Kratos Announces Successful Customer Acceptance Flight Test of New Unmanned Aerial Drone System Platform

SAN DIEGO, May 14, 2014 (GLOBE NEWSWIRE) — Kratos Defense & Security Solutions, Inc. (Nasdaq:KTOS), a leading National Security Solutions provider, announced that it has successfully completed customer acceptance flight testing for one of the Company’s newest unmanned aerial drone systems platforms. The unmanned aerial drone system has performance, flight, and other characteristics representative of certain of this customer’s potential adversaries’ most advanced threat platforms and systems. Kratos’ unmanned aerial drone systems are produced in secureKratos manufacturing facilities. Kratos designs and manufactures substantially all major elements of the Company’s unmanned aerial systems, including composite aircraft, electronics, avionics, command and flight control systems. Kratos is also an industry leader in unmanned ground and robotic systems. Due to customer specific and other considerations, no additional information will be provided related to the successful customer acceptance flight testing.

Wayne Armstrong, President of Kratos’ Advanced Drones & Targets Systems (KADTS) Division, said, “Our entire organization is proud to have successfully achieved all of our flight criteria and milestones for this very important customer. KADTS is a world leader in high performance unmanned aerial systems, drones, targets, and threat representative vehicles. This is one of the highest performance unmanned aerial target drone systems in the world.”

Eric DeMarco, President & Chief Executive Officer of Kratos, said, “Successful completion of flight testing and platform acceptance by this critically important customer was a primary objective of our corporation, and the Kratos team has once again done an outstanding job. This particular unmanned aerial system is our Company’s highest performance aircraft, and we are currently working with several existing and potential new customers on large expected future orders.”

About Kratos Defense & Security Solutions

Kratos Defense & Security Solutions, Inc. (Nasdaq:KTOS) is a specialized National Security technology Company providing mission critical products, solutions and services 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, electronic warfare, unmanned systems, missile defense, cyber warfare, cybersecurity, information assurance, and critical infrastructure security. Kratos has primarily an engineering and technically oriented work force of approximately 3,700. Substantially all 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.

Advanced Drone and Targets Systems

Kratos Defense & Security Solutions, Inc. (Nasdaq:KTOS), a leading National Security Solutions provider, announced today that its Micro Systems, Inc. subsidiary of the Advanced Drone and Targets Systems (ADTS) Division recently received a contract modification from the U.S. Army valued at up to $6.64 million for additional engineering services option hours in support of the Target Tracking and Control System (TTCS), Target Interface Control Units (TICU) and associated ancillary equipment. Under the modification for additional option hours, Micro Systems may be issued option exercise modifications to provide engineering services to develop upgrades to the US Army TTCS, TICU, and associated ancillary equipment.

The company anticipates that several orders will be received under this contract before the middle of the year. Kratos’ ADTS Division is a premier provider of high performance unmanned drone aircraft and these systems’ related avionics, electronics, command and control systems, solutions, services and logistics.

Kevin Ferguson, Senior Vice President of Micro Systems, Inc., said, “Micro Systems is pleased to continue our long term relationship with the US Army’s Targets Management Office. We are excited about all the future opportunities this award represents. Lasting relationships such as this are an indication of the quality of our people and products.”

About Kratos Defense & Security Solutions

Kratos Defense & Security Solutions, Inc. (Nasdaq:KTOS) is a specialized National Security technology Company providing mission critical products, solutions and services 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, electronic warfare, unmanned systems, missile defense, cyber warfare, cybersecurity, information assurance, and critical infrastructure security. Kratos has primarily an engineering and technically oriented work force of approximately 3,800. Substantially all 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.

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 product failure, general economic conditions and cutbacks in 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 29, 2013, 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

Source: IrKratosDefense