estate-related factors as depreciation and amortization. In 1998, funds from operations rose to $2.91 a diluted share, up 10 percent from $2.65 in 1997.

56

Software AG Systems Inc.

11190 Sunrise Valley Dr.

Reston, Va. 20191

703-860-5050

http://www.safasoftware.com

FOUNDED: 1981

FISCAL YEAR: Dec. 31

REVENUE: $249.0 million

PROFIT: $27.7 million

EARNINGS PER SHARE: 87 cents

DIVIDEND: None

STOCKHOLDERS' EQUITY: $127.9 million

RETURN ON EQUITY: 31 percent

STOCK: AGS (NYSE)

ASSETS: $253.8 million

MARKET CAPITALIZATION: $206.6 million

52-WEEK HIGH: $33 (6/29/98)

52-WEEK LOW: $4.75 (4/5/99)

CHAIRMAN: Carl J. Rickertsen

PRESIDENT: Daniel F. Gillis (CEO)

EMPLOYEES: 910

LOCAL EMPLOYEES: 330

DESCRIPTION: Software AG Systems Inc. sells enterprise management software to corporations, government agencies and educational institutions. Its products include tools for database management, application development and Web site development. It also offers consulting and technical support services.

DEVELOPMENTS: Software AG Systems split from its German parent in 1997 and has focused on creating a separate identity and developing its own products.

It spent most of 1998 beefing up its departments and management and hiring 93 people. Additions included vice presidents of sales, professional services and research and development. It also increased its research and development team by 30 people.

Software AG Systems sells its former parent company's products but plans to launch the first of its own products, Sagavista, in the second half of this year. Sagavista is designed to help companies manage their resources and link departments.

For the fourth consecutive year, Software AG Systems at least doubled its earnings and increased revenue. In May, the company plans to change its legal name to Saga Systems Inc. pending shareholder approval. Its stock symbol will not change.

57

Washington Homes Inc.

1802 Brightseat Rd., 6th floor

Landover, Md. 20785

301-772-8900

http://www.washingtonhomes.com

FOUNDED: 1965

FISCAL YEAR: July 31

REVENUE: $240.7 million

PROFIT: $3.8 million

EARNINGS PER SHARE: 48 cents

DIVIDEND: None

STOCKHOLDERS' EQUITY: $58.3 million

RETURN ON EQUITY: 7 percent

STOCK: WHI (NYSE)

ASSETS: $146.0 million

MARKET CAPITALIZATION: $48.7 million

52-WEEK HIGH: $7 (3/10/99)

52-WEEK LOW: $4 (10/9/98)

CHAIRMAN: Geaton A. DeCesaris Sr.

PRESIDENT: Geaton A. DeCesaris Jr. (CEO)

EMPLOYEES: 543

LOCAL EMPLOYEES: 266

DESCRIPTION: Washington Homes designs, builds and sells single-family homes and town houses in 75 communities across five states. It is a major producer of moderately priced homes in the Washington area and in Pittsburgh. Its Westminster Homes division sells houses in Charlotte, Raleigh and Greensboro, N.C., and in Nashville. The company also has a mortgage financing subsidiary, Homebuyer's Mortgage, and a title services subsidiary, New Homebuyer's Title.

DEVELOPMENTS: The strong housing market has been a big boon to Washington Homes, with the company reporting a large increase in orders, sales and profits.

Washington Homes continues to look for ways to diversify its operations geographically. Last week the company acquired Breland Homes, a private home builder with operations in Huntsville, Ala., and Biloxi and Gulfport, Miss., and it is considering buying a building firm in the Midwest or South. After several years of acquisitions, Washington Homes' only deal in 1998 was to buy some of the assets of bankrupt Regency Homes Inc. That purchase enabled the firm to enter the higher end of the market, building houses that sell for $300,000 and up. Until now, Washington Homes has focused on first- and second-time buyers who spend $100,000 to $250,000 on their homes.

With its expansion into North Carolina and Tennessee, Washington Homes continues to build a smaller percentage of its homes in the Washington area. Last year, Washington construction accounted for only 54 percent of the company's homes, down from 73 percent three years ago. Next year, company officials say, Washington construction will account for less than half the company's sales. Even so, Washington Homes continues to step up its pace locally, building 873 homes here last year, up from 584 in 1997, to move the company from the area's seventh-largest builder in 1997 to the fourth largest in 1998.

The company also is pursuing the aging baby-boomer market, having entered into a joint venture with U.S. Homes to create active-adult communities in areas where Washington Homes operates. In February, the first joint venture community opened in Raleigh, N.C.; another is being studied for Charlotte.

58

Federal Realty

Investment Trust

1626 E. Jefferson St.

Rockville, Md. 20852

301-998-8100

http://www.federalrealty.com

FOUNDED: 1962

FISCAL YEAR: Dec. 31

REVENUE: $238.5 million

PROFIT: $37.0 million

EARNINGS PER SHARE: 94 cents

DIVIDEND: $1.76

STOCKHOLDERS' EQUITY: $529.9 million

RETURN ON EQUITY: 7 percent

STOCK: FRT (NYSE)

ASSETS: $1.48 billion

MARKET CAPITALIZATION: $881.1 million

52-WEEK HIGH: $25.87 1/2 (5/5/98)

52-WEEK LOW: $19.37 1/2 (9/4/98)

PRESIDENT: Steven J. Guttman (CEO)

EMPLOYEES: 450

LOCAL EMPLOYEES: 170

DESCRIPTION: Federal Realty Investment Trust owns, manages and redevelops retail property around the country. Its 120 properties include neighborhood and community shopping centers, as well as what it calls "Main Street retail" -- on-street stores in densely developed areas including downtown Bethesda.

DEVELOPMENTS: In an attempt to revive its profits, Federal Realty in 1998 went through a "re-engineering" that realigned its internal structure and cut about 15 percent of its work force, including many on its acquisition team.

Those property buyers weren't needed because tight capital markets translated into a slowdown in shopping-center purchases. The company spent $120 million on acquisitions in 1998, compared with $300 million in 1997.

Instead, Federal Realty plans to focus on developing new properties, such as a 45,000-square-foot retail and office building under construction on Elm Street in Bethesda. To increase its development capabilities, Federal in September announced an alliance with Post Properties Inc., an Atlanta apartment developer. The two companies will work on mixed-use complexes, including a retail and residential project planned for Pentagon City.

As with other real estate investment trusts, investors and analysts typically evaluate Federal's financial results not by net income but by funds from operations, a measure that takes into account such real estate-related factors as depreciation and amortization. In 1998, funds from operations rose to $2.16 per diluted share, up 5 percent from $2.05 in 1997.

59

Maximus Inc.

1356 Beverly Rd.

McLean, Va. 22101

703-734-4200

http://www.maxinc.com

FOUNDED: 1975

FISCAL YEAR: Sept. 30

REVENUE: $233.5 million

PROFIT: $14.5 million

EARNINGS PER SHARE: 82 cents

DIVIDEND: None

STOCKHOLDERS' EQUITY: $84.7 million

RETURN ON EQUITY: 21 percent

STOCK: MMS (NYSE)

ASSETS: $120.5 million

MARKET CAPITALIZATION: $547.9 million

52-WEEK HIGH: $41.50 (1/27/99)

52-WEEK LOW: $20.43 3/4 (9/1/98)

CHAIRMAN: Raymond B. Ruddy

PRESIDENT: David V. Mastran (CEO)

EMPLOYEES: 3,000

LOCAL EMPLOYEES: 270

DESCRIPTION: Maximus runs welfare-to-work programs for state and county governments. Founded in 1975 as a federal consulting firm, Maximus branched into outsourcing services and became the first firm to privatize welfare reform. It also provides information technology to help governments run more efficiently.

DEVELOPMENTS: Since Congress overhauled welfare in 1996, many government agencies have given for-profit companies the task of ushering welfare recipients to the payrolls. Maximus, through a series of acquisitions, has become the industry leader. "Outsourcing for state and local government has grown 50 percent a year, because the government has decided it's not as cost-effective as the private sector in delivering services," chief executive David V. Mastran said.

Last year, Maximus expanded into information technology with the purchase of Interactive Web Systems, which helps governments set up electronic purchasing systems and Internet sites to communicate with taxpayers and suppliers. Since its initial public offering in late 1996, Maximus has exceeded investor expectations.

Its biggest challenge is managing growth. Moreover, one analyst said, Maximus is prey to the whim of politics. "I'm not aware of anybody repealing welfare reform," said William Loomis of Legg Mason Wood Walker Inc. "But who knows?"

60

Criimi Mae Inc.

11200 Rockville Pike

Rockville, Md. 20852

301-816-2300

http://www.criimimaeinc.com

FOUNDED: 1989

FISCAL YEAR: Dec. 31

REVENUE: $207.3 million

PROFIT: $35.4 million

EARNINGS PER SHARE: 74 cents

DIVIDEND: $1.17

STOCKHOLDERS' EQUITY: $307.9 million

RETURN ON EQUITY: 8 percent

STOCK: CMM (NYSE)

ASSETS: $2.44 billion

MARKET CAPITALIZATION: $107.1 million

52-WEEK HIGH: $15.75 (4/15/98)

52-WEEK LOW: 81 1/4 cents (10/7/98)

CHAIRMAN: William B. Dockser

PRESIDENT: H. William Willoughby

EMPLOYEES: 170

LOCAL EMPLOYEES: 170

DESCRIPTION: Criimi Mae is a commercial mortgage company structured as a real estate investment trust. Unlike conventional REITs, which buy buildings, Criimi invests in mortgages on commercial property and also services the loans -- collecting payments from owners and distributing the cash among investors who have financed the projects.

Most commercial mortgages are broken up and packaged into securities tailored to meet the needs of specific investors. Criimi's specialty is buying the pieces that other investors don't want because of the risk involved. While conservative investors prefer mortgage-backed securities that return predictable profits with little risk of loss, Criimi takes the opposite approach. Seeking higher returns, it buys securities that might become worthless if the mortgages aren't paid and whose value can vary enormously depending on market conditions.

DEVELOPMENTS: The risks of Criimi Mae's strategy became apparent last fall, when the market for these securities crashed, causing Criimi Mae to seek refuge in bankruptcy court on Oct. 5. Criimi had borrowed against its portfolio of high-risk mortgage bonds, and when the value of its holdings plummeted, lenders demanded that Criimi put up more collateral or sell its investments at a big loss.

By seeking bankruptcy protection, Criimi has been able to continue operating and avoid many of the losses the company faced when the prices of its investments were depressed last fall. Unable to continue making new investments because of its bankruptcy filing, Criimi has shut down that part of its operation. Before the filing, Criimi was the biggest investor in high-risk mortgage bonds, but it has lost its lead to new competitors.

Methodically negotiating a financial reorganization, Chairman William Dockser has cut deals with creditors, settled some lawsuits and worked out temporary truces in other legal proceedings.

But this month, Criimi issued its delayed 1998 financial reports that included a warning from auditors that the company may not be able to stay in business.

Another question clouding the company's future is what will happen to the big block of Criimi stock acquired by Gotham Partners LP. Gotham has become Criimi's biggest shareholder by amassing the stock at depressed prices.

61

Sunburst Hospitality Corp.

10770 Columbia Pike

Silver Spring, Md. 20901

301-592-3800

http://www.sunbursthospitality.com

FOUNDED: 1997

FISCAL YEAR: Dec. 31

REVENUE: $204.1 million

PROFIT: $3.4 million

EARNINGS PER SHARE: 17 cents

DIVIDEND: None

STOCKHOLDERS' EQUITY: $102.6 million

RETURN ON EQUITY: 4 percent

STOCK: SNB (NYSE)

ASSETS: $422.5 million

MARKET CAPITALIZATION: $88.2 million

52-WEEK HIGH: $8.75 (4/15/98)

52-WEEK LOW: $3 (9/11/98)

CHAIRMAN: Stewart Bainum Jr.

