DRS Technologies Awarded $14 Million in New Orders to Provide Infrared Assemblies for U.S. Army Apache Helicopter Arrowhead System

Business Wire, July 7, 2005

PARSIPPANY, N.J. -- DRS Technologies, Inc. (NYSE: DRS) announced today that it has received $14 million in new orders to manufacture 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 orders represent Lot 2 production of the Lockheed Martin (NYSE: LMT) Arrowhead(TM), the Army's Modernized Target Acquisition and Designation Sight/Pilot Night Vision Sensor (MTADS/PNVS) system.

The contract was received by DRS from Lockheed Martin Missiles and Fire Control in Orlando, Florida. For these orders, the company's DRS Optronics unit in Palm Bay, Florida, will provide more than 95 receiver shipsets. Product deliveries are expected to commence in February 2006 and continue through January 2007. Additional awards on this program are anticipated by the company.

"The Apache Arrowhead represents a new era of advanced target acquisition, designation and night vision capabilities for Army aviation," said Fred L. Marion, president of DRS's Surveillance & Reconnaissance Group. "With over 1,000 helicopters currently targeted for this upgrade, we consider the Arrowhead a key program for DRS."

Lockheed Martin is delivering Arrowhead systems to the U.S. Army and foreign military sales customers. The Army is expected to purchase more than 700 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 this month.

Arrowhead provides 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 improves performance and reliability, and reduces 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.

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 5,700 people worldwide.

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