Kratos Defense & Security Solutions Awarded Contract From Naval Surface Warfare Center...

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Tue May 20, 2008 8:33am EDT

Kratos Defense & Security Solutions Awarded Contract From Naval Surface Warfare
Center (NSWC) Crane to Support Expeditionary Warfare Systems Division Valued At
Approximately $49 Million

Kratos Defense & Security Solutions, Inc. (Nasdaq:KTOS), a leading national
defense and security solutions provider, today announced the award of a contract
from the Naval Surface Warfare Center (NSWC) Crane to support the Expeditionary
Warfare Systems Division. Kratos was one of only two companies selected to
compete for task orders under this cost-plus-fixed-fee,
indefinite-delivery/indefinite-quantity (IDIQ) contract. The work will include
engineering, logistics, research and development, and program support for a
variety of customer programs and projects including air and missile defense
systems, missile systems, command and control systems, and sensor systems. This
contract will provide for support services to the Department of Defense; and the
governments of Egypt, United Arab Emirates (UAE), and Turkey under the Foreign
Military Sales (FMS) Program. This 5-year contract has a total estimated value
of up to $49.9 million over the period of performance.

"This is a very important and strategic customer whom we have been supporting
for over six years," said Richard Selvaggio, Senior Vice President of Kratos'
Madison Research Division in Huntsville, Alabama. "Kratos supports the NSWC
Expeditionary Systems Engineering/Platform & Launch Systems Division with a
range of mission-critical engineering and logistics support, and this win
expands our core aviation and missile support activities across all DoD service
branches as well as several foreign customers."

About Kratos Defense & Security Solutions

Kratos Defense & Security Solutions, Inc. (Nasdaq:KTOS) provides mission
critical engineering, IT services, and warfighter solutions for the U.S. federal
government and for state and local agencies. Principle services include C5ISR,
weapon systems lifecycle support, military weapon range operations and technical
services, network engineering services, advanced IT services, security and
surveillance systems, and critical infrastructure design and integration. The
Company is headquartered in San Diego, California, with resources located
throughout the U.S. and at key strategic military locations. News and
information are available at www.KratosDefense.com.

The Kratos Defense & Security Solutions, Inc. logo is available at
http://www.primenewswire.com/newsroom/prs/?pkgid=3519

Notice Regarding Forward-Looking Statements

This news release contains certain forward-looking statements including, without
limitation, expressed or implied statements concerning the Company's
expectations regarding the amount of revenues the Company has estimated that it
will receive under the NSWC Crane contract, including the duration of the
contract, and these forward-looking statements involve risks and uncertainties.
Such statements are only predictions, and the Company's actual results may
differ materially. Factors that may cause the Company's results to differ
include, but are not limited to: risks concerning the actual amount of
engineering, logistics or other services that the Company will perform under the
contract; risks concerning the duration of the contract; risks involving delays
in or questions over payments to the Company; risks that changes or cutbacks in
spending by the U.S. Department of Defense may occur, which could cause delays
or cancellations of key government contracts; risks regarding failure to
successfully consummate acquisitions or integrate acquired operations, which
could reduce revenues and profit margins; risks associated with debt leverage,
including the potential for the lender to declare an event of default based upon
any of the events described in this release; and risks related to adverse
regulatory action or litigation; risks associated with debt leverage. The
Company undertakes no obligation to update any forward-looking statements. These
and other risk factors are more fully discussed in the Company's Annual Report
on Form 10-K for the period ended December 31, 2007, in the Company's quarterly
report on Form 10-Q for the period ended March 31, 2008, and in other filings
made with the Securities and Exchange Commission.

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CONTACT:  Kratos Defense & Security Solutions, Inc. 
          Press Contact:
            Michael Baehr
            858-812-7366 
          Investor Information:
            877-934-4687
            investor@kratosdefense.com
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