PRESIDENT: Antonio DiRico

CEO: Donald Landry

EMPLOYEES: 4,000

LOCAL EMPLOYEES: 450

DESCRIPTION: Sunburst Hospitality is one of the country's largest independent hotel owners and operators. Its portfolio includes 11,911 rooms in 88 hotels in 17 states; an additional nine hotels with 909 rooms are under construction. Sunburst is the leading owner-developer of MainStay Suites, a mid-priced hotel chain for travelers seeking extended stays.

DEVELOPMENTS: Spun off in October 1997 from Choice Hotels International after the chain decided to divide the management of its real estate and hotel operations, Sunburst continues to have a close alliance with Choice. In October, Sunburst announced it had signed an agreement with Choice to develop 25 MainStay Suites properties, franchised by Choice, by October 2001. That's on top of the 14 MainStay Suites that Sunburst has already built. Nine more are slated to open in 1999.

The agreement represented a turnaround for Sunburst, which said last summer that it would scale back its MainStay developments because of the declining stock market and changes in the capital markets. As a result of the October agreement, MainStay Suites instead became the company's principal development focus.

Chief executive Donald Landry said MainStay Suites serve "an attractive industry niche where the demand for mid-priced lodging alternative designed for extended stay guests greatly exceeds the supply."

To help fund the expansion, Sunburst is selling off some of its less productive properties. In 1998, the company sold two hotels and an unimproved parcel of land for $5.7 million. It has put another 13 hotels up for sale.

62

MedImmune Inc.

35 W. Watkins Mill Rd.

Gaithersburg, Md. 20878

301-417-0770

http://www.medimmune.com

FOUNDED: 1988

FISCAL YEAR: Dec. 31

REVENUE: $200.7 million

PROFIT: $56.2 million

EARNINGS PER SHARE: 91 cents

DIVIDEND: None

STOCKHOLDERS' EQUITY: $209.8 million

RETURN ON EQUITY: 139 percent

STOCK: MEDI (Nasdaq)

ASSETS: $353.1 million

MARKET CAPITALIZATION: $2.99 billion

52-WEEK HIGH: $66 (3/17/99)

52-WEEK LOW: $21 (9/1/98)

CHAIRMAN: Wayne T. Hockmeyer (CEO)

PRESIDENT: Melvin D. Booth

EMPLOYEES: 440

LOCAL EMPLOYEES: 400

DESCRIPTION: MedImmune is a biotechnology company that focuses on developing products to prevent and treat infectious diseases and for use in organ transplants. The company has developed two drugs to prevent a certain respiratory infection in vulnerable patients, and another to prevent a serious infection in organ-transplant recipients. It has numerous other products under development.

DEVELOPMENTS: Last year was a banner year for MedImmune, the region's most successful biotechnology company. It won approval from the Food and Drug Administration for a high-tech drug, Synagis, that prevents a severe lung infection in premature babies. The potential market is large, and investors responded enthusiastically, sending MedImmune's stock up almost 160 percent compared with the end of 1997.

Their enthusiasm proved justified when sales numbers came in for the final three months of 1998, the first quarter the new drug was on the market. The company's revenue shot up 148 percent for 1998 compared with the previous year. That trend continued last week when the company reported a 118 percent increase in first-quarter earnings. Revenue also more than doubled.

MedImmune expanded its work force by 40 percent during the year. It also completed construction of a $65 million factory in Frederick that will help make Synagis and other drugs.

The company got other good news from the FDA during the year, winning approval for broader use of a drug that helps prevent a deadly infection in organ-transplant recipients.

Measured by the value investors place on its stock, MedImmune has become one of the world's top 10 biotech companies. MedImmune's success was recognized in 1998 when it was chosen Maryland's high-tech company of the year.

63

Global TeleSystems

Group Inc.

1751 Pinnacle Dr., North Tower, 12th fl.

McLean, Va. 22102

703-918-4500

http://www.gtsgroup.net

FOUNDED: 1983

FISCAL YEAR: Dec. 31

REVENUE: $197.5 million

LOSS: $152.6 million

LOSS PER SHARE: $2.52

DIVIDEND: None

STOCKHOLDERS' EQUITY: $387.5 million

RETURN ON EQUITY: NA

STOCK: GTSG (Nasdaq)

ASSETS: $1.98 billion

MARKET CAPITALIZATION: $5.26 billion

52-WEEK HIGH: $76.50 (4/14/99)

52-WEEK LOW: $21.12 1/2 (10/8/98)

CHAIRMAN: H. Brian Thompson (CEO)

PRESIDENT: Robert J. Amman

EMPLOYEES: 2,200

LOCAL EMPLOYEES: 80

DESCRIPTION: Global TeleSystems Group provides integrated telecommunications services in 20 European countries and on a limited scale in Asia. Its inter-country fiber-optic network is used by other communications firms, while the company directly provides private lines, local, long-distance and cellular phone service and Internet access, primarily to businesses.

DEVELOPMENTS: Last month, Global hired H. Brian Thompson, a veteran of the long-distance industry, to run the company as chairman and chief executive. Thompson is the former chairman of LCI International, which became the nation's sixth-largest long-distance company under his leadership. LCI was acquired in June by Qwest Communications International.

Also, last month, shareholders of Global TeleSystems Group and Esprit Telecom Group PLC approved Global's acquisition of the latter for nearly $1 billion and assumption of debt. The merged companies, which will have a market capitalization of about $5 billion, are expanding their fiber-optic network to take advantage of recent deregulation of some telecommunications services in Europe.

When the acquisition was announced in December, Gerald W. Thames, Global's president, said the European market "is very akin to the U.S. right after the Bell system broke up. . . . It will be highly competitive. Getting critical mass and having [Esprit's] capacity will be very critical."

64

Rowe Cos.

1650 Tysons Blvd., Suite 710

McLean, Va. 22102

703-847-8670

http://www.rowefurniture.com

FOUNDED: 1946

FISCAL YEAR: Nov. 30

REVENUE: $193.4 million

PROFIT: $11.2 million

EARNINGS PER SHARE: 90 cents

DIVIDEND: 12 cents

STOCKHOLDERS' EQUITY: $45.2 million

RETURN ON EQUITY: 28 percent

STOCK: ROW (NYSE)

ASSETS: $110.5 million

MARKET CAPITALIZATION: $132.9 million

52-WEEK HIGH: $14 (1/11/99)

52-WEEK LOW: $6.75 (10/9/98)

CHAIRMAN, PRESIDENT: Gerald M. Birnbach (CEO)

EMPLOYEES: 2,000

LOCAL EMPLOYEES: 60

DESCRIPTION: Rowe Cos., which changed its name from Rowe Furniture last month as it retooled its image to attract more upscale consumers, makes furniture and sells it at 14 company-owned Home Elements stores. The company, long known for its upholstered furniture, has branched out into hardwood desks and chairs.

DEVELOPMENTS: Dissatisfied with the direction of the furniture retailing industry, Rowe is making changes to get back into retail itself. The company said it plans to open five Home Elements stores in 1999 -- two in the Baltimore area, two in Tampa and one in Nashville.

Rowe also is moving upscale. In addition to changing its corporate name, the company changed the name of its stores from Rowe ShowPlace to Home Elements to reflect its new look. In November it paid $32 million to acquire Mitchell Gold Co., a Taylorsville, N.C., manufacturer that supplies Crate & Barrel, Pottery Barn and Restoration Hardware with items such as leather club chairs and velvet-covered furniture.

In August, Rowe Furniture said it had agreed to invest $2.5 million in Storehouse Furniture, which targets mid- to upper-income consumers, and that it may eventually buy the 43-store chain.

So far, the strategy appears to be working. After a rough 1997 in which its largest customer, Levitz Furniture, filed for bankruptcy protection, Rowe turned in a strong performance in 1998. The company said its net income grew 78 percent, to $11.2 million in the year ended Nov. 29. Net shipments rose 34 percent, to $193.4 million in fiscal 1998.

In February, Rowe announced plans to build a $15 million plant to make upholstered furniture in Montgomery County, Va., replacing an older manufacturing facility in nearby Salem.

65

Hanger Orthopedic

Group Inc.

7700 Old Georgetown Rd.

Bethesda, Md. 20814

301-986-0701

http://www.hanger.com

FOUNDED: 1986

FISCAL YEAR: Dec. 31

REVENUE: $187.9 million

PROFIT: $13.8 million

EARNINGS PER SHARE: 75 cents

DIVIDEND: None

STOCKHOLDERS' EQUITY: $162.2 million

RETURN ON EQUITY: 9 percent

STOCK: HGR (NYSE)

ASSETS: $204.3 million

MARKET CAPITALIZATION: $258.9 million

52-WEEK HIGH: $27.50 (1/6/99)

52-WEEK LOW: $12 (2/24/99)

CHAIRMAN, PRESIDENT: Ivan R. Sabel (CEO)

EMPLOYEES: 1,419

LOCAL EMPLOYEES: 86

DESCRIPTION: Hanger Orthopedic Group makes, distributes and fits devices such as artificial limbs and custom braces for the leg, neck and back. It manages medical offices around the country that measure and fit these devices. The company traces its history to a Civil War amputee from Virginia who whittled himself an artificial leg.

DEVELOPMENTS: Hanger Orthopedic continued an aggressive expansion program that has made it a leading provider of medical care for outpatients. The company spent $39 million in 1998 to acquire 18 smaller companies involved in orthopedic care. The acquisitions brought the total of patient-care centers at which it provides services to 258, in 30 states and the District. The number of managed-care plans with which it has agreements to provide services reached 362.

But the company announced its biggest acquisition earlier this month with its plan to buy its leading competitor, NovaCare Orthotics & Prosthetics Inc., for $455 million. The deal will make Hanger the nation's largest provider of artificial limbs.

Hanger's stock has suffered lately amid fears that the Clinton administration will persuade Congress to limit Medicare reimbursement for the types of services Hanger provides, but many analysts who follow the company consider those fears overstated.

Trading in Hanger shares moved from the American Stock Exchange to the New York Stock Exchange in December, a move the company hopes will boost its visibility and draw stronger interest from institutional investors.

66

Condor Technology Solutions Inc.

170 Jennifer Rd., Suite 325

Annapolis, Md. 21401

410-266-8700

http://www.condorweb.com

FOUNDED: 1996

FISCAL YEAR: Dec. 31

REVENUE: $183.9 million

PROFIT: $10.2 million

EARNINGS PER SHARE: 87 cents

DIVIDEND: None

STOCKHOLDERS' EQUITY: $114.1 million

RETURN ON EQUITY: NA

STOCK: CNDR (Nasdaq)

ASSETS: $200.6 million

MARKET CAPITALIZATION: $105.9 million

52-WEEK HIGH: $18.25 (4/21/98)

52-WEEK LOW: $8.25 (8/31/98)

CHAIRMAN: Kennard F. Hill (CEO)

PRESIDENT: Daniel J. Roche

EMPLOYEES: 1,000

LOCAL EMPLOYEES: 101

DESCRIPTION: Condor Technology Solutions provides information technology services to Fortune 1,000 firms and operates a consulting business. Condor had been eight computer service companies before February 1998, when it merged into one entity and went public with an initial public stock offering.

DEVELOPMENTS: Condor went Hollywood in February, announcing a deal to manage the Web-supported call center of National Amusements Inc. of Dedham, Mass., the parent company of Viacom Inc., Blockbuster Video and MTV Networks. National Amusements owns motion picture theaters with more than 1,000 screens in four countries. Condor did not disclose financial terms of the deal.

National Amusements will use a custom Web-based tracking system created by Condor to field and log service calls from its 100 Showcase Cinema locations in the United States.

Condor also developed an intranet training system for Boise Cascade Office Products with an interactive distance learning setup through which salespeople from around the country can tap into company information.

