Titan Announces Spin-off of Internet Software Business to Private Investment Group

SAN DIEGO, CA (May 19, 1997) -- The Titan Corporation (NYSE:TTN) today announced that it has spun off a majority interest in its ServNOW! subsidiary to a group of venture capital investors led by San Diego-based Enterprise Partners in exchange for a $4.2 million investment in the Internet software business. Titan will retain a minority equity interest in the company in exchange for contributed technology and intellectual property.

ServNOW! NetTechnologies, Inc. is a start-up venture based largely on Titan's defense information systems capabilities. The company's product line targets Web-based content management and delivery for information providers, corporate Intranets and Internet service providers.

Commenting on the transaction, Gene W. Ray, Titan President and Chief Executive Officer stated, "We are pleased to announce the spin-off and funding of this exciting new company. Given the rapid growth and growing complexity of Internet usage, ServNOW! is addressing a market opportunity with enormous potential. Having made a minimal initial investment in the business, Titan has determined the interests of our shareholders can be best served by introducing outside capital to fully exploit the potential of this technology.

"ServNOW! is representative of our strategy of leveraging our defense business technology to create new opportunities in the commercial sector," added Ray. Ray cited the licensing of Titan technology to Wave Systems (Nasdaq:WAVX) in exchange for an equity interest and future royalties as an earlier example of a commercial business investment that realized value through a strategic transaction.

Brett Helm will serve as Chief Executive Officer of ServNOW! and John Morris will serve as Chief Technical Officer. Brett Helm brings to ServNOW demonstrated leadership in building three successful businesses -- a tier one Internet service provider, a RBOC "Out of Region" data business and the first successful RBOC network integration business. Most recently, Helm was Vice President and General Manager of the @ Work unit of @ Home corporation. John Morris is currently a Titan employee serving as Senior Technical Architect and "inventor of record" for patents relating to ServNOW!'s core product line.

The Titan Corporation, headquartered in San Diego, California, designs, manufactures and installs high technology information and electronic systems and products for commercial and government clients.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: The statements contained in this release which are not historical facts are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in or implied by forward-looking statements. These risks and uncertainties include the Company's entry into new commercial businesses, reliance on a major software customer, dependence on continued funding of U.S. Department of Defense programs, government contract procurement and termination risks, and other risks described in the Company's Securities and Exchange Commission filings.