Kratos Awarded $8.7 Million in Contracts to Provide Specialized Ground Equipment Related to Unmanned Aerial System Programs

Kratos Awarded $8.7 Million in Contracts to Provide Specialized Ground
Equipment Related to Unmanned Aerial System Programs

SAN DIEGO, Dec. 27, 2012 (GLOBE NEWSWIRE) -- Kratos Defense & Security
Solutions, Inc. (Nasdaq:KTOS), a leading National Security Solutions provider,
announced today that its Unmanned Systems Solutions (USS) division has
recently been awarded contracts totaling $8.7 million to provide specialized
ground equipment supporting two strategic unmanned aerial vehicle (UAV)
programs. The equipment is being produced in a secure Kratos manufacturing
facility.No additional information is being provided due to customer and
other sensitivities.These contracts are part of Kratos' continued effort in
support of numerous strategic UAV programs in support of our nation's key
defense initiatives.

Richard Selvaggio, President of Kratos' Unmanned Systems Solutions division,
commented, "Kratos USS is heavily involved in the country's national security
emphasis on unmanned systems, including next generation programs.These
contract awards further the strategic goals of the division and Kratos as a
whole."

Eric DeMarco, President and CEO of Kratos, commented, "Kratos today
manufactures and produces products for, and supports many of this country's
most important and strategic unmanned aerial system and drone programs.Kratos
products supporting unmanned aerial system and drone programs include
avionics, electronics, flight control systems, command and control systems,
specialized ground equipment, aircraft air frames and structures, and complete
and fully integrated aerial systems.These recent contract awards are
representative of the overall depth, breadth and capabilities that Kratos has
in the unmanned aerial systems area".

About Kratos Defense & Security Solutions

Kratos Defense & Security Solutions, Inc. (Nasdaq:KTOS) is a specialized
National Security technology business providing mission critical products,
services and solutions for United States National Security.Kratos' core
capabilities are sophisticated engineering, manufacturing and system
integration offerings for National Security platforms and programs. Kratos'
areas of expertise include Command, Control, Communications, Computing, Combat
Systems, Intelligence, Surveillance and Reconnaissance (C5ISR), satellite
communication systems, unmanned systems, cyber warfare, cybersecurity,
information assurance, and critical infrastructure security.Kratos has
primarily an engineering and technically oriented work force of approximately
4,400.The vast majority of Kratos' work is performed on a military base, in a
secure facility or at a critical infrastructure location.Kratos' primary end
customers are National Security related agencies.News and information are
available at www.KratosDefense.com.

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Notice Regarding Forward-Looking Statements

Certain statements in this press release may constitute "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995. These forward-looking statements are made on the basis of the current
beliefs, expectations and assumptions of the management of Kratos and are
subject to significant risks and uncertainty, including risks related to
general economic conditions and cutbacks in government spending. Investors are
cautioned not to place undue reliance on any such forward-looking
statements.All such forward-looking statements speak only as of the date they
are made, and Kratos undertakes no obligation to update or revise these
statements, whether as a result of new information, future events or
otherwise. For a further discussion of risks and uncertainties that could
cause actual results to differ from those expressed in these forward-looking
statements, as well as risks relating to the business of Kratos in general,
see the risk disclosures in the Annual Report on Form 10-K of Kratos for the
year ended December 25, 2011, and in subsequent reports on Forms 10-Q and 8-K
and other filings made with the SEC by Kratos.

CONTACT: Press Contact:
         Yolanda White
         858-812-7302 Direct
        
         Investor Information:
         877-934-4687
         investor@kratosdefense.com

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