Report of Independent Public Accountants

To the Stockholders and Board of Directors of The Titan Corporation:

We have audited the accompanying consolidated balance sheets of The Titan Corporation (a Delaware corporation) and subsidiaries as of December 31, 1995, and 1994, and the related consolidated statements of operations, stockholders' equity and cash flows for each of the three years in the period ended December 31, 1995. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of The Titan Corporation and subsidiaries as of December 31, 1995 and 1994, and the results of their operations and their cash flows for each of the three years in the period ended December 31, 1995 in conformity with generally accepted accounting principles. As explained in Note 5 to the consolidated financial statements, effective January 1, 1993, the Company changed its method of accounting for income taxes.

ARTHUR ANDERSEN LLP

San Diego, California
February 28, 1996

                        First      Second        Third      Fourth        Total
1995                  Quarter     Quarter      Quarter     Quarter(b)      Year
_______________________________________________________________________________ 
Revenues             $ 30,165    $ 34,307     $ 34,983    $ 34,512    $ 133,967
Gross profit            8,464       9,222        7,346       6,704       31,736
Net income (loss)         535         719          470      (5,531)      (3,807)
Net income (loss)      
 per common share         .03         .04          .02        (.41)        (.33)
 	 
                        First      Second        Third      Fourth        Total
1994                  Quarter     Quarter(a)   Quarter     Quarter         Year
_______________________________________________________________________________  
Revenues             $ 39,689    $ 28,804     $ 29,541    $ 38,172    $ 136,206
Gross profit            8,249       7,400        9,382      11,254       36,285
Net income                751       1,773        1,514       1,915        5,953 
Net income per 	 
 common share             .05         .12          .10         .13          .40

(a) Net income in the second quarter of 1994 includes a net restructuring
    credit of $1,200.
(b) Net loss in the fourth quarter of 1995 includes a net restructuring charge
    (see Note 2 of Notes to Consolidated Financial Statements).

The above financial information for each quarter reflects all normal and
recurring adjustments.

Stock Market and Dividend Information

The Company's common stock and preferred stock are traded on
the New York Stock Exchange ("NYSE") and the Chicago Stock
Exchange. As of March 1, 1996, there were approximately 3,475
holders of record of the Company's common stock and 959 holders
of record of the Company's preferred stock, excluding beneficial
owners of shares held in the names of brokers or other nominees.
The closing prices for the common and preferred stock on the
New York Stock Exchange as of March 1, 1996, were $7.00 and $12.38,
respectively. The quarterly market price ranges for the Company's
common and preferred stock on the New York Stock Exchange in
1995 and 1994 were as follows:

Common Stock                       1995                   1994
                      _____________________________________________        
Fiscal Quarter                High       Low          High      Low
First                      $  7.13   $  5.63      $  8.00   $  2.88
Second                        9.38      6.25         6.88      4.75
Third                        10.38      8.50         5.88      4.50
Fourth                        9.63      6.63         6.38      4.50


Preferred Stock                    1995                   1994
                      _____________________________________________         
Fiscal Quarter                High       Low         High       Low
First                      $ 11.88   $ 10.88      $ 13.00   $ 11.00
Second                       12.25     11.63        12.13     11.50
Third                        13.25     11.75        11.63     10.88
Fourth                       12.88     11.88        11.13     10.50

No dividends were paid on the Company's common stock in 1995 
or 1994. Regular quarterly dividends of $.25 per share were paid on
preferred stock in both years.