67

VSE Corp

2550 Huntington Ave.

Alexandria, Va. 22303

(703) 960-4600

http://www.vsecorp.com

FOUNDED: 1959

FISCAL YEAR: Dec. 31

REVENUE: $180.2 million

PROFIT: $1.6 million

EARNINGS PER SHARE: 75 cents

DIVIDEND: 14 cents

STOCKHOLDERS' EQUITY: $13.9 million

RETURN ON EQUITY: 13 percent

STOCK: VSEC (Nasdaq)

ASSETS: $40.7 million

MARKET CAPITALIZATION: $15.6 million

52-WEEK HIGH: $13 (12/15/98)

52-WEEK LOW: $5.50 (10/6/98)

CHAIRMAN: Donald M. Ervine (CEO)

PRESIDENT: James M. Knowlton

EMPLOYEES: 1,300

LOCAL EMPLOYEES: 900

DESCRIPTION: VSE provides engineering, information, technical services and software. Its customers are principally federal agencies, including the Defense Department, and other government contractors. The company's BAV Division (a joint venture between Booz-Allen & Hamilton Inc. and VSE) provides foreign military sales through its contract to manage the ship transfer program for the Navy.

DEVELOPMENTS: In May, the company's Value Systems Services unit won a $73.7 million contract to help the Navy and Marine Corps reduce infrastructure costs by helping them find the best public or private sources for products or services.

In October, the company announced that it had received two subcontracts that could be worth up to $90 million over a five-year period. In the larger of the two, valued at up to $75 million, VSE will provide engineering and operational support services to the Army's Central Electronics Command and to the Air Force Logistics Center. The other subcontract calls for VSE to provide engineering and technical support services to the Navy's Fleet Technical Support Center in Norfolk.

This February, the company announced that James M. Knowlton, a VSE executive vice president, would replace Richard B. McFarland as president and chief operating officer. McFarland retired in February.

68

Manugistics Inc.

2115 E. Jefferson St.

Rockville, Md. 20852

301-984-5000

http://www.manugistics.com

FOUNDED: 1969

FISCAL YEAR: Feb. 28

REVENUE: $177.6 million

LOSS: $96.1 million

LOSS PER SHARE: $3.64

DIVIDEND: None

STOCKHOLDERS' EQUITY: $85.7 million

RETURN ON EQUITY: NA

STOCK: MANU (Nasdaq)

ASSETS: $174.0 million

MARKET CAPITALIZATION: $195.9 million

52-WEEK HIGH: $66.25 (4/20/98)

52-WEEK LOW: $5.25 (4/8/99)

CHAIRMAN, PRESIDENT, CEO: William M. Gibson (acting)

EMPLOYEES: 858

LOCAL EMPLOYEES: 375

DESCRIPTION: Manugistics makes software that helps businesses track their products as they move through the manufacturing and distribution process. It also helps companies forecast future demand for their products.

DEVELOPMENTS: It was a difficult year for a company that was once hailed as one of the brightest technology stars in the region.

In January, Manugistics announced a corporate restructuring that included the resignation of chief executive William Gibson. This came shortly after Manugistics said it was in talks with a prospective acquirer, which many analysts believed to be German software maker SAP AG.

As part of its restructuring, Manugistics said it would lay off 400 employees, about 30 percent of its work force; this followed a smaller layoff in September, in which 80 people lost their jobs. Manugistics said it would report a nonrecurring charge of $60 million to cover costs related to the restructuring. Gibson's replacement has not been named.

Manugistics suffered steep losses for much of the past year, reporting a loss of $96.1 million for the year, compared with a loss of $13.3 million in the previous year. But those results may not be final, as the Securities and Exchange Commission is reviewing the company's accounting practices. That review could lead to a restatement of earnings.

Gibson said sales of Manugistics software have slowed due to the economic turmoil in Asia, where the company has generated substantial revenue. In addition, Gibson said, concern over the year 2000 computer glitch prompted some business customers to spend money fixing that problem rather than spending on the elaborate software products that Manugistics makes.

69

Hagler Bailly Inc.

1530 Wilson Blvd.

Arlington, Va. 22209

703-351-0300

http://www.haglerbailly.com

FOUNDED: 1980

FISCAL YEAR: Dec. 31

REVENUE: $177.5 million

PROFIT: $15.7 million

EARNINGS PER SHARE: 93 cents

DIVIDEND: None

STOCKHOLDERS' EQUITY: $73.6 million

RETURN ON EQUITY: 32 percent

STOCK: HBIX (Nasdaq)

ASSETS: $106.2 million

MARKET CAPITALIZATION: $146.9 million

52-WEEK HIGH: $30.75 (7/21/98)

52-WEEK LOW: $6 (3/18/99)

CHAIRMAN: Howard W. Pifer III

PRESIDENT: William E. Dickenson (CEO)

EMPLOYEES: 750

LOCAL EMPLOYEES: 330

DESCRIPTION: Hagler Bailly provides consulting services to government agencies and corporations in the rapidly growing fields of energy, telecommunications and the environment. Through acquisitions, the company has more than doubled its staff in two years.

DEVELOPMENTS: In August, Hagler Bailly made a $185.6 million stock purchase of Putnam, Hayes & Bartlett Inc., a Cambridge, Mass.-based economic and management consulting firm. That purchase was the catalyst for a leadership change announced earlier this month.

William E. Dickenson had been president and chief executive of Putnam Hayes until the acquisition. He succeeds Henri-Claude Bailly as president and CEO. Bailly was elected vice chairman of the board and will become chairman on Sept. 1.

Hagler Bailly went public in July 1997 to grab a larger share of consulting work in "network industries," which are expanding through privatization, consolidation and technology. Henri-Claude Bailly estimates that providing such advice is a $19.5 billion-a-year business, and he believes companies will invest more in information technology to become more competitive. "All these industries are going through radical changes," Bailly said. "Our objective is to capitalize on those changes and help our clients navigate through all the shoals that exist out there."

Last month, the company warned that revenue has been flat for the first quarter of 1999 and that earnings for the period are likely to fall well short of expectations. The company also announced a plan last month to buy back up to 1.5 million shares to bolster its stock price.

70

Mills Corp.

1300 Wilson Blvd., Suite 400

Arlington, Va. 22209

703-526-5000

http://www.millscorp.com

FOUNDED: 1994

FISCAL YEAR: Dec. 31

REVENUE: $177.3 million

PROFIT: $23.3 million

EARNINGS PER SHARE: $1.00

DIVIDEND: $1.95

STOCKHOLDERS' EQUITY: $730.7 million

RETURN ON EQUITY: 3 percent

STOCK: MLS (NYSE)

ASSETS: $970.4 million

MARKET CAPITALIZATION: $714.7 million

52-WEEK HIGH: $27.31 1/4 (7/17/98)

52-WEEK LOW: $16.12 1/2 (4/13/99)

CHAIRMAN: Laurence C. Siegel (CEO)

PRESIDENT: Peter B. McMillan

EMPLOYEES: 1,018

LOCAL EMPLOYEES: 300

DESCRIPTION: Mills is a real estate investment trust that develops, owns, leases and manages shopping centers in 12 states and Canada. It has 13.5 million square feet of retail space at eight large-scale outlet malls, including Potomac Mills, a 1.6 million-square-foot mall in Prince William County, Franklin Mills in Philadelphia and 11 community centers nationwide. Its specialty is "destination" malls and malls that include entertainment.

DEVELOPMENTS: Last year Mills announced plans to develop outlet malls near Detroit, Houston, Boston and four other cities with Taubman Centers, a Michigan-based real estate investment trust. Mills also settled its lawsuit against two developers vying for outlet mall space near Houston by agreeing to pay $21.4 million to Indianapolis-based Simon Property Group and New Jersey-based Chelsea GCA Realty.

In November, Mills opened the Block at Orange, Calif., a retail and entertainment complex with a 30-screen theater, 100 restaurants and a large-scale skating park. It announced plans to develop a 1.5 million-square-foot outlet mall in a community north of Atlanta, and to build a second Block entertainment/retail complex in midtown Atlanta. Over the next two years the firm expects to open large-scale skating parks at Potomac Mills and malls in Southern California and suburban Toronto. It also has plans to build a shopping complex on 400 acres near Baltimore-Washington International Airport in Anne Arundel County.

As with other real estate investment trusts, investors and analysts usually evaluate Mills' financial results not by net income but by funds from operations, a gauge that includes such real estate-related items as depreciation and amortization. In 1998 funds from operations rose to $2.17 per share, from $1.95, an 11 percent increase.

71

Omnipoint Corp.

3 Bethesda Metro Center, Suite 400

Bethesda, Md. 20814

301-951-2500

http://www.omnipoint.com

FOUNDED: 1987

FISCAL YEAR: Dec. 31

REVENUE: $172.5 million

LOSS: $663.8 million

LOSS PER SHARE: $12.61

DIVIDEND: None

STOCKHOLDERS' EQUITY: ($586.0 million)

RETURN ON EQUITY: NA

STOCK: OMPT (Nasdaq)

ASSETS: $2.07 billion

MARKET CAPITALIZATION: $724.1 million

52-WEEK HIGH: $28.81 1/4 (4/20/98)

52-WEEK LOW: $4.62 1/2 (10/6/98)

CHAIRMAN, PRESIDENT: Douglas Smith (CEO)

EMPLOYEES: 1,900

LOCAL EMPLOYEES: 50

DESCRIPTION: Omnipoint is a wireless phone service provider that serves New York, New Jersey, Connecticut, eastern Pennsylvania, Delaware, Massachusetts, New Hampshire, Rhode Island, southern Florida, Michigan, Ohio and Indiana.

Omnipoint was among the first wireless carriers in the nation to use new digital "personal communications services" (PCS) technology. It also was among the first to adopt Europe's digital standard called GSM (Global System for Mobile). Today it offers customers roaming in more than 2,600 cities and towns in North America and international roaming in more than 45 countries.

DEVELOPMENTS: Omnipoint kept pace with the massive growth in the cellular phone industry, but also had to dig itself out of a problem with some federal operating licenses and deal with Wall Street speculation that it is a ripe acquisition target.

Like other new wireless companies, Omnipoint paid too much for, and could not finance development of, a group of cellular licenses it bought in an earlier federal auction. In April, the company announced plans to return portions of the spectrum under new "C-block" license rules, which would reduce the company's license debt by about $300 million.

Omnipoint added a record 102,000 new subscribers in the fourth quarter; the company had more than 375,000 total subscribers at the end of 1998.

The company also expanded its service into the Great Lakes and Indianapolis regions at the end of the fourth quarter, which accounted for higher start-up expenses. The company also launched service in the New England and southern Florida regions at the end of the first quarter.

Omnipoint continued to expand its existing digital wireless coverage along the Northeast in the New York region, including New Jersey and Connecticut, and the mid-Atlantic region.

Speculation had risen in recent months that Omnipoint may be for sale. Omnipoint's president said the company will continue a search for a partner, not a buyer.

72

Sunrise Assisted Living Inc.

9401 Lee Hwy., Suite 300

Fairfax, Va. 22031

703-273-7500

http://www.sunrise-al.com

FOUNDED: 1981

FISCAL YEAR: Dec. 31

REVENUE: $170.7 million

PROFIT: $22.3 million

EARNINGS PER SHARE: $1.11

DIVIDEND: None

STOCKHOLDERS' EQUITY: $227.7 million

RETURN ON EQUITY: 11 percent

STOCK: SNRZ (Nasdaq)

ASSETS: $683.4 million

MARKET CAPITALIZATION: $678.0 million

52-WEEK HIGH: $53.12 1/2 (12/31/98)

52-WEEK LOW: $22.50 (9/10/98)

CHAIRMAN: Paul J. Klaassen (CEO)

PRESIDENT: David W. Faeder

EMPLOYEES: 5,000

LOCAL EMPLOYEES: 1,700

DESCRIPTION: Sunrise Assisted Living operates 79 assisted-living homes for senior citizens providing around-the-clock services in 14 states, including 26 facilities in Maryland and Virginia. With room for 6,800 residents (average age: 83), the homes occupy a niche between independent retirement living and nursing homes.

