DRS Technologies Receives $34 Million Contract to Provide Embedded Diagnostics Systems for U.S. Army Combat Vehicles.

PARSIPPANY, N.J. -- DRS Technologies, Inc. (NYSE: DRS) announced today that it was awarded a $34 million contract, including options, to deliver new embedded diagnostics systems for installation on the U.S. Army's M2A3 Bradley Fighting Vehicles.

For the initial $24 million award, DRS will manufacture Chassis Modernization and Embedded Diagnostics (CMED) Retrofit Kits. The kits will provide currently fielded Bradley A3 vehicles with substantially upgraded weapon systems capability, an integrated, real-time, embedded diagnostics capability and increased reliability, reducing the logistics footprint and lowering operating and support costs. The CMED systems are applicable to the entire fleet of Bradley Fighting Vehicles.

The contract was awarded to DRS by the U.S. Army Tank Automotive and Armaments Command Life Cycle Management Command (TACOM LCMC) in Rock Island, Illinois, for the Program Manager, Heavy Brigade Combat Team in Warren, Michigan. Work for this order will be accomplished by the company's DRS Test & Energy Management unit in Huntsville, Alabama. Product deliveries are expected to begin in June 2007 and continue through March 2008.

"The receipt of this contract reflects our customer's acceptance of the CMED as the diagnostic system solution for ground combat vehicle platforms and reinforces our role as a key supplier of operationally-proven, electronic test systems and diagnostics equipment for the Army's fleet of ground combat vehicles," said Fred L. Marion, president of DRS's Surveillance & Reconnaissance Group. "The upgraded capabilities we have developed for this ground combat vehicle system will result in enhanced situational awareness for the Bradley driver, increased vehicle availability, simplified logistics, and improved product functionality and performance, ensuring that the Bradley fleet will continue to play a crucial role on the battlefield."

For this contract, DRS will deliver transducer sensor kits, cable modification kits, Driver Vision Enhancer (DVE) kits, Digital Vehicle Distribution Box (DVDB) embedded diagnostics and video integration kits, new Driver Display Panels (DDPs), steering column modifications and common display panel kits for existing M2A3 Bradley Fighting Vehicles.

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.