McLean, VA - April 29, 2003 - FSI, the nation's preeminent supplier of actionable government-IT market intelligence, today announced the release of its much-anticipated Federal FY2004 IT Budget Analysis Report. Designed specifically as a resource for executives in the midst of planning for FY2004, FSI's Report provides in-depth analysis of the $59.3B 2004 federal IT market and includes comprehensive budget breakdowns and top line items for over 45 civilian and defense agencies.

According to FSI analysis, in fiscal 2003 total government IT spending from its discretionary budget increased by 6.7 percent from $49.8 billion to $58.1 billion. In the fiscal 2004 budget, it will increase 7.2 percent to $59.3 billion.

"This half-percentage-point increase in annual spending growth represents a shift of national priority toward IT," said Jim Kane, FSI's president and CEO. With such strong forces driving the IT market, we expect the growth of the federal technology services market will continue at least for the next two years."

FSI forecasts civilian agencies budgets will grow an impressive 10% in FY2004, led by the Department of Commerce (28%), Treasury (23%) and Transportation (19%). FSI expects the top four defense departments and agencies, Air Force, Navy, Army, and DISA, will represent 84% of the total DoD IT FY2004 budget. Howard Stern, senior vice president at FSI said " The DoD will continue to budget about twice as much to modernization and enhancement of existing systems, versus the development of new systems."

FSI's analysis is based on the President's FY2004 Budget Request, the DoD IT Budget Request Detail, and prior year federal spending. For purchase and further information on FSI's Federal FY2004 IT Budget Analysis Report, visit www.fedsources.com or call Barbara Holland at 1.800.210.6326. Media queries should be directed to Vivian Kelly, 703.860.0577 or viv.kelly@interprosepr.com.

FedSources, a subsidiary of PRIMEDIA Inc., delivers fact-based, government-IT market intelligence to both the largest existing government contractors and new market entrants via online subscription services, tailored consulting and industry-leading events. These programs, underscored by a hands-on approach to client support, enable IT vendors and government organizations to make informed business decisions and experience rapid return on investment. FedSources was founded in 1984 and is headquartered in McLean, Virginia; its Web site is www.fedsources.com.