DEVELOPMENTS: Sunrise continued its rapid expansion in the past year, opening 13 homes and starting construction on 25. Additionally, it has 51 properties on the drawing board. The firm owns 59 of its 79 homes and manages the rest.

In November Sunrise said it would buy Karrington Health Inc. for $191 million, although the deal has not yet closed. The purchase of Karrington, based in Columbus, Ohio, would add another 39 homes with 2,100 residents. Karrington also has 18 homes under development.

Sunrise said it will meet its goal of operating 150 homes by 2000 with a base in many of the nation's major metropolitan areas.

73

Choice Hotels International

10750 Columbia Pike

Silver Spring, Md. 20901

301-592-5000

http://www.choicehotels.com

FOUNDED: 1968

FISCAL YEAR: Dec. 31

REVENUE: $165.4 million

PROFIT: $55.3 million

EARNINGS PER SHARE: 93 cents

DIVIDEND: None

STOCKHOLDERS' EQUITY: $56.5 million

RETURN ON EQUITY: 112 percent

STOCK: CHH (NYSE)

ASSETS: $398.2 million

MARKET CAPITALIZATION: $760.9 million

52-WEEK HIGH: $17.68 3/4 (4/15/98)

52-WEEK LOW: $9.62 1/2 (12/17/98)

CHAIRMAN: Stewart Bainum Jr.

PRESIDENT: Charles A. Ledsinger Jr. (CEO)

EMPLOYEES: 2,000

LOCAL EMPLOYEES: 350

DESCRIPTION: Choice Hotels International is the nation's second-largest hotel franchiser, with more than 4,000 hotels in 33 countries. An additional 1,477 hotels are under development. Its hotels operate under the names Quality, Comfort, Clarion, Sleep Inn, Rodeway, Econo Lodge and MainStay Suites.

DEVELOPMENTS: Management turmoil came to Choice in 1998, just a year after the company dramatically reorganized and spun off its real estate operations into a separate company, Sunburst Hospitality Corp. In June, Choice's president and chief executive, William Floyd, abruptly quit after 18 months on the job, citing personal reasons. A month later, the company's chief financial officer, Donald H. Dempsey, also resigned, taking a CFO position with a Memphis company to be closer to his family. To replace Floyd, Choice named Charles A. Ledsinger Jr., who had 20 years of experience in the hotel business.

Choice continued its close alliance with Sunburst as Sunburst agreed late last year to build 25 MainStay Suites, franchised by Choice franchises, by October 2001.

In 1998, the number of domestic Choice hotels grew 6 percent, to 3,039, from 2,880. The company executed 440 new hotel franchise contracts, a 5 percent increase over 1997. Franchise-related revenues for 1998 were up 6.5 percent to $143 million.

74

Startec Global Communications Corp.

10411 Motor City Dr.

Bethesda, Md. 20817

301-365-8959

http://www.startec.com

FOUNDED: 1989

FISCAL YEAR: Dec. 31

REVENUE: $161.2 million

LOSS: $18.6 million

LOSS PER SHARE: $2.08

DIVIDEND: None

STOCKHOLDERS' EQUITY: $15.4 million

RETURN ON EQUITY: NA

STOCK: STGC (Nasdaq)

ASSETS: $225.7 million

MARKET CAPITALIZATION: $68.1 million

52-WEEK HIGH: $28.50 (4/22/98)

52-WEEK LOW: $3.37 1/2 (10/19/98)

CHAIRMAN, PRESIDENT: Ram Mukunda (CEO)

EMPLOYEES: 409

LOCAL EMPLOYEES: 385

DESCRIPTION: Startec is an international long-distance carrier that focuses on 40 ethnic communities in the United States, Canada and Europe whose members frequently place calls to their places of origin, including India, Russia, the Philippines and the Middle East.

DEVELOPMENTS: Startec's revenue grew by 88 percent in 1998 as the company expanded service outside the United States and increased its number of customers from 71,000 to 122,000. But the company's earnings and stock price stumbled badly after the company took on $160 million in 12 percent debt in the spring to help finance its expansion. Startec also secured $35 million in financing from a financing arm of GE Capital.

The company, which started with Indian customers in the Washington area, has branched out to other ethnic groups. It tripled its work force in 1998 as it tried to appeal to Chinese, Vietnamese, Korean, Polish, Irish, Pakistani and various Latin American communities.

It also has doubled the number of markets it serves in the United States, to 20, and prepared to launch in seven European and three Canadian cities. Its goal is to expand its own network so it can increase margins. The niche long-distance carrier added capacity on 11 fiber-optic cables through long-term leases, obtained eight new international telecom licenses and added operating agreements with 34 foreign telephone companies to deliver its services. It also added new gateway switches and points of presence, or POPs, that can rout calls.

Early this year, the company acquired 64.6 percent of a French switch-based reseller of long-distance services, giving it better access to the French market.

75

GTS Duratek Inc.

10100 Old Columbia Rd.

Columbia, Md. 21046

410-312-5100

http://www.gtsduratek.com

FOUNDED: 1983

FISCAL YEAR: Dec. 31

REVENUE: $160.3 million

LOSS: $3.9 million

LOSS PER SHARE: 30 cents

DIVIDEND: None

STOCKHOLDERS' EQUITY: $55.0 million

RETURN ON EQUITY: NA

STOCK: DRTK (Nasdaq)

ASSETS: $128.5 million

MARKET CAPITALIZATION: $80.1 million

52-WEEK HIGH: $12.75 (5/26/98)

52-WEEK LOW: $3.87 1/2 (10/8/98)

CHAIRMAN: Daniel A. D'Aniello

PRESIDENT: Robert E. Prince (CEO)

EMPLOYEES: 1,300

LOCAL EMPLOYEES: 110

DESCRIPTION: GTS Duratek's goal is to turn nuclear waste into profit. Using a proprietary technology, the company removes waste from nuclear power plants and weapons production facilities, often by turning the waste into glass. The company's main customers are the Department of Energy and nuclear power plant operators.

DEVELOPMENTS: GTS was awarded some large and lucrative contracts in 1998. In September, the company won 10 percent of a $250 million project to clean up the Hanford facility, a former nuclear weapons plant in Washington state. That same month, GTS inked a $25 million deal to package and sort waste as part of the decommissioning of the Big Rock Point Nuclear Power Station in Michigan.

Yet GTS stock has lost roughly half its value in the past 12 months, closing Friday at $5.87 1/2. The troubles started in July, when the company announced that a customer, Maine Yankee, decided not to cover GTS's cost overruns for a cleanup project. Making matters worse, the company shifted earnings from another project that were originally slated to be booked in the second quarter to the third and fourth quarters. Then the company had to write off a $9.3 million plant in South Carolina when additional business failed to materialize.

76

Cosmetic Center Inc.

8700 Robert Fulton Dr.

Columbia, Md. 21046

410-309-4600

No Web site

FOUNDED: 1957

FISCAL YEAR: Dec. 27, 1997

REVENUE: $159.0 million

LOSS: $4.8 million

LOSS PER SHARE: 51 cents

DIVIDEND: None

STOCKHOLDERS' EQUITY: $34.7 million

RETURN ON EQUITY: NA

STOCK: COCQE (Nasdaq)

ASSETS: $118.4 million

MARKET CAPITALIZATION: $2.8 million

52-WEEK HIGH: $4.25 (4/17/98)

52-WEEK LOW: 21 7/8 cents (4/15/99)

VICE CHAIRMAN: Robert Ramsey

CHIEF EXECUTIVE: Kevin Regan

EMPLOYEES: 2,400

LOCAL EMPLOYEES: 850

DESCRIPTION: The Cosmetic Center sells cosmetics, fragrances and skin, hair and personal-care products in 124 outlets, including retail and outlet stores across the country, including 19 in the Washington area. Operating under the Cosmetic Center and Prestige Fragrance & Cosmetics names, the company also operates in-store hair salons.

DEVELOPMENTS: Last week, the long-suffering chain filed for bankruptcy protection and replaced its chief executive.

In its bankruptcy filing, Cosmetic Center listed assets of more than $95 million and $71 million in debts.

The move came less than a month after Cosmetic Center announced plans to close 116 of its stores, including seven in this area, and lay off 875 employees, including 44 at its headquarters in Columbia.

The dramatic cuts represent the latest bid for viability by the company as it tries to find its niche in a market already served by drugstores, department stores and speciality retailers. In December, Revlon Inc. sold its 85 percent stake in the company to York Management Services Inc., a New Jersey company that specializes in turning around troubled companies. York bought Revlon's stake in the company for an undisclosed amount through a limited partnership, Prestige Holdings I.

The company also is on its third chief executive in nine months. Kevin Regan, a retail consultant at PriceWaterhouseCoopers, replaced Betsy Burton, a turnaround specialist, who was named president and chief executive of the Cosmetic Center in June. She replaced I. Howard Diener, who left the company.

After the bankruptcy filing, Nasdaq suspended trading of Cosmetic Center shares pending additional information on the company's status.

77

E.spire Communications Inc.

133 National Business Pkwy.

Suite 200

Annapolis Junction, Md. 20701

301-361-4200

http://www.espire.net

FOUNDED: 1993

FISCAL YEAR: Dec. 31

REVENUE: $156.8 million

LOSS: $163.1 million

LOSS PER SHARE: $4.45

DIVIDEND: None

STOCKHOLDERS' EQUITY: ($101.7 million)

RETURN ON EQUITY: NA

STOCK: ESPI (Nasdaq)

ASSETS: $983.0 million

MARKET CAPITALIZATION: $674.6 million

52-WEEK HIGH: $23.37 1/2 (7/8/98)

52-WEEK LOW: $4.31 1/4 (1/26/99)

CHAIRMAN: Anthony J. Pompliano (CEO)

EMPLOYEES: 1,300

LOCAL EMPLOYEES: 600

DESCRIPTION: E.spire Communications provides phone, data and Internet services to businesses. The company builds and manages fiber-optic cable systems in more than 35 cities, including the District. It competes with local Bell telephone companies.

DEVELOPMENTS: E.spire's revenue grew rapidly in 1998, to $156.8 million. But that growth still was less than the company had hoped. When chief executive Jack E. Reich resigned in November, E.spire conceded that it had underestimated growth costs and pledged to spend more time marketing its services.

The company also announced that it would phase out its business of "reselling" to its customers lines that it leases from the Bell companies and would move more customers over to its own fiber-optic network, which it continued to expand. Only 47 percent of E.spire customers were on the company's own network at the end of 1998; the company said it would have 90 percent on its network by the end of 1999.

At year-end, the company reported it had 13,595 business customers with a total of 133,000 lines. The company said it would expand its dial-up Internet access outside of Florida in 1999 and add high-speed Internet access using Digital Subscriber Line technology. In 1998, E.spire also introduced a service with all-in-one billing that allows businesses to integrate voice, data and Internet service on a single line.

78

Allied Research Corp.

8000 Towers Crescent Dr., Suite 750

Vienna, Va. 22182

703-847-5268

http://www.cfonews.com/alr

FOUNDED: 1962

FISCAL YEAR: Dec. 31

REVENUE: $145.4 million

PROFIT: $9.1 million

EARNINGS PER SHARE: $1.90

DIVIDEND: None

STOCKHOLDERS' EQUITY: $50.0 million

RETURN ON EQUITY: 25 percent

STOCK: ALR (Amex)

ASSETS: $113.1 million

MARKET CAPITALIZATION: $32.7 million

52-WEEK HIGH: $13.06 1/4 (5/22/98)

52-WEEK LOW: $6 (10/7/98)

CHAIRMAN: J. R. Sculley (CEO)

PRESIDENT: William Glenn Yarborough Jr.

EMPLOYEES: 431

LOCAL EMPLOYEES: 6

DESCRIPTION: Allied Research is a weapons and munitions developer and manufacturer that supplies equipment for defense departments worldwide. It also designs, produces and markets sophisticated electronic security and access-control systems for government and private sector clients.

DEVELOPMENTS: The company increased earnings slightly in 1998, in part because of a favorable tax ruling affecting a former London subsidiary, which saved the company $795,000.

