Kratos Wins Position on $3 Billion Design, Development, Demonstration and Integration (D3I) Contract from the U.S. Army SMDC As Part of QWK Integrated Solutions Joint Venture

SAN DIEGO, Sept. 05, 2017 -- Kratos Defense & Security Solutions, Inc. (Nasdaq:KTOS), a leading National Security Solutions provider, announced today that as a partner of the QWK Integrated Solutions, LLC joint venture; it has won a position on the U.S. Army Space and Missile Defense Command (SMDC) and Army Strategic Forces Command (ARSTRAT), Design, Development, Demonstration and Integration (D3I) Domain 1 contract. The D3I Indefinite Delivery/Indefinite Quantity (IDIQ) multiple-award contract is valued at $3.038 billion and has a five-year base period of performance with two consecutive two-year options.

QWK will compete for task orders to perform work in three core areas: Operations, Capability Development and Materiel Development. QWK will respond to the Army’s needs for new technology by leveraging the extensive capabilities of the partner companies (Kratos and Vencore, Inc.) and its team members. D3I task orders will provide for rapid development and integration of space, missile defense, cyber, directed energy and related technologies to support the mission of SMDC/ARSTRAT and the warfighter.

David Carter, President of Kratos’ Defense & Rocket Support Services Division, stated, “The D3I contract provides a vehicle to expand Kratos’ support to the U.S. Army in the development and integration of advanced directed energy weapons. Directed energy is a strategic focus area of the company and under this contract we will continue to execute our strategy for developing affordable, innovative directed energy systems and other advanced technology solutions.”

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 is 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.

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 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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