Exhibit 99.1

DYNAMICS RESEARCH CORPORATION
REPORTS
FOURTH QUARTER AND FULL YEAR 2006 RESULTS

Andover, Mass.—February 28, 2007—Dynamics Research Corporation (Nasdaq: DRCO), a provider of innovative engineering, technical and information technology services and solutions to federal and state governments today announced operating results for the fourth quarter and full year ended December 31, 2006.

Financial Results

The company reported revenue for the fourth quarter of 2006 of approximately $60.3 million, consistent with previously issued guidance of $59 to $62 million. Net income was $1.5 million, or $0.16 per diluted share for the fourth quarter of 2006, compared with $0.31 per diluted share for the same period a year ago. For the year ended December 31, 2006 revenue was $259.0 million, compared with $300.4 million for 2005. Net income was $4.1 million, or $0.43 per diluted share for 2006, compared with $11.4 million, or $1.24 per share for 2005 which included $0.13 of non-recurring gain from the sale of investments.

Business Highlights

“The Company’s results for the quarter just ended reflect significant improvement over the third quarter and significant progress in adapting to a changed industry environment and positioning the company to sustain organic growth and improve profitability. In 2006 new business wins, measured in the estimated first year revenue value of contracts, grew by more than 50%. Total estimated value (all years) of new business contract wins was $145 million in 2006. We are focused on achieving continued success from our business development initiatives while concurrently expanding profit margins,” said Jim Regan, DRC’s chairman and chief executive officer.

Company Guidance

The company estimates revenues in the range of $225 to $240 million and earnings per diluted share in the range of $0.65 to $0.75 for the calendar year 2007. For the first quarter of the 2007 the company anticipates revenues in the range of $53 to $55 million and earnings per diluted share of $0.11 to $0.13.

Conference Call

The company will conduct a fourth quarter 2006 conference call on Thursday, March 1, 2007 at 8:30 a.m. ET. The call will be available via telephone at (800) 319-9003, and accessible via Web cast at www.drc.com. Recorded replays of the conference call will be available on Dynamics Research Corporation’s investor relations home page at www.drc.com and by telephone at (888) 203-1112, passcode #2492094, beginning at 1:30 p.m. ET March 1, 2007 through 11:59 p.m. ET March 8, 2007.

About Dynamics Research Corporation

DRC is headquartered in Andover, Massachusetts and has major offices in Vienna, Virginia and Fairborn, Ohio. The company has 27 additional field offices throughout the United States providing direct support to all branches of the Department of Defense and several state government agencies.

Dynamics Research Corporation is an innovative solutions provider that partners with its customers to apply proven processes and technologies. For more than 50 years, DRC has delivered technical and information technology services that enhance the performance and cost effectiveness of its customers’ mission critical systems. For additional information about DRC please visit our website at www.drc.com.

Safe harbor statements under the Private Securities Litigation Reform Act of 1995: Some statements contained or implied in this news release, may be considered forward-looking statements, which by their nature are uncertain. Consequently, actual results could materially differ. For more detailed information concerning how risks and uncertainties could affect the company’s financial results, please refer to DRC’s most recent filings with the SEC. The company assumes no obligation to update any forward-looking information.

CONTACT:	David Keleher, Senior Vice President and Chief Financial Officer
	(978) 289-1615

ATTACHMENT I

DYNAMICS RESEARCH CORPORATION

RESULTS OF OPERATIONS (unaudited)

(in thousands, except share and per share data)

	Three months ended
	December 31,
	2006			2005
Contract revenue	$	58,864		$	69,950
Product sales		1,471			1,647
Total revenue		60,335			71,597
Cost of contract revenue		49,922			57,639
Cost of product sales		1,124			1,264
Selling, general and administrative expenses		5,908			5,889
Amortization of intangible assets		702			760
Total operating costs and expenses		57,656			65,552
Operating income		2,679			6,045
Interest expense, net		(349	)		(1,174	)
Other income		160			55
Income before provision for income taxes		2,490			4,926
Provision for income taxes		989			1,994
Net income	$	1,501		$	2,932
Earnings per common share
Basic	$	0.16		$	0.33
Diluted	$	0.16		$	0.31
Weighted average shares outstanding
Basic		9,188,603			8,954,488
Diluted		9,412,409			9,377,548

