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Integral Systems Announces Acquisition of CVG-Avtec
GlobeNewswire
2010-03-05

       Acquisition Expands Company's Portfolio of Solutions,
     Technical Capabilities and Customer Footprint in Critical
                          Growth Markets

COLUMBIA, Md., March 5, 2010 (GLOBE NEWSWIRE) -- Integral Systems,
Inc., (Nasdaq:ISYS) announced today that it has acquired privately held
CVG, Incorporated and its subsidiary, Avtec Systems, Inc. (together,
"CVG-Avtec"). The acquisition further expands the reach of Integral
Systems' award winning product line and customer base within the
Department of Defense (DoD). CVG-Avtec, based in Chantilly, VA, has
approximately 100 employees and will be integrated into Integral
Systems' Products Group as Integral Systems SATCOM Solutions.

Integral Systems will pay an aggregate of $34,675,000 in an all cash
transaction or approximately one times the trailing twelve months
revenue of CVG-Avtec. Additional terms of the transaction are
summarized in the current report on Form 8-K filed today by Integral
Systems with the Securities and Exchange Commission. Concurrent with
this acquisition, Integral Systems will obtain a new $55 million
secured credit facility with three syndicate banks led by Bank of
America, N.A. The acquisition will be financed with a combination of
the Company's existing cash available and borrowings under the new line
of credit.

CVG-Avtec provides secure, satellite-based communication solutions to
government and commercial markets. The company offers integrated ground
systems infrastructure solutions for satellite communications, payload
data processing, simulation and testing for military, intelligence,
government, and commercial programs worldwide.

"CVG-Avtec's world-class products and services are immediately
synergistic with our business model," said Paul Casner, President and
CEO of Integral Systems. "With this acquisition we increase our
footprint in the satellite communications (SATCOM) and unmanned aerial
vehicle (UAV) markets and augment our customer offerings for satellite
ground control and processing. In addition, CVG-Avtec's talented
employees -- many of whom have high-level security clearances --
broaden our in-house system engineering and product development
capabilities."

"CVG-Avtec has an outstanding reputation for delivering cutting-edge
solutions in support of its customers," said Stuart Daughtridge,
Executive Vice President of Integral Systems' Products Group. "As
Integral Systems SATCOM Solutions, CVG-Avtec will continue to provide
the technical and subject area expertise to customers that they have
come to expect. In addition, these customers will benefit from having
access to the full range of solutions offered by the existing Integral
Systems family of companies."

Integral Systems will host a conference call on the acquisition on
March 8, 2010 at 11:00 a.m. EST. The conference call will be webcast
live on Integral Systems' website at: www.integ.com. Interested parties
are invited to participate in this conference call by dialing:
1-877-324-1958.

ABOUT INTEGRAL SYSTEMS

Integral Systems, Inc., of Columbia, MD, applies more than 25 years
experience to provide integrated technology solutions for satellite
communications-interfaced systems. Customers have relied on the
Integral Systems family of companies (Integral Systems, Inc., Integral
Systems Europe, Lumistar, Inc., Newpoint Technologies, Inc., RT Logic,
and SAT Corporation) to deliver on time and on budget for more than 250
satellite missions. Our dedication to customer service has solidified
long-term relationships with the U.S. Air Force, NASA, NOAA, and nearly
every satellite operator in the world. Integral Systems was named the
Region III Prime Contractor of the Year by the U.S. Small Business
Administration in 2009. For more information, visit www.integ.com.

Except for statements of historical facts, this news release contains
forward-looking statements about the Company, including but not
necessarily limited to the Company's expectations about the expected
benefits of the CVG-Avtec acquisition, all of which are based on the
Company's current expectations. There can be no assurance that the
expected benefits of the acquisition will in fact be achieved. The
following factors, among others, could cause actual results to differ
from those set forth in the forward-looking statements: the risk that
the businesses will not be integrated successfully; the risk that
anticipated synergies from the transaction may not be fully realized or
may take longer to realize than expected; the potential loss of
customers, including as a result of organizational conflicts of
interests resulting from the merger or loss of CVG-Avtec's status as a
small business; and those other risks noted in the Company's SEC
filings. The Company assumes no obligation to update or revise any
forward-looking statements appearing in this news release.


CONTACT:  Integral Systems, Inc.
          Kathryn Herr, Vice President, Marketing and Communications
          443.539.5118
          kherr@integ.com

          Zeno Group for Integral Systems
          Media Contact:
          Andrew Miller
          707.386.1193
          andrew.miller@zenogroup.com