|                                              |
|----------------------------------------------|
|                                              |  |
| Filed by the Registrant x                    |
| Filed by a Party other than the Registrant o |
| Check the appropriate box:                   |
| o                                            | Preliminary Proxy Statement |
| o                                            | Confidential, for Use of the Commission Only (as permitted by Rule 14a‑6(e)(2)) |
| x                                            | Definitive Proxy Statement |
| o                                            | Definitive Additional Materials |
| o                                            | Soliciting Material under §240.14a‑12 |

|                                                                          |
|--------------------------------------------------------------------------|
|                                                                          |  |  |
| DLH HOLDINGS CORP.                                                       |
| (Name of Registrant as Specified In Its Charter)                         |
| (Name of Person(s) Filing Proxy Statement, if other than the Registrant) |
| Payment of Filing Fee (Check the appropriate box):                       |
| x                                                                        | No fee required. |
| o                                                                        | Fee computed on table below per Exchange Act Rules 14a‑6(i)(1) and 0-11. |
|                                                                     | (1) | Title of each class of securities to which transaction applies: |
|                                                                     | (2) | Aggregate number of securities to which transaction applies: |
|                                                                     | (3) | Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0‑11 (set forth the amount on which the filing fee is calculated and state how it was determined): |
|                                                                     | (4) | Proposed maximum aggregate value of transaction: |
|                                                                     | (5) | Total fee paid: |
| o                                                                        | Fee paid previously with preliminary materials. |
| o                                                                        | Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid previously. Identify the previous filing by registration statement number, or the Form or Schedule and the date of its filing. |
|                                                                     | (1) | Amount Previously Paid: |
|                                                                     | (2) | Form, Schedule or Registration Statement No.: |
|                                                                     | (3) | Filing Party: |
|                                                                     | (4) | Date Filed: |
| SEC 1913 (02-02)                                                    | Persons who are to respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB control number. |

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|                             |
|-----------------------------|
|                             |  |
|                        | By Order of the Board of Directors |
|                        | /s/ VICTOR J. DIGIOIA Victor J. DiGioia, |
| Dated: January 3, 2014 | Secretary |

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|                                                                                                   |
|---------------------------------------------------------------------------------------------------|
|                                                                                                   |  |
|                                                                                              | Page |
| SOLICITATION, VOTING AND REVOCABILITY OF PROXIES                                                  | 1 |
| INTERNET AVAILABILITY OF PROXY MATERIALS                                                          | 1 |
| Quorum                                                                                            | 1 |
| Vote required                                                                                     | 2 |
| Manner of Voting                                                                                  | 2 |
| Revocation of Proxies                                                                             | 3 |
| Solicitation of Proxies                                                                           | 3 |
| Annual Report                                                                                     | 3 |
| Principal Offices                                                                                 | 3 |
| Recommendation of the Board of Directors                                                          | 4 |
| PROPOSAL NO. 1—ELECTION OF DIRECTORS                                                        | 4 |
| Board Structure and Nominees                                                                      | 4 |
| Business Experience of Board of Directors and Nominees                                            | 5 |
| Qualifications of Nominees and Directors                                                          | 6 |
| Business Experience of Executive Officers                                                         | 7 |
| Meetings of the Board of Directors; Independence and Committees                                   | 8 |
| Corporate Governance                                                                              | 9 |
| Code of Ethics and Business Conduct                                                               | 11 |
| Procedures for Determining Executive and Director Compensation                                    | 11 |
| Section 16(a) Beneficial Ownership Reporting Compliance                                      | 12 |
| Director Compensation                                                                             | 13 |
| Report of Audit Committee                                                                         | 14 |
| Vote Required and Board Recommendation                                                            | 14 |
| PROPOSAL NO. 2—ADVISORY VOTE ON EXECUTIVE COMPENSATION                                      | 15 |
| Vote Required and Board Recommendation                                                            | 15 |
| PROPOSAL NO. 3—APPROVAL OF AMENDMENTS TO THE 2006 LONG TERM INCENTIVE PLAN                  | 16 |
| Overview                                                                                          | 16 |
| Purposes of Plan                                                                                  | 16 |
| Description of the 2006 Long Term Incentive Plan                                                  | 17 |
| Effect of Amendment to 2006 Plan                                                                  | 19 |
| Federal Income Tax Implications                                                                   | 20 |
| Registration Under the Securities Act of 1933                                                     | 20 |
| Interest of Certain Persons                                                                       | 20 |
| New Plan Benefits                                                                                 | 21 |
| Vote Required and Board Recommendation                                                            | 21 |
| PROPOSAL NO. 4—RATIFICATION OF APPOINTMENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM | 21 |
| Principal Accountant Fees and Services                                                            | 21 |
| Policy on Audit Committee Pre-Approval of Audit and Permissible Non-Audit Services                | 22 |
| Vote Required and Board Recommendation                                                            | 22 |
| EXECUTIVE COMPENSATION AND RELATED INFORMATION                                                    | 23 |
| Summary Compensation Table                                                                        | 23 |
| Narrative Discussion to Summary Compensation Table                                                | 24 |
| Outstanding Equity Awards at End of Fiscal 2013                                                   | 27 |
| Employment Agreements with Named Executive Officers                                               | 28 |
| Stock Option Plans                                                                                | 32 |
| Equity Compensation Plan Information                                                              | 33 |
| SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT                                    | 34 |
| CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE                          | 36 |
| HOUSEHOLDING OF PROXY MATERIALS                                                                   | 37 |
| SHAREHOLDER PROPOSALS                                                                             | 38 |
| ADDITIONAL INFORMATION                                                                            | 38 |
| OTHER BUSINESS                                                                                    | 39 |

