Kratos to Develop and Deliver KC-46 Tanker Maintenance Training System Products To Boeing Valued in Excess of $20 Million

SAN DIEGO, Aug. 24, 2016 -- Kratos Defense & Security Solutions, Inc. (Nasdaq:KTOS), a leading National Security Solutions provider, announced today that it was selected to develop and deliver KC-46 Pegasus tanker high-fidelity maintenance training systems to The Boeing Company valued in excess of $20 million. The KC-46 is the U.S. Air Force’s newest air refueling tanker aircraft.  

Kratos will deliver high-fidelity virtual simulation, Interactive Multimedia Instruction (IMI) and full-scale simulators, which will be used together and networked to provide a coordinated and realistic training experience.  Two suites of training devices will be delivered that will support maintenance and repair training of a range of aircraft sub-systems.

“Kratos is a leading provider of maintenance training systems for air, land and sea defense platforms, specializing in developing comprehensive training solutions sets that maximize training proficiency,” said Jose Diaz, Senior Vice President, Kratos Training Solutions.  “Kratos has a long and proven track record of providing virtual and high-fidelity simulators to the U.S. military and allied nations.”

About Kratos Defense & Security Solutions
Kratos Defense & Security Solutions, Inc. (Nasdaq:KTOS) is a mid-tier government contractor at the forefront of the Department of Defense’s Third Offset Strategy.  Kratos is a leading technology, intellectual property and proprietary product and solution company focused on the United States and its allies’ national security.  Kratos is the industry leader in high performance unmanned aerial drone target systems used to test weapon systems and to train the warfighter, and is a provider of high performance unmanned combat aerial systems for force multiplication and amplification.  Kratos is also an industry leader in satellite communications, microwave electronics, cyber security/warfare, missile defense and combat systems.  Kratos has primarily an engineering and technically oriented work force of approximately 2,800. 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. 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. Although Kratos believes that the expectations reflected in these forward-looking statements are reasonable, these statements involve many risks and uncertainties that may cause actual results to differ materially from what may be expressed or implied in these forward-looking statements. 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 27, 2015, and in subsequent reports on Forms 10-Q and 8-K and other filings made with the SEC by Kratos.

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