DRS Technologies Awarded $25.5 Million in New Orders for U.S. Navy Display Workstations.

Business Editors

PARSIPPANY, N.J.--(BUSINESS WIRE)--February 20, 2002

DRS Technologies, Inc. (AMEX: DRS) announced today that it has been awarded several new orders with a combined value of approximately $25.5 million to provide production, spares and engineering services for the U.S. Navy's AN/UYQ-70 Advanced Display Systems and related computer peripheral equipment for the Navy's Aegis class and other major surface ships, as well as for the Virginia class NSSN New Attack Submarines.

The awards were received from Lockheed Martin (NYSE: LMT) Tactical Systems in Eagan, Minnesota, the company's industry teammate and the prime contractor on the AN/UYQ-70 program.

The manufacture of these next-generation, Commercial Off-The-Shelf (COTS)-based systems will be accomplished by the company's DRS Laurel Technologies unit in Johnstown, Pennsylvania. Engineering services, provided by the company's DRS Electronic Systems unit in Gaithersburg, Maryland, will include the provision of life cycle support products and product improvements for existing AN/UYQ-70 Advanced Display Systems and related peripherals. Technology upgrades will include new internal secure and non-secure communication solutions, thin client-based Low Mass workstations, and the Computer-Aided Dead Reckoning Tracer (CADRT), which will replace old electro-mechanical Dead Reckoning Tracers and first generation CADRTs. System deliveries are expected to continue throughout 2002.

"These new contracts reaffirm the company's position as a leading supplier of naval combat display systems and advanced ship technologies," said Mark S. Newman, DRS Technologies' chairman, president and chief executive officer. "Our long-term participation on this program has provided the Navy with the latest processing and display technology, while reducing costs associated with the upgrading, integration and maintenance of combat systems. As an integral part of the Navy's network-centric tactical warfare environment for sea, land and air applications, the UYQ-70 Advanced Display Systems are designed to support rapid data exchange between cooperative forces and are the cornerstones in the Navy's fleet modernization initiatives."

The AN/UYQ-70 workstations are being installed throughout the U.S. Navy's surface, subsurface and air fleet, including its LHA class amphibious assault platforms, USS Los Angeles class SSN 688 Attack Submarines and E-2C Hawkeye aircraft, as well as Aegis class surface ships and Virginia class NSSN New Attack Submarines. The Aegis class destroyers are known as the most powerful surface combatants ever put to sea. The NSSN New Attack Submarine is the first U.S. submarine to be designed for battle space dominance across a broad spectrum of missions, including antisubmarine and anti-ship warfare, and special operations.

The AN/UYQ-70 workstations incorporate the latest information processing and display technology and are becoming the Navy's common computer display consoles. For the AN/UYQ-70 program, Lockheed Martin and DRS are producing a family of display consoles that integrate the latest commercial computing technology and systems for combat, command and control, and mission-essential applications.

One of the first standard combat computer systems implemented with an openly designed architecture, the UYQ-70 supports the common operating environment being implemented in surface, subsurface, land and airborne military platforms. Its design provides the most flexible display and computing infrastructure available to allow the Navy and other Department of Defense customers to accommodate new combat system development or the upgrade of existing systems. The UYQ-70 workstations are designed to provide benefits throughout their life cycle, including low cost of ownership, improved maintainability, faster technology insertion, smooth integration with legacy systems and adaptability to new environments.

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, 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.