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|    |                                                                                                                   |
|----|-------------------------------------------------------------------------------------------------------------------|
| 1. | FOR the election of the two persons nominated by the Board of Directors to serve as Class III Directors; |

|    |                                                                                                                                                                                   |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 2. | FOR the resolution approving the compensation of the named executive officers, as disclosed in this proxy statement pursuant to the compensation disclosure rules of the SEC; |

|    |                                                                                                                                                                                                                                                 |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3. | FOR  the amendment to the 2006 Long Term Incentive Plan to increase the number of shares of common stock available for issuance under such plan and to make certain other revisions, as described in proposal 3 of the proxy statement; |

|    |                                                                                                                                                                |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 4. | FOR the ratification of WithumSmith+Brown, PC as our independent registered public accounting firm for the fiscal year ending September 30, 2014; and |

|    |                                                                                                                                                                                                                                      |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 5. | FOR such other matters as may be properly brought before the meeting, and any adjournment or postponement thereof, and for which the persons named on the enclosed proxies determine, in their sole discretion to vote in favor. |

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|         |                                                                                                  |
|---------|--------------------------------------------------------------------------------------------------|
| • | FOR the election of the two (2) nominees for Class III Directors (see PROPOSAL 1); |

|         |                                                                                                                                                                                                         |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | FOR the resolution approving the compensation of the named executive officers, as disclosed in this proxy statement pursuant to the compensation disclosure rules of the SEC (see PROPOSAL 2); |

|         |                                                                                                   |
|---------|---------------------------------------------------------------------------------------------------|
| • | FOR the approval of the amendments to the 2006 Long Term Incentive Plan (see PROPOSAL 3); and |

|         |                                                                                                                                                       |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | FOR the ratification of Withum Smith + Brown, PC as our independent registered public accounting firm for fiscal 2014 (see PROPOSAL 4). |

|                    |
|--------------------|
|                    |  |  |  |
| Name               | Position with Company and Age | Director Continuously Since | Current Term Expires |
|               |   |   |   |
|               | CLASS III—NOMINEES |   |   |
| Martin J. Delaney  | Director, 70 | 1998 | 2014 |
| Zachary C. Parker  | Director, President and Chief Executive Officer, 56 | 2010 | 2014 |
|               |   |   |   |
|               | CLASS I |   |   |
| T. Stephen Johnson | Director, 62 | 2001 | 2015 |
| Peter Black        | Director, 41 | 2005 | 2015 |

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|                        |
|------------------------|
|                        |  |  |  |
|                   | CLASS II |   |   |
| Frederick G. Wasserman | Chairman of the Board, 59 | 2007 | 2016 |
| William H. Alderman    | Director, 51 | 2007 | 2016 |
| Austin J. Yerks III    | Director 67 | 2012 | 2016 |

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|                        |
|------------------------|
|                        |  |
| Directors and Nominees | Relevant Experience and Qualifications |
| William H. Alderman    | Approximately twenty years of experience in corporate development and investment banking in the aerospace and defense industry, which are businesses that encompass significant government contracting expertise. Possesses a breadth of knowledge about our business as a result of service on our Board since 2007. |
| Peter Black            | Significant business and financial experience and background in investment banking derived from experience with Wynnefield Capital, Inc. and prior employers in the investment banking industry. From his investment banking experience, Mr. Black provides the Board with meaningful guidance in creating shareholder value. Possesses a breadth of knowledge about our business as a result of service on our Board since 2005. |
| Martin J. Delaney      | Extensive experience as an executive in the healthcare industry with over 35 years of management positions in various capacities in healthcare businesses, including service as chief executive of a hospital. From his education and training as an attorney, Mr. Delaney provides the Board with a valuable perspective in considering various matters affecting the Company. Possesses a breadth of knowledge about our business as a result of service on our Board since 1998 and service as senior vice president during 2005. |

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|                        |
|------------------------|
|                        |  |
| T. Stephen Johnson     | Significant business and financial experience derived from approximately twenty five years of experience in the banking and financial services industries. From his banking experience, Mr. Johnson provides us with specific insights in considering matters concerning the capital markets. Possesses a breadth of knowledge about our business as a result of service on our Board since 2001. |
| Zachary C. Parker      | Mr. Parker is our President and Chief Executive Officer and has extensive executive experience in the government services industry. As a result of his position as our President and Chief Executive Officer, he has a deep understanding of our operations and strategy and his prior executive experience provides him with significant knowledge of the government services industry. |
| Frederick G. Wasserman | Significant business, accounting and financial experience arising from service as Chief Financial Officer and executive officer of Mitchell & Ness Nostalgia Co., Goebel of North American and Papel Giftware as well as 13 years of experience in the public accounting profession. From his experience serving on the board of numerous companies, including Allied Defense Group, Inc., a government contractor, Mr. Wasserman provides the Company with meaningful management and corporate governance expertise. Possesses a breadth of knowledge about our business as a result of service on our Board since 2007. |
| Austin J. Yerks III    | Mr. Yerks possesses extensive experience in the government services industry, having served as an senior executive of Computer Sciences Corp. for approximately 12 years and a combined three decade career in the federal marketplace. Mr. Yerks is a current or former board member of a number of trade associations that support the government services market and also served for 10 years in the U.S. Army. Through his experience, Mr. Yerks possesses significant expertise about the markets in which we compete and as a board member will be able to provide us with the benefits of such knowledge. |

|                     |
|---------------------|
|                     |  |  |
| Name                | Age | Positions |
| Zachary C. Parker   | 56 | President, Chief Executive Officer and Director |
| Kathryn M. JohnBull | 54 | Chief Financial Officer |
| John F. Armstrong   | 64 | Executive Vice President |
| Kevin Wilson        | 48 | President, DLH Solutions, Inc. |

