DRS Technologies Captures New U.S. Army Contracts for Second Generation Infrared Sighting Systems.

Business Editors/High Tech Writers

PARSIPPANY, N.J.--(BUSINESS WIRE)--Aug. 18, 2000

DRS To Support Horizontal Technology Integration

Across Several Army Platforms

DRS Technologies, Inc. (AMEX: DRS) announced today that it has been awarded approximately $11.8 million in new contracts from the U.S. Army to produce and provide engineering services and source development work for Second Generation Forward Looking Infrared (SG FLIR) sighting systems.

These efforts support the Army's Horizontal Technology Integration (HTI) initiative and apply common night vision technology across several land platforms, including the Abrams M1A2 Main Battle Tank System Enhancement Package (SEP), the Bradley M2A3 Infantry Fighting Vehicles and the M1025 and M1114 High-Mobility Multipurpose Wheeled Vehicles (HMMWV).

The contracts were awarded by the U.S. Army's Communications-Electronics Command (CECOM) in Fort Monmouth, New Jersey. Work associated with these upgraded systems will be accomplished by the company's DRS Sensor Systems unit in Torrance, California, and DRS Optronics unit in Palm Bay, Florida. Product deliveries associated with the production contracts, valued at $4.4 million, are scheduled to begin in February and April 2001.

The HTI Second Generation Forward Looking Infrared system is comprised of a common electronics unit and optomechanical assemblies called the B-Kit. For the $7.4 million source development award, DRS will develop, demonstrate and become qualified to manufacture complete B-Kits in order to participate in the Army's competitive production procurement program for future production contracts for these kits, anticipated to be awarded in 2002. DRS currently produces and is qualified to manufacture components of the B-Kits. The source development contract was awarded to DRS by the Army to promote competition in the defense electronics marketplace for the production of the complete systems.

Mark S. Newman, DRS Technologies' chairman, president and chief executive officer, commented, "HTI remains key for DRS's core electro-optical systems business base and enhances the company's ability to attain our long-term strategic objectives for growth. The receipt of these new contracts is affirmation of DRS's position as a leading U.S. defense technology supplier of advanced military ground vehicle sighting and weapons systems. These awards broaden the application of Second Generation Forward Looking Infrared technology across Army ground platforms and position the company to compete for significant awards in the future."

The HTI initiative is central to the Army's modernization strategy for the digitization of the 21st century battlefield and contributes significantly to the power projection capabilities of our ground forces. The B-Kit is incorporated in the Bradley M2A3 Improved Acquisition System (IBAS) sight. The Abrams M1A2 SEP utilizes the same B-Kit within a thermal receiving unit and a biocular image control unit for the upgraded DRS-produced Thermal Imaging System, which is mounted in the gunner's sight. DRS-produced HTI components also are used in the HMMWV Long-Range Advanced Scout Surveillance System (LRAS3) for scout vehicles. DRS's HTI SG FLIR system provides the most advanced, high-resolution night vision technology available for the success of ground combat operations, contributes to information dominance by providing digital battlefield imagery to commanders, and promotes interoperability among military platforms. HTI SG FLIR enhances the surveillance ranges for the identification of threats, increases target acquisitions and significantly reduces fratricide.

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 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.

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