DRS Technologies Receives $15 Million in New Orders for Thermal Imaging Systems for Marine Corps Abrams Tanks.

PARSIPPANY, N.J. -- DRS Technologies, Inc. (NYSE: DRS) announced today that it has received approximately $15 million in new orders to produce and install thermal imaging systems in support of the U.S. Marine Corps' M1A1 Abrams Main Battle Tank Firepower Enhancement Program (FEP). The FEP will increase the Marine Corps' day and night war fighting capability by providing rapid and accurate target engagement, extended engagement ranges and increased tank capability for lethality, significantly contributing to the survivability of Marine Corps forces.

The contracts were awarded to DRS by Raytheon Company's (NYSE: RTN) Network Centric Systems in McKinney, Texas. For these awards, DRS will build, integrate, test, deliver and install the FEP variant of Second Generation Forward Looking Infrared (FLIR) Thermal Imaging Systems currently used in various U.S. Army ground-based weapon systems. The company's DRS Optronics unit in Palm Bay, Florida, will accomplish the work for these contracts. Product deliveries are expected to commence in September 2006 and continue through August 2007. Additional orders on this program are anticipated by the company.

"As a key supplier of Second Generation FLIR thermal sighting systems, DRS plays a crucial role in the Marine Corps' modernization strategy to improve combat effectiveness and enhance survivability of our forces," said Fred L. Marion, president of DRS's Surveillance & Reconnaissance Group. "The DRS-built FEP systems provide the Marine Corps M1A1 Abrams with a valuable performance upgrade and further extends the proliferation of DRS night vision equipment throughout the U.S. military."

The FEP greatly enhances the power projection capabilities of Marine Corps ground forces and is targeted for installation on the entire fleet of Marine M1A1 tanks. The FEP Second Generation FLIR thermal imaging systems provide high-resolution imagery to detect threats at significantly greater distances under a full range of harsh battlefield conditions. They provide increased threat overmatch, while accurately performing far-target location, enhancing the tanks' combat effectiveness and survivability while significantly reducing fratricide. The FEP systems will include a new Far Target Location sensor that further extends the sighting systems' range and greatly improves situational awareness.

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.