Kratos Completes First Milestone In Critical Deployment Study for Air Force Spacecraft Enterprise Ground Services (EGS)

SAN DIEGO, Feb. 01, 2018 -- Kratos Defense & Security Solutions, Inc. (Nasdaq:KTOS), a leading National Security Solutions provider, announced today that it successfully completed Phase 1 of an EGS Study Contract that demonstrates a path forward to transition the Command and Control System-Consolidated (CCS-C), the Military Satellite Communications (MILSATCOM) Satellite C2 system, into the EGS.

EGS is an enabler for the Air Force’s Space Enterprise Vision (SEV), designed to support a sustainable, resilient space architecture that can respond to threats and protect space-based assets. EGS will result in a more resilient, cost-effective ground architecture that is more robust, provides for enhanced space situational awareness (SSA) and will integrate with the Air Force’s Enterprise Space Battle Management Command and Control system (BMC2) now being developed. Two other SEV components focus on a new, more resilient space architecture and a more responsive satellite launch capability. 

Late in 2016, the Government initiated the EGS study with Kratos on the CCS-C Production and Sustainment contract.  This study is a 27-month effort consisting of four phases and is a critical step in the evolution of CCS-C and MILSATCOM in support of EGS. Kratos recently concluded Phase I with a successful demonstration witnessed by over 40 Government personnel/evaluators and has now transitioned to execute Phase 2. The four-phased study is scheduled to conclude in December 2018.

Kratos products used in the EGS, MILSATCOM CCS-C Phase 1 study include EPOCH® IPS for Telemetry and Command, and Webic, Kratos’ next-generation web based user interface product.

In addition to EGS, Kratos is actively engaged in developing ground architecture enhancements in support of Department of Defense (DoD) initiatives, including the Wideband Communications Architecture Study (WCAS) contract that will help define the next generation resilient architecture for Wideband Communications as part of the DoD’s Analysis of Alternatives study.

As John Monahan, SVP of Kratos SATCOM Products and Federal Solutions, explains: “One of the biggest drivers behind the development of EGS is an increasingly ominous space threat environment and the speed with which those threats occur. With the success of our recent Phase 1 prototype demo, the government has authorized us to begin working on Phase 2.  Kratos is making key investments towards the success of EGS, including participation and leadership roles in various EGS working groups and in standards development.  Additionally, we are investing in internal research and development (IR&D) and developing an internal system integration lab (SIL) to further EGS’ technical development and deployment.”

About Kratos Defense & Security Solutions
Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) develops transformative, affordable technology for the Department of Defense and commercial customers. Kratos is changing the way breakthrough technology for these industries are brought to market through proactive research and a streamlined development process. Kratos specializes in unmanned systems, satellite communications, cyber security/warfare, microwave electronics, missile defense, training and combat systems. For more information go to www.kratosdefense.com.

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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 25, 2016, and in subsequent reports on Forms 10-Q and 8-K and other filings made with the SEC by Kratos.

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