DRS Technologies Awarded $2 Million Contract to Supply Boresight Systems for Foreign Aircraft.

PARSIPPANY, N.J.--(BUSINESS WIRE)--December 11, 1998--DRS Technologies, Inc. (ASE: DRS) announced today that it has been awarded a contract with a not-to-exceed value of approximately $2 million from British Aerospace plc. (L: BA) Military Aircraft and Aerostructures in the Samlesbury Aerodrome, Balderstone, Lancashire, the United Kingdom. For this contract, DRS will provide Multiple Platform Boresight Equipment (MPBE) for use with the Hawk 100 Series light attack, fixed-wing aircraft destined for military customers in Canada and Australia. Work for this award will be accomplished by the company's DRS Photronics, Inc. unit in Oakland, New Jersey.

This award represents the first application of MPBE systems for a European fixed-wing aircraft platform. DRS has provided over 500 of these systems for use with U.S. Army and British AH-64A Apache and Apache Longbow helicopters, U.S. Marine Corps AH-1W Cobra and National Guard AH-1F Cobra helicopters, U.S. Air Force AC-130U gunship radar, the Cobra helicopters of Taiwan, and the Cobra and Apache helicopters of other allied countries through U.S. foreign military sales programs.

Mark S. Newman, DRS Technologies' chairman, president and chief executive officer, commented: "This award is a milestone in our ongoing effort to expand the application of our boresight systems for fixed-wing, as well as rotary-wing aircraft, and to increase our international presence for this product line. The receipt of this contract is evidence of progress achieved toward implementing our international marketing strategy to develop a European-based support center for our boresighting systems by leveraging the existing overseas operations of our Electro-Optical Systems Group. The MPBE system provides our domestic and international military combat aircraft customers with a generic boresight capability, significantly reducing procurement costs, maintenance costs and aircraft down time, improving weapons performance, and eliminating the need for new product development and customized solutions. This award is the result of our commitment to actively support the growing international weapons sighting systems market and demonstrates DRS's continuing leadership in electro-optical alignment technology."

DRS's Multiple Platform Boresight Equipment is a portable, ground-support device that aligns an aircraft's navigation, targeting and weapon systems with the pilot's sighting gear to ensure synchronization, resulting in target accuracy when weapons are released. These systems allow users to quickly and easily boresight military aircraft with equipment that can be used commonly across rotary-wing and fixed-wing air platforms.

This equipment incorporates the company's proprietary Triaxial Measurement System (TMS) - a single-beam, laser-based, electro-optical device that provides simultaneous and continuous measurement of sighting systems on three axes. The core technology of TMS is the foundation of DRS's strategy to develop boresight products with commonality across multiple platforms. The unique technology of the MPBE is being considered for domestic and other international fixed-wing aircraft, such as the EF-2000, F-16, F-15, F-14, AV-8B and F/A-18, as well as other rotary-wing aircraft.

DRS Technologies provides leading edge products and services to government and commercial markets worldwide. Focused on defense electronics, the company develops and manufactures a broad range of mission critical products, from rugged computers and peripherals to systems and components in the areas of communications, data storage, digital imaging, electro-optics, flight safety and space. The company offers a full complement of technical support and advanced manufacturing services.

Additional information is available on the company's web site at www.drs.com.