Kratos Comments On U.S. Attorney's Office Announcement
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SAN DIEGO, July 7, 2009 (GLOBE NEWSWIRE) -- Kratos Defense & Security Solutions,
Inc. (Nasdaq:KTOS), a leading national security, information technology and
public safety solutions provider, today provided the following comments on the
U.S. Attorney's Office for the Southern District of California's announcement
that a senior Space and Naval Warfare Systems Center (SPAWAR) official and
others, including a former Kratos employee, were formally charged with a variety
of federal offenses.
The United States Attorney has advised Kratos that it is not and has never been
a target of the investigation. From the start, Kratos provided the U.S.
Attorney's Office with total assistance in investigating the matter, as well as
implementing internal steps to ensure that the matter was isolated. That willing
assistance was in keeping with the Company's commitment to the absolute highest
standards in ethical behavior and compliance with the law. Kratos has worked
closely with the U.S. Attorney's Office, the Federal Bureau of Investigation,
the Department of Defense Inspector General's Office and the Defense Criminal
Investigative Service (DCIS) to assist them in their investigation of this
matter.
As the indictment returned by the Grand Jury states, the former Kratos employee,
Jack Godwin, deliberately concealed his alleged illegal activities from Kratos
and others in the Company, who had no knowledge of them. More than a year ago,
Government investigators first informed Kratos of its investigation. At that
time, Kratos terminated Mr. Godwin's employment, offered the Company's
assistance to the government, and began a review of those transactions involving
Mr. Godwin. Since that time, Kratos has shared information with investigators.
In the course of its cooperation with the U.S. Attorney's Office and other
federal investigators, Kratos has provided hundreds of thousands of pages of
documents and senior management has been fully available and accessible to the
investigators. It has been determined that other than the employee who Mr.
Godwin improperly hired for a few weeks in early 2008 -- Sinthia Nares, who is
also charged in the indictment -- no other current or past Kratos employee is
implicated in the alleged scheme. Kratos respects and appreciates the work of
the U.S. Attorney's Office and other federal investigators in taking swift
action in this matter.
Eric DeMarco, President and Chief Executive Officer of Kratos, said, "We have
worked long and hard to establish the trust and respect of our customers, and
are deeply disappointed that the alleged actions of an apparent renegade
employee may have undermined the extraordinary and dedicated efforts of so many
other of our employees. Our commitment to the highest ethical standards in
growing our business is absolute, and immediately upon learning of Mr. Godwin's
alleged activities his employment was terminated and our assistance was offered
to the Government. We have made and will continue to make every effort to ensure
that such an event can never recur, and we will continue to support the efforts
of federal agencies to bring this matter to a fair and just conclusion. The
Space and Naval Warfare Systems Command (SPAWAR) continues to be a valued
customer of Kratos."
Through the date of the indictment, the Company's own internal investigation has
concluded that there has been no material effect to Kratos' financial results or
business operations as a result of the scheme charged in the indictment.
Notice Regarding Forward-Looking Statements
This news release contains certain forward-looking statements including, without
limitation, expressed or implied statements. 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 of adverse regulatory action or litigation; failure to ultimately settle
ongoing litigation; risks associated with debt leverage; 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; failure to
successfully consummate acquisitions or integrate acquired operations and
competition in the marketplace which could reduce revenues and profit margins.
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 29, 2008, the Company's
Quarterly Report on Form 10-Q for the period ended March 30, 2009, and in other
filings made with the Securities and Exchange Commission.
The Kratos Defense & Security Solutions, Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=3519
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CONTACT: Kratos Defense & Security Solutions, Inc.
Press Contact:
Patrick Van de Wille
312-882-1205
patrick.vandewille@fd.com
Investor Information:
877-934-4687
investor@kratosdefense.com
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