FOR IMMEDIATE RELEASE
January 15, 1999

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

NICHOLS RESEARCH ANNOUNCES INCREASED OWNERSHIP OF NICHOLS ENTEC
SYSTEMS, L.L.C

HUNTSVILLE,  ALABAMA  -  Chris  H.  Horgen,  Chairman  of  Nichols Research
Corporation, announced today that the Company has completed the purchase of
an  additional  35%  ownership in Nichols Entec Systems, L.L.C.  With  this
purchase, Nichols Entec  will be 95% owned by Nichols Research and 5% owned
by DSM Copolymer in Baton  Rouge,  LA. This transaction will have no impact
on earning per share in fiscal year 1999 and is expected to be accretive to
Nichols' earnings per share in fiscal year 2000.

As a SAP<trademark> National Implementation Partner, Nichols Entec provides
SAP R/3<trademark> implementation services  to  a  wide spectrum of Fortune
500  and  mid-sized  companies.  As  a  SAP<trademark>  Certified  Business
Solutions  and  Accelerated SAP (ASAP) Partner, Nichols Entec  resells  SAP
R/3<trademark> software to mid-sized companies in selected states.

The Company continues to pursue other acquisition candidates to enhance its
SAP strategy. Nichols hopes to realize additional revenues of approximately
$16 million prior to year-end from these acquisitions.

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. The Company's 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", "HOPES," 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.