DRS Technologies Receives $19.7 Million Contract, Including Options, from the U.S. Navy to Continue Work on Permanent Magnet Propulsion Motors.

PARSIPPANY, N.J. -- DRS Technologies, Inc. (NYSE: DRS) announced today that it received a $19.7 million contract, including options, from the U.S. Naval Sea Systems Command to conduct full power testing on their permanent magnet propulsion motor engineering development model (EDM), and continue integrated design and development of a new permanent magnet propulsion motor.

The work for this award will be performed by the company's DRS Power Technology unit in Fitchburg, Massachusetts. The testing is expected to start immediately at the U.S. Navy's Land Based Test Site in Philadelphia, Pennsylvania, and continue through September 2007. The test program will operate the permanent magnet propulsion motor up to full power (full torque and full load) in a test facility that simulates an actual U.S. Navy DDG-1000 engine room.

The objective of the integrated design and development activity is to incorporate lessons learned from testing the EDM, further improve power density, increase energy efficiency, and to reduce manufacturing cost. Design enhancements to improve affordability for shipboard applications have already been initiated, and completion of the enhancements is targeted to support the start of shipboard motor production in 2008.

The U.S. Navy is considering using integrated power systems based on in-hull permanent magnet motors in order to meet the growing power demands for its 21st Century ships. As the ships planned for the future will be equipped with more and larger command and control systems and electronics components, the efficiency and output capabilities of their power systems is extremely vital.

"The U.S. Navy is very interested in the continued development of permanent magnet propulsion motors, due to the advantages offered by these efficient, power dense machines," said Roger N. Sexauer, president of DRS's Power Systems Strategic Business Unit. "Advances in permanent magnet material and electronic drive technology have made permanent magnet motors an attractive alternative for both submarine and surface warship applications. The technology offers naval ships space, weight, acoustic and cost benefits over conventional motor technology. DRS is working with the Navy to determine the optimum time to insert this technology into its fleet of ships or submarines."

DRS is a leading supplier of U.S. Navy shipboard propulsion systems, advanced permanent magnet motors and generators, machinery automation systems, electronic and mechanical control systems, power conversion equipment, and medium- and low-voltage power distribution systems for nuclear submarines and surface combatant ships.

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.

DRS is exhibiting this week through Thursday at the 2007 U.S. Navy League Sea-Air-Space Exposition, booth 1502, at the Marriott Wardman Park Hotel in Washington, D.C.