Although earnings without that tax break would have been less impressive, the company's cost-cutting and diversification have maintained profits -- so much so that Fortune magazine named Allied the 38th fastest growing company in the nation last year, based on earnings per share over the past three years. In October, the firm announced plans to buy as many as 200,000 of its 4.7 million outstanding shares.

Meanwhile, low oil prices and stability in the Middle East have depressed demand for munitions by the region's governments, which are Allied's primary clients.

As part of its continuing cost-cutting, Allied plans to move its corporate headquarters from Vienna this year, but will likely stay in the region.

79

Computer Learning

Centers Inc.

11350 Random Hills Rd.

Fairfax, Va. 22030

703-359-9333

http://www.clcx.com

FOUNDED: 1960

FISCAL YEAR: Jan. 31

REVENUE: $144.4 million

LOSS: $590,000

LOSS PER SHARE: 3 cents

DIVIDEND: None

STOCKHOLDERS' EQUITY: $54.5 million

RETURN ON EQUITY: NA

STOCK: CLCX (Nasdaq)

ASSETS: $130.7 million

MARKET CAPITALIZATION: $82.9 million

52-WEEK HIGH: $30.62 1/2 (7/7/98)

52-WEEK LOW: $4 (4/8/99)

CHAIRMAN: Harry H. Gaines

PRESIDENT: John L. Corse

CEO: Reid R. Bechtle

EMPLOYEES: 967

LOCAL EMPLOYEES: 400

DESCRIPTION: Computer Learning Centers operates a national chain of trade schools that train people for entry-level jobs in the information technology industry. Catering to students who qualify for federal educational loans and grants, CLC's schools teach basic skills such as computer operations, network engineering and programming.

DEVELOPMENTS: Once a darling of investors, Computer Learning Centers has been beset by regulatory woes that have hammered the price of its once highflying stock. The company recently negotiated a settlement with Illinois regulators, who determined last year that a suburban Chicago school misled potential students about the quality of its courses and the kind of jobs and pay that graduates could anticipate.

Similar complaints have been raised by students at the school's campuses in Alexandria and Laurel, which are targets of ongoing regulatory reviews by the U.S. Department of Education. The Department of Veterans Affairs has cut off veterans benefits to students at the Laurel campus.

The company's future largely depends on what action Maryland officials take, as well as the outcome of the federal inquiry. Citing shoddy record-keeping for federal loan programs and evidence that loans were given to ineligible students, the Department of Education has extended its investigation.

The company negotiated a $7.5 million settlement in a series of lawsuits filed on behalf of shareholders who claimed the company misled investors by failing to disclose the problems that led to regulatory action.

80

Carey International Inc.

4530 Wisconsin Ave. NW

Washington, DC 20016

202-895-1200

http://www.careyint.com

FOUNDED: 1921

FISCAL YEAR: Nov. 30

REVENUE: $144.1 million

PROFIT: $8.4 million

EARNINGS PER SHARE: 92 cents

DIVIDEND: None

STOCKHOLDERS' EQUITY: $90.1 million

RETURN ON EQUITY: 18 percent

STOCK: CARY (Nasdaq)

ASSETS: $129.2 million

MARKET CAPITALIZATION: $141.3 million

52-WEEK HIGH: $29.87 1/2 (7/7/98)

52-WEEK LOW: $12.25 (10/15/98)

CHAIRMAN: Vincent A. Wolfington (CEO)

PRESIDENT: Don R. Dailey

EMPLOYEES: 970

LOCAL EMPLOYEES: 143

DESCRIPTION: Carey International is the world's largest chauffeured vehicle service company. It provides limousine, sedan, van and minibus transportation through an international network of owned, operated, affiliated and licensed companies. Carey serves 420 cities in 65 countries.

DEVELOPMENTS: Carey has turned to the Internet to speed up sales and services, going online in several major metropolitan areas, including the District. The company's initial Internet runs appear experimental. Success could lead to the establishment of an international electronic service network, allowing customers to use keyboards to reserve chauffeured vehicles at Carey facilities worldwide.

The Carey empire grew through an aggressive acquisition strategy over recent years.

81

GRC International Inc.

1900 Gallows Rd.

Vienna, Va. 22182

703-506-5000

http://www.grci.com

FOUNDED: 1961

FISCAL YEAR: June 30

REVENUE: $131.0 million

PROFIT: $11.5 million

EARNINGS PER SHARE: $1.14

DIVIDEND: None

STOCKHOLDERS' EQUITY: $27.4 million

RETURN ON EQUITY: 88 percent

STOCK: GRH (NYSE)

ASSETS: $71.3 million

MARKET CAPITALIZATION: $76.8 million

52-WEEK HIGH: $11.37 1/2 (7/2/98)

52-WEEK LOW: $3.87 1/2 (10/8/98)

CHAIRMAN: Joseph R. Wright

PRESIDENT: Gary L. Denman (CEO)

EMPLOYEES: 1,200

LOCAL EMPLOYEES: 750

DESCRIPTION: GRC International is an information technology company that helps government agencies develop advanced computer and engineering systems, including many that catalogue massive amounts of data. More than 90 percent of its business is with government agencies, including 35 percent with the Army and 22 percent with the Navy. Its roughly 150 active contracts include such things as developing sophisticated battlefield computer systems and improving radar technologies.

DEVELOPMENTS: After losing $17.8 million in fiscal 1997, GRC reported an 11 percent increase in revenue in 1998 and a profit of $11.5 million. Company officials attributed the turnaround to their decision to scuttle a costly project to develop and manufacture a device used to manage fiber-optic communications networks. They also canceled a program to develop software that would help maximize performance of wide area networks.

The company last year began drawing significant revenue -- $9.3 million -- from a key Army contract in which it is leading development of a massive logistical information system. The Army chose GRC to head a team that is moving its global inventory tracking system from a dozen stand-alone computer systems to a new Oracle database running on a single computer system.

Other contracts include a $100 million Veterans Affairs information technology services agreement and a year 2000 project for George Washington University.

82

Friedman, Billings, Ramsey Group Inc.

1001 N. 19th St.

Arlington, Va. 22209

703-312-9600

http://www.fbr.com

FOUNDED: 1989

FISCAL YEAR: Dec. 31

REVENUE: $122.9 million

LOSS: $16.2 million

LOSS PER SHARE: 33 cents

DIVIDEND: None

STOCKHOLDERS' EQUITY: $186.9 million

RETURN ON EQUITY: NA

STOCK: FBG (NYSE)

ASSETS: $205.1 million

MARKET CAPITALIZATION: $611.1 million

52-WEEK HIGH: $21.25 (4/15/98)

52-WEEK LOW: $3.62 1/2 (10/8/98)

CHAIRMAN: Emanuel J. Friedman (CEO)

PRESIDENT: W. Russell Ramsey

EMPLOYEES: 365

LOCAL EMPLOYEES: 345

DESCRIPTION: Friedman, Billings, Ramsey is a full-service regional investment firm. FBR's investment banking division specializes in raising funds for financial institutions, real estate firms and technology companies. Those industries also are the focus of its stock trading operation, but its investment research scope has broadened. The firm operates mutual funds, hedge funds and a venture capital fund that has financed several area technology companies. FBR doesn't have a retail brokerage. It deals almost exclusively with institutions -- pension plans, mutual funds and money managers -- but provides money management services to a small group of wealthy clients.

DEVELOPMENTS: FBR has revamped its operations in the past year to make up for the loss of most of the stock underwriting business that had been the firm's principal profit generator. Two years ago, FBR was the nation's biggest underwriter outside Wall Street, but that business dried up last summer with the collapse of the initial public offering market and the crash of technology stocks.

On top of the lack of underwriting earnings, FBR suffered massive losses on its holdings in tech companies and specialized lenders, resulting in a loss last year of more than $16 million. The firm also laid off some employees in its investment banking and trading operations last fall.

FBR has begun hiring again, building up its research staff, concentrating on the Internet, information technology and communications industries flourishing in the Washington region. Its venture capital arm provides financing to a number of young companies; when those companies are ready to go public, FBR hopes to handle their offerings and return to its days as a prosperous underwriting firm. Earlier this month, the company announced plans to sell initial public offerings over the Internet and to offer other investing services online.

83

MLC Holdings Inc.

400 Herndon Pkwy., Suite B

Herndon, Va. 20170

703-834-5710

http://www.mlcgroup.com

FOUNDED: 1990

FISCAL YEAR: March 31, 1998

REVENUE: $118.4 million

PROFIT: $6.0 million

EARNINGS PER SHARE: 90 cents

DIVIDEND: None

STOCKHOLDERS' EQUITY: $23.5 million

RETURN ON EQUITY: 37 percent

STOCK: MLCH (Nasdaq)

ASSETS: $83.2 million

MARKET CAPITALIZATION: $63.5 million

52-WEEK HIGH: $15.75 (4/27/98)

52-WEEK LOW: $6.62 1/2 (10/14/98)

CHAIRMAN, PRESIDENT: Phillip G. Norton (CEO)

EMPLOYEES: 239

LOCAL EMPLOYEES: 116

DESCRIPTION: MLC Holdings is an information technology contractor. From 15 offices nationwide, the firm leases computing hardware and manages technology assets for its clients, which are primarily medium-size firms.

DEVELOPMENTS: MLC, which made its initial public stock offering in 1996, has continued the rapid growth that marked its first year as a public company. The firm's profit increased 73 percent in the fiscal year ended March 31, 1998. Earnings were up 33 percent in the company's third quarter, which ended Dec. 31.

In recent months, MLC has issued 1.1 million new shares and raised $10 million in a separate stock placement through Thayer Capital Partners of Washington. MLC also secured two $50 million credit lines late last year to finance future growth.

84

RWD Technologies Inc.

10480 Little Patuxent Pkwy.

Columbia, Md. 21044

410-730-4377

http://www.rwd.com

FOUNDED: 1988

FISCAL YEAR: Dec. 31

REVENUE: $114.7 million

PROFIT: $13.1 million

EARNINGS PER SHARE: 82 cents

DIVIDEND: None

STOCKHOLDERS' EQUITY: $74.0 million

RETURN ON EQUITY: 24 percent

STOCK: RWDT (Nasdaq)

ASSETS: $90.4 million

MARKET CAPITALIZATION: $226.8 million

52-WEEK HIGH: $28 (4/20/98)

52-WEEK LOW: $11.50 (10/15/98)

CHAIRMAN: Robert W. Deutsch (CEO)

PRESIDENT: John H. Beakes Jr.

EMPLOYEES: 1,000

LOCAL EMPLOYEES: 500

DESCRIPTION: RWD Technologies is a technology consultancy formed in 1988 by Robert W. Deutsch, founder of General Physics Corp. of Columbia. RWD targets the top 200 members of the Fortune 500, giving advice to companies such as DaimlerChrysler Corp. and Ford Motor Co. on how to improve their manufacturing. It also helps retrain workers.

DEVELOPMENTS: In 1998, RWD expanded its technology service offerings and added 57 companies to its roster of customers. The company also stepped up its international business, opening its first European offices, in Britain and Belgium.

Other significant events included an alliance with SAP America Inc. to offer advice for training projects, and the opening of a information technology lab at SAP's Heathrow Training Headquarters in Britain.

RWD appointed Douglas May as director of pharmaceutical business development, an area the company plans to focus on in the coming year.

85

Advanced Communication Systems Inc.

10089 Lee Hwy.

Fairfax, Va. 22030

703-934-8130

http://www.advcom.com

FOUNDED: 1987

FISCAL YEAR: Sept. 30

REVENUE: $107.8 million

PROFIT: $4.4 million

EARNINGS PER SHARE: 60 cents

DIVIDEND: None

STOCKHOLDERS' EQUITY: $44.9 million

RETURN ON EQUITY: 32 percent

STOCK: ACSC (Nasdaq)

ASSETS: $119.7 million

MARKET CAPITALIZATION: $113.9 million

52-WEEK HIGH: $16.12 1/2 (1/26/99)

52-WEEK LOW: $7.12 1/2 (10/8/98)

CHAIRMAN, PRESIDENT: George A. Robinson (CEO)

EMPLOYEES: 1,915

LOCAL EMPLOYEES: 300

DESCRIPTION: Advanced Communication Systems provides services such as communications systems design and support, aviation and information technology. The company was founded in 1987 to serve the Navy, and its primary customers are government agencies, although it has added some commercial and international customers.

