Exhibit 99.1

FOR IMMEDIATE RELEASE

NASDAQ: AMSY

Investor Relations Contact:
Ronald Schillereff
703-267-5140
ronald.schillereff@ams.com

Media Relations Contact:
Charlene Wheeless
703-267-7075
charlene.wheeless@ams.com

AMS REPORTS Q2 2003 RESULTS
Revenues Meet Expectations; Earnings Impacted by Significant Charges

FAIRFAX, Va., July 17, 2003 – American Management Systems, Incorporated (NASDAQ: AMSY), a global business and IT consulting firm, today announced a second quarter 2003 loss of $46.6 million (($1.10) per diluted share) compared to earnings of $1.1 million ($0.03 per diluted share) in the second quarter of 2002. Second quarter 2003 results were adversely impacted by a pre-tax charge of $45.5 million associated with the settlement of litigation with the Federal Retirement Thrift Investment Board, a $24.8 million pre-tax Restructuring Charge and a $9.6 million pre-tax charge related to software asset impairments.

Revenues for the second quarter of 2003, in line with the previous management forecast, were $232.0 million, compared with $251.7 million for the second quarter of 2002 and $227.0 million for the first quarter of 2003.

“Second quarter results were clearly disappointing, however, we took a series of significant actions to improve profitability and growth for the balance of 2003 and beyond,” said AMS Chairman and Chief Executive Officer Alfred T. Mockett. He continued, “During the quarter, we removed a major uncertainty from AMS’s future by concluding a settlement agreement with the Federal Retirement Thrift Investment Board, we continued our focus on securing larger deals which resulted in AMS recently winning one of the largest contracts in our history, and this week entered into a definitive agreement to acquire R.M. Vredenburg & Co., a leading provider of professional and technical services to the Department of Defense and U.S. Intelligence communities.”

-more-

AMS Q2 2003 Results – July 17, 2003—2

The $24.8 million Restructuring Charge represents severance and facility charges for the U.S. and Europe. The severance costs primarily relate to a reduction in senior level staff and management positions. In total, approximately 250 employees are being separated to achieve cost reductions and align the Company’s workforce to current market conditions and revenue outlook. The $9.6 million Asset Impairment Charge is for the write-off of certain non-performing software assets.

Excluding the impact of the pre-tax charges totaling $79.8 million noted above, earnings for the second quarter 2003 would have been $3.0 million or $0.07 per diluted share¹. Adjusted earnings in the second quarter of 2003 reflect lower gross profit margins due to higher project and other related costs incurred during the quarter.

Conference Call
AMS will hold a conference call to review second quarter results at 5:00 p.m. Eastern Time on July 17, 2003 that will be accessible by dialing 913-981-5507. An audio replay of the call will be available from 8:00 p.m., July 17, 2003 through 12:00 midnight, July 24, 2003 by dialing 719-457-0820 and entering pass code 495393. The call may also be accessed via a live Webcast on the AMS Website at www.ams.com. The Webcast will be available for replay through July 17, 2004.

About AMS
AMS is a premier business and IT consulting firm to the government, financial services, and communications industries around the globe. AMS combines IT ingenuity and industry IQ to drive high-performance results. Known for its delivery and service excellence for more than 30 years, AMS specializes in enterprise resource planning, credit risk management, customer relationship management, and enterprise security. AMS applies both proprietary and partner technologies, and provides solutions through business consulting, systems integration, and outsourcing. Founded in 1970, AMS is headquartered in Fairfax,Va., and has offices worldwide. The company is traded on the Nasdaq National Market under the symbol AMSY. For detailed information about AMS, visit www.ams.com

# # #

This release may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management’s current expectations and are subject to risks, uncertainty and changes in circumstances. Actual results may vary materially from the expectations contained in the forward-looking statements. All statements contained in this release that are not clearly historical in nature are forward-looking, and the words “anticipate,” “believe,” “expect,” “estimate,” “intends” and similar expressions are generally intended to identify forward-looking statements. The following factors, among others, could cause actual results to differ materially from those described in the forward-looking statements: risks in project delivery and staffing, risk of revenues not being realized when expected, risk of increased competition in the markets, and the effects of economic uncertainty on client expenditures as well as other factors described in AMS’s Annual Report on Form 10-K for the year ended December 31, 2002. The Company specifically disclaims any obligation to update these forward-looking statements. These forward-looking statements should not be relied upon as representing the Company’s (estimates or) views as of any subsequent date.

