Rockville, Maryland – December 2, 2008 – Paradigm Holdings, Inc. (OTCBB: PDHO)(“Paradigm”), a provider of comprehensive information technology and business solutions for federal government enterprises, today announced that it has been selected as a sub-contractor  for the Drug Enforcement Administration (DEA) to provide computer forensics expertise in support of the Administration’s Digital Evidence Laboratory in its war on drugs.   The initial contract covers a one year base period with the option to renew annually over the subsequent four years.  Paradigm will provide technical and administrative support to SAVA, the prime contractor for this effort.

Mr. LaMontagne, Paradigm President and CEO, commented, ”We are pleased to have been selected to support SAVA and the DEA’s cyber forensics program, which plays a key role in the enforcement of controlled substance laws.  Paradigm is currently the lead contractor supporting the U.S. Department of State’s computer forensics lab, and in our view, this expansion with DEA validates the strength of our cyber forensics capability. Paradigm will continue to focus on the market for forensics services, which includes collecting, handling, analyzing and presenting evidence.  Paradigm also assists government customers in code and network analysis, as well as forensic audio and video analysis.”

About Paradigm Holdings, Inc.

Paradigm Holdings, Inc., (www.paradigmsolutions.com) is a provider of comprehensive information technology and business solutions for government enterprises. Paradigm specializes in Enterprise Risk Management, Systems Engineering, Infrastructure Support, and Information Assurance and Cyber Forensics solutions for government customers.  Paradigm also provides intelligence analyst and linguistic support for National Security programs. Headquartered in Rockville, Maryland, the Company currently employs approximately 200 people across 12 states.

Safe Harbor Statement

This press release may contain forward-looking information within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and is subject to the safe harbor created by those sections. Paradigm Holdings, Inc. assumes no obligation to update the information contained in this press release. Future results for Paradigm Holdings, Inc. may be affected by its ability to continue to implement its government technology solutions, its dependence on the federal government and state and local governments and other federal government contractors as its major customers, timely passage of components of the federal budget, timely obligations of funding by the federal and state governments, its dependence on procuring, pricing and performing short-term government contracts, its dependence on hiring and retaining qualified professionals, potential fluctuations in its quarterly operating results, including seasonal impacts, its dependence on certain key employees and its ability to timely and effectively integrate the businesses it may acquire. For further information about forward-looking statements and other Paradigm Holdings, Inc. specific risks and uncertainties please refer to recent SEC filings for Paradigm Holdings, Inc., which are available from the Edgar Web site at www.edgar.org.