DRS Leonardo DRS, Inc.

DRS Technologies, Inc. (NYSE: DRS) announced today that it has been awarded an $11.4 million follow-on contract to produce the Fine Track Sensor (FTS) kits used in Directional Infrared Countermeasure (DIRCM) transmitters. The work will be carried out by the DRS Sensors & Targeting Systems � Infrared Technologies Division in Dallas, Texas. Designed and built by DRS customer SELEX Galileo, a Finmeccanica Company, in Edinburgh, U.K., the transmitters are a key component of Northrop Grumman�s Nemesis DIRCM system � a system used to protect a variety of rotary- and fixed-wing military aircraft from shoulder-launched, heat-seeking surface-to-air missiles (SAMs). The award increases the total value for DRS� FTS kits beyond the $100 million and covers deliveries through February 2009. It has been estimated that SAMs have accounted for up to 90% of all aircraft losses incurred from enemy fire in modern conflicts. They remain a primary threat to U.S. and allied aircraft, particularly for large platforms with substantial infrared signatures, such as transport planes. �Military aircraft are particularly vulnerable to shoulder-fired SAMs, also known as Man-Portable Air Defense Systems (MANPADS), during take-off and landing,� said Gerald Hinrichs, the DRS program manager responsible for the project. �DIRCM technology has demonstrated the ability to quickly and accurately detect and counter such weapons without the need for pilot intervention.� The demand for DIRCM systems is expected to continue to grow in the years ahead. SELEX Galileo and DRS is already working on the next generation sensor technology to help make future systems smaller and less expensive for wider utilization. The kits include IR focal plane arrays, which are manufactured at the company�s DRS Sensors & Targeting Systems - California division. For this new order, all production will be consolidated at the company�s Infrared Technologies division in Dallas, Texas. �Keeping our warfighters safe is a primary objective for companies like ours,� said James M. Baird, president of DRS� Reconnaissance, Surveillance & Target Acquisition (RSTA) Segment, which operates these DRS divisions. �This new order demonstrates the significant value of our technology in protecting aircraft against threats, especially the insidious threat posed by surface-to-air missiles. We�re proud to be serving in this role.� The company�s RSTA Segment develops, manufactures and supports electro-optical technologies, including advanced cooled and uncooled thermal-imaging solutions for soldier systems, ground vehicle, airborne, maritime, industrial, security, public safety and firefighting applications. DRS Technologies, headquartered in Parsippany, New Jersey, is a leading supplier of integrated products, services and support to military forces, intelligence agencies and prime contractors worldwide. The company employs approximately 10,000 people. For more information about DRS Technologies, please visit the company's web site at www.drs.com.