DRS Technologies To Purchase Applied Systems Division of Spar Aerospace Limited in Canada.

PARSIPPANY, N.J.--(BUSINESS WIRE)--Sept. 19, 1997--DRS Technologies Inc. (ASE: DRS) announced today that it has agreed to acquire the assets of the Applied Systems Division of Spar Aerospace Limited (Toronto and Montreal Stock Exchanges: SPZ), headquartered in Toronto, Canada for approximately $29 million in cash.

Spar Applied Systems Division, which is headquartered in Kanata, Ontario, has been an international provider of aviation and defense systems for over 30 years. It designs, manufactures and markets sophisticated flight safety systems, naval communications systems and other advanced electronics for military, civil and government customers around the world. It also provides custom manufacturing services for complex electronic assemblies and systems.

Spar Applied Systems Division is the dominant global supplier of deployable aircraft locator beacons and flight data recorder systems. Its avionics and flight safety systems product lines include emergency locator beacons deployed automatically from aircraft to locate crash sites, and flight incident and cockpit voice recorders that store critical data for accident investigation, aircraft safety analysis, event reconstruction and training.

Its shipboard communications systems are used in conjunction with communications and surveillance satellites and integrate Commercial Off-The-Shelf (COTS)-based computing and telecommunications equipment for military requirements. The company also manufactures thermal vision devices for surveillance and weapon targeting systems, and tactical air navigation beacons.

Mark S. Newman, DRS Technologies' chairman, president and chief executive officer, commented, "The acquisition of Spar Applied Systems Division is a strategic fit with DRS's long-term growth strategy of expanding our competitive position as a mid-tier defense technology leader. With several lines of products closely associated with our technologies, customers and markets, this acquisition will enable DRS to leverage multiple opportunities in both the defense electronics and commercial aerospace industries. We expect this acquisition to be accretive to earnings within the next twelve months."

Colin D. Watson, president and chief executive officer of Spar Aerospace, added, "The Applied Systems Division is a robust operation with niche products and technologies highly complementary with those of DRS Technologies. The sale of this unit reflects our long-term corporate strategy to concentrate our efforts on our space and aviation businesses."

Spar Applied Systems Division was created in 1990 through the merger of Spar Defence Systems Division and the acquired assets of Leigh Instruments Limited. Certified to ISO-9001, Applied Systems Division generated approximately $CDN42 million, or over $30 million, in revenues for fiscal 1996 and employs approximately 362 people at three facilities, including Spar U.K., a subsidiary located in Middlesex, United Kingdom. DRS Technologies reported approximately $144 million in revenues for fiscal 1997.

Spar Aerospace Limited is a leading Canadian advanced-technology company with businesses in the space, communications, aviation and defense, and software industries. Operations are located in North America, Europe and the Pacific Rim, and nearly 70 percent of revenues are derived outside Canada.

DRS Technologies is a diversified, high-technology company serving government and commercial niche markets worldwide. The company develops and manufactures a variety of leading edge systems and components used for the processing, display and storage of data. DRS provides its customers with a broad range of products, including electronic sensor, electronic imaging and electro-optical systems, and offers a full complement of technical support services. The company's defense electronics products serve all branches of the armed forces. Its commercial and industrial products are used by the airline, banking, computer disk drive, security, transportation, retail sales and broadcast industries.

CONTACT: DRS Technologies Inc, Parsippany

Patricia M. Williamson, 973/898-1500

or

Spar Aerospace Limited, Toronto

Deborah Allan, 416/682-7619