DRS Technologies Receives New Contract to Design High-Speed Permanent Magnet Generator for the U.S. Navy.

Business Editors/High-Tech Writers

PARSIPPANY, N.J.--(BUSINESS WIRE)--June 1, 2004

DRS Technologies, Inc. (NYSE:DRS) announced today that it has received a new contract to develop a prototype high-speed, engineering demonstration model generator to be installed in various Naval vessels. An integral part of the U.S. Navy's Advanced Electrical Power Systems program, this generator will be capable of supporting the Navy's next-generation electric drive and mechanical drive ships, as well as the retrofit of existing ships.

The contract, valued at $5.9 million, was awarded to DRS by the Office of Naval Research (ONR) in Washington, D.C. Work for this order will be accomplished by all three of the company's power systems units located in Hudson and Fitchburg, Massachusetts, and Milwaukee, Wisconsin. Delivery of the initial system is expected in mid-2005.

"This award reflects the Navy's confidence in DRS's design approach and enhances our leadership position in advanced permanent magnet propulsion technology," said Steven T. Schorer, president of DRS's C4I Group. "Similar in technology to our proven permanent magnet industrial motors, this equipment will result in a new class of highly compact, power dense, actively controlled generators that provide clean, stable, mission-critical electric power for advanced shipboard operations and combat systems, as well as auxiliary power applications. DRS remains committed to developing advanced technological innovations to provide the U.S. Navy with high-performance, lightweight, low-cost power equipment."

The development of this generator will eliminate the need for large, heavyweight reduction gears and their associated support structures and systems in new ship designs, while minimizing the mass and volume of the electromagnetic machine and its thermal and structured support requirements. The generator also can be installed as a backfit on existing ships to provide increased power capability.

DRS also is supplying critical components of the electric drive system for the DD(X) program, including gas turbines, propulsion motors, drive controls, power electronics equipment and other key elements of the electric drive engineering development models. The company's unique role is expected to lead to expansion onto other electric drive and mechanical drive platforms supporting Navy growth initiatives, including new ships under the CVN-78 aircraft carrier and Littoral Combat Ship (LCS) programs.

DRS is a leading supplier of high-performance power generation, conversion, electric propulsion and distribution equipment, networks, control systems, tactical displays and specialty nuclear reactor plant instrumentation for the U.S. Navy's combatant fleet and specialized industrial customers. The company has installed equipment on every U.S. Navy combatant ship since World War II, including nuclear-powered and conventionally-powered ships.

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 5,800 people worldwide.

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