DRS Technologies Receives $30 Million in New Contracts to Provide Infrared Assemblies for U.S. and U.K. Army Apache Helicopter Arrowhead System.

PARSIPPANY, N.J. -- DRS Technologies, Inc. (NYSE: DRS) announced today that it has received $30 million in new orders to produce infrared targeting receiver assemblies for the Apache Arrowhead Forward Looking Infrared (FLIR) System for U.S. Army AH-64 attack helicopters and the British Army's AH MK 1 helicopters. The orders represent Lot 2 production of the Arrowhead, the U.S. Army's Modernized Target Acquisition and Designation Sight/Pilot Night Vision Sensor (MTADS/PNVS) system, and initial production to upgrade the United Kingdom's Apache air fleet.

The contracts were awarded to DRS by Lockheed Martin Corporation (NYSE: LMT) Missiles and Fire Control - Orlando, which is part of Team Apache Systems, LLC. For these orders, the company's DRS Infrared Technologies unit in Dallas, Texas, will provide Standard Advanced Dewar Assemblies Type I (SADA I) units, which are infrared detector and cryogenic cooler assemblies. Product deliveries are expected to commence in March 2006 and continue through June 2007. Additional awards are anticipated by the company.

"Our receiver design is based on the Army's Horizontal Technology Integration (HTI) B-Kit currently being produced by DRS for a number of ground vehicles. This design, which provided a proven baseline, is optimized for this new airborne application," said Fred L. Marion, president of DRS's Surveillance & Reconnaissance Group. "Our leading edge FLIR technology is providing a significant benefit to the Apache fleet. With over 1,000 helicopters currently targeted for this upgrade, the Arrowhead is an important program for DRS."

SADA I and other HTI Second Generation FLIR programs supported by DRS remain central to the U.S. Army's modernization strategy and its goal to dominate the expanded battle space in the 21st century.

The Apache Arrowhead represents a new era in advanced target acquisition, designation and night vision capabilities for Army aviation. The high-resolution image from the pilotage FLIR sensor will be displayed in the cockpit and on the pilot's helmet-mounted display. The system's advanced processing techniques will provide pilots with the best possible resolution in order to avoid such obstacles as wires and trees during low-level flight.

The U.S. Army is expected to purchase more than 700 Arrowhead systems to outfit its AH-64 Apache fleet by 2009, with the first Army unit equipped with the Arrowhead system to be fielded this month. The first U.K. Arrowhead kit will be delivered in April 2007, with flight testing scheduled to begin in spring 2007. The integration of Arrowhead on the first four U.K. Apache AH MK 1 helicopters is scheduled to be completed in January 2009. Retrofit of the entire U.K. Apache fleet is scheduled to be completed by the end of 2010.

Arrowhead provides a new electro-optical targeting and pilotage system to Apache helicopter crews that will maximize safe flight in day, night and adverse-weather environments. Arrowhead improves performance and reliability, and reduces maintenance, which will save the U.S. Army nearly $1 billion in operation and support costs over the life of the system, compared with the legacy system.

DRS Technologies, headquartered in Parsippany, New Jersey, provides leading edge products and services to defense, government intelligence and commercial customers. Focused on defense technology, DRS develops and manufactures a broad range of mission critical systems. The company employs 6,000 people worldwide.

For more information about DRS Technologies, please visit the company's web site at www.drs.com.