DRS Technologies to Provide Tactical Computers to General Dynamics on Large U.S. Army Program.

Business Editors/High-Tech Writers

PARSIPPANY, N.J.--(BUSINESS WIRE)--June 30, 2003

As Team Member, Company Estimates Potential Value of Its Subcontracts at $200 Million

DRS Technologies, Inc. (NYSE:DRS) announced today that it will provide tactical and various other rugged computer systems to General Dynamics (NYSE:GD) C4 Systems for the U.S. Army's Common Hardware/Software III (CHS-3) program. The CHS-3 contract, recently awarded to General Dynamics C4 Systems of Taunton, Massachusetts, is an indefinite delivery/indefinite quantity (ID/IQ) contract potentially valued at $2 billion over ten years. DRS anticipates its share of subcontracts to be valued at approximately $200 million over the life of the program.

CHS-3 was awarded to General Dynamics by the U.S. Army Aviation and Missile Command (AMCOM) at Redstone Arsenal in Huntsville, Alabama. The program will be managed by the Army Tactical Operations Center/Air and Missile Defense Command and Control Systems (TOC/AMDCCS). As a core team member and long-term subcontractor to General Dynamics on the predecessor CHS-2 program, DRS will continue to provide computer products through 2005 for the duration of that program.

"We are delighted to be part of the winning CHS-3 team and look forward to continuing our long-term and valued relationship with General Dynamics," said Steven T. Schorer, president of DRS's Electronic Systems Group. "As a leader in systems for the digitization of the battlefield, we maintain a strong commitment to deliver products incorporating the latest technologies for the demanding command and control on-the-move requirements of the current, interim and objective forces in support of Department of Defense transformation objectives."

The winning team comprises General Dynamics as the prime contractor and core team members Sun Microsystems, Inc. (NasdaqNM:SUNW) in McLean, Virginia; Cisco Systems, Inc. (NasdaqNM:CSCO) in San Jose, California; and DRS Technologies' Electronic Systems Group based in Gaithersburg, Maryland.

For the CHS-3 subcontracts, the company's DRS Tactical Systems unit in Palm Bay, Florida, will design and manufacture Handheld Terminal Units (HTU), which are fully-sealed, rugged tactical computers, as well as other rugged computer systems and displays, all built to survive the modern battlefield. The HTU is a lightweight, versatile and extremely rugged computer used for battlefield digitization applications. It features an 8-inch sunlight-readable display and an Intel-based Pentium(R) IV processor, which can operate at 1.4 GHz. The system will support various military platforms and applications, including fire control. CHS-3 systems will use Commercial Off-The-Shelf (COTS) architectures to support the digitization efforts of the Army, providing users with access to the same power and performance available from commercial counterpart systems.

Through the CHS-3 program, the General Dynamics team will provide U.S. Army, Marine Corps and Air Force tactical computer users with next-generation commercial and ruggedized workstations, as well as hardware and software. Under the contract, all other federal agencies also are eligible to purchase computer products and services. In addition to commercial and rugged computers, the General Dynamics team will provide network hardware equipment, power subsystems, peripheral devices and commercial software to U.S. Department of Defense customers worldwide for the CHS-3 program.

DRS Technologies provides leading edge products and services to government and commercial customers worldwide. Focused on defense electronics, the company develops and manufactures a broad range of mission critical systems and components in the areas of communications, combat systems, battlefield digitization, electro-optics, power systems, data storage, digital imaging, flight safety and space.

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

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