DRS Technologies awarded $12.6 million in new contracts on U.S. Navy Coastal Surveillance Program.

PARSIPPANY, N.J.--(BUSINESS WIRE)--July 7, 1997--DRS Technologies, Inc. (ASE:DRS) announced today that it has been awarded, through its DRS Electronic Systems Group, based in Gaithersburg, Md., two contracts from the U.S. Navy with a combined value of approximately $12.6 million.

The first award, valued at approximately $7.6 million, is the result of the exercise of an option on an existing $19.4 million contract, which was awarded to DRS in April, 1996. For this award, DRS will provide additional AN/SQR-17A Sonar Signal Processing Systems, upgrade kits and engineering services for the Navy's Mobile In-Shore Undersea Warfare - Systems Upgrade (MIUW-SU) program.

For the second contract, valued at approximately $5 million, DRS will manufacture additional quantities of AN/SQQ-T1 Readiness Trainer Systems, and provide engineering and support services for the MIUW-SU program. Options amounting to $2.7 million, if exercised, could increase the total value of this contract to $7.7 million.

DRS Technologies' chairman, president and chief executive officer Mark S. Newman remarked, "Our receipt of additional awards under the MIUW-SU program demonstrates the U.S. Navy's confidence in our capabilities to continue to provide these mobile, high-performance, multisensor processing systems and trainer systems that address current and future critical military, security and training objectives."

The MIUW-SU program employs electronically-equipped mobile vans in which DRS's signal processing systems are installed. These units are deployed near shorelines for the defense of harbors and coastal regions, as well as for amphibious operation area surveillance. MIUW-SU utilizes radar, radar intercept systems, thermal and visual imaging systems, and underwater sonar systems to detect intruding threats. DRS's advanced signal processing and display systems provide multiple sensor processing technology and enhanced area surveillance capabilities for the detection, classification, localization and neutralization of these underwater threats. The company's Readiness Trainer Systems allow MIUW forces to train in realistic environments by providing emulation equipment which generates sophisticated, battle-realistic team training scenarios and data designed to maintain a high level of proficiency and readiness for personnel engaged in missions utilizing MIUW.

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 mainly by the airline, banking, computer disk drive, security, transportation, retail sales and broadcast industries.

CONTACT: DRS Technologies

Patricia M. Williamson

973/898-1500

or

Kehoe, White, Savage & Company

John P. Kehoe/Van Negris

212/888-1616