DRS Technologies Receives $14.4 Million in New Contracts.

PARSIPPANY, N.J.--(BUSINESS WIRE)--March 25, 1998--DRS Technologies, Inc. (ASE: DRS) announced today that it has been awarded several new contracts with a combined value of approximately $14.4 million. Work performed for these awards will be accomplished by the company's DRS Electronics Systems, Inc. unit in Gaithersburg, Maryland.

Mark S. Newman, chairman, president and chief executive officer of DRS Technologies, commented, "The receipt of these awards provides the company with additional growth opportunities and reinforces DRS's strategy of incorporating our proven Commercial Off-The-Shelf, or COTS, technology in the advanced, high-quality defense systems we produce for frontline missions of the U.S. Navy. Supported by our customer's confidence, we remain dedicated to delivering cost-effective, high-performance electronic systems for a variety of complex command, control and intelligence initiatives."

$4.8 Million Contract for UYQ-70 Submarine Display Workstations

A $4.8 million contract was awarded to the company by Lockheed Martin Tactical Defense Systems in Eagan, Minnesota, to develop new AN/UYQ-70 display workstations and training support products for submarines in the U.S. Navy's fleet. For this contract, DRS will develop the Navigation Decision Workstation and a replacement console for the existing Common Display Repeater. The Navigation Decision Workstation will be the electronic replacement for the submarines' existing electro-mechanical MK-19 plotter currently used for navigation. The new Common Display Repeater will present acoustic data for strategic tactical decisions. Both workstations will maximize the use of COTS technology, incorporating the latest available commercial components, Non-Development Items (NDI) and system integration technology in equipment designed for military applications.

The open-architecture and COTS-based design of these and other DRS display workstations meet or exceed the critical performance, reliability and long-term support requirements of the company's government customers. Workstations from product lines developed and manufactured by the company are used on board military platforms and at military bases for a variety of sea, air and land applications.

$4.6 Million Contract for Ship Display Emulators

A second award, valued at approximately $4.6 million, was received by the company from the U.S. Navy to manufacture display workstations that emulate the functions of current shipboard tactical display systems. This award is the result of the Navy's exercise of an option on an existing, multiple-year contract with a not-to-exceed value of approximately $40 million for emulation and training systems. The company received initial funding on this contract in February 1994. Including this latest award, approximately $27 million to date has been released to DRS on this program.

Using advanced, low-cost display and data processing technology to simulate the functions of existing tactical display consoles on surface ships, these emulators are operationally identical to openly designed, evolutionary shipboard systems. The emulators developed under this contract meet the Navy's requirements for operator training and testing at significantly reduced costs over systems built to military specifications.

DRS's emulators are manufactured using COTS components and will provide an important budgeting advantage to military installations that develop applications, train personnel and engage in surveillance operations. These workstations will be used primarily at Navy shore facilities, such as laboratories, training sites and other land-based installations involved in aircraft tracking.

$3.2 Million Contract for SPS-67 Ship Radar Systems

Also awarded to DRS by the U.S. Navy was a $3.2 million contract to provide AN/SPS-67 radar systems and associated installation kits for surface ships in the U.S. and Spanish fleets. The radar systems produced under this contract will be deployed on board the U.S. Navy's new DDG-51 Aegis class ships, the most technologically advanced in the Navy's surface fleet, as well as the F-100 Aegis class ships of Spain.

The award is the result of the exercise of an option on an existing $14.2 million contract received by DRS in October 1997. Including this latest award, approximately $8.7 million to date has been released to DRS on this program.

The AN/SPS-67 radar system provides ships with ocean surface surveillance and navigation data, as well as the ability to detect and track low flying aircraft and other targets. It is an integral part of a ship's command and control combat system.

$1.8 Million Contract with $6.6 Million Potential for Sensor Systems

The fourth award received by DRS was a $1.8 million contract from the U.S. Navy to provide engineering development and manufacturing services for a new lightweight, shallow water array subsystem for the Mobile In-shore Undersea Warfare - System Upgrade (MIUW-SU) program. Options for additional production units and support services, if exercised, could increase the total value of this contract to $6.6 million.

The array subsystem will be deployed under water in harbors and along coastlines. It will have the ability to transmit acoustic data to signal processors on shore via fiber optic cable or RF data link. Complementing sonobuoys and other sensors in acoustic data gathering, the array subsystem will collect critical sonar data for the company's signal processing and display systems deployed in mobile vans along the shore. These systems, produced under a separate contract from the U.S. Navy, employ radar, radar intercept, thermal, visual imaging and underwater sonar systems to detect and classify intruding vessels and other threats identified in surface and subsurface surveillance. They are specifically designed for the protection of in-shore environments and the surveillance of amphibious operation areas.

DRS Technologies is a diversified, high-technology company serving government and commercial niche markets worldwide. The company develops and manufactures a variety of leading edge systems and components used for the processing, display and storage of data. DRS provides its customers with a broad range of products, including electronic sensor, electronic imaging and electro-optical systems, and offers a full complement of technical support services. The company's defense electronics products serve all branches of the armed forces. Its commercial and industrial products are used by the airline, banking, computer disk drive, security, transportation, retail sales and broadcast industries.

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

CONTACT: DRS Technologies, Parsippany

Patricia M. Williamson, 973.898.1500

Fax [phone]

http://www.drs.com