DRS Technologies Receives $20 Million in Contracts to Provide Electronic Manufacturing for U.S. Army Bradley Fighting Vehicles.

Business Editors

PARSIPPANY, N.J.--(BUSINESS WIRE)--July 26, 2001

DRS Technologies, Inc. (AMEX:DRS) announced today that it has been awarded multi-year production contracts with a combined value of approximately $20 million to provide electronic manufacturing services for the U.S. Army's M2A3 Bradley Infantry Fighting Vehicles.

The contracts were awarded to DRS by United Defense Ground Systems Division. For the initial $5 million order, the company's DRS Laurel Technologies unit in Johnstown, Pennsylvania will provide wire harnesses, cable assemblies and related interconnect equipment to support these frontline ground vehicle platforms. The assemblies will be able to withstand the adverse effects of chemical warfare environments. Deliveries are expected to commence in May 2002 and continue through April 2005. Additional contracts over the next several years are anticipated, as Army plans indicate that several hundred M2A3 vehicles could be produced through the year 2007. DRS has provided electronic manufacturing services for the M2A3 vehicles under previously awarded contracts since 1997.

"The Bradley M2A3 plays a crucial role in dominating the digital battlefield and is one of the most significant programs in the Army's strategy for 21st century modernization," said Mark S. Newman, chairman, president and chief executive officer of DRS Technologies. "The award of these additional contracts demonstrates our customer's continued confidence in the high-quality services we provide and our long-term, reliable performance as a Bradley Team member. DRS has become recognized as a key defense industry supplier of 'best value' electronic manufacturing services."

The M2A3 is a technologically advanced, highly mobile fighting vehicle and the latest upgrade of the U.S. Army's Bradley Fighting Vehicle. It provides twice the survivability and combat effectiveness of earlier versions, and arms U.S. soldiers with the best battlefield capability in the world. The M2A3 incorporates system-wide improvements to the current M2 vehicle configuration. It also incorporates the Improved Bradley Acquisition Subsystem (IBAS) produced by DRS and features an improved integrated sight system, ballistic fire control, automatic dual target tracking and boresighting. Other improvements include built-in digital test capability, embedded training and electronic logistics reporting.

DRS Laurel Technologies is a manufacturer and integrator of electronic systems and provides turn-key production, cable and wire harness interconnect products, fiber optics, electronic and electromechanical assembly, systems integration and test services for the defense and aerospace industries. It has supplied cable and wire harnesses, manufacturing and electronic systems integration services for a variety of programs supporting U.S. military forces. Certified to ISO-9000 and AS-9000 Quality System Standards, DRS Laurel Technologies ensures that its procedures and work processes consistently provide high-quality electronic manufacturing services and conforming products for the most demanding requirements.

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, rugged computers, electro-optics, data storage, digital imaging, flight safety and space.

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