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|         |                                                                                                  |
|---------|--------------------------------------------------------------------------------------------------|
| • | Nominees shall have a reputation for integrity, honesty and adherence to high ethical standards. |

|         |                                                                                                                                                                                                                                                                            |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Nominees should have demonstrated business acumen, experience and the ability to exercise sound judgment in matters that relate to current and long term objectives of the Company and should be willing and able to contribute positively to our decision making process. |

|         |                                                                                                                                                                     |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Nominees should have a commitment to understand the Company and its industries and to regularly attend and participate in meetings of the Board and its committees. |

|         |                                                                                                                                                                                                                                                                                                        |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Nominees should have the interest and ability to understand the sometimes conflicting interests of the various constituencies of the Company, which include shareholders, employees, customers, governmental units, creditors and the general public, and to act in the interests of all shareholders. |

|         |                                                                                                                                                                                                                                          |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Nominees should not have, nor appear to have, a conflict of interest that would impair the nominees’ ability to represent the interests of all the Company’s shareholders and to fulfill the responsibilities of a director. |

|         |                                                                                                                                                               |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Nominees shall not be discriminated against on the basis of race, religion, national origin, sex, disability or any other basis proscribed by applicable law. |

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|         |                                                                     |
|---------|---------------------------------------------------------------------|
| • | The annual director fee for our non-executive directors is $20,000; |

|         |                                                                    |
|---------|--------------------------------------------------------------------|
| • | The Chairman of Board shall receive an additional $7,000 per year; |

|         |                                                                                                                                                                                                                                                                       |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | The Chairman of the Audit Committee shall receive an additional $3,500 per year and the Chairman of the Management Resources and Compensation Committee and Chairman of the Nominating and Corporate Governance Committee each receive an additional $2,500 per year; |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | At a meeting of the Board held in November 2013, the Board approved a recommendation of the Management Resources and Compensation Committee to increase the number of shares of restricted common stock to be granted to each non-executive director from 7,500 shares to 10,000 shares. In addition, each non-executive director shall be eligible for an additional annual grant of 1,250 shares of restricted stock for each committee membership held by a non-executive director under the Company’s 2006 Long Term Incentive Plan, and our Board approved a recommendation of the Management Resources and Compensation Committee to grant the Chairman of the Board an additional annual grant of 2,500 shares of restricted stock. These shares are fully vested on the date of grant, unless otherwise determined by the Management Resources and Compensation Committee; |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Accordingly, for fiscal 2013, the Board of Directors approved, in November 2013, (i) an annual grant of 10,000 shares of restricted common stock pursuant to the Company’s 2006 Long Term Incentive Policy, (ii) for the  Chairman of the Board, an additional annual grant of 2,500 shares of restricted stock, and (iii) for each non-executive director, an additional annual grant of 1,250 shares of restricted stock for each committee membership held under the Company’s 2006 Long Term Incentive Plan; and |

|         |                                                                                                            |
|---------|------------------------------------------------------------------------------------------------------------|
| • | Reasonable and customary expenses incurred in attending the Board and committee meetings are reimbursable. |

|                        |
|------------------------|
|                        |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Name                   | Fees Earned or Paid in Cash ($) | Stock Awards ($)(1)(2) | Option Awards ($) | Non-Equity Incentive Plan Compensation ($) | Change in Pension Value and Nonqualified Deferred Compensation Earnings ($) | All Other Compensation ($) | Total ($) |
| William H. Alderman    |  | $20,000 |  |  | $11,588 |  | $— | $— | $— | $— |  | $31,588 |  |
| Peter Black            |  | $22,500 |  |  | $10,300 |  | $— | $— | $— | $— |  | $32,800 |  |
| Martin J. Delaney      |  | $26,000 |  |  | $11,588 |  | $— | $— | $— | $— |  | $37,588 |  |
| T. Stephen Johnson     |  | $20,000 |  |  | $11,588 |  | $— | $— | $— | $— |  | $31,588 |  |
| Frederick G. Wasserman |  | $27,000 |  |  | $9,013 |  | $— | $— | $— | $— |  | $36,013 |  |
| Austin J. Yerks III    |  | $16,889 |  | $— |  | $— | $— | $— | $— |  | $16,889 |  |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (1) | On November 15, 2012, we granted an aggregate of 52,500 shares of restricted stock to our non-executive directors as follows: Mr. Johnson—11,250 shares; Mr. Alderman—11,250 shares; Mr. Black—10,000 shares; Mr. Delaney—11,250 shares; and Mr. Wasserman—8,750 shares. The closing price of our common stock on such date was $1.03. “Stock Awards” reflect the portion of restricted stock grants awarded to non-employee directors under the Company’s 2006 Long Term Incentive Plan that was recognized by the Company as a compensation expense in fiscal year 2012 in accordance with FASB Accounting Standards Codification Topic 718: Compensation—Stock Compensation. The grant date fair value per share is the closing price for the Company’s stock on the grant date. A discussion of the methods used to calculate these values may be found in the Notes to Consolidated Financial Statements contained in our Annual Report on Form 10-K for the year ended September 30, 2013. |

