DRS Technologies Receives $26 Million Contract to Provide Key Subsystems for U.S. Army Long Range Advanced Surveillance Systems.

PARSIPPANY, N.J. -- DRS Technologies, Inc. (NYSE: DRS) announced today that it was awarded a $26 million subcontract from Raytheon Company (NYSE: RTN) to provide major subsystems for the U.S. Army's Long Range Advanced Scout Surveillance System (LRAS3). LRAS3 provides the U.S. Army Brigade Reconnaissance Troops, Armor and Infantry Battalion Scout Platoons, and the Stryker Brigade Combat Teams (SBCT) with a long-range detection, recognition, identification and far-target location capability.

The contract was awarded to DRS by Raytheon Company's Network Centric Systems business in McKinney, Texas. Work for this award will be performed by the company's DRS Optronics unit in Palm Bay, Florida, at its state-of-the-art electro-optical design and production facilities. Product deliveries are expected to continue through December. Including the latest award, DRS has booked more than $142 million in orders on the LRAS3 program.

Bridging the gap between currently fielded systems and the U.S. Army's Future Combat System (FCS), LRAS3 provides heavy battalion, Light Cavalry Squadron and Stryker Brigade Combat Team Scouts with the capability to conduct 24-hour surveillance and reconnaissance missions at safe distances and operate well outside the direct-fire range of detected threats.

"DRS is a market leader of Second Generation infrared ground vehicle sighting, targeting and detection systems, and we play a key role in the Army's Horizontal Technology Integration initiative and its modernization strategy," said Fred L. Marion, president of DRS's Surveillance & Reconnaissance Group. "The LRAS3 remains a key program in our ground vehicle systems product line."

LRAS3 provides precise far-target location by incorporating advanced Second Generation Forward Looking Infrared (FLIR) technology, a global positioning interferometer, an eye-safe laser range finder, a designator laser for guided weapons and a day video camera. Deployed on the Army's M1025 and M1114 HMMWV reconnaissance vehicles in their mounted configuration, the system also can be used on tripods for dismounted missions.

The M1025 and M1114 HMMWV Scouts are forward deployed to provide commanders with 24-hour battlefield reconnaissance and surveillance and to assist the missions of heavy battalions in remote areas with rough terrain under difficult conditions. The mission of the SBCT is to conduct effective combat operations, including preventing, containing, stabilizing and resolving conflicts in major theater warfare.

Raytheon Company, with 2005 sales of $21.9 billion, is an industry leader in defense and government electronics, space, information technology, technical services, and business and special mission aircraft. With headquarters in Waltham, Mass., Raytheon employs 80,000 people worldwide.

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 its web site at www.drs.com.