FOR IMMEDIATE RELEASE
August 29, 1997

CONTACT: Patsy L. Hattox
         Vice President, Investor
            and Media Relations
         (205)883-1170, Ext. 1447
         E-Mail:  hattoxp@nichols.com

NICHOLS RESEARCH COMPLETES PURCHASE OF TXEN, INC.

HUNTSVILLE,  ALABAMA  -  Nichols  Research  Corporation announced today the
closing of the transaction to purchase the remaining  80.1%  of TXEN, Inc.,
for $43.8 million in stock and cash. The merger of TXEN, Inc., into Nichols
SELECT Corporation, the Healthcare Business subsidiary of Nichols Research,
will be effective August 31, 1997.

For  the  fiscal  year  ended  June 30, 1997, TXEN had approximately  $15.0
million in revenues and approximately  $3.4  million  of  net income.  This
transaction is expected to be accretive to Nichols' earnings  per  share in
fiscal  year  1998.   As  a result of the acquisition, Nichols will take  a
pretax charge in the fourth  quarter  of  fiscal  year  1997 related to the
write-off of purchased in-process research and development.

Nichols   Research  Corporation,  headquartered  in  Huntsville,   Alabama,
provides  information  technology  (IT)  and  technical  services  for  the
Department of Defense, Federal civilian agencies, state government clients,
and commercial clients.  The Company has 28 locations throughout the United
States with  approximately  2,300  employees  and  consultants.  Additional
information  may  be  found  at  Nichols  Web  site:  www.nichols.com.  The
Company's stock is traded on the Over-The-Counter  Market  under the Nasdaq
symbol:  NRES

       EXCEPT FOR HISTORICAL INFORMATION CONTAINED HEREIN, THIS RELEASE CON-
TAINS FORWARD-LOOKING STATEMENTS AS DEFINED IN SECTION 21E OF THE SECURITIES
EXCHANGE ACT OF 1934. SUCH FORWARD-LOOKING STATEMENTS ARE SUBJECT TO VARIOUS
RISKS AND UNCERTAINTIES THAT COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY
FROM THOSE PROJECTED  IN  THE  FORWARD-LOOKING  STATEMENTS.  THESE RISKS AND
UNCERTAINTIES ARE DISCUSSED IN MORE DETAIL IN THE COMPANY'S ANNUAL REPORT ON
FORM 10-K  FOR  THE FISCAL YEAR ENDED AUGUST 31, 1996, INCLUDING THE MANAGE-
MENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS AND RESULTS OF OPERA-
TIONS SECTION OF THAT ANNUAL REPORT.