DRS Technologies Acquires Nytech.

Business Editors

PARSIPPANY, N.J.--(BUSINESS WIRE)--Oct. 15, 2002

DRS Technologies, Inc. (NYSE: DRS) announced today that it has acquired Nytech Integrated Infrared Systems, a privately held company, located in Irvine, California.

Financial terms were not disclosed.

Nytech is a market leader in uncooled thermal imaging systems for portable weapons, head gear, hand-held devices and vehicle-mounted sights. The business also specializes in the design of stabilized, lightweight gimbals capable of controlling numerous sensors and suitable for mounting on a variety of land, sea and air platforms. "The acquisition of Nytech enhances DRS's market position as a premier supplier of leading edge, lightweight, thermal imaging systems and supports our objectives to expand in the growing uncooled infrared technology market," said Mark S. Newman, chairman, president and chief executive officer of DRS Technologies. "Nytech provides a critical technology base that strengthens our competitive posture in uncooled sensor programs and strongly complements our core competencies in cooled sensors and system integration."

Nytech's products are used for various soldier systems enabling day/night vision supporting military reconnaissance, surveillance and target acquisition. The business also produces Forward Looking Infrared (FLIR) cameras and thermal sensor modules that can be used for unmanned ground vehicles (UGVs), unmanned aerial vehicles (UAVs), missile guidance, sensor fusion and automotive collision avoidance.

Nytech is a well-regarded technology company and has received many contract awards supporting the U.S. Army, Coast Guard and other U.S. government agencies. Programs include the Thermal Weapon Sight (TWS) Omni II, Bradley Head Tracked Sensor Suite (HTSS), Small Arms Fire Control System (SAFCS), Low Power Uncooled Infrared (LPUIR) and the Pointer UAV, among others. Its systems also have significant potential for international markets and homeland defense. Nytech will operate as a unit of DRS's Electro-Optical Systems Group under the name DRS Nytech Imaging Systems, Inc.

DRS has worked closely with Nytech over the past two years through teaming arrangements, culminating in the award of a number of strategically important military uncooled sensor programs, including the HTSS and Cost Effective Targeting System (CETS) programs. These opportunities highlighted the complementary strengths of both companies and the benefits of combining operations.

DRS Technologies is a leader in infrared sighting and targeting systems used on critical front-line U.S. Army ground vehicle, aircraft and weapons platforms, as well as U.S. Navy ships. The company is considered a key supplier of multicolor cooled focal plane array sensors spanning ground, sea and air targeting, surveillance and missile guidance systems. The acquisition of Nytech expands DRS's pursuit of electro-optical system programs associated with uncooled infrared sensors designed for low-cost military and commercial applications, which are revolutionizing the thermal imaging systems market.

Nytech is expected to add approximately $7 to $10 million in revenues in its first year of operation with DRS and immediate earnings accretion. The company is financing the acquisition by utilizing existing cash currently invested in short-term securities.

DRS Technologies provides leading edge products and services to government and commercial customers worldwide. Focused on defense electronics, the company develops and manufactures a broad range of mission critical systems and components in the areas of communications, combat systems, rugged computers, electro-optics, power conversion, data storage, digital imaging, flight safety and space.

For more information about DRS Technologies, please visit the company's web site at www.drs.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Except for historical information contained herein, the matters set forth in this news release are forward-looking statements. The forward-looking statements set forth above involve a number of risks and uncertainties that could cause actual results to differ materially from any such statement, and include, without limitation, demand and competition for the Company's products and other risks or uncertainties detailed in the Company's Securities and Exchange Commission filings.