DEVELOPMENTS: The company went public in June 1997 and did a secondary offering in May. In 1998, the company made four acquisitions. The biggest deal was for Semcor Inc., a technical and engineering services firm that ACS purchased for about $41 million. Semcor had revenue of about $95 million at the time of the purchase.

ACS has focused on government customers, primarily the Department of Defense, and plans to maintain this focus. This year the company also plans to continue its strategy of acquiring complementary companies.

86

Allied Capital Corp.

1919 Pennsylvania Ave. NW

Washington, D.C. 20006

202-331-1112

http://www.alliedcapital.com

FOUNDED: 1958

FISCAL YEAR: Dec. 31

REVENUE: $106.7 million

PROFIT: $78.1 million

EARNINGS PER SHARE: $1.50

DIVIDEND: $1.43

STOCKHOLDERS' EQUITY: $485.1 million

RETURN ON EQUITY: 17 percent

STOCK: ALLC (Nasdaq)

ASSETS: $856.1 million

MARKET CAPITALIZATION: $1.04 billion

52-WEEK HIGH: $28.12 1/2 (4/15/98)

52-WEEK LOW: $12 (10/8/98)

CHAIRMAN: William L. Walton (CEO)

EMPLOYEES: 105

LOCAL EMPLOYEES: 80

DESCRIPTION: Allied Capital specializes in providing financing to small but growing businesses. It makes some loans secured by real estate but usually makes investments on which it earns interest plus a share of the profits. Allied also offers loans guaranteed by the federal Small Business Administration.

DEVELOPMENTS: After consolidating what had been five companies into one, Allied Capital posted a 21 percent increase in earnings last year and began accelerating its own growth. The firm raised $49.4 million in capital in November by selling additional stock, and last month it boosted its bank credit line from $200 million to $315 million.

A strategic alliance with Quist Capital Advisors in Colorado is designed to help the firm gain business in a region where it had not been active. Allied also has offices in Chicago, San Francisco and Frankfurt, Germany.

Diversifying from its small-business lending base, Allied made its first investment in high-risk, junk-bond-rated commercial mortgage securities in December. Subsequent purchases boosted the firm's holdings to $275 million. Allied officials view a great opportunity in the high-yield mortgage-backed bond market but are well aware of the risks. Criimi Mae Inc. of Rockville was the biggest player in that market, which collapsed last year, causing Criimi to file for bankruptcy reorganization.

87

MicroStrategy

8000 Towers Crescent Dr.

Vienna, Va. 22182

703-848-8600

http://www.strategy.com

FOUNDED: 1989

FISCAL YEAR: Dec. 31

REVENUE: $106.4 million

PROFIT: $6.2 million

EARNINGS PER SHARE: 16 cents

DIVIDEND: None

STOCKHOLDERS' EQUITY: $46.3 million

RETURN ON EQUITY: NA

STOCK: MSTR (Nasdaq)

ASSETS: $82.7 million

MARKET CAPITALIZATION: $655.1 million

52-WEEK HIGH: $46 (8/25/98)

52-WEEK LOW: $15.06 1/4 (4/13/99)

CHAIRMAN, PRESIDENT: Michael J. Saylor (CEO)

EMPLOYEES: 979

LOCAL EMPLOYEES: 535

DESCRIPTION: MicroStrategy makes "data-warehousing" or "decision-support" software, which helps businesses organize the large amounts of data they have in their corporate databases. Victoria's Secret, for instance, uses MicroStrategy software to help determine which of its garments sells best in certain retail markets.

DEVELOPMENTS: MicroStrategy burst into the club of public companies last spring with one of the year's most successful local initial public offerings. Shares debuted at $12 on June 11 and soared into the mid-$20s before closing that day at $21.12. The stock, which peaked at $46 last summer, closed Friday at $18. In February, the company held a secondary stock offering, selling an additional 2 million shares at $27.

MicroStrategy earned $6.2 million last year, compared with $100,000 in 1997. The company attributed its fast growth to new licensing deals with an array of retailers, such as ShopKo Stores Inc. and Eckerd Corp.

In October, the company branched into the vast government market. It announced plans to begin a new division to sell its software to federal, state and local agencies.

A month earlier, MicroStrategy was awarded a "Schedule Contract" from the General Services Administration, which makes it easier for U.S. government agencies to purchase MicroStrategy products and services.

88

Washington Real Estate Investment Trust

6110 Executive Blvd., Suite 800

Rockville, Md. 20852

301-984-9400

http://www.washreit.com

FOUNDED: 1960

FISCAL YEAR: Dec. 31

REVENUE: $103.6 million

PROFIT: $41.1 million

EARNINGS PER SHARE: $1.15

DIVIDEND: $1.11

STOCKHOLDERS' EQUITY: $253.7 million

RETURN ON EQUITY: 16 percent

STOCK: WRE (NYSE)

ASSETS: $627.0 million

MARKET CAPITALIZATION: $607.1 million

52-WEEK HIGH: $18.75 (12/31/98)

52-WEEK LOW: $15.06 1/4 (10/8/98)

CHAIRMAN: Arthur A. Birney

PRESIDENT: Edmund B. Cronin Jr. (CEO)

EMPLOYEES: 278

LOCAL EMPLOYEES: 278

DESCRIPTION: Washington Real Estate Investment Trust, usually known as WRIT, owns 52 shopping centers, office buildings, apartments and warehouses in the Washington-Baltimore region.

DEVELOPMENTS: WRIT was a rarity among REITs in 1998 -- its investors made money. The company, which has a long record of conservative but profitable operations, posted the second-highest total return among the 173 equity REITs tracked by the industry's trade association. That 18.7 percent return stands in contrast to the negative 17 percent return on stocks of the industry as a whole.

During 1998 the company bought $81.6 million worth of property. But like other REITs, it shifted its focus during the year to selling buildings to raise money not available through Wall Street because of the low prices of most real estate stocks. So far, it has disposed of seven properties for $34.5 million and a gain of $14.9 million. The company plans to reinvest the profit in other property.

WRIT began 1999 by moving its stock listing from the American Stock Exchange, where it had traded since 1971, to the New York Stock Exchange, becoming the first new stock of the year to list on the NYSE.

As with other REITs, investors and analysts usually evaluate WRIT's financial results not by net income but by funds from operations, a measure that takes into account such real estate-related items as depreciation and amortization. In 1998 funds from operations rose to $1.39 per diluted share, up 13 percent from $1.23 in 1997.

89

Transaction Network Services Inc.

1939 Roland Clarke Place

Reston, Va. 20191

703-453-8300

http://www.tnsi.com

FOUNDED: 1990

FISCAL YEAR: Dec. 31

REVENUE: $101.9 million

PROFIT: $6.9 million

EARNINGS PER SHARE: 52 cents

DIVIDEND: None

STOCKHOLDERS' EQUITY: $84.2 million

RETURN ON EQUITY: 10 percent

STOCK: TNSI (Nasdaq)

ASSETS: $174.9 million

MARKET CAPITALIZATION: $186.8 million

52-WEEK HIGH: $33.75 (9/24/98)

52-WEEK LOW: $12 (12/23/98)

PRESIDENT: John J. McDonnell Jr. (CEO)

EMPLOYEES: 200

LOCAL EMPLOYEES: 183

DESCRIPTION: Transaction Network Services operates a worldwide data network that carries information from credit and debit cards to processing centers for confirmation and validation. TNS sells transaction-processing companies a service called Card-Tel that screens transactions for fraudulent card numbers. The company also provides voice and data network services to the financial services industry.

DEVELOPMENTS: TNS acquired AT&T Corp.'s credit card transaction service for $64 million in September, doubling its processing business to about 70 percent of the "dial-up" market, in which merchants connect by phone to computers that approve or block transactions. At the time, the company predicted that the purchase would boost its 1999 earnings by about 50 percent.

In January, TNS acquired Transline Communications Inc. of Kansas City, Kan. The deal effectively doubled the size of TNS's financial services division, which provides data network services to businesses. The purchase also expanded TNS's base of international customers.

In October, GTech Holdings Corp., a Rhode Island lottery services firm, reached a tentative agreement to acquire TNS, but the deal later was called off because GTech could not secure the necessary financing to complete the transaction. Total value of the deal would have been almost $444 million.

90

Axent Technologies Inc.

2400 Research Blvd., Suite 200

Rockville, Md. 20850

301-258-5043

http://www.axent.com

FOUNDED: 1994

FISCAL YEAR: Dec. 31

REVENUE: $101.0 million

PROFIT: $7.7 million

EARNINGS PER SHARE: 30 cents

DIVIDEND: None

STOCKHOLDERS' EQUITY: $134.4 million

RETURN ON EQUITY: 7 percent

STOCK: AXNT (Nasdaq)

ASSETS: $161.3 million

MARKET CAPITALIZATION: $255.7 million

52-WEEK HIGH: $40.50 (1/19/99)

52-WEEK LOW: $7.68 3/4 (4/6/99)

CHAIRMAN: John Becker (CEO)

PRESIDENT: Brett Jackson

EMPLOYEES: 510

LOCAL EMPLOYEES: 112

DESCRIPTION: Axent Technologies makes security software that protects computers from hackers. The company's products include the relatively new World Wide Web security control products called WebDefender and Axcess, and the flagship product, Enterprise Security Manager, which pinpoints an organization's security vulnerabilities.

DEVELOPMENTS: Axent Technologies doubled its work force in the past year and made several acquisitions, strengthening its position as a security software company.

In August, Axent purchased a privately held information security consulting firm, Secure Network Consulting Inc. The acquisition was designed to expand the service Axent can offer corporate clients, by providing consulting services as well as Axent products.

Axent introduced a new version of its Raptor "Next Generation" firewall in October. A firewall works like a door to permit only authorized users into the network. The upgrade allows the firewall to reside at the network's point of contact with the Internet, providing a filter for both Internet and network systems at one just point for a corporation.

Shares of Axent stock lost close to a quarter of their value on March 31, after the company purchased PassGo Technologies, a British company that specializes in network security software for Internet commerce. The reason for the stock plummet may lie in an accounting nuance. Axent bought PassGo to expand its business in Europe and add to the security products Axent offers its customers.

The company also warned of a first-quarter loss in 1999 as companies focus on spending to solve the year 2000 problem, rather than to upgrade computer security systems.

91

Network Solutions Inc.

505 Huntmar Park Dr.

Herndon, Va. 20170

703-742-0400

http://www.networksolutions.com

FOUNDED: 1979

FISCAL YEAR: Dec. 31

REVENUE: $93.7 million

PROFIT: $11.2 million

EARNINGS PER SHARE: 67 cents

DIVIDEND: None

STOCKHOLDERS' EQUITY: $75.1 million

RETURN ON EQUITY: 24 percent

STOCK: NSOL (Nasdaq)

ASSETS: $243.9 million

MARKET CAPITALIZATION: $2.98 billion

52-WEEK HIGH: $153.75 (3/22/99)

52-WEEK LOW: $10.50 (9/1/98)

CHAIRMAN: Michael A. Daniels (interim CEO)

EMPLOYEES: 400

LOCAL EMPLOYEES: 385

DESCRIPTION: Network Solutions assigns Internet "domain" addresses that end in ".com," ".org" and ".net." As of mid-March, the company had more than 4 million active registrations for which it collects $35 each a year. The company also operates the Internet's version of a white pages telephone directory and provides technology consulting services to help businesses set up and operate internal computer networks.

