Kratos Announces Award of BQM-177A Subsonic Aerial Target Drone System Low Rate Initial Production Contract of $37,091,710 from U.S. Navy

June 29, 2017

SAN DIEGO, June 28, 2017 (GLOBE NEWSWIRE) — Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS), a leading National Security Solutions provider, announced today that its Unmanned Systems Division (USD) was awarded an amendment to a previously awarded contract to exercise an option for Low Rate Initial Production Year 1 (LRIP 1) from the U.S. Navy, for BQM-177A Subsonic Aerial Target (SSAT) Drone Systems.  The SSAT LRIP 1 order has an initial value of $34,553,229.  Coincident with the LRIP 1 order, Kratos was awarded a contract to provide Contractor Logistics Support (CLS); initial value of the CLS award is $2,538,481 for fiscal 2017.  In addition, separate contracts for Peculiar Support Equipment, Initial Systems Spares, External Payload Systems and Flight Consumables will follow shortly.  Kratos’ USD is at the forefront in the design, development, demonstration and delivery of Affordable, High Performance, Jet Powered Unmanned Aerial Tactical and Target Drone Systems.  The BQM-177A is one of the highest performance unmanned aerial drone systems in the world today, with unmatched flight performance characteristics in multiple key mission areas.  SSAT LRIP 1, which coincides with the Fiscal 2017 U.S. Department of Defense (DoD) Budget, is the initial annual production order for this unmanned aerial target drone system, which recently completed development.   The Fiscal 2018 SSAT production order LRIP 2 is currently expected to be approximately 25 percent higher than Fiscal 2017 SSAT LRIP

A photo accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/49dd9e0d-865b-46c5-8ba2-90cc11639438

The SSAT Program is designed to meet the U.S. Navy’s requirements for a new High Fidelity Target to replicate subsonic anti-ship cruise missile threats in direct support of fleet training and weapon system testing and evaluation.  The BQM-177A will initially augment, and will eventually replace, the existing BQM-74E Chukar Targets and will deliver longer range, lower cruise altitudes and greater maneuverability.

The BQM-177A is based on Kratos’ BQM-167X Aircraft, a derivative of the BQM-167A Skeeter Target currently being supplied to the U.S. Air Force.  While leveraging legacy designs of the BQM-167A, the BQM-177A introduces a new fuselage with area ruling, high mounted wings and an internally integrated MicroTurbo TR-60-5+ turbo jet engine for reduced transonic drag.  The BQM-177A can support various mission requirements by carrying a variety of internal and wing tip mounted payloads, including electronic counter measures, active and passive radar augmentation, infrared, identification friend or foe, internal chaff and flare dispensing, threat emitter simulators, smoke and scoring.
Steve Fendley, President of Kratos’ Unmanned Systems Division, said, “We are extremely proud of the performance capabilities of this target aircraft, arguably the most capable and maneuverable low altitude high subsonic unmanned aircraft in existence. Transitioning to production is a significant milestone for our team and with this achievement it delivers a much needed capability to the Navy in supporting our country’s National Security requirements.”

About Kratos Defense & Security Solutions
Kratos Defense & Security Solutions, Inc. (Nasdaq:KTOS) is a mid-tier government contractor at the forefront of the Department of Defense’s Third Offset Strategy.  Kratos is a leading technology, intellectual property and proprietary product and solution company focused on the United States and its allies’ national security.  Kratos is the industry leader in high performance unmanned aerial drone target systems used to test weapon systems and to train the warfighter, and is a provider of high performance unmanned combat aerial systems for force multiplication and amplification.  Kratos is also an industry leader in satellite communications, microwave electronics, cyber security/warfare, missile defense and combat systems.  Kratos has primarily an engineering and technically oriented work force of approximately 2,900. 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. 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. Although Kratos believes that the expectations reflected in these forward-looking statements are reasonable, these statements involve many 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, 2016, and in subsequent reports on Forms 10-Q and 8-K and other filings made with the SEC by Kratos.

Press Contact:
Yolanda White
858-812-7302 Direct

Investor Information:
877-934-4687
investor@kratosdefense.com

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Source: Kratos Defense & Security Solutions, Inc.

