DRS Technologies Receives $14 Million Contract to Design Integrated Gas Turbine Generator System for U.S. Navy's New DD-X- Destroyers.

Business Editors

PARSIPPANY, N.J.--(BUSINESS WIRE)--July 18, 2003

DRS Technologies, Inc. (NYSE: DRS) announced today that it has received a new $14 million contract to develop an integrated gas turbine generator system to support the Integrated Power System (IPS) engineering development model for the U.S. Navy's new DD(X) destroyers.

The contract was awarded to DRS by Rolls-Royce Naval Marine, Inc. in Walpole, Massachusetts, a unit of Rolls-Royce PLC (LSE: RR.L) North America. For this award, the company will package the new Rolls-Royce MT30 marine gas turbine, which will include designing a large, 36-megawatt integrated gas turbine generator system and a smaller 4-megawatt unit. Work for this contract will be performed by the company's DRS Power Technology, Inc. unit in Fitchburg, Massachusetts, and delivered to the U.S. Naval Surface Warfare Center's Land-Based Test Facility in Philadelphia, Pennsylvania. This order is part of a $2.9 billion contract awarded last year to Northrop Grumman (NYSE: NOC) Ship Systems as the U.S. Navy's DD(X) design agent. Delivery of the gas turbine generator systems to Northrop Grumman is expected in early 2005.

"This award enhances our leadership position in the design, development, manufacture and life-cycle support of high-performance, complex power systems," said Steven T. Schorer, president of DRS's Electronic Systems Group. "As the contracted supplier for the packaged gas turbine generators, propulsion motors, power electronics equipment and other key elements of the electric drive engineering development models on the U.S. Navy's new DD(X) destroyer program, DRS is well positioned to play an important role on this and other platforms designated for electric drive in support of Navy growth initiatives."

"This new award is an opportunity to showcase how we have translated leading edge, proven, aero-engine technology into a unique marine power system to address the Navy's initiative to implement transformational technology," said Patrick J. Marolda, president of Rolls-Royce Naval Marine. "With both Rolls-Royce and DRS Power Technology located in the same state, we are confident of our ability to provide excellent service to our customer, Northrop Grumman Ship Systems. Together, we are proud to support the U.S. Navy in this effort."

Under separately awarded contracts from Northrop Grumman (NYSE: NOC) Ship Systems and Newport News Shipbuilding, DRS is supplying key elements of the electric drive system, including propulsion motors, drive controls, power electronics equipment and other key elements of the electric drive engineering development models on the U.S. Navy's new DD(X) destroyer program. This unique role is expected to allow expansion onto other electric drive platforms supporting Navy growth initiatives, including new ships under the CG(X) cruiser and Littoral Combat Ship (LCS) programs.

DRS Technologies is a leading supplier of high-performance power generation, conversion, electric propulsion and distribution equipment, networks, control systems, tactical displays and specialty nuclear reactor plant instrumentation for the U.S. Navy's combatant fleet and specialized industrial customers. DRS has installed equipment on every U.S. Navy combatant ship since World War II, including nuclear-powered and conventionally-powered ships.

Rolls-Royce Naval Marine is one of the largest, most experienced propeller manufacturers in the United States. Rolls-Royce Naval Marine in Walpole, Massachusetts, manufactures variable pitch propellers for naval and commercial ships, and has the capability to design and manufacture state-of-the-art controllable-pitch and fixed-pitch propeller systems of the largest sizes and highest power requirements currently produced.

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, battlefield digitization, electro-optics, power systems, 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.