DEVELOPMENTS: Network Solutions is losing its important monopoly this year. Since 1992, the company has had an exclusive contract with the federal government to assign three types of Internet addresses. But a private-sector consortium to which the Clinton administration has transferred Internet oversight responsibilities has decided that starting this month, other companies, including America Online Inc., will be allowed to get into the action.

Despite the new competition, industry analysts believe that Network Solutions is well positioned to retain a large piece of the address business because of its large customer base and its well-known name. The company also has made significant changes to its business -- such as speeding up the time it takes to process a new address -- to ready itself for competition.

In November, the company's chief executive, Gabriel Battista, left to run the long-distance company, Tel-Save.com, whose services AOL offers to its customers.

92

American Mobile

Satellite Corp.

10802 Parkridge Blvd.

Reston, Va. 20191

703-758-6000

http://www.ammobile.com

FOUNDED: 1988

FISCAL YEAR: Dec. 31

REVENUE: $87.2 million

LOSS: $137.9 million

LOSS PER SHARE: $4.52

DIVIDEND: None

STOCKHOLDERS' EQUITY: ($24.4 million)

RETURN ON EQUITY: NA

STOCK: SKYC (Nasdaq)

ASSETS: $489.8 million

MARKET CAPITALIZATION: $447.3 million

52-WEEK HIGH: $14.43 3/4 (4/16/99)

52-WEEK LOW: $3.50 (10/9/98)

CHAIRMAN: Gary M. Parsons

PRESIDENT: Walter V. Purnell Jr. (CEO)

EMPLOYEES: 458

LOCAL EMPLOYEES: 255

DESCRIPTION: American Mobile Satellite provides wireless communications services to about 80,000 customers throughout the United States. The company offers a wireless data communications device similar to pagers but with e-mail capabilities, and also provides a Mobile Messaging Service to give transportation companies the ability to track mobile investments, communicate with drivers and simplify dispatching. American Mobile also owns a geosynchronous satellite that is used for voice and data communications in North America.

DEVELOPMENTS: The most significant feat for the company in the past year was the acquisition of Ardis Telecom and Technologies Inc., a producer of "terrestrial" communication -- or land towers -- from Motorola Inc., for $100 million in stock and cash.

Prior to the acquisition, American Mobile's main focus was communications via satellite. The company acquired Ardis to get a land-based network as well. With Ardis, American Mobile has a broader communications range, and customers are now able to access wireless communications in urban areas as well as more rural areas -- where satellite capabilities work best.

The move to buy Ardis made American Mobile one of the country's largest suppliers of mobile data-service devices, mainly for professionals who are often out of their offices, but need to stay in touch with dispatchers and colleagues.

American Mobile's shares jumped 50 percent in September after the company said it could earn its first profit by year's end, mostly because of the purchase of Ardis.

In November, the company sold its maritime communications capacity, switching its focus specifically to land communications. The sale of the Skycell business, which consists of about 3,000 customers, was made to help pull American Mobile out of consistent losses that threatened the company.

93

LCC International Inc.

7925 Jones Branch Dr.

McLean, Va. 22102

703-873-2000

http://www.lcc.com

FOUNDED: 1983

FISCAL YEAR: Dec. 31

REVENUE: $87.2 million

LOSS: $24.7 million

LOSS PER SHARE: $1.60

DIVIDEND: None

STOCKHOLDERS' EQUITY: $200,000

RETURN ON EQUITY: NA

STOCK: LCCI (Nasdaq)

ASSETS: $84.2 million

MARKET CAPITALIZATION: $58.5 million

52-WEEK HIGH: $23.37 1/2 (5/6/98)

52-WEEK LOW: $2.75 (10/19/98)

CHAIRMAN, PRESIDENT, CEO: Rajendra Singh (interim)

EMPLOYEES: 700

LOCAL EMPLOYEES: 325

DESCRIPTION: LCC International provides services to wireless communications carriers. Those services include network design and the leasing of products and wireless tower sites. Founded in 1983 when the cellular industry was in its infancy, LCC today has relationships with more than 200 wireless systems in more than 40 countries. The company sold its first shares to the public in October 1996.

DEVELOPMENTS: This has been a hard year for LCC. It hired and fired a chief executive and struggled with continued economic turmoil in the Asia Pacific, softness in the U.S. wireless engineering market, and intense competition in the hardware and software products business.

During the year LCC suffered a steep falloff in its core cellular engineering business: As the wireless industry has matured, carriers have moved most of their design needs in-house. LCC's shares have fallen from a high of $23.37 1/2 in May to $4 on Friday.

Company founder and chairman Rajendra Singh stepped in to replace Geoffrey Carroll as chief executive in October, just nine months after Carroll had been tapped to lead the company. Analysts said Singh wanted to take control after watching the company's losses compound during the year. An LCC statement said Singh's "primary focus will be to re-energize the company's traditional business and help achieve the company's operating targets."

In November the company announced it would lay off 100 of its 800 workers, close offices and reduce reliance on outside contractors as part of a plan to trim costs by $20 million.

Since February, LCC has been using investment bank CIBC Oppenheimer & Co. to try to sell its network design software and radio signal-measuring equipment businesses. In addition, the company embraced a new strategy of focusing on buying wireless tower properties, particularly abroad, and leasing tower space to multiple wireless carriers.

94

Deltek Systems Inc.

8280 Greensboro Drive

McLean, Va. 22102

703-734-8606

http://www.deltek.com

FOUNDED: 1983

FISCAL YEAR: Dec. 31

REVENUE: $83.1 million

PROFIT: $11.8 million

EARNINGS PER SHARE: 64 cents

DIVIDEND: None

STOCKHOLDERS' EQUITY: $40.4 million

RETURN ON EQUITY: 46 percent

STOCK: DLTK (Nasdaq)

ASSETS: $65.3 million

MARKET CAPITALIZATION: $160.8 million

52-WEEK HIGH: $25.25 (5/6/98)

52-WEEK LOW: $8.25 (3/19/99)

CHAIRMAN: Donald deLaski

PRESIDENT: Kenneth deLaski (CEO)

EMPLOYEES: 577

LOCAL EMPLOYEES: 445

DESCRIPTION: Deltek sells and supports enterprise software that helps companies and federal agencies manage functions such as billing, payroll, financial reporting, purchasing and other activities.

DEVELOPMENTS: Ken deLaski and his father, Don, founded Deltek 17 years ago. The company went public in 1997.

Last year, Deltek's revenue rose by 44 percent and its earnings by 8.6 percent. The company hired 200 people.

The company acquired two companies last year at a total cost of $1.5 million. In February of 1998 it purchased a sales force automation software company, SalesKit. In May, Deltek acquired Harper and Shuman, which develops project management software for the architectural and engineering industries; it had 3,000 customers at the time of the acquisition.

The company is increasing its international presence. Last year, international sales of its products were virtually nonexistent, but the company has upgraded its flagship product to handle foreign currency. Last year it opened its first international office in the United Kingdom. It has begun marketing to Europe, Australia and the Middle East.

95

United Payors & United Providers Inc.

2275 Research Blvd., Suite 600

Rockville, Md. 20850

301-548-1000

http://www.upup.com

FOUNDED: 1995

FISCAL YEAR: Dec. 31

REVENUE: $78.3 million

PROFIT: $19.6 million

EARNINGS PER SHARE: $1.09

DIVIDEND: None

STOCKHOLDERS' EQUITY: $78.5 million

RETURN ON EQUITY: 34 percent

STOCK: UPUP (Nasdaq)

ASSETS: $115.9 million

MARKET CAPITALIZATION: $377.4 million

52-WEEK HIGH: $29.75 (7/24/98)

52-WEEK LOW: $14 (9/1/98)

CHAIRMAN: Thomas L. Blair (CEO)

PRESIDENT: Edward S. Civera

EMPLOYEES: 480

LOCAL EMPLOYEES: 180

DESCRIPTION: United Payors & United Providers serves as a middleman between health-care payors, including health maintenance organizations and insurance companies, and health-care providers, including doctors and hospitals.

The company provides access to a network of health-care providers who agree to accept discounted payments. UP&UP makes money by claiming a percentage of the price concessions its payor clients receive.

DEVELOPMENTS: In October, UP&UP agreed to acquire Baltimore American Savings Bank, a federal savings bank, and Quantum Financial Holdings Inc., its holding company, for $2.5 million. The company said the deal would help it develop business in financing accounts receivable for hospitals. The acquisition would make UP&UP a savings and loan holding company, subject to oversight by the Office of Thrift Supervision.

In December, UP&UP bought ProAmerica, a Texas-based preferred provider organization, from United HealthCare for $14.3 million, including $2.6 million of assumed liabilities.

As of Dec. 31, UP&UP's provider network included 17,400 medical facilities and 153,000 physicians, up from 14,700 medical facilities and 125,000 physicians a year earlier.

96

GSE Systems Inc.

8930 Stanford Blvd.

Columbia , Md. 21045

410-312-3500

http://www.gses.com

FOUNDED: 1994

FISCAL YEAR: Dec. 31

REVENUE: $73.8 million

PROFIT: $1.4 million

EARNINGS PER SHARE: 27 cents

DIVIDEND: None

STOCKHOLDERS' EQUITY: $17.1 million

RETURN ON EQUITY: 9 percent

STOCK: GVP (Amex)

ASSETS: $48.7 million

MARKET CAPITALIZATION: $22.8 million

52-WEEK HIGH: $5.50 (4/15/98)

52-WEEK LOW: $2.25 (12/8/98)

CHAIRMAN: Jerome I. Feldman

PRESIDENT: Christopher M. Carnavos

EMPLOYEES: 530

LOCAL EMPLOYEES: 370

DESCRIPTION: GSE Systems is a software and computer services company that provides information systems, simulation software and other services to energy and manufacturing companies. Its products are used in a number of industries, including chemicals, food, petroleum refining, pharmaceuticals and metals.

DEVELOPMENTS: The company completed a restructuring program, selling the assets of its GSE Erudite Software Business in May to Keane Inc. and selling the assets of its oil and gas business unit in November to Valmet Automation Inc. The sale of the oil and gas assets caused the company to incur a net loss in the third quarter of $2.2 million. For the full year, the company posted earnings of $1.4 million. The company said it was happy that its core businesses of power simulation and process automation were generating "solid" operating results and growth after losses in the previous year.

In January, the company announced that its stock had been approved to trade on the American Stock Exchange.

97

Halifax Corp.

5250 Cherokee Ave.

Alexandria, Va. 22312

703-750-2202

http://www.hxcorp.com

FOUNDED: 1967

FISCAL YEAR: March 31, 1998

REVENUE: $73.7 million

PROFIT: $440,000

EARNINGS PER SHARE: 22 cents

DIVIDEND: 20 cents

STOCKHOLDERS' EQUITY: $10.6 million

RETURN ON EQUITY: 4 percent

STOCK: HX (Amex)

ASSETS: $38.0 million

MARKET CAPITALIZATION: $15.0 million

52-WEEK HIGH: $11 (1/12/99)

52-WEEK LOW: $5.25 (11/12/98)

CHAIRMAN: Arch C. Scurlock

PRESIDENT: John J. Reis (CEO)

EMPLOYEES: 622

LOCAL EMPLOYEES: 194

DESCRIPTION: Halifax is an information technology company that installs and maintains large computer systems for government agencies and private sector clients. It also provides logistics and engineering services.

DEVELOPMENTS: The big news of the year for Halifax was the retirement of Howard Mills, the company's president and chief executive. Mills, 65, had led the company since 1984. He will continue on Halifax's board and will serve as a consultant to the company.

His successor: John J. Reis, a 30-year industry veteran who most recently was chief executive of NumereX Corp., a communications systems company.

Mills left his post with the company in improved shape. Profitability improved in 1998, largely because of new contracts kicking in, company officials said.

Among the contracts Halifax received during the year were awards in July from the Virginia Department of Transportation and the Virginia Supplemental Retirement System for "seat management," a contracting system that combines hardware, software, installation, maintenance and other computer services into a single package. The company estimated that contracts would produce at least $75 million in revenue over a nine-year period.

