Intergraph Wins Air Force Process Improvement Contract

Company Provides Expertise for Military Operational Excellence Programs

HUNTSVILLE, Ala., July 20, 2005 – Intergraph Corporation announced today it has signed a four-year contract with the U.S. Air Force worth up to $11.4 million to deploy and manage operational excellence programs. The contract covers Continuous Process Improvement/Lean/Six Sigma programs for the Air Force Materiel Command at Warner Robins Air Logistics Center, Robins Air Force Base, Ga.

Intergraph will provide detailed guidance and analysis to assist the Air Force Materiel Command in developing effective plans and implementation procedures for its ongoing enterprise transformation. Intergraph will also provide program administration, develop training, study performance and work processes and advise on change management strategies.

"Intergraph is consistently recognized as one of the premier U.S. government services providers," said Kruse Smith, manager of Intergraph’s Air Force business unit. "We have years of experience and enormous depth of knowledge with Air Force Materiel Command procedures and work processes. These capabilities make Intergraph uniquely qualified to deliver a performance-based, continuous improvement program such as Lean/Six Sigma."

Since 1994, Intergraph and the Air Force Materiel Command have partnered to deliver significant cost- and time-savings through process improvement, systems integration and training. Wendy Johnston, chief of the Innovation and Transformation Division, Warner Robins Air Logistics Center, said, "The Warner Robins Air Logistics Center looks forward to building on our history of success with Intergraph, to a future of enterprise improvement and service to our armed forces."

The program is part of the U.S. Department of Defense’s mandate that the military undertake operational excellence programs. Enterprise excellence is a systematic approach to identify and eliminate non-value-added activities, dramatically increasing efficiencies, lowering costs and improving customer satisfaction.

The contract announcement comes at the Lean and Six Sigma for Defense conference starting today in Arlington, Va. The conference addresses these key issues and presents case studies from experts in the defense industry and defense contractors who have successfully implemented, integrated and sustained operational excellence programs within their organizations. At the event, Steve Hajec, Intergraph’s Enterprise Transformation competency lead, will lead a roundtable session on "Identifying Key Strategies for Success in Lean and Six Sigma Deployment to Reduce Costs."

About Intergraph

Intergraph Corporation (NASDAQ: INGR) is the leading global provider of spatial information management (SIM) software. Security organizations, businesses and governments in more than 60 countries rely on the company’s spatial technology and services to make better and faster operational decisions. Intergraph’s customers organize vast amounts of complex data into understandable visual representations, creating intelligent maps, managing assets, building and operating better plants and ships and protecting critical infrastructure and millions of people around the world. For more information, visit http://www.intergraph.com/.

About Robins Air Force Base

Robins Air Force Base is the home of Warner Robins Air Logistics Center, the 78th Air Base Wing and more than 60 other units that make up a vital part of the Air Force defense team. Robins is the largest industrial complex in Georgia, employing a work force of more than 25,000 civilian, contractor and military members. www.robins.af.mil. For more information, visit http://www.robins.af.mil/.

© 2005 Intergraph Corporation. All rights reserved. Intergraph and the Intergraph logo are registered trademarks of Intergraph Corporation or its subsidiaries in the United States and in other countries. Other brands and product names are trademarks of their respective owners.