DRS subsidiary receives $2 million award for Eye-Safe Laser Range Finders on U.S. Army program.

PARSIPPANY, N.J.--(BUSINESS WIRE)--June 6, 1996-- Diagnostic/Retrieval Systems Inc. (ASE:DRS) ("DRS") today announced that its DRS OMI Corp. subsidiary has received a $2 million contract award from Lockheed-Martin Electro-Optical Systems, formerly Loral Electro-Optical Systems, to provide Eye-Safe Laser Range Finder systems for the U.S. Army's Simulation, Training and Instrumentation Command (STRICOM).

The award was received under a three-year Ordering Agreement (OA) with two one-year additional options for a total potential program value of approximately $16 million.

Under the OA, DRS will provide quantities of its Eye-Safe Laser Range Finders (ESLRF) for the Army's Air/Ground Engagement System (AGES II) on the Multiple Integrated Laser Engagement System (MILES) program's combat training and simulation devices.

DRS's ESLRF systems initially will be used on the Army's AH-64A Apache helicopter. Future implementation is planned for the AH-64D Apache Longbow and OH-58D Kiowa Warrior helicopter platforms, as well as the Field Artillery Ground/Vehicle Laser Locator Designator, known as the Hellfire Ground Support System.

For combat training and simulation, the Army uses an eye-safe laser to initiate live firing and a laser detection system for target acquisition scoring. The MILES AGES II program provides integrated arms training in high-fidelity, simulated battlefield environments. DRS provides similar Eye-Safe Laser Range Finder technology for the Army's Improved Target Acquisition System (ITAS).

Mark S. Newman, chairman, president and chief executive officer of DRS, stated: "The Eye-Safe Laser Range Finder award reaffirms our strategy to capture an increasing share of the emerging market of sighting and target acquisition devices for common military platforms. DRS is a highly flexible, rapid-response company and is positioned to deliver innovative design and world-class product quality for the defense marketplace, both as a prime contractor and subcontractor for other major primes. We are continuing to strengthen our unique position in this growing marketplace as part of our broader defense and commercial marketing initiatives."

DRS is a diversified, high-technology company serving global government and commercial markets. Principally a developer and manufacturer of a variety of sophisticated, leading edge systems 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.

CONTACT: DRS Inc., Parsippany

Patricia M. Williamson, 201/898-1500

or

Kehoe, White, Savage & Company, New York

John P. Kehoe/Van Negris, 212/888-1616