DRS Technologies Receives $124 Million Contract to Produce Infrared Sighting Systems for U.S. Army Combat Vehicles.

PARSIPPANY, N.J. -- DRS Technologies, Inc. (NYSE: DRS) announced today that it was awarded a $124 million contract to provide Horizontal Technology Integration Second Generation Forward Looking Infrared (HTI SGF) sighting systems to the U.S. Army. These systems provide critical common night vision technology to the U.S. Army's M1A2 Abrams Main Battle Tank System Enhancement Package (SEP) and M2A3 Bradley Fighting Vehicles, which continue to be an integral part of the military's operations in Iraq.

The contract was awarded to DRS by the Network Centric Systems business of Raytheon Company (NYSE: RTN) in McKinney, Texas. For this award, DRS will provide the Abrams Thermal Receiver Units (TRU) with the Block 1 B-Kit, as well as Block 1 B-Kits for Improved Bradley Acquisition Systems (IBAS) and Circuit Card Assembly (CCA) sets for the Abrams Commander's Independent Thermal Viewer (CITV) and Long Range Advanced Scout Surveillance System (LRAS3) supporting the Army's HTI initiatives. Work for this award will be accomplished by the company's DRS Sensors & Targeting Systems - Optronics Division in Palm Bay and Melbourne, Florida. Product deliveries will continue through December 2007.

Providing an advanced, high-resolution sighting technology for the success of ground combat operations, HTI SGF allows ground vehicles to detect, identify and engage tactical targets during the day or night. Dramatically superior to the First Generation, the HTI SGF Block 1 B-Kit doubles the distance at which soldiers can identify a target, greatly increasing crew survivability and reducing fratricide. HTI SGF systems also contribute to information dominance by providing digital battlefield imagery to soldiers, promoting interoperability among military platforms.

"This order will provide improved performance and increased sensor commonality for our military forces and reaffirms our position as a leading supplier of Second Generation infrared ground vehicle sighting systems," said James M. Baird, president of DRS's Reconnaissance, Surveillance & Target Acquisition (RSTA) Segment. "The use of these systems across several ground platforms has provided the Army with the opportunity to leverage resulting economies, while exploiting the capabilities of the latest technology in night vision systems. Central to the Army's modernization strategy for the digitization of the 21st century battlefield, the HTI initiative contributes significantly to the power projection capabilities of our ground forces. This key technology keeps our soldiers safe and is vitally important to the upgrade our Army's heavy forces."

The HTI SGF is comprised of a common electronics unit and opto-mechanical assemblies known as the B-Kit. The B-Kit is incorporated in the Improved Bradley Acquisition System (IBAS) sight of the M2A3 Bradley Fighting Vehicle System. The M1A2 Abrams SEP utilizes the same B-Kit within a thermal receiving unit and a biocular image control unit for the upgraded Thermal Imaging System (TIS), which is mounted in the gunner's sight. DRS-produced HTI components also are used for the Commander's Independent Thermal Viewer on the M1A2, the Commander's Independent Viewer on the Bradley A3 and the LRAS3.

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.