Kratos Receives Unmanned Ground, Sea, and Aerial Target System Contract Awards Totaling in Excess of $2 Million

SAN DIEGO, Feb. 08, 2016 -- Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS), a leading National Security Solutions provider, announced today that its Micro Systems, Inc. subsidiary of the Kratos Unmanned Systems Division (USD) recently received a series of contract modifications from the U.S. Army totaling $2.0 million in additional engineering services option hours and hardware production in support of the Army Ground Aerial Target Control System (AGATCS), Target Vehicle Control Equipment, and associated ancillary equipment.  These modifications further extend the impressive capabilities of the AGATCS control system which provides command and control of unmanned air, ground, and sea surface target vehicles.

Kevin Ferguson, Senior Vice President of Micro Systems, Inc., said, "Micro Systems is excited to have the opportunity to expand the already impressive capabilities of AGATCS and our unmanned vehicle product line.  We are very pleased to continue our long term relationship with the U.S. Army’s Targets Management Office that has spanned 30 years.   Lasting relationships such as this are an indication of the quality of our people and products and our focus on our customer’s needs.”

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 3,000. 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 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, including risks related to product failure, general economic conditions and cutbacks in spending. 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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