DRS Technologies to Produce Driver Vision Enhancers for U.S. Army Vehicles; Contract Valued at $252 Million, Including Options.

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PARSIPPANY, N.J.--(BUSINESS WIRE)--May 6, 2004

DRS Technologies, Inc. (NYSE: DRS) announced today that it has been awarded a four-year U.S. Army contract to produce Driver Vision Enhancers (DVEs) for installation on a wide range of frontline combat and tactical wheeled vehicles. These systems provide military vehicle drivers with the ability to see clearly, regardless of light level, adverse weather conditions, and battlefield smoke and dust. The contract has a three-year base value of $26 million and a total value of $252 million over four years, if all options are exercised.

The contract was awarded to DRS by the U.S. Army's Communications-Electronics Command (CECOM) in Fort Monmouth, New Jersey. For this award, DRS will provide DVEs in partnership with the Program Manager, Night Vision/Reconnaissance, Surveillance and Target Acquisition, in Fort Belvoir, Virginia. Production of focal plane array sensors will be accomplished by the company's DRS Infrared Technologies unit in Dallas, Texas. Assembly and test of B-Kits, sensor assemblies and display control modules will be accomplished by the company's DRS Optronics unit in Palm Bay, Florida. The DVE is based on DRS's uncooled infrared technology and electronics developed by the company's DRS Nytech Imaging Systems unit in Irvine, California, and DRS Sensors & Targeting Systems unit in Anaheim and Torrance, California. DRS Sensors & Targeting Systems also provided systems engineering for the device. Product deliveries are expected to commence in early 2005 and continue through April 2008.

"The selection of DRS for this significant award, coupled with the announcement last month on our capture of the multi-year Thermal Weapon Sights contract, clearly establishes DRS as the industry leader in high-performance, uncooled thermal imaging devices for military applications," said Fred L. Marion, president of DRS's Surveillance & Reconnaissance Group. "The combination of these two important contracts satisfies our near-term strategy and a major fiscal objective, making us a major competitor in the uncooled infrared technology market place. These successes ensure steady volume over the next several years for our sensor and electro-optical system production facilities."

Utilizing DRS's Low-Power Uncooled Infrared (LPUIR) detector, thermally compensated optics and an 800 by 600-pixel active matrix liquid crystal display panel, the company's DVE will provide enhanced situational awareness, target and ambush detection, and vehicle tracking, and will allow ground support elements to better keep pace with night vision-capable combat forces. The deployment of this technology will improve the mobility and effectiveness of ground operations and is readily adaptable to the combat and tactical vehicles of the U.S. Army and Marine Corps. DVE is planned for installation on the M1 Abrams Main Battle Tanks, M2 Bradley Fighting Vehicles, Long Range Advanced Scout (LRAS) vehicles, the Stryker Interim Armored Vehicles, Amphibious Assault Vehicles (AAVs), High Mobility Multipurpose Wheeled Vehicles (HMMWVs), Heavy Expanded Mobility Tactical Trucks (HEMTT), Family of Medium Tactical Wheeled Vehicles (FMTV) and Light-Armored Vehicles (LAV), among other mobile ground assets of the U.S. Army and Marine Corps.

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 5,700 people worldwide.

For more information about DRS Technologies, please visit the company's web site at www.drs.com.

SAFE HARBOR: This press release contains forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended, that are based on management's beliefs and assumptions, current expectations, estimates and projections. Such statements, including statements relating to the Company's expectations for future financial performance, are not considered historical facts and are considered forward-looking statements under the federal securities laws. These statements may contain words such as "believes," "anticipates," "plans," "expects," "intends," "estimates" or similar expressions. These statements are not guarantees of the Company's future performance and are subject to risks, uncertainties and other important factors that could cause our actual performance or achievements to differ materially from those expressed or implied by these forward-looking statements and include, without limitation, demand and competition for the Company's products and other risks or uncertainties detailed in the Company's Securities and Exchange Commission filings. Given these uncertainties, you should not rely on forward-looking statements. The Company undertakes no obligations to update any forward-looking statements, whether as a result of new information, future events or otherwise.

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