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|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | Excludes restricted stock awards granted to our non-executive directors on November 26, 2013. On such date, we granted a total of 80,000 shares of restricted stock to our non-executive directors as follows: Mr. Johnson—13,750 shares; Mr. Alderman—13,750 shares; Mr. Black—12,500 shares; Mr. Delaney—13,750 shares; Mr. Wasserman—13,750 shares; and Mr. Yerks—12,500 shares. As of September 30, 2013, the outstanding number of restricted stock awards for our current non-employee directors was: Mr. Alderman—56,875; Mr. Black—60,000; Mr. Delaney—58,750; Mr. Johnson—43,750; Mr. Wasserman—58,125; and Mr. Yerks—12,500.  Within this amount, at the end of the September 30, 2013 fiscal year, Messrs. Alderman and Wasserman each held 8,126 unvested restricted stock awards and Messrs. Black, Delaney and Johnson each held 8,750 unvested restricted stock awards. |

|         |                                                                                                                                            |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------|
| • | Reviewed and discussed the audited financial statements with DLH’s management and its independent registered public accounting firm; |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Reviewed with the Company’s independent registered public accounting firm, who are responsible for expressing an opinion on the conformity of those audited financial statements in accordance with accounting principles generally accepted in the United States of America, their judgments as to the Company’s accounting principles and such other matters as are required to be discussed with the Audit Committee under Statement on Auditing Standards No. 61, “Communications with Audit Committees”, as amended (AICPA, Professional Standards, Vol. 1. AU Section 380), as adopted by the Public Company Accounting Oversight Board (“PCAOB”) in Rule 3200T; |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Discussed with the independent registered public accounting firm their independence from management and the Company and received from the independent registered public accountants the written disclosures and letter required by applicable requirements of the Public Company Accounting Oversight Board regarding the independent accountant’s communications with the Audit Committee concerning independence, discussed with the independent registered public accounting firm any relationships that may impact their objectivity and independence, and satisfied itself as to the registered public accounting firm’s independence; |

|         |                                                                                                                                                                                                                                                                                      |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Discussed with management and the independent registered public accountants the quality and adequacy of the Company’s internal controls and reviewed with the independent registered public accountants, their audit plans, audit scope and identification of audit risks; and |

|         |                                                                                                                                                                                                                                                                     |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Recommended to the Board of Directors of DLH, on the basis of the foregoing statements, that the audited financial statements be included in DLH’s Annual Report on Form 10-K for the fiscal year ended September 30, 2013 for filing with the SEC. |

|        |
|--------|
|        |  |
|   | The Audit Committee: |
|   | Martin J. Delaney, Chair, Frederick Wasserman, Peter Black and Austin J. Yerks III |

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----

|         |
|---------|
|         |  |  |
| • |   | options to acquire shares of our common stock intended to qualify as incentive stock options, or ISOs, under Section 422(b) of the Code; |
|    |   |   |
| • |   | non-qualified stock options to acquire shares of our common stock, or NSOs; |
|    |   |   |
| • |   | shares of restricted common stock; |
|    |   |   |
| • |   | stock appreciation rights; |
|    |   |   |
| • |   | performance-based awards; and |
|    |   |   |
| • |   | other equity-linked awards. |

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|         |
|---------|
|         |  |  |
| • |   | Vesting and Exercisability:  Options become vested and exercisable, as applicable, within such periods, or upon such events, as determined by the Committee and as set forth in the related stock option agreement. The maximum term of each option is ten years from the date of grant. |
|    |   |   |
| • |   | Exercise Price:  Each stock option agreement states the exercise price, which may not be less than 100% of the fair market value of one share of our common stock on the date of the grant (and not less than 110% with respect to an ISO granted to a 10% or greater shareholder). |
|    |   |   |
| • |   | Method of Exercise:  The exercise price is generally payable in cash, check, surrender of pre-owned shares of common stock, broker-dealer exercise and sale, or by such other means determined by the Committee. |
|    |   |   |
| • |   | Termination of Employment:  Options cease vesting on the date of termination of service or the death or disability of the participant. Options granted under the 2006 Plan generally expire 3 months after the termination of the participant's service to the Company, except in the case of death or disability, in which case the awards generally may be exercised up to 12 months following the date of death or termination of service. However, if the participant is terminated for cause (e.g. for committing an alleged criminal act or intentional tort against us), the participant's options will expire upon termination. |
|    |   |   |
| • |   | Change of Control:  The 2006 Plan provides that unless otherwise determined by the Committee, in the event a participant's employment is terminated other than for cause during the 24-month period following a change in control (as defined in the 2006 Plan), any option held by such participant may thereafter be exercised to the extent it was exercisable at the time of such termination of service until the earlier of (i) the latest of (A) the second anniversary of such date of termination or (B) such other date as may be provided for by the Committee, or (ii) the expiration of the stated term of such option. |

