DRS Technologies Selected by the U.S. Army for Production of Battlefield Digitization System; Contract Valued at Approximately $100 Million.

PARSIPPANY, N.J. -- DRS Technologies, Inc. (NYSE: DRS) announced today that it has been competitively awarded a five-year U.S. Army contract for production of rugged Applique Computer Systems for the U.S. Army's Force XXI Battle Command, Brigade and Below (FBCB2) program. The indefinite delivery/indefinite quantity (IDIQ) contract is valued at approximately $100 million.

The contract was awarded to DRS by the U.S. Army's Communications-Electronics Command (CECOM) in Fort Monmouth, New Jersey. Work for this order, including the design and manufacture of processor, display and keyboard units, as well as rugged hard disk drives, will be performed by the company's DRS Tactical Systems unit in Palm Bay, Florida. DRS has delivered over 9,000 FBCB2 computer systems on or ahead of schedule over the last four years under a Low Rate Initial Production (LRIP) contract. Under this new contract, the FBCB2 will complete transition to full-rate production.

FBCB2 is focused on the development of a digital battle command information system designed to provide commanders, leaders and soldiers, from brigade to individual soldier and across all the battlefield functional areas, with improved information for command and control and enhanced situational awareness. Installed on more than 40 different platform types, these systems support the Army's Blue Force Tracking requirements, which include beyond line-of-sight reporting and tracking, as well as significant improvements in vertical and horizontal information integration for incorporation into the Army's overall battlefield visualization efforts.

"The award of this multi-year contract to DRS affirms our position as a market leader in rugged computer systems supporting the U.S. Army's dominance of the 21st century battle space," said Steven T. Schorer, president of DRS's C4I Group. "These systems have proven to be crucial assets for our forces in Iraq as part of the Army's network-centric communications infrastructure by providing improved interoperability and networked battlefield command information. DRS's strong track record for innovative design and highly reliable performance, combined with our reputation for product quality and timely delivery, have culminated in the award of this important program to DRS. Our success in supporting FBCB2 is the direct result of our commitment to provide best value systems and services, which have afforded us the opportunity to provide this next-generation, high-visibility, battlefield command information system."

Incorporating the latest developments in digital information processing and networking, the FBCB2 system provides improved combat support, real-time command and control capabilities, enhanced interoperability and situational awareness throughout the force structure at the soldier, weapons and platform levels, assuring that U.S. armed forces keep pace with advanced technology developments of the 21st century. Interoperability with external command and control and sensor systems provides a seamless flow of battle command information.

The system is intended to support lower-echelon battle command tactical mission requirements, such as real-time situational awareness, target identification and graphical combat area displays. The situational awareness component will collectively display the geographical location of all weapons, platforms, soldiers, command posts and other facilities and will be used in conjunction with the Army's Tactical Internet (TI), a seamless Internet connection, for ease in communication. The TI interfaces with the Army Tactical Command and Controls System (ATCCS), collects information from both the operation center and the individual units and then disseminates it through FBCB2 computers for improved situational awareness.

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 http://www.drs.com.