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Kratos Named as Training Systems Contract III Award Recipient by Naval Air Warfare Center

(December 01, 2011)

SAN DIEGO, Dec. 1, 2011 (GLOBE NEWSWIRE) -- Kratos Defense & Security Solutions, Inc. (Nasdaq:KTOS), a leading National Security Solutions provider, was awarded a contract N61340-12-D5116 LOT I for the Naval Air Warfare Center Training Systems Division's (NAWCTSD) Training Systems Contract III (TSC III) Multiple Award Contract (MAC). The TSC III MAC, inclusive of all awarded contracts and ordering periods, has a not-to-exceed value of $2,000,000,000. All delivery orders will be placed pursuant to the procedures at FAR 16.5.

The Training Systems Contract (TSC) is a group of multiple award Indefinite Delivery, Indefinite Quantity Contracts (ID/IQCs) intended to furnish the Naval Air Systems Command Team a streamlined, quick reaction vehicle for the acquisition and support of training systems. The TSC program has been serving this requirement as a Multiple Award Contract (MAC) since FY00 and is entering its third generation. The TSC III scope will encompass Training Systems design, development, production, test and evaluation, delivery, modification, and support. Included within this scope is complementary Instructional Systems Development (ISD) products and complementary Training Systems Support, which includes Interim Contractor Support (ICS) or Contractor Engineering & Technical Services (CETS) and provisioning for the Initial Support Period (ISP). The TSC III MAC will serve as a viable acquisition alternative to fulfill within scope United States Navy and Marine Corps training systems requirements and those derived from end-users and customers consistent with NAWCTSD's mission. The base ordering period is five years, with two one-year optional ordering periods.

"Kratos brings an integrated team with proven knowledge and expertise across the full spectrum of training systems, modeling, simulation and analysis," said Jose Diaz, Vice President of Kratos Training Systems. "Kratos has an extensive track record of providing advanced training solutions to the U.S. Navy as well as the other uniformed services. We look forward to applying this knowledge and experience to developing the next generation of training system solutions that will enhance the readiness and performance of the Warfighter."

"This is a great validation of the innovation and quality of our training systems team," said Phil Carrai, President of Kratos Technology and Training Solutions. "Winning a place on this key strategic contract further extends our foundation for continued growth in this important sector of our business."

NAWCTSD will publicize TSC III requirements through it business opportunities website at Questions regarding our company's involvement in the TSC III program can be directed to Stephen Kessinger ([email protected]).

About Kratos Technology & Training Solutions, Inc.

Kratos Technology & Training Solutions (KTTS) specializes in assuring the readiness, reliability and operational effectiveness of Warfighter and C5ISR systems by supplying Information Technology, Communications and lifecycle Training Solutions to its defense, government and commercial customers. KTTS helps organizations optimize their performance by improving training outcomes while reducing training time and costs, empowering a workforce that is fully equipped to maintain critical systems availability. Kratos defines, develops and delivers the optimal blend of media, from Computer-Based Training and game-based simulations to full-fidelity training devices, applying advanced workforce competency and instructional design capabilities so that organizations can meet and exceed mission performance goals. In Information Technology, KTTS develops, delivers and integrates products and services that assure the reliability, availability and security of mission-critical technology and communications infrastructure.

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 priorities.  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, critical infrastructure security and weapons systems sustainment.  Kratos has primarily an engineering and technical oriented work force of approximately 3,900, many of which hold an active National Security clearance, including Secret, Top Secret and higher.  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 United States Federal Government agencies, including the Department of Defense, classified agencies, intelligence agencies and Homeland Security related agencies.  News and information are available at

The Kratos Defense & Security Solutions, Inc. logo is available at

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 26, 2010, 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:
[email protected]

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