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|                                                 |
|-------------------------------------------------|
|                                                 |  |  |  |  |  |  |  |
| Name and Position                               |   | Number of Shares of Common Stock Underlying Options Granted |   | Number of Shares of Common Stock Underlying Restricted Stock Granted |
| Named Executive Officers:                       |   |   |   |   |   |
|                                            | Zachary C. Parker, Chief Executive Officer |   |   | 350,000 |  |   | — |
|                                            | Kathryn M. JohnBull, Chief Financial Officer |   |   | 75,000 |  |   | — |
|                                            | John F. Armstrong, Executive Vice President |   |   | 150,000 |  |   | — |
|                                            | Kevin Wilson, President, DLH Solutions, Inc. |   |   | 175,000 |  |   | — |
| All current named executive officers as a group |   |   | 750,000 |  |   | — |
| All current non-employee directors as a group   |   |   | — |  |   | 132,500 |
| All non-executive officer employees as a group  |   |   | 105,000 |  |   | — |

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|                             |
|-----------------------------|
|                             |  |  |  |  |  |  |
|                        | Year Ended September 30, |
|                        | 2013 | 2012 |
| Audit Fees(1)               | $ | 165,000 |  |  | $162,000 |  |
| Audit‑Related Fees(2) | 15,500 |  | 43,000 |  |
| Tax Fees(3)                 | 31,500 |  | 63,000 |  |
| All Other Fees(4)           | — |  | — |  |
| Total                       | $ | 212,000 |  |  | $268,000 |  |

|     |                                                                                                                                                                                                                                                                                                                                                                                           |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (1) | “Audit Fees” consist of fees for professional services rendered for the audit of the Company’s annual financial statements, review of the interim financial statements included in quarterly reports, and services that are normally provided by the Company’s independent registered public accounting firm in connection with statutory and regulatory filings. |

|     |                                                                                                                                                                                                                                                                        |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | “Audit‑Related Fees” consist of fees for services that are traditionally performed by the independent registered public accounting firm, including fees billed or accrued primarily for employee benefit plan audits and other attestation services. |

|     |                                                                                                                            |
|-----|----------------------------------------------------------------------------------------------------------------------------|
| (3) | “Tax Fees” consist of fees for professional services rendered for tax compliance, tax advice and tax planning. |

|     |                                                                                                                                                                                                                        |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (4) | “All Other Fees” consist of fees for those services not captured in the audit, audit‑related and tax categories. The Company generally does not request such services from the independent auditors. |

----

|                                        |
|----------------------------------------|
|                                        |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Name and Principal Position            | Year | Salary ($)(1) | Bonus ($)(2) | Stock Awards ($)(3) | Stock Option Awards ($) (4) | Non-Equity Incentive Plan Compensation ($)(5) | All Other Compensation ($) (6) | Total ($) |
| Zachary C. Parker,                     | 2013 |  | $288,000 |  | — | — |  | $54,186 |  |  | $191,814 |  |  | $3,133 |  |  | $537,133 |  |
| President and Chief Executive Officer  | 2012 |  | $288,000 |  | — | — |  | $40,776 |  | — |  |  | $5,120 |  |  | $333,896 |  |
|                                   |   |   |   |   |   |   |   |   |
| Kathryn M. JohnBull,                   | 2013 |  | $225,000 |  | — | — |  | $34,767 |  |  | $107,039 |  |  | $2,846 |  |  | $369,652 |  |
| Chief Financial Officer(7)             | 2012 |  | $60,577 |  | 31,000 (8) | — |  | $53,178 |  | — |  |  | $891 |  |  | $145,646 |  |
|                                   |   |   |   |   |   |   |   |   |
| John F. Armstrong,                     | 2013 |  | $215,000 |  | — | — |  | $14,208 |  |  | $102,282 |  |  | $3,659 |  |  | $335,149 |  |
| Executive Vice President               | 2012 |  | $215,000 |  | — | — |  | $14,212 |  | — |  |  | $5,644 |  |  | $234,856 |  |
|                                   |   |   |   |   |   |   |   |   |
| Kevin Wilson,                          | 2013 |  | $200,000 |  | — | — |  | $36,821 |  |  | $95,146 |  |  | $22,129 |  |  | $354,096 |  |
| President, DLH Solutions, Inc.(9) | 2012 |  | $200,000 |  | — | — |  | $36,821 |  | — |  |  | $18,860 |  |  | $255,680 |  |

|     |                                                                                                                        |
|-----|------------------------------------------------------------------------------------------------------------------------|
| (1) | “Salary” is comprised of the cash salary paid to the named executive officers during fiscal 2013 and 2012. |

|     |                                                                                                                                                                                                                                                                                 |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | “Bonus” is comprised of cash awards made to the named executive officers in the discretion of the Company’s Board of Directors as recommended by the Management Resources and Compensation Committee, subject to certain performance and EBITDA requirements. |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (3) | “Stock Awards” reflect the portion of restricted stock grants awarded to named executive officers under the Company’s 2006 Long Term Incentive Plan that was recognized by the Company as a compensation expense in fiscal year 2013 and 2012 in accordance with FASB Accounting Standards Codification Topic 718: Compensation—Stock Compensation, and thus may include amounts from awards granted in and prior to 2012. A discussion of the methods used to calculate these values may be found in the Notes to Consolidated Financial Statements contained in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2013. |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (4) | Reflects the dollar amount recognized for financial statement reporting purposes for the fiscal year ended September 30, 2013computed in accordance with FASB Accounting Standards Codification Topic 718: Compensation—Stock Compensation, and thus may include amounts from awards granted in and prior to 2013. A discussion of the methods used to calculate these values may be found in the Notes to Consolidated Financial Statements contained in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2013. |