¹ See attached GAAP Reconciliation

AMS Q2 2003 Results – July 17, 2003—3

American Management Systems, Incorporated
CONSOLIDATED CONDENSED INCOME STATEMENTS
Unaudited
(In thousands, except per share data)

		For the Quarter					For the Six Months
		Ended June 30,					Ended June 30,
		2003			2002		2003			2002
REVENUES		$	232,011		$	251,697	$	458,983		$	503,127
EXPENSES2:
	Cost of Revenues		145,838			146,911		280,885			294,498
	Selling, General and Administrative		77,146			78,053		154,728			157,217
	Research and Development		3,685			7,870		7,015			13,828
	Restructuring Charge		24,785			16,087		24,785			16,087
	Software Asset Impairments		9,555			—		9,555			—
	Contract Litigation Settlement Expense		45,489			—		45,489			—
(LOSS) INCOME FROM OPERATIONS			(74,487	)		2,776		(63,474	)		21,497
OTHER (INCOME) EXPENSE, NET:
	Interest Expense		5			296		514			1,093
	Other (Income) Expense		(193	)		558		(296	)		309
			(188	)		854		218			1,402
(LOSS) INCOME BEFORE INCOME TAXES			(74,299	)		1,922		(63,692	)		20,095
INCOME TAXES			(27,660	)		788		(23,311	)		8,239
NET (LOSS) INCOME		$	(46,639	)	$	1,134	$	(40,381	)	$	11,856
WEIGHTED AVERAGE SHARES OUTSTANDING
	Basic		42,217			41,906		42,290			41,843
	Diluted		42,217			42,593		42,290			42,483
(LOSS) EARNINGS PER SHARE
	Basic	$	(1.10	)	$	0.03	$	(0.95	)	$	0.28
	Diluted	$	(1.10	)	$	0.03	$	(0.95	)	$	0.28

² Certain amounts from prior year have been reclassified for comparative purposes.

AMS Q2 2003 Results – July 17, 2003—4

American Management Systems, Incorporated
CONSOLIDATED REVENUES BY MARKET
(In thousands)

	For the Quarter				For the Quarter				For the Six Months
	Ended March 31,				Ended June 30,				Ended June 30,
	2003		2002		2003		2002		2003		2002
Federal Government Agencies	$	85,923	$	83,675	$	84,503	$	84,511	$	170,426	$	168,186
State and Local Governments and Education		61,382		71,525		65,518		70,040		126,900		141,565
Communications, Media and Entertainment		42,597		53,202		43,159		52,975		85,756		106,177
Financial Services Institutions		30,268		30,780		31,662		28,803		61,930		59,583
Other Corporate Clients		6,802		12,248		7,169		15,368		13,971		27,616
Total Revenues	$	226,972	$	251,430	$	232,011	$	251,697	$	458,983	$	503,127

AMS Q2 2003 Results – July 17, 2003—5

American Management Systems, Incorporated
CONSOLIDATED CONDENSED BALANCE SHEETS
(In thousands)

				6/30/2003
		ASSETS		(Unaudited)		12/31/2002
CURRENT ASSETS:
	Cash and Cash Equivalents			$	101,759	$	136,191
	Accounts Receivable, Net				231,163		212,098
	Prepaid Expenses and Other Current Assets				43,428		35,126
		Total Current Assets			376,350		383,415
NONCURRENT ASSETS:
	Property and Equipment (Net of Accumulated Depreciation and Amortization of $47,786 and $44,751)				22,596		24,518
	Purchased and Developed Computer Software (Net of Accumulated Amortization of $148,021 and $136,591)				107,539		90,797
	Goodwill, Net				24,331		24,331
	Cash Value of Life Insurance				25,139		29,830
	Other Assets				11,765		69,605
			Total Noncurrent Assets		191,370		239,081
TOTAL ASSETS				$	567,720	$	622,496

AMS Q2 2003 Results – July 17, 2003—6

American Management Systems, Incorporated
CONSOLIDATED CONDENSED BALANCE SHEETS — continued
(In thousands, except share data)

