DRS Technologies Receives New Orders for Next-Generation Secure Communications Subsystems for Government Applications.

Business Editors/High-Tech Writers

PARSIPPANY, N.J.--(BUSINESS WIRE)--March 5, 2004

DRS Technologies, Inc. (NYSE: DRS) announced today that it has received new orders to provide next-generation secure voice and data communications subsystems for U.S. government information security (INFOSEC) program applications.

The awards, valued at $3.6 million, were received by DRS from L-3 Communication Systems - East, located in Camden, New Jersey, a unit of L-3 Communications Corporation (NYSE: LLL). For these awards, the company will provide adapter modules for Secure Terminal Equipment (STE) that will allow the equipment to communicate over public service telephone and military tactical networks.

Work associated with these awards will be accomplished by the company's DRS Communications Company unit in Wyndmoor, Pennsylvania. STE is the U.S. government's primary device for secure telephone communications and replaces STU-III and KY-68 devices with state-of-the-art features for a variety of information security applications. Contracts for additional STE subsystems are anticipated.

"These awards enhance DRS's position as a leader in the design, development and manufacture of components for secure and tactical communications systems for government applications," said David W. Stapley, president of DRS's Flight Safety and Communications Group. "As the security challenges confronting government information technology resources multiply with the growth of interconnected systems and data exchange, our communications technology is expected to play an increasingly important role in protecting information that is vital to national security interests."

STE systems are the next-generation secure voice and data equipment for advanced digital communications networks. They consist of a host terminal, which provides the application hardware and software, and a removable security core, which provides all of the encryption features and other security services. STE operates in Integrated Services Digital Networks (ISDN), analog Public Switched Telephone Networks (PSTN) and U.S. military tactical (TRI-TAC) networks. ISDN provides the speed and high-quality digital connections enabling full-quality secure voice (32.0 KB per second, versus 4.8 KB per second), faster data rates (up to 128.0 KB per second, versus 9.6 KB per second), secure three-party conferences and STU-III compatible modes. High-speed digital faxing and PC data file transfer also are supported through a standard EIA-232/530A interface. When connected to PSTN, STE emulates STU-III systems. STE is software-upgradable for ease of future enhancements to products in the field.

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.