Kratos on Winning Team for $105 Million Single Award Contract to Provide Army Unmanned Aerial System (UAS) Technical Support

SAN DIEGO, Nov. 21, 2011 (GLOBE NEWSWIRE) -- Kratos Defense & Security Solutions, Inc. (Nasdaq:KTOS), a leading National Security Solutions provider, announced that its Weapon Systems Solutions Division -- Digital Fusion Solutions, Inc. (DFSI) subsidiary was a critical team member of Aerodyne, Inc., which was awarded a contract with potential value over $105 million to provide technical and engineering support for the U.S. Army Unmanned Aircraft Systems (UAS) Project Office.

Kratos and the Aerodyne Team have been performing mission critical UAS-related work for this extremely important National Security customer for the past five years.

Under the Project Manager, Army UAS Technical Services contract, Kratos-DFSI will provide significant technical expertise to support the UAS Operations Center, as well as all UAS Platforms and functional divisions, in the areas of operational readiness, flight hour/sortie historical data, maintenance action records, and all Standard Army Management Information Systems (STAMIS) data elements. In addition to UAS Operations Center support, DFSI supports PM UAS-wide automation initiatives and system sustainment activities such as the UAS Dashboard, the UAS portal/intranet (SharePoint), custom database applications, automated processes and workflows, and Lean Six Sigma business process improvement efforts. The team's five-year contract has a base value of more than $9 million, with five additional options. If all options are exercised, the contract value will exceed $105 million.

The work will be performed primarily at the Army's Redstone Arsenal in Huntsville, AL.

"The UAS PO is committed to continuous improvement of their processes and systems," said Jeff Williams, DFSI Senior Director. "DFSI has had the unique opportunity to lead or support many of these process improvement initiatives over the past 6 years, and we are pleased that we can continue supporting the UAS PO as part of the Aerodyne team."

Richard Selvaggio, President of Kratos' Weapons Systems Solutions Division, said, "We are extremely proud to continue our support of this valuable customer. Kratos business today is heavily involved in United States unmanned aerial systems assets, including the manufacturing of ground control stations, transport and protection systems, avionics and command and control systems, electronics and the weaponization of UASs.

We believe that unmanned systems will play an increasingly important role in this country's national security and that Kratos is very well positioned to support this mission."

About Kratos Defense & Security Solutions

Kratos Defense & Security Solutions, Inc. (Nasdaq:KTOS) is a specialized National Security technology business providing mission critical products, services and solutions for United States National Security priorities. Kratos' core capabilities are sophisticated engineering, manufacturing and system integration offerings for National Security platforms and programs. Kratos' areas of expertise include Command, Control, Communications, Computing, Combat Systems, Intelligence, Surveillance and Reconnaissance (C5ISR), satellite communication systems, unmanned systems, cyber warfare, cyber security, information assurance, critical infrastructure security and weapons systems sustainment. Kratos has primarily an engineering and technical oriented work force of approximately 3,900, many of whom hold an active National Security clearance, including Secret, Top Secret and higher.

The vast majority of Kratos' work is performed on a military base, in a secure facility or at a critical infrastructure location. Kratos'

primary end customers are United States Federal Government agencies, including the Department of Defense, classified agencies, intelligence agencies and Homeland Security related agencies. News and information are available at http://www.kratosdefense.com/.