DRS Technologies Receives $521 Million in New Orders for U.S. Army Helicopter Sighting System Support.

Business Editors/High-Tech Writers

PARSIPPANY, N.J.--(BUSINESS WIRE)--Dec. 2, 2003

DRS Technologies, Inc. (NYSE: DRS) announced today that it has received two contracts with a combined value of $521 million to support the infrared sighting systems on the U.S. Army's OH-58D Kiowa Warrior helicopters.

The first award was a $514 million five-year master contract to provide electro-optical components, spares, support and depot repair services for the Mast Mounted Sight (MMS) on the U.S. Army's OH-58D Kiowa Warrior helicopters. The initial first-year award is valued at $92 million.

The second award was a bridge contract, valued at approximately $7 million, for DRS to provide interim production support and field services for the three months prior to the January 2004 transition to the new $514 million master contract.

Both contracts were awarded to DRS by the U.S. Army Aviation and Missile Command (AMCOM) in Huntsville, Alabama. Work for these awards will be performed by the company's DRS Optronics unit in Melbourne, Florida. The contracts extend product deliveries and service through 2008.

"These awards are a milestone for the company and recognize our position as a premier supplier of infrared sighting and night vision systems for the U.S. Army," said Fred L. Marion, president of DRS's Electro-Optical Systems Group. "The sighting system technologies incorporated in the Mast Mounted Sight are crucial to the missions and survivability of our ground forces, providing improved target acquisition performance, greater stand-off ranges and reconnaissance capabilities. These contracts continue many years of our support of this reliable, front-line Reconnaissance, Surveillance and Target Acquisition (RSTA) platform. DRS's commitment to the Kiowa Warrior helicopter is reflected in its consistent operational readiness for the battlefield."

Installed above the rotors of the helicopter, the MMS is an integrated, multi-sensor electro-optical sighting system that uses visible and advanced infrared technology to gather imagery and target acquisition data during the day or night under harsh battlefield conditions. Designed for stealth and extended stand-off range operations, the MMS is considered critical in forward battle areas and reconnaissance missions. The MMS enables the gunship to remain concealed during all but a few seconds of an engagement, making it significantly more survivable in combat operations than reconnaissance gunships with nose mounted sensors. It continues to serve as a pivotal aviation asset for Operation Iraqi Freedom.

The MMS contains a suite of sensors, including a high-resolution television camera for long-range target detection; a thermal imaging sensor for navigation, target acquisition and designation; a laser range finder/designator for target location and guidance of Hellfire missiles and designation for Copperhead artillery rounds; and a boresight assembly that provides in-flight sensor alignment.

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 5,700 people worldwide.

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