|     |                                                                                                                        |
|-----|------------------------------------------------------------------------------------------------------------------------|
| (5) | The amounts represent the cash performance bonuses awarded to the named executive officers, which are discussed below. |

|     |                                                                                                                                                                                                                                                                           |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (6) | “All Other Compensation” consists of compensation received from employer matching contributions to the Company’s 401(k) Plan, long term disability insurance premiums and life insurance premiums paid by the Company for each named executive officer. |

|     |                                                                                                    |
|-----|----------------------------------------------------------------------------------------------------|
| (7) | Ms. JohnBull was appointed as our Chief Financial Officer effective as of June 25, 2012. |

|     |                                                                                                                                                      |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------|
| (8) | Under her employment agreement with the Company, Ms. JohnBull was entitled to a guaranteed bonus of $31,000 for her initial year of employment. |

|     |                                                                                                                                                                                 |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (9) | Amounts reported under “All Other Compensation” include $17,500 for accrued but unused vacation time and premium payments on long-term disability insurance policy. |

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|                                       |
|---------------------------------------|
|                                       |  |  |  |
| Name and Position           |   | FY End 2013 Cash Bonus |
| Zachary C. Parker                     |   | $ | 191,814 |
| Chief Executive Officer and President |   |   |
|                                  |   |   |
| Kathryn M. JohnBull                   |   | $ | 107,039 |
| Chief Financial Officer               |   |   |
|                                  |   |   |
| John F. Armstrong                     |   | $ | 102,282 |
| Executive Vice President              |   |   |
|                                  |   |   |
| Kevin Wilson                          |   | $ | 95,146 |
| President, DLH Solutions, Inc.        |   |   |

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|                          |
|--------------------------|
|                          |  |  |  |
|                     |   | Stock Option |   |
| Name and Title |   | Grant |   |
|                     |   |   |   |
| Zachary C. Parker        |   | 100,000 |   |
|                     |   |   |   |
| Kathryn M. JohnBull      |   | 75,000 |   |
|                     |   |   |   |
| John F. Armstrong        |   | 75,000 |   |
|                     |   |   |   |
| Kevin Wilson             |   | 75,000 |   |

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|                     |
|---------------------|
|                     |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                | Option Awards | Stock Awards |
| (a) Name            | (b) Number of Securities Underlying Unexercised Options (#) Exercisable | (c) Number of Securities Underlying Unexercised Options (#) Unexercisable | (d) Option Exercise Price ($) | (e) Option Expiration Date | (f) Number of Shares or Units of Stock That Have Not Vested (#) | (g) Market Value of Shares or Units of Stock That Have Not Vested ($) | (h) Equity Incentive Plan Awards: Number of Unearned Shares, Units or Other Rights That Have Not Vested (#) | (i) Equity Incentive Plan Awards: Market or Payout Value of Unearned Shares, Units or Other Rights That Have Not Vested ($) |
| Zachary Parker      | 50,000 | 450,000 (1) |  |  | $1.03 |  | 2/9/20 | — |  | — |  | — |  | — |  |
|                | 75,000 | — |  |  | $1.81 |  | 8/18/21 | — |  | — |  | — |  | — |  |
|                | 0 | 250,000 (5) |  |  | $0.95 |  | 11/21/22 | — |  | — |  | — |  | — |  |
|                |   |   |   |   |   |   |   |   |
| Kathryn M. JohnBull | 50,000 | 200,000 (2) |  |  | $1.34 |  | 6/25/22 | — |  | — |  | — |  | — |  |
|                |   |   |   |   |   |   |   |   |
| John Armstrong      | 50,000 | 200,000 (3) |  |  | $0.56 |  | 12/1/20 | — |  | — |  | — |  | — |  |
|                | 50,000 | — |  |  | $1.81 |  | 8/18/21 | — |  | — |  | — |  | — |  |
|                |   |   |   |   |   |   |   |   |
| Kevin Wilson        | 50,000 | 100,000 (4) |  |  | $1.66 |  | 9/28/21 | — |  | — |  | — |  | — |  |
|                | 37,500 | — |  |  | $1.81 |  | 8/18/21 | — |  | — |  | — |  | — |  |

|     |                                                                                                                                  |
|-----|----------------------------------------------------------------------------------------------------------------------------------|
| (1) | Grant of options pursuant to employment agreement entered into between the Company and Mr. Parker on February 9, 2010. |

|     |                                                                                                                                 |
|-----|---------------------------------------------------------------------------------------------------------------------------------|
| (2) | Grant of options pursuant to employment agreement entered into between the Company and Ms. JohnBull on June 25, 2012. |

|     |                                                                                                                               |
|-----|-------------------------------------------------------------------------------------------------------------------------------|
| (3) | Grant of options pursuant to Mr. Armstrong’s commencement of employment with the Company on December 1, 2010. |

|     |                                                                                                                                    |
|-----|------------------------------------------------------------------------------------------------------------------------------------|
| (4) | Grant of options pursuant to employment agreement entered into between the Company and Mr. Wilson on September 28, 2011. |

|     |                                                                                                                                                                                  |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (5) | Represents grant of options pursuant to an amendment to Mr. Parker’s employment agreement with us, entered into as of November 21, 2012.     |