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Kratos Converts Russian T-72 Tank to Unmanned Operation

April 13, 2017

Kratos Unmanned Systems Division Installs Remote Control Kit in a T-72 Tank

SAN DIEGO, CA, April 13, 2017 – Kratos Defense & Security Solutions, Inc. (Nasdaq: KTOS), a leading National Security Solutions provider, announced today that its Micro Systems, Inc. business unit, part of the Kratos Unmanned Systems Division (KUSD), has successfully converted a Russian T-72 Tank to operate unmanned.

In response to a need by the US Army for a tank target, Kratos/Micro Systems converted the T-72 to be controlled by its Army Ground Aerial Target Control System (AGATCS).  AGATCS is a vehicle and datalink agnostic control systems that has been interfaced to a wide variety of US Army air, ground, and sea surface target vehicles.

 Converting the T-72 presented a unique set of challenges not normally encountered with conventional vehicles.  The dual tiller steering system required high levels of force and displacement.  The operating environment was harsh as well, with high levels of vibration, temperature, and dust.  Working together as an integrated team, personnel from Kratos/Micro Systems and the Army’s Targets Management Office addressed and resolved these issues.  Remote control was facilitated by the ability of AGATCS to control a wide variety of vehicles with highly disparate control requirements.

Kevin Ferguson, Sr. VP of Kratos Micro Systems, said, “Micro Systems is proud to support the US Army’s Targets Management Office with new capabilities to provide highly threat representative target vehicles to support their efforts to develop capabilities to keep our homeland and warriors safe.”

Photos accompanying this announcement are available at:

http://www.globenewswire.com/NewsRoom/AttachmentNg/617cd9c0-31e8-4764-923c-de8960c74731

http://www.globenewswire.com/NewsRoom/AttachmentNg/7aba15c3-dfad-4b78-b6df-0a97bd2471a6

About Kratos Defense & Security Solutions

Kratos Defense & Security Solutions, Inc. (Nasdaq:KTOS) is a mid-tier government contractor at the forefront of the Department of Defense’s Third Offset Strategy.  Kratos is a leading technology, intellectual property and proprietary product and solution company focused on the United States and its allies’ national security.  Kratos is the industry leader in high performance unmanned aerial drone target systems used to test weapon systems and to train the warfighter, and is a provider of high performance unmanned combat aerial systems for force multiplication and amplification.  Kratos is also an industry leader in satellite communications, microwave electronics, cyber security/warfare, missile defense and combat systems.  Kratos has primarily an engineering and technically oriented work force of approximately 2,900. 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. 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. Although Kratos believes that the expectations reflected in these forward-looking statements are reasonable, these statements involve many risks and uncertainties that may cause actual results to differ materially from what may be expressed or implied in these forward-looking statements. 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, 2016, and in subsequent reports on Forms 10-Q and 8-K and other filings made with the SEC by Kratos.

 

Colas partners with US companies to develop autonomous IPV for highways industry

April 27, 2016

Colas will commence developing and trialling the autonomous Impact Protection Vehicle (IPV) in the UK this year in collaboration with two US companies, Royal Truck and Equipment and Micro Systems, which is a Kratos Defense Company.

The autonomous IPV, equipped with an electro-mechanical system and completely integrated sensor suite, has a leader / follower capability that allows it to follow a lead vehicle, unmanned.

GPS position data is first transmitted from the leader vehicle to the follower vehicle, which can use the data to follow the exact path and speed of the leader vehicle at each point along a route.

Initially, this drone technology was deployed for use in the US Military. It is now being customized by Royal Truck and Equipment and Micro Systems for the highways industry.

Engineers from Royal Truck and Equipment and Micro Systems will work with Colas engineers to install the new technology on a brand new IPV.

As part of a stringent testing and training regime, the new vehicle will be trialled on a live worksite under closely controlled conditions.

All data collected during this period will be analyzed and incorporated into the roll-out of future vehicles not just in the UK, but also across Europe.

Colas associate director Dennis Gregg said: “As a company that offers traffic management to clients across the UK, we are always looking for new and innovative ways to improve the safety of both our operatives and the road using public.

“By collaborating with these two US companies, we strongly believe that we are on the brink of something which could have a huge positive impact on the industry at large.”

Royal Truck and Equipment president Robert Roy said: “Colas’ innovative approach to health and safety is precisely why we are delighted to be working with them on this cutting-edge project in Europe.

“There is no doubt that this technology has the potential to change the way the industry operates forever.”