				6/30/2003
		LIABILITIES AND STOCKHOLDERS’ EQUITY		(Unaudited)			12/31/2002
CURRENT LIABILITIES:
	Accounts Payable			$	16,427		$	17,118
	Accrued Compensation and Related Items				37,893			52,674
	Deferred Revenues				22,954			26,115
	Accrued Liabilities				29,541			14,592
	Accrued Restructuring Charge				23,950			7,988
	Income Taxes Payable				388			1,061
	Deferred Income Taxes				1,872			17,159
			Total Current Liabilities		133,025			136,707
NONCURRENT LIABILITIES:
	Deferred Compensation and Other				28,631			36,364
	Deferred Income Taxes				10,257			20,044
	Accrued Restructuring Charge				8,337			9,356
			Total Noncurrent Liabilities		47,225			65,764
TOTAL LIABILITIES					180,250			202,471
STOCKHOLDERS’ EQUITY:
	Preferred Stock ($0.10 Par Value; 4,000,000 Shares Authorized, None Issued or Outstanding)				—			—
	Common Stock ($0.01 Par Value; 200,000,000 Shares Authorized, 51,057,214 and 51,057,214 Issued and 42,258,537 and 42,324,218 Outstanding)				510			510
	Capital in Excess of Par Value				81,864			80,309
	Unearned Compensation				(1,167	)		(2,146	)
	Retained Earnings				344,682			385,063
	Accumulated Other Comprehensive Loss				(6,884	)		(14,915	)
	Treasury Stock, at Cost (8,798,677 and 8,732,996 Shares)				(31,535	)		(28,796	)
			Total Stockholders’ Equity		387,470			420,025
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY				$	567,720		$	622,496

AMS Q2 2003 Results – July 17, 2003—7

American Management Systems, Incorporated
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
Unaudited
(In thousands)

			For the Six Months
			Ended June 30,
			2003			2002
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (Loss) Income			$	(40,381	)	$	11,856
Adjustments to Reconcile Net (Loss) Income to Net Cash (Used in) Provided by Operating Activities
	Depreciation			3,432			3,801
	Amortization			16,390			17,178
	Stock Compensation Expense			613			1,859
	Deferred Income Taxes			(24,586	)		305
	(Increase) Decrease in Cash Surrender Value of Life Insurance			(1,187	)		217
	Loss on Disposal of Assets			237			124
	Provision for Doubtful Accounts			750			—
	Software Asset Impairments			9,555			—
	Contract Litigation Asset Write-off			30,489			—
	Changes in Assets and Liabilities:
		(Increase) Decrease in Accounts Receivable		(15,299	)		33,378
		Decrease in Prepaid Expenses and Other Assets		3,530			671
		Increase (Decrease) in Accounts Payable and Accrued Liabilities		11,484			(6,625	)
		Decrease in Accrued Compensation and Related Items		(21,693	)		(12,019	)
		Decrease in Deferred Revenue		(3,283	)		(12,360	)
		Increase in Accrued Restructuring Charge		14,943			2,177
		Decrease in Income Taxes Payable		(716	)		(13,780	)
Net Cash (Used in) Provided by Operating Activities				(15,722	)		26,782
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of Property and Equipment				(1,584	)		(302	)
Purchase and Development of Computer Software				(26,785	)		(9,979	)
Other Assets				5,474			(5,299	)
Net Cash Used in Investing Activities				(22,895	)		(15,580	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from Employee Stock Purchase Plan and Common Stock Options Exercised				2,323			5,254
Payments to Acquire Treasury Stock				(3,460	)		(1,504	)
Net Cash (Used in) Provided by Financing Activities				(1,137	)		3,750
Effect of Exchange Rate Changes on Cash				5,322			1,489
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS				(34,432	)		16,441
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD				136,191			53,347
CASH AND CASH EQUIVALENTS AT END OF PERIOD			$	101,759		$	69,788
NON-CASH INVESTING AND FINANCING ACTIVITIES:
Exchange of Investment for Intangible Assets, Net of Cash			$	16,266		$	—
Issuance of Treasury Stock for Employee Stock Purchase Plan, Stock Options Exercised, and Restricted Stock			$	416		$	2,758

AMS Q2 2003 Results – July 17, 2003—8

American Management Systems, Incorporated
GAAP Reconciliation
Unaudited
(In thousands)

Earnings before Restructuring, Software Asset Impairments and Contract Litigation Settlement charges is provided in our press release in order to better support an analysis of our results in comparison to prior forecasts.

		For the Quarter
		Ended 6/30/03
Loss Before Income Taxes		$	(74,299	)
Add Back:
	Restructuring Charge		24,785
	Software Asset Impairments		9,555
	Contract Litigation Settlement Expense		45,489
Income Before Income Taxes, as adjusted		$	5,530
Income Taxes, as adjusted			(2,509	)
Net Income, as adjusted		$	3,021
Weighted Average Shares and Equivalents, as adjusted			42,576
Fully Diluted Earnings Per Share, as adjusted		$	0.07