May 21, 2003 — Mandated Costs Systems Inc.

Mandated Costs Systems Inc. (MCS) of Rancho Cordova has agreed to pay $3.4 Million to settle a qui tam action filed by an individual, Chris Marquez, in which he alleged that MCS had routinely submitted false claims to obtain monies from the State of California.

As part of the settlement, Mr. Marquez will receive $884,000 as a reward for having filed the claims under the California False Claims Act.

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