ATTACHMENT II

DYNAMICS RESEARCH CORPORATION

RESULTS OF OPERATIONS

(in thousands, except share and per share data)

	Year ended
	December 31,
	2006			2005
	(unaudited)			(audited)
Contract revenue	$	252,890		$	293,662
Product sales		6,097			6,778
Total revenue		258,987			300,440
Cost of contract revenue		218,907			245,566
Cost of product sales		4,895			5,212
Selling, general and administrative expenses		24,059			25,318
Amortization of intangible assets		2,809			3,039
Total operating costs and expenses		250,670			279,135
Operating income		8,317			21,305
Interest expense, net		(2,042	)		(4,367	)
Other income		589			2,276
Income before provision for income taxes		6,864			19,214
Provision for income taxes		2,792			7,781
Net income (1)	$	4,072		$	11,433
Earnings per common share
Basic (1)	$	0.45		$	1.30
Diluted (1)	$	0.43		$	1.24
Weighted average shares outstanding
Basic		9,099,897			8,809,644
Diluted		9,426,535			9,253,522

(1) Includes $84, or $0.01 per common share, attributable to the cumulative effect of the change in accounting principle for the adoption of SFAS 123R in 2006.

ATTACHMENT III

DYNAMICS RESEARCH CORPORATION

CONDENSED BALANCE SHEETS

(in thousands)

	December 31,		December 31,
	2006		2005
	(unaudited)		(audited)
Assets
Cash and cash equivalents	$	7,887	$	1,020
Accounts receivable, net		27,136		32,894
Unbilled expenditures and fees on contracts in process		36,764		60,210
Prepaid expenses and other current assets		2,824		1,483
Total current assets		74,611		95,607
Property, plant and equipment, net		11,509		12,252
Goodwill		63,055		63,055
Intangible assets, net		5,671		8,480
Deferred tax asset		1,507		3,916
Other noncurrent assets		3,499		4,443
Total assets	$	159,852	$	187,753
Liabilities and stockholders’ equity
Current portion of long-term debt	$	—	$	10,170
Accounts payable		18,195		25,668
Deferred income taxes		11,698		19,825
Accrued payroll and employee benefits		14,473		18,761
Other accrued expenses		3,916		6,392
Total current liabilities		48,282		80,816
Long-term debt		15,000		15,242
Other long-term liabilities		12,805		17,508
Stockholders’ equity		83,765		74,187
Total liabilities and stockholders’ equity	$	159,852	$	187,753

ATTACHMENT IV

DYNAMICS RESEARCH CORPORATION

SUPPLEMENTAL INFORMATION (unaudited)

(dollars in thousands)

Contract revenues were earned from the following sectors:

	Three Months Ended				Year ended
	December 31,				December 31,
	2006		2005		2006		2005
National defense and intelligence agencies	$	46,961	$	53,963	$	205,956	$	233,924
Federal civilian agencies		7,584		9,186		30,567		33,746
State and local government agencies		4,018		5,990		15,254		22,986
Other		301		811		1,113		3,006
	$	58,864	$	69,950	$	252,890	$	293,662

Revenues by contract type as a percentage of contract revenue were as follows:

	Three Months Ended						Year ended
	December 31,						December 31,
	2006			2005			2006			2005
Time and materials		61	%		57	%		62	%		56	%
Cost reimbursable		19	%		19	%		19	%		20	%
Fixed price, including service-type contracts		20	%		24	%		19	%		24	%
		100	%		100	%		100	%		100	%
Prime contact		65	%		67	%		67	%		68	%
Sub-contract		35	%		33	%		33	%		32	%
		100	%		100	%		100	%		100	%

	Three Months Ended				Year ended
	December 31,				December 31,
	2006		2005		2006		2005
Net cash provided by (used in) operating activities	$	14,212	$	16,775	$	17,584	$	24,610
Capital expenditures	$	419	$	1,198	$	2,482	$	4,571
Depreciation	$	778	$	896	$	3,203	$	3,719
Bookings	$	60,335	$	76,642	$	252,327	$	287,581

	December 31,
	2006		2005
Funded backlog	$	92,903	$	144,571
Employees		1,513		1,822