DRS Technologies Receives U.S. Army Contract for Ground Vehicle Sighting System Components.

Business Editors

PARSIPPANY, N.J.--(BUSINESS WIRE)--June 7, 2001

DRS Technologies, Inc. (AMEX: DRS) announced today that it has received a contract to produce electro-optical system components for the tracking and imaging systems on a variety of military platforms, including the U.S. Army's M2A3 Bradley Fighting Vehicles and M1A2 Abrams Main Battle Tanks, considered the most advanced ground combat vehicles in existence.

The award has a not-to-exceed value of $7 million, including options. Under the initial $2 million order, DRS will produce One Watt Linear (OWL) cooler assemblies for the Army's Horizontal Technology Integration (HTI) B-Kit systems, which provide infrared imaging capabilities on several of the U.S. Army's ground vehicle platforms. OWL Coolers are used in the HTI Second Generation Forward Looking Infrared (HTI SGF) Thermal Imaging System, also produced by the company.

The contract was awarded to DRS by the U.S. Army Communications-Electronics Command (CECOM) in Fort Monmouth, New Jersey. Work for this award will be accomplished by the company's DRS Infrared Technologies unit in Dallas, Texas. Product deliveries will extend through May 2002.

"The leading edge electro-optical infrared technology we provide in our systems and components contributes to the strategic responsiveness, forward engagement and force projection capabilities of the U.S. Army," said Mark S. Newman, chairman, president and chief executive officer of DRS Technologies. "The HTI program has positioned DRS as a primary U.S. Army supplier of high-performance infrared detectors and components, and an industry leader in advanced electro-optical systems technology for the defense electronics marketplace. This technology is key to missions involving deterrence, protection, maneuver and strike. The HTI SGF programs supported by DRS remain central to the Army's modernization strategy and its goal to dominate the expanded battle space in the 21st century."

DRS has delivered more than 5,000 OWL Coolers. These coolers are key components of the Standard Advanced Dewar Assemblies Type II (SADA II), which use DRS's critical Second Generation Forward Looking Infrared (Gen II FLIR) technology to target threats during the day or night, providing clear imagery despite low light level, dense fog, rain, smoke, debris and other battlefield obscurants. This technology reduces fratricide, increases survivability and enhances the command and control effectiveness of ground forces.

DRS provides advanced focal plane arrays, Dewar assemblies and coolers for several significant U.S. military programs and is a market leader in long-range, advanced infrared sighting and weapons systems technology for day and night target detection under harsh environmental conditions. Under separately awarded contracts, DRS produces SADA I, SADA III and cooler assemblies for the tracking and imaging systems on a variety of Army ground platforms and weapons systems.

The company's focal plane arrays (FPA) and coolers also are slated for use in theater missile defense applications, where the detectors' multi-band sensor capabilities will provide increased discrimination between threat projectiles, decoys and background debris. DRS's three-band sensor technology, currently under development for the U.S. Navy, will represent the state-of-the-art in infrared detection and will be one of the most sophisticated detector capabilities in the world. It is anticipated that this and other DRS-developed multi-color infrared FPA technologies will be utilized for key future military applications where threat warning, clutter rejection and false alarm reduction are imperative.

DRS Technologies provides leading edge products and services to government and commercial customers worldwide. Focused on defense electronics, the company develops and manufactures a broad range of mission critical systems and components in the areas of communications, combat systems, rugged computers, electro-optics, data storage, digital imaging, flight safety and space.

Additional information is available on the company's web site at www.drs.com.