TELOS CORP — Director's Dealing 2005

Jun 3, 2005

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: TELOS CORP (TLSRP)
CIK: 0000320121
Period of Report: 2005-06-02

Reporting Person: Siegel Andrew R (10% Owner)
Reporting Person: White Bay Capital Management LLC (10% Owner)
Reporting Person: HAMOT SETH W (10% Owner)
Reporting Person: Roark, Rearden & Hamot LLC (10% Owner)
Reporting Person: Costa Brava Partnership III LP (10% Owner)

Non-Derivative Transactions

Date	Security	Code	Shares	Price	A/D	Holdings After	Ownership
2005-06-02	12% Cumulative Exchangeable Redeemable Preferred Stock	P	70000	$7.85	Acquired	506811	Indirect

Holdings (Non-Derivative)

Security	Shares	Ownership
12% Cumulative Exchangeable Redeemable Preferred Stock	14476	Direct

Footnotes

F1: Beneficial ownership is disclaimed by Seth Hamot, Roark, Rearden & Hamot, LLC, White Bay Capital Management, LLC and Andrew R. Siegel.

F2: The shares are owned by Costa Brava Partnership III, LP. Roark, Rearden & Hamot, LLC is the sole general partner of Costa Brava Partnership III, LP and Seth Hamot is the sole member and manager of Roark, Rearden & Hamot, LLC. Pursuant to a memorandum of understanding between White Bay Capital Management, LLC and Roark, Rearden & Hamot, LLC, White Bay Capital Management, LLC has the right to receive or the power to direct the receipt of dividends from or the proceeds from the sale of, the shares owned by Costa Brava Partnership III, LP. Mr. Siegel is the sole member and manager of White Bay Capital Management, LLC.

F3: White Bay Capital Management disclaims beneficial ownership. Costa Brava Partnership III, LP, Roark, Rearden & Hamot, LLC and Seth Hamot have no beneficial ownership in these shares.