DRS Technologies and Thales North America Announce the Formation of a Joint Venture Company to Develop Undersea Warfare Systems.

PARSIPPANY, N.J. -- DRS Technologies, Inc. (NYSE: DRS) and the Thales Group (Paris: HO.PA) announced today that they have formed DRS Sonar Systems, LLC, a DRS majority-owned joint venture company with Thales North America, Inc. The company will focus on undersea warfare systems (UWS) for defense and homeland security applications.

The company partners two leading global defense technology companies in order to become a preferred provider of UWS solutions for U.S. and foreign military forces.

DRS Sonar Systems will manufacture undersea warfare products and systems under license from Thales and serve as the point of contact for sales and support in the United States. The new company also will develop new underwater systems tailored to U.S. Navy requirements by integrating subsystems from other contractors and Thales' extensive product base.

"DRS has developed a solid relationship with the U.S. Navy through years of providing high-quality solutions that increase ship survivability and maintain a strong naval force," said Steven T. Schorer, president of DRS's Command, Control, Communications, Computers and Intelligence Segment. "This expansion into the undersea warfare battlespace allows DRS to offer a broader scope of modern solutions that meet the requirements of our Navy customers."

"This alliance with Thales provides DRS with an entry into the growing underwater systems market, and adds another critical capability to our strong portfolio of products and services we provide the U.S. Navy," said Richard S. Danforth, president of DRS's Command, Control & Communications Strategic Business Unit (C3 SBU). "This is an exciting opportunity for us to further expand our offerings and enhance our reputation as a leading supplier to naval commands."

The company's C3 SBU is a world leader in the development and production of naval display consoles, ship communication systems, radar and electronic manufacturing and integration services.

"The new joint venture confirms Thales' strategic multi-domestic positioning and provides the vehicle to deliver world-class underwater warfare systems solutions from Thales Underwater Systems to U.S. industry partners for the benefit of the U.S. Navy," said Allan Cameron, chairman and CEO of Thales North America.

"Thales Underwater Systems is the largest supplier of underwater systems outside the U.S. and is pleased to collaborate with DRS, a leading provider of systems, services and products to the U.S. government," said Guy Baruchel, president of Thales Underwater Systems. "With this partnership, we can now leverage our global expertise in designing sonar systems for ships, submarines and aircraft and deliver unparalleled sonar solutions in the U.S. market."

Thales is a leading international electronics and systems group, serving defense, aerospace and security markets worldwide, and supported by a comprehensive services offering. The company's civil and military technology businesses develop in parallel to serve a single objective: the security of people, property and nations. Thales employs approximately 60,000 people.

DRS Technologies, headquartered in Parsippany, New Jersey, is a leading supplier of integrated products, services and support to military forces, intelligence agencies and prime contractors worldwide. The company employs approximately 10,000 people. For more information about DRS Technologies, please visit the company's web site at www.drs.com.

DRS is exhibiting today through Thursday at the 2007 U.S. Navy League Sea-Air-Space Exposition, booth 1502, at the Marriott Wardman Park Hotel in Washington, D.C.