Micro Systems Receives U.S. Army Support Contract for Target Tracking and Control System, Target Interface Control Units

Kratos Defense & Security Solutions, Inc., 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.

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