ANDOVER, Mass.--(BUSINESS WIRE)--Jan. 6, 1999--Dynamics Research Corporation (NASDAQ:DRCO - news) today announced it has acquired a 37% equity interest in privately held Electronic Press Services Group, Inc. (EPSG) of Cambridge, Mass., in exchange for an exclusive license to DRC's VisualMagic®, a proprietary, object-oriented software development environment and $$1.3 million in cash. DRC's VisualMagic development staff has transferred to EPSG.

Electronic Press Services Group provides Internet commerce solutions for small- to medium-size merchants, banks, and other customers seeking a competitive advantage by being on-line. EPSG's solutions include turnkey on-line storefronts and transaction processing capabilities highly customized to integrate with existing internal systems and with financial institutions. EPSG was founded in 1994 and has operated independently since it completed a management-led buyout in July 1998.

``This transaction provides us with an excellent opportunity to participate in the rapidly expanding electronic commerce market,'' said Albert Rand, president and chief executive officer of DRC. ``We believe EPSG is a technically savvy outfit that already has a strong customer base in the applications development market for on-line merchants.''

Marco Emrich, president and chief executive officer of EPSG, commented, ``We are extremely enthusiastic about the synergies of this transaction. Our five years of Internet commerce expertise and customer relationships, plus Dynamics Research's unique and powerful application development technology allows us to rapidly deliver customized Internet commerce systems for merchants, merchant banks and publishing companies. We have powerful capabilities for integrating with and enhancing existing systems, and for creating highly expandable systems that can accommodate future growth,'' he added. Information on EPSG is available at www.epsg.com.

The VisualMagic development environment is especially powerful for the design of Internet applications. Because of its instant-design-and-test capability, it successfully enables practical software reuse to a degree hitherto unknown, thus bringing to reality the much sought promise of object-oriented-programming.

Dynamics Research Corporation develops and operates computer and communication-intensive information systems, provides engineering and management support services, and produces precision manufactured components for industrial measurement and control. For more information, visit Dynamics Research Corporation's website at www.drc.com.