Kratos Awarded $18 Million Contract for Municipal Transportation Security and Surveillance System

Kratos Awarded $18 Million Contract for Municipal Transportation Security and
Surveillance System

Kratos to Design, Engineer, Deploy and Integrate Into Command and Control
Network Critical Infrastructure Security System

SAN DIEGO, Jan. 17, 2013 (GLOBE NEWSWIRE) -- Kratos Defense & Security
Solutions, Inc.(Nasdaq:KTOS), a leading National Security Solutions provider,
announced today that it has received an $18 million single award contract to
design, engineer and deploy a specialty security system for one of the largest
municipalities in the United States, located in the Northeast. The security
system, which will include hundreds of mobile surveillance cameras, will
provide critical infrastructure security for a large transportation network
and will be integrated into a command and control system. Due to customer
specific, security related and other considerations, no additional information
will be provided relative to this contract award.

Ben Goodwin, President of Kratos' Public Safety and Security division, said,
"The award to Kratos of this major critical infrastructure security deployment
is representative of the professionalism of every member of the Kratos PSS
Team, the outstanding job they are doing serving our customers and their
outstanding reputation in the industry. Kratos PSS customers are security and
safety oriented, being primarily Critical Infrastructure, Strategic Asset,
Transportation, Energy, Education, Healthcare or Financial in nature, and are
typically not funded by the U.S. Federal Government. Kratos' PSS division has
recently been generating organic growth of approximately 20 percent, and this
significant municipal transportation security contract award is an outstanding
way for our organization to begin 2013."

Eric DeMarco, President and CEO of Kratos, said, "Strategically, Kratos has
been focused on building our non U.S. Government or DoD security business over
the past few years and diversifying our overall customer base, and Kratos' PSS
business is representative of the successful execution of this strategy,
representing approximately 20 percent of Kratos' overall annual revenues.
Additionally, we have internally been working a new initiative where Kratos'
cyber security business, with its proprietary software products and solutions,
is now being offered to our PSS critical infrastructure customers in addition
to our traditional National Security Agency customers, and we have recently
been awarded our first significant cyber related contract in this area."

AboutKratos 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, cyber security,
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.

The Kratos Defense & Security Solutions, Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=3519

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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