98

Saul Centers Inc.

8401 Connecticut Ave.

Chevy Chase, Md. 20815

301-986-6000

No Web site

FOUNDED: 1993

FISCAL YEAR: Dec. 31

REVENUE: $70.6 million

PROFIT: $9.1 million

EARNINGS PER SHARE: 72 cents

DIVIDEND: $1.56

STOCKHOLDERS' EQUITY: ($37.3 million)

RETURN ON EQUITY: NA

STOCK: BFS (NYSE)

ASSETS: $271.0 million

MARKET CAPITALIZATION: $267.4 million

52-WEEK HIGH: $18.75 (4/15/98)

52-WEEK LOW: $14.37 1/2 (2/1/99)

CHAIRMAN: B. Francis Saul II (CEO)

PRESIDENT: Philip D. Caraci

EMPLOYEES: 125

LOCAL EMPLOYEES: 120

DESCRIPTION: Saul Centers, a real estate investment trust, owns and operates 34 shopping center and office developments, mostly in the Washington-Baltimore area.

DEVELOPMENTS: Saul Centers signed two large leases in 1998 that will change the look of two of its shopping centers. In Alexandria, Lowe's Cos. agreed to lease space at Beacon Center. To make way for a big new home improvement center, Saul is gutting about 100,000 square feet of interior mall space and building 48,000 square feet of new space at the 350,000-square-foot center. At its Shops in Fairfax, Saul is demolishing part of the existing mall and building a new facility to make room for a Super Fresh grocery store.

In 1998, Saul made one acquisition, an office building in Gaithersburg it purchased for $5.6 million. In February 1999, the company announced plans to develop a 230,000-square-foot office and retail complex on North Washington Street in downtown Alexandria on two acres formerly occupied by a Mastercraft furniture store.

As with other REITs, investors and analysts usually evaluate Saul's financial results not by net income but by funds from operations, a measure that takes into account such real estate-related items as depreciation and amortization. In 1998, funds from operations rose to $1.73 per diluted share, up 4 percent from $1.66 in 1997.

99

Best Software Inc.

11413 Issac Newton Square

Reston, Va. 20190

703-709-5200

http://www.bestsoftware.com

FOUNDED: 1982

FISCAL YEAR: Dec. 31

REVENUE: $69.3 million

PROFIT: $5.6 million

EARNINGS PER SHARE: 46 cents

DIVIDEND: None

STOCKHOLDERS' EQUITY: $36.2 million

RETURN ON EQUITY: 19 percent

STOCK: BEST (Nasdaq)

ASSETS: $70.6 million

MARKET CAPITALIZATION: $126.6 million

52-WEEK HIGH: $28.50 (11/10/98)

52-WEEK LOW: $9 (4/12/99)

CHAIRMAN: James F. Petersen

PRESIDENT: Timothy A. Davenport (CEO)

EMPLOYEES: 500

LOCAL EMPLOYEES: 251

DESCRIPTION: Best Software makes software to help corporations manage their resources, including their work forces, fixed assets and corporate budgets.

DEVELOPMENTS: Best Software released a line of software called Best! Imperativ this past year and sold it to primarily to corporations with about $100 million or more in annual revenue. One version of the software covers human resource management and another asset accounting.

The firm also released its Best! FAS property tax software that produces local government tax forms for corporations that need to file business property taxes in multiple jurisdictions.

In addition, Best Software opened seven regional sales offices across the country in 1998. It also bought HR Management Software of Duesseldorf, Germany, for $10 million in cash and stock, which gives Best Software a new business entree to German and Austrian markets where HR Management was strong.

100

Dunn Computer Corp.

1306 Squire Ct.

Sterling, Va. 20166

703-450-0400

http://www.dunncomputer.com

FOUNDED: 1987

FISCAL YEAR: Oct. 31

REVENUE: $66.9 million

PROFIT: $980,000

EARNINGS PER SHARE: 14 cents

DIVIDEND: None

STOCKHOLDERS' EQUITY: $38.4 million

RETURN ON EQUITY: 12 percent

STOCK: DNCC (Nasdaq)

ASSETS: $63.0 million

MARKET CAPITALIZATION: $21.4 million

52-WEEK HIGH: $9.93 3/4 (5/6/98)

52-WEEK LOW: $1.93 3/4 (10/13/98)

PRESIDENT: Thomas Dunne (CEO)

EMPLOYEES: 178

LOCAL EMPLOYEES: 154

DESCRIPTION: Dunn Computer makes customized computer systems and offers technical support services. Its customers are primarily government agencies.

DEVELOPMENTS: For the past three years, Dunn Computer's annual sales have increased by an average 76 percent. Profits have increased by an average 133 percent. Last year the company added 63 workers.

In May, Dunn, which had 1997 sales of $22 million, completed the acquisition of International Data Products Corp. of Gaithersburg, a much larger company with 1997 sales of $72 million. The purchase of IDP, which manufactures portable and desktop computers, doubled Dunn's customer base.

Dunn now holds two of the largest information technology contracts for the federal government -- contracts with the Air Force and the Defense Department. Last year, the company formed the Dunn Consulting division in response to customers' requests for services.

Top 100 Companies

Who's on, Who's off

MCI, Giant, Dart, BET. They are some of the companies that helped define the region's identity as a business community. And now they're gone. Maybe you didn't notice because MCI is still your long-distance company; you still shop at Giant; Crown Books is still around if much smaller and you can still watch Black Entertainment Television. In fact, these institutions have left the region only in the sense of how they do business, either being acquired by out of town companies, or in the case of BET, going private.

Departures mean additions too and this year there are 18 new companies joining the list of the 100 largest public companies in the Washington metropolitan area, the highest rate of change in five years.

ON

This year's rank: Company name (How it made the list)

9. Sodexho Marriott Services Inc.

(spun off from Marriott International)

16. Coventry Health Care Inc.

(moved headquarters from Tennessee to Bethesda)

23. USEC Inc. (went public)

27. MeriStar Hotels & Resorts (spun off from CapStar Hotel Co.)

33. Building One Services Corp. (met revenue threshold)

46. MeriStar Hospitality Corp. (created by the merger of CapStar and American General Hospitality.)

63. Global TeleSystems Group Inc. (met revenue threshold)

66. Condor Technology Solutions Inc. (met revenue threshold)

69. Hagler Bailly Inc. (met revenue threshold)

71. Omnipoint Corp. (met revenue threshold)

77. E.spire Communications Inc. (met revenue threshold)

84. RWD Technologies Inc. (met revenue threshold)

87. MicroStrategy (went public)

91. Network Solutions Inc. (met revenue threshold)

92. American Mobile Satellite Corp. (met revenue threshold)

94. Deltek Systems Inc. (met revenue threshold)

99. Best Software Inc. (met revenue threshold)

100. Dunn Computer Corp. (met revenue threshold)

OFF

Last year's rank: Company name (Why it's off)

3. MCI Communications Corp. (acquired by WorldComm, now known as MCI WorldComm Corp.)

9. Giant (acquired by Royal Ahold NV)

18. LCI International Inc. (acquired by Qwest Communications International)

19. Manor Care Inc. (acquired by Health Care & Retirement Corp.)

32. Dart Group Corp. (acquired by Richfood Holdings)

39. Banner Aerospace Inc. (acquired by Fairchild Corp.)

44. CapStar Hotel Co. (merged with American General Hospitality to form Meristar Hospitality Corp.)

56. World Corp Inc. (failed to meet revenue threshold)

65. Intersolv Inc. (acquired by Micro Focus Group PLC)

69. BET Holdings Inc. (went private)

83. EIS International Inc. (failed to meet revenue threshold)

87. QuesTech Inc. (acquired by CACI International Inc.)

89. Coherent Communications Systems Corp. (acquired by Tellabs Inc.)

93. Acsys Inc. (moved headquarters to Atlanta)

95. Spacehab Inc. (failed to meet revenue threshold)

97. Group 1 Software Inc. (failed to meet revenue threshold)

98. Comnet Corp. (merged with Group 1 Software)

99. Strayer Education Inc. (failed to meet revenue threshold)

CAPTION: 1. MOBIL: For perhaps the last time, Mobil tops the list as the largest public company in the Washington area. In December, Exxon Chairman Lee R. Raymond, left, and Mobil Chairman Lucio A. Noto shook hands on an $81 billion deal to create the nation's largest company. The merged company's headquarters would be in Irving, Tex.

CAPTION: 9. SODEXHO MARRIOTT SERVICES: The nation's largest provider of cafeteria services counts the World Bank as one of its clients. With workers from more than 180 nations to feed, the World Bank cafeteria operates seven ethnic food stations,fi/mkup including one where Executive Chef Kimsan Seng ladled up a helping of roast duck and Oriental vegetable soup recently.

CAPTION: 13. AMERICA ONLINE: AOL President Robert Pittman, left, and chief executive Stephen M. Case have engineered a year of acquisitions, alliances and new products for the world's largest online service provider.

CAPTION: 21. NVR: Washington's leading home builder benefited from low interest rates that boosted consumer demand for its homes. NVR's communities include Manorwood in Landover, where prospective buyers checked out the model homes on a recent Saturday afternoon.

CAPTION: USEC chief executive William H. Timbers Jr. oversaw the transition of the world's leading seller of uranium services from a federal corporation to a public company when USEC shares began trading on the New York Stock Exchange in July.

CAPTION: 27. MERISTAR HOTELS & RESORTS: This company, along with its sister (MeriStar Hospitality, No. 46) was formed by the merger last year of CapStar Hotel and American General Hospitality. Among the 216 hotels managed or leased by MeriStar Hotels is the newly refurbished Embassy Row, in the lobby of which Deana LaBarbera, left, and Evelyn Chidsey pore over maps.

CAPTION: 33. BUILDING ONE SERVICES: Chief executive Joseph Ivey's office overlooks many of the buildings that his company takes care of. BOSS provides janitorial, electrical and other services to office buildings and retail chains.

CAPTION: 38. CARRAMERICA REALTY: The company has 3 million square feet of office space under construction nationwide, including this building at 1201 F St. in downtown Washington.

CAPTION: 41. METROCALL: The nation's second largest paging company spent much of the year expanding its customer base through acquisitions and alliances. The architect of that strategy was chief executive William L. Collins III, who met recently with systems operator Hirut Abraha in the Alexandria company's network operations center.

CAPTION: 45. LIFE TECHNOLOGIES: For much of the year, the company was the subject of a bitter battle for control that left stockholders in limbo. But for scientists like Linyi Zhang the work of providing goods and services for the burgeoning biotechnology industry was unaffected by the boardroom fight.

CAPTION: 51. ATLANTIC COAST AIRLINES: Chief executive Kerry B. Skeen presides over Dulles International Airport's most prolific airline. His company's jets, which sport the United Express banner, have more daily departures from Dulles than do those of any other airline.

CAPTION: 54. PSINet: In a bid to boost the name recognition of the Herndon-based Internet service provider, chief executive William L. Schrader paid several million dollars to have its name adorn the new football stadium of the Baltimore Ravens.

CAPTION: 64: ROWE: Gerald M. Birnbach spent much of the year repositioning his company, in part by engineering a number of acquisitions designed to make the chain more upscale. The company also renamed its 14 retail outlets (including this new Gaithersburg store) Home Elements.

CAPTION: 74: STARTEC GLOBAL COMMUNICATIONS: Chief executive Ram Mukunda, right, takes a cell phone call that interrupted a recent meeting with customer service representatives of his company, a long-distance carrier targeting India, Russia, the Philippines and the Middle East.

CAPTION: 87: MICROSTRATEGY: One of the most-watched initial public offerings was that of Michael J. Saylor's MicroStrategy. Here the 34-year-old company founder, left, rides in a limousine with Chief Financial Officer Mark Lynch during the company's "roadshow" -- a nationwide presentation to institutional investors.

CAPTION: 94. DELTEK SYSTEMS INC.: Kenneth deLaski is surrounded by students during a training session at the company's McLean headquarters.