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|        |
|--------|
|        |  |  |  |
|   | • |   | termination without cause, or constructive (“good reason”) termination (including upon the occurrence of a change in control of a company); |
|   | • |   | termination for cause; |
|   | • |   | upon an executive’s disability; or |
|   | • |   | upon an executive’s disability; or |

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|                                                             |
|-------------------------------------------------------------|
|                                                             |  |  |  |  |  |  |
| Equity Compensation Plan Information                        |
| Plan Category                                               | (a) Number of Securities to be issued upon exercise of outstanding options, warrants and rights | (b) Weighted Average exercise price of outstanding options, warrants and rights (or fair value at date of grant) | (c) Number of securities remaining available for future issuances under equity compensation plans (excluding securities reflected in column (a)) |
| Equity Compensation Plans Approved by Security Holders:     |   |   |   |
| 2006 Long Term Incentive Plan                               | 1,612,500 |  | $1.19 |  | 777,347 |  |
| Equity Compensation Plans Not Approved by Security Holders: | 20,000 (1) |  | $2.28 |  | — |  |

|     |                                                                       |
|-----|-----------------------------------------------------------------------|
| (1) | Consists of warrants to purchase common stock issued to a consultant. |

|                                                                         |
|-------------------------------------------------------------------------|
|                                                                         |  |  |  |
| Name                                                                    | Number of Shares Currently Owned(1) | Percent of Outstanding Stock |
| William H. Alderman(2)                                                  | 108,053 | 1.1 | % |
| c/o DLH Holding Corp.   1776 Peachtree Street, N.W.   Atlanta, GA 30309 |   |   |
| Peter Black(3)(13)                                                      | 192,876 | 2.0 | % |
| c/o DLH Holding Corp.   1776 Peachtree Street, N.W.   Atlanta, GA 30309 |   |   |
| Martin J. Delaney(4)                                                    | 162,010 | 1.7 | % |
| c/o DLH Holding Corp.   1776 Peachtree Street, N.W.   Atlanta, GA 30309 |   |   |
| Zachary C. Parker(5)                                                    | 1,003,162 | 9.6 | % |
| c/o DLH Holding Corp.   1776 Peachtree Street, N.W.   Atlanta, GA 30309 |   |   |
| T. Stephen Johnson(6)                                                   | 45,054 | * |  |
| c/o DLH Holding Corp.   1776 Peachtree Street, N.W.   Atlanta, GA 30309 |   |   |
| Frederick G. Wasserman(7)                                               | 128,062 | 1.3 | % |
| c/o DLH Holding Corp.   1776 Peachtree Street, N.W.   Atlanta, GA 30309 |   |   |
| Austin J. Yerks III                                                     | 12,500 | * |  |
| c/o DLH Holding Corp.   1776 Peachtree Street, N.W.   Atlanta, GA 30309 |   |   |
| Kathryn M. JohnBull(8)                                                  | 337,500 | 3.4 | % |

----

|                                                                         |
|-------------------------------------------------------------------------|
|                                                                         |  |  |  |
| c/o DLH Holding Corp.   1776 Peachtree Street, N.W.   Atlanta, GA 30309 |   |   |
| John F. Armstrong(9)                                                    | 433,712 | 4.3 | % |
| c/o DLH Holding Corp.   1776 Peachtree Street, N.W.   Atlanta, GA 30309 |   |   |
| Kevin Wilson(10)                                                        | 386,020 | 3.9 | % |
| c/o DLH Holding Corp.   1776 Peachtree Street, N.W.   Atlanta, GA 30309 |   |   |
| Bernard J. Korman(11)                                                   | 729,146 | 7.6 | % |
| 2129 Chestnut Street   Philadelphia, PA 19103                           |   |   |
| Wynnefield Partners Small Cap Value LP(12)(13)                     | 1,174,050 | 12.2 | % |
| 450 Seventh Ave   New York, NY 10123                                    |   |   |
| Wynnefield Partners Small Cap Value LP I(12)(14)              | 2,103,767 | 21.9 | % |
| 450 Seventh Ave   New York, NY 10123                                    |   |   |
| Wynnefield Partners Small Cap Value Offshore Fund, Ltd.(12)(15)    | 965,153 | 10.0 | % |
| 450 Seventh Ave   New York, NY 10123                                    |   |   |
| Wynnefield Capital Profit Sharing Plan(12)(16)                          | 141,806 | 1.5 | % |
| 450 Seventh Ave   New York NY 10123                                     |   |   |
| All officers and directors as a group                                   | 2,808,949 | 24.6 | % |
| (10) persons(2)(3)(4)(5)(6)(7)(8)(9)(10)                           |   |   |

|   |                           |
|---|---------------------------|
| * | Less than 1 percent. |

|     |                                                                                   |
|-----|-----------------------------------------------------------------------------------|
| (1) | Ownership consists of sole voting and investment power except as otherwise noted. |

