DRS Technologies Awarded $37.5 Million in New Contracts to Provide Infrared Assemblies for U.S. Army Apache Helicopter Arrowhead System

Business Wire, June 23, 2004

PARSIPPANY, N.J. -- DRS Technologies, Inc. (NYSE:DRS) announced today that it has received $37.5 million in new contracts to design, manufacture, assemble and test the pilotage and targeting receiver assemblies for the Apache Arrowhead Forward Looking Infrared (FLIR) System for U.S. Army AH-64 Apache attack helicopters. The contracts represent Lot 1 production of the Arrowhead, the Army's Modernized Target Acquisition and Designation Sight/Pilot Night Vision Sensor (MTADS/PNVS) system.

The contracts were awarded to DRS by Lockheed Martin Corporation (NYSE:LMT) Missiles and Fire Control - Orlando, which is part of Team Apache Systems, LLC. For one award, the company's DRS Infrared Technologies unit in Dallas, Texas, will produce Standard Advanced Dewar Assemblies Type I (SADA I), which are infrared detector and cryogenic cooler assemblies. For the other award, work for more than 80 shipsets, test equipment and engineering services will be accomplished by the company's DRS Optronics unit in Palm Bay, Florida. Product deliveries under these initial awards are expected to commence in October 2004 and continue through January 2006. Additional awards over a five-year period are anticipated by the company.

"Our receiver design is based on the Army's Horizontal Technology Integration B-Kit currently being produced by DRS for a number of ground vehicles. This design, which provided a proven baseline, is being optimized for this new airborne application," said Fred L. Marion, president of DRS's Surveillance & Reconnaissance Group. "Our leading edge FLIR technology is providing a significant benefit to the Apache fleet. With over 1,000 helicopters currently targeted for this upgrade, the Arrowhead is an important program for DRS."

"Arrowhead ushers in a new era of advanced target acquisition, designation and night vision capabilities for Army aviation," added Bob Gunning, Arrowhead program director at Lockheed Martin Missiles and Fire Control.

Team Apache Systems is comprised of The Boeing Company (NYSE: BA) and Lockheed Martin. The Team reached an agreement valued at $260 million with the U.S. Army Aviation and Missile Command and Program Manager Apache on November 11, 2003 for the first 55 Arrowhead systems, which will be provided to the U.S. Army and foreign military sales customers. The Army is expected to purchase 704 Arrowhead systems to outfit its AH-64 Apache fleet by 2009. The first Army unit to be equipped with the Arrowhead system is expected to be fielded by June 2005.

Arrowhead will provide a new electro-optical targeting and pilotage system to Apache helicopter crews that will maximize safe flight in day, night and adverse-weather environments. Arrowhead will improve performance and reliability, and reduce maintenance, which will save the Army nearly $1 billion in operation and support costs over the life of the system, compared with the legacy system, according to Lockheed Martin.

In the new system, the high-resolution TV image from the pilotage FLIR sensor will be displayed in the cockpit and on the pilot's helmet-mounted display. Its advanced processing techniques will provide pilots with the best possible resolution in order to avoid such obstacles as wires and trees during low-level flight.

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.