DRS subsidiary receives additional $2 million contract from the U.S. Army for Boresight equipment.

PARSIPPANY, N.J.--(BUSINESS WIRE)--Oct. 14, 1996--Diagnostic/Retrieval Systems Inc. (ASE: DRS) ("DRS") announced today that its DRS Photronics Corp. subsidiary has received an additional contract award valued at approximately $2 million from the U.S. Army Missile Command (MICOM) to provide upgraded Captive Boresight Harmonization Kit (CBHK) systems for use with foreign AH-64A Apache and Apache Longbow helicopters.

Options to equip additional attack rotary-wing aircraft through the Army's foreign military sales programs could increase the total value of this award to approximately $3.4 million.

The CBHK system is a portable, ground-support device that aligns an aircraft's navigation, targeting and weapon systems with the pilot's sighting gear to ensure accuracy in target acquisition. This system allows the armies of foreign military customers to boresight both the AH-64A Apache and Apache Longbow helicopters with the same common equipment.

The CBHK upgrade incorporates DRS's Triaxial Measurement System (TMS) -- a single-beam, laser-based, electro-optical device that provides simultaneous and continuous measurement of sighting systems on three axes. The core technology of TMS, which is the foundation of DRS's Multiple Platform Boresight Equipment (MPBE) product strategy, is already deployed by the U.S. Army for the AH-64A Apache helicopters, the Naval Air Systems Command for the Marine Corp's AH-1W Cobra helicopters and the Cobra helicopters of Taiwan, the Republic of China. The unique technology behind MPBE also is being considered for domestic and international fixed-wing and other rotary-wing aircraft.

Mark S. Newman, chairman, president and chief executive officer of DRS, stated: "The upgraded CBHK system provides military customers with a common boresight system capability, eliminating the need for customized systems and significantly reducing cost. The system's versatility for tri-service application and for multiple-platform deployment demonstrates DRS's continuing leadership in optical alignment technology and our commitment to actively supporting the growing weapon sighting systems market, both domestically and internationally."

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 & Co., New York

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