|     |                                                                                                                                                                                                               |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | Includes 4,063 unvested shares of restricted stock which may vest within 60 days. Excludes 4,063 shares of restricted stock which are unvested and which are subject to additional vesting requirements. |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (3) | Includes 4,375 unvested shares of restricted stock which may vest within 60 days. Excludes 4,375 shares of restricted stock which are unvested and which are subject to additional vesting requirements. Mr. Black is a member of the Company’s Board of Directors and is an Investment Analyst and Portfolio Manager at Wynnefield Capital, Inc. Mr. Black expressly disclaims beneficial ownership of the securities owned by Wynnefield Capital and its affiliates. |

|     |                                                                                                                                                                                                               |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (4) | Includes 4,375 unvested shares of restricted stock which may vest within 60 days. Excludes 4,375 shares of restricted stock which are unvested and which are subject to additional vesting requirements. |

|     |                                                                                                                                                                                                                                                                                       |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (5) | Includes vested options to purchase 125,000 shares of common stock and 750,000 options which are subject to vesting requirements. Excludes options to purchase 50,000 shares of common stock which are subject to vesting requirements and which may not be satisfied within 60 days. |

|     |                                                                                                                                                                                                               |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (6) | Includes 4,375 unvested shares of restricted stock which may vest within 60 days. Excludes 4,375 shares of restricted stock which are unvested and which are subject to additional vesting requirements. |

|     |                                                                                                                                                                                                               |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (7) | Includes 4,063 unvested shares of restricted stock which may vest within 60 days. Excludes 4,063 shares of restricted stock which are unvested and which are subject to additional vesting requirements. |

|     |                                                                                                                                                                                                                                                                                      |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (8) | Includes vested options to purchase 50,000 shares of common stock and 237,500 options which are subject to vesting requirements. Excludes options to purchase 37,500 shares of common stock which are subject to vesting requirements and which may not be satisfied within 60 days. |

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|     |                                                                                                                                                                                                                                                                                       |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (9) | Includes vested options to purchase 100,000 shares of common stock and 275,000 options which are subject to vesting requirements. Excludes options to purchase 75,000 shares of common stock which are subject to vesting requirements and which may not be satisfied within 60 days. |

|      |                                                                                                                                                                                                                                                                                       |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (10) | Includes vested options to purchase 137,500 shares of common stock and 137,500 options which are subject to vesting requirements. Excludes options to purchase 87,500 shares of common stock which are subject to vesting requirements and which may not be satisfied within 60 days. |

|      |                                                                        |
|------|------------------------------------------------------------------------|
| (11) | Beneficial ownership is based on Schedule 13D filed with the SEC. |

|      |                                                                                                                                                                                                                                                                                                                                                                        |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (12) | Beneficial ownership is based upon Schedule 13D, Schedule 13D/As, Form 3, and Form 4s filed with the SEC. Mr. Peter Black, one of our directors, is an affiliate of Wynnefield Capital and its affiliated entities. Mr. Black expressly disclaims beneficial ownership of the securities owned by Wynnefield Capital and its affiliates. |

|      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (13) | Listed shares are directly beneficially owned by Wynnefield Partners Small Cap Value, L.P., as members of a group under Section 13(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Wynnefield Capital Management, LLC, as the sole general partner of Wynnefield Partners Small Cap Value, L.P., has an indirect beneficial ownership interest in the shares of Common Stock that Wynnefield Partners Small Cap Value L.P. directly beneficially owns. Nelson Obus and Joshua Landes, as co-managing members of Wynnefield Capital Management, LLC, have an indirect beneficial ownership interest in such shares of Common Stock. |

|      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (14) | Listed shares are directly beneficially owned by Wynnefield Partners Small Cap Value, L.P. I, as members of a group under Section 13(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Wynnefield Capital Management, LLC, as the sole general partner of Wynnefield Partners Small Cap Value, L.P. I, has an indirect beneficial ownership interest in the shares of Common Stock that Wynnefield Partners Small Cap Value L.P. I directly beneficially owns. Nelson Obus and Joshua Landes, as co-managing members of Wynnefield Capital Management, LLC, have an indirect beneficial ownership interest in such shares of Common Stock. |

|      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (15) | Listed shares are directly beneficially owned by Wynnefield Small Cap Value Offshore Fund, Ltd., as members of a group under Section 13(d) of the Exchange Act. Wynnefield Capital, Inc. as the sole investment manager of Wynnefield Small Cap Value Offshore Fund, Ltd., has an indirect beneficial ownership interest in the shares of Common Stock that Wynnefield Small Cap Value Offshore Fund, Ltd. directly beneficially owns. Mr. Obus and Mr. Landes, as principal executive officers of Wynnefield Capital, Inc., have an indirect beneficial ownership interest in the shares of Common Stock that Wynnefield Small Cap Value Offshore Fund, Ltd. directly beneficially owns. |

|      |                                                                                                                                                                                                                                                                                                                                                                                                                            |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (16) | Wynnefield Capital Inc. Profit Sharing Plan directly beneficially owns the listed shares of our common stock. Mr. Obus has the power to vote and dispose of Wynnefield Capital, Inc. Profit Sharing Plan’s investments in securities and has an indirect beneficial ownership interest in the shares of Common Stock directly beneficialy owned by Wynnefield Capital, Inc. Profit Sharing Plan. |

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|        |
|--------|
|        |  |
|   | By Order of the Board of Directors |
|   | Victor J. DiGioia,Secretary |

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