February 22, 2017

Kratos Advanced Medium Range Ballistic Missile Target Supports Successful Standard Missile-3 Block IIA Intercept Test

SAN DIEGO, Feb. 22, 2017 (GLOBE NEWSWIRE) -- Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS), a leading National Security Solutions provider, announced today that Kratos' Defense & Rocket Support Services (DRSS) Division successfully supported the Missile Defense Agency (MDA) and Sailors aboard the USS JOHN PAUL JONES (DDG-53) as they completed the first intercept test of the SM-3 Blk IIA missile on February 3, 2017. The successful SM-3 Blk IIA missile test, designated SFTM-01, was conducted against an advanced Medium Range Ballistic Missile (MRBM) target, developed by Kratos and its Government and industry partners.

The Kratos MRBM target was launched from the Pacific Missile Range Facility in Kauai, Hawaii before it was acquired and tracked by the USS JOHN PAUL JONES using its onboard AN/SPY-1D(V) radar and Aegis weapon system. All data indicates that the Kratos MRBM target performed nominally through all phases of flight. The launch of the SM-3 Blk IIA was the first intercept test for the missile developed under a cooperative U.S. - Japanese program. The new interceptor missile features upgraded propulsion systems and an enhanced kinetic warhead aimed at engaging more capable threats over larger areas. The missile will continue to be evaluated for future use aboard ships and ashore as part of Phase 3 of the European Phased Adaptive Approach.   

The successful three stage separating MRBM target featured Kratos' Oriole solid propellant rocket motor mounted atop two tandem U.S. Government surplus Mk-70 Terrier kick stages. In addition, Kratos designed and produced payload hardware for the target including mechanical support structures, stabilizing fins, electrical event initiation systems, and active staging and separation systems. Kratos personnel participated in mission planning, payload assembly, testing, and target vehicle build-up and launch operations in support of the successful mission. DRSS is a leading provider of products, solutions, and services supporting ballistic missile defense, hypersonic, Aegis, sounding rocket, directed energy, electromagnetic railgun and other national security and scientific programs.

Mr. David Carter, President of Kratos' Defense & Rocket Support Services Division, stated, "Kratos is proud to continue its work with government and industry partners providing low-cost, highly reliable rocket vehicle solutions for Ballistic Missile Defense testing, and hypersonic experimentation. This flight represents the second successful flight of the MRBM-T4E target for the MDA and the fifth successful flight of the highly capable and flexible Terrier-Terrier-Oriole flight vehicle."

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 2,900. 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 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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Yolanda White

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