Kratos Awarded $21.4 Million Technical and Engineering Support Contract With SSC Pacific Communications Division (Code 552)

SAN DIEGO, March 04, 2016 -- Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS), a leading National Security Solutions provider, announced today that its Defense & Rocket Support Services (DRSS) Division was awarded a $21,413,622 indefinite-delivery/indefinite-quantity, cost-reimbursement contract for technical support in the areas of project management, system engineering, research, test and evaluation, logistics, integration, technical troubleshooting, installation, and security.  This new contract award has a three-year base period and two one-year option periods which, if exercised, would bring the potential value of this contract to $36,215,638.  All work will be performed in San Diego, California, and work for the base period is expected to be completed February 28, 2019.  Kratos' DRSS Division is a premier provider of ballistic missile target systems, weapons systems support, engineering, design, analysis, and integration support services, including complex system and subsystem development and full lifecycle support. Major programs Kratos' DRSS Division supports include Electromagnetic Railgun, Hypersonic Systems, High Power Directed Energy Systems, Battle Force Tactical Trainer, Ship Self Defense System, Chaparral, HAWK and Avenger.

"Kratos brings a highly knowledgeable team with extensive experience delivering effective technical support, project management, and systems engineering expertise,” said Tim Harmon, Vice President for Kratos' Military Services business. "Kratos has an established and proven track record of providing highly qualified subject matter experts and technical solutions to US Navy organizations including SPAWAR, NAVSEA, Chief of Naval Operations as well as the other uniformed services and government agencies."

About Kratos Defense & Security Solutions

Kratos Defense & Security Solutions, Inc. (Nasdaq:KTOS) is a specialized Technology Company providing mission critical products, solutions and services for United States National Security. Kratos' core capabilities are sophisticated engineering, manufacturing and system integration offerings for National Security platforms and programs. Kratos' areas of expertise include Command, Control, Communications, Computing, Combat and Intelligence, Surveillance and Reconnaissance (C5ISR) systems, satellite communications, electronic warfare, unmanned systems, hypersonic systems, directed and high power energy systems, electromagnetic railgun, missile defense, cyber warfare, cybersecurity, information assurance, and critical infrastructure security. Kratos has primarily an engineering and technically oriented workforce of approximately 2,900. Substantially all of Kratos' work is performed on a military base, in a secure facility or at a critical infrastructure location. Kratos' primary end customers are National Security related agencies. News and information are available at www.KratosDefense.com.

Notice Regarding Forward-Looking Statements

Certain statements in this press release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include the proposed timing and expiration date of the Company's tender offer to repurchase the Notes. These forward-looking statements are made on the basis of the current beliefs, expectations and assumptions of the management of Kratos and are subject to significant risks and uncertainty. Investors are cautioned not to place undue reliance on any such forward-looking statements. All such forward-looking statements speak only as of the date they are made, and Kratos undertakes no obligation to update or revise these statements, whether as a result of new information, future events or otherwise. For a further discussion of risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the business of Kratos in general, see the risk disclosures in the Annual Report on Form 10-K of Kratos for the year ended December 28, 2014, and in subsequent reports on Forms 10-Q and 8-K and other filings made with the SEC by Kratos.

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