Kratos Receives $32.8 Million Sole Source Award to Provide Subscale Targets, Logistics and Technical Support to the U.S. Air

Kratos Receives $32.8 Million Sole Source Award to Provide Subscale Targets,
Logistics and Technical Support to the U.S. Air Force

SAN DIEGO, Jan. 23, 2013 (GLOBE NEWSWIRE) -- Kratos Defense & Security
Solutions, Inc. (Nasdaq:KTOS), a leading National Security Solutions
provider,announced today that its subsidiary Composite Engineering, Inc.
(CEI) received a$32.8millionsole source option award to provide28BQM-167A
Air Force Subscale Aerial Targets (AFSAT),as well as twelve additional months
of logistics and technical support, to the AFSAT Program Office. Early
deliveriesmay commence in late2013, and the last delivery will occur no
later than mid-2015.The option award is the last and final delivery of the
AFSAT Lots 6-10 effort.

Glenn Wells, Sr. Vice President and General Manager of CEI, said, "We are
excited to provide these targets and services to the USAF as we prepare to
support the upcoming AFSAT Lots 11-15 sole source procurement.We are honored
to provide products that enable the USAF Aerial Targets Program Office to
utilize reliable and realistic targets that help hone the skills of our
military pilots and aircrew."

Richard Selvaggio, President of Kratos' Unmanned Solutions Systems division,
commented, "The USAF is one of the most technologically advanced and
sophisticated air forces in the world, and we continue to supply leading edge
potential adversary threat representation to them.CEI is a fully integrated
aerial vehicle and drone manufacturer, from ground stations to command and
control equipment to turnkey aircraft."

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, 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

Kratos Logo
 
Press spacebar to pause and continue. Press esc to stop.