FOR IMMEDIATE RELEASE

January 22, 1999

CONTACT: Pat L. Hattox
        Corporate Vice President, Investor Relations
        (256) 885-7447
        HATTOXP@NICHOLS.COM

NICHOLS RESEARCH CORPORATION ANNOUNCES INITIAL PUBLIC OFFERING OF NICHOLS
TXEN CORPORATION COMMON STOCK

HUNTSVILLE,  ALABAMA  -  Michael J. Mruz, Nichols Research Corporation CEO,
announced today the filing  of a registration statement with the Securities
and Exchange Commission relating  to the initial public offering of Nichols
TXEN Corporation, a wholly owned subsidiary of Nichols Research. All of the
shares are to be offered by Nichols TXEN. The managing underwriters for the
offering  are  BT  Alex. Brown Incorporated;  CIBC  Oppenheimer;  Friedman,
Billings, Ramsey & Co., Inc.; and The Robinson-Humphrey Company, LLC.

Nichols TXEN, headquartered  in  Birmingham, Alabama, is a leading provider
of outsourcing solutions for information technology (IT) and administrative
services in the managed care and physician  practice management segments of
the health care industry. The Company has approximately 600 employees.

The net proceeds from the offering will be used by Nichols TXEN for working
capital and other general corporate purposes.  Some  of the net proceeds of
this  offering may be used to fund possible acquisitions  of  complementary
businesses,  products,  or  technologies.  While  Nichols  TXEN continually
evaluates  acquisition  opportunities,  no such acquisitions are  currently
being negotiated.

A registration statement relating to these  securities  has been filed with
the  Securities and Exchange Commission, but has not yet become  effective.
The securities  may  not be sold nor may offers to buy be accepted prior to
the time the registration  statement  becomes effective. This press release
shall not constitute an offer to sell or  the  solicitation  of an offer to
buy  nor  shall there be any sale of the securities in any state  in  which
such offer, solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such state.

When subsequently  available,  a  preliminary  prospectus  relating  to the
offering of the shares may be obtained from BT Alex. Brown Incorporated  at
1 South Street, Baltimore, Maryland 21202.

Nichols   Research   Corporation,  headquartered  in  Huntsville,  Alabama,
provides information technology  and  technical services for clients in the
Department of Defense, federal civilian  agencies,  state  government,  and
commercial  organizations.  The  Company  has  31  locations throughout the
United  States  with approximately 3,000 employees. Additional  information
may be found at the  Nichols  web  site: WWW.NICHOLS.COM. Nichols' stock is
traded under the Nasdaq market symbol: NRES.

EXCEPT  FOR  HISTORICAL INFORMATION CONTAINED  HEREIN,  THIS  RELEASE  CONTAINS
FORWARD-LOOKING STATEMENTS AS DEFINED IN SECTION 21E OF THE SECURITIES EXCHANGE
ACT OF 1934.   THESE  FORWARD-LOOKING STATEMENTS CAN BE GENERALLY IDENTIFIED AS
SUCH BECAUSE THE CONTENT  OF  THE  STATEMENT WILL USUALLY CONTAIN WORDS SUCH AS
THE COMPANY OR MANAGEMENT "BELIEVES,"  "ANTICIPATES,"  "EXPECTS,"  "ESTIMATES,"
"PLANS,"  AND WORDS OF SIMILAR IMPORT. SIMILARLY, STATEMENTS THAT DESCRIBE  THE
COMPANY'S FUTURE  PLANS,  OBJECTIVES,  GOALS  OR STRATEGIES ARE FORWARD-LOOKING
STATEMENTS.  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,  1998,  INCLUDING THE MANAGEMENT'S DISCUSSION AND
ANALYSIS OF FINANCIAL CONDITIONS AND RESULTS  OF  OPERATIONS  SECTION  OF  THAT
ANNUAL REPORT.