<PAGE>

Report of Independent Public Accountants

To Dynamics Research Corporation:

We have audited the accompanying consolidated balance sheets of Dynamics
Research Corporation (a Massachusetts corporation) and subsidiaries as of
December 31, 1999 and 1998, and the related consolidated statements of
operations, stockholders' equity and cash flows for each of the three years in
the period ended December 31, 1999. These financial statements are the
responsibility of the company's management. Our responsibility is to express an
opinion on these financial statements based on our audits.

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

     In our opinion, the financial statements referred to above present fairly,
in all material respects, the financial position of Dynamics Research
Corporation and subsidiaries as of December 31, 1999 and 1998, and the results
of their operations and their cash flows for each of the three years in the
period ended December 31, 1999, in conformity with generally accepted accounting
principles in the United States.



Arthur Andersen LLP
Boston, Massachusetts,
February 11, 2000



[TYPE]     EX-27
[DESCRIPTION]     FINANCIAL DATA SCHEDULE
<PAGE>

[ARTICLE] 5
[MULTIPLIER] 1,000
<TABLE>
<S>                             <C>
[PERIOD-TYPE]                   12-MOS
[FISCAL-YEAR-END]                          DEC-31-1999
[PERIOD-END]                               DEC-31-1999
[CASH]                                           2,267
[SECURITIES]                                         0
[RECEIVABLES]                                   53,526
[ALLOWANCES]                                         0
[INVENTORY]                                      2,735
[CURRENT-ASSETS]                                60,121
[PP&E]                                          53,464
[DEPRECIATION]                                  38,397
[TOTAL-ASSETS]                                  75,188
[CURRENT-LIABILITIES]                           50,464
[BONDS]                                              0
[PREFERRED-MANDATORY]                                0
[PREFERRED]                                          0
[COMMON]                                           874
[OTHER-SE]                                      23,850
[TOTAL-LIABILITY-AND-EQUITY]                    75,188
[SALES]                                         26,855
[TOTAL-REVENUES]                               191,621
[CGS]                                           21,257
[TOTAL-COSTS]                                  185,535
[OTHER-EXPENSES]                                17,464
[LOSS-PROVISION]                                     0
[INTEREST-EXPENSE]                               2,255
[INCOME-PRETAX]                               (13,633)
[INCOME-TAX]                                   (4,745)
[INCOME-CONTINUING]                            (8,888)
[DISCONTINUED]                                   1,362
[EXTRAORDINARY]                                      0
[CHANGES]                                            0
[NET-INCOME]                                   (7,526)
[EPS-BASIC]                                     (1.02)
[EPS-DILUTED]                                   (1.02)
</TABLE>