DRS Technologies Rejects Unsolicited Proposal from L-3 Communications to Acquire the Company

Business Wire, July 1, 2004

PARSIPPANY, N.J. -- DRS Technologies, Inc. (NYSE: DRS) today confirmed that during the last month it received an unsolicited proposal from L-3 Communications Holdings, Inc. (NYSE: LLL) to acquire DRS for $42.00 per share in cash. The proposal was subject to due diligence and the negotiation of a merger agreement. DRS's board of directors conducted a process for evaluating the proposal on a basis consistent with its responsibilities.

DRS engaged Bear, Stearns & Co. Inc. as its financial advisor and Skadden, Arps, Slate, Meagher & Flom LLP as its legal counsel to assist in this process. Following several meetings of its board of directors, DRS advised L-3 that its board of directors has confidence in the company's growth prospects and that based on this and other factors, DRS's board of directors unanimously determined that L-3's proposal would not be in the best interests of DRS's stockholders.

At this time, the Company does not intend to make any further public comment on this matter.

DRS Technologies, headquartered in Parsippany, New Jersey, provides leading edge products and services to defense, government intelligence and commercial customers. Focused on defense technology, DRS develops and manufactures a broad range of mission critical systems. The company employs 5,800 people worldwide.

For more information about DRS Technologies, please visit the company's web site at www.drs.com.

SAFE HARBOR: This press release contains forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended, that are based on management's beliefs and assumptions, current expectations, estimates and projections. Such statements, including statements relating to the Company's expectations for future financial performance, are not considered historical facts and are considered forward-looking statements under the federal securities laws. These statements may contain words such as "believes," "anticipates," "plans," "expects," "intends," "estimates" or similar expressions. These statements are not guarantees of the Company's future performance and are subject to risks, uncertainties and other important factors that could cause our actual performance or achievements to differ materially from those expressed or implied by these forward-looking statements and include, without limitation, demand and competition for the Company's products and other risks or uncertainties detailed in the Company's Securities and Exchange Commission filings. Given these uncertainties, you should not rely on forward-looking statements. The Company undertakes no obligations to update any forward-looking statements, whether as a result of new information, future events or otherwise.