January 12, 2015

Kratos Awarded Contract Valued at $1.4 Million for MBRAT VIE CH-47F Chinook Avionics Training Systems

SAN DIEGO, Jan. 12, 2015 (GLOBE NEWSWIRE) -- Kratos Defense & Security Solutions, Inc. (Nasdaq:KTOS), a leading National Security Solutions provider, announced today that the U.S. Army has purchased two of Kratos' Maintenance Blended Reconfigurable Aviation Trainer (MBRAT) Virtual Immersive Environment (VIE) training systems with the CH-47F Chinook Avionics configuration. The order is valued at approximately $1.4 million, including life cycle support services for the next four years.

The work will be performed under a purchase order issued by USfalcon, Inc. (Morrisville, NC) under the Aviation Applied Technology Directorate (AATD) SPOTS V contract.

The MBRAT VIE is a reconfigurable system designed and built by Kratos to provide avionics maintenance procedures, fault isolation, and remove and install training for multiple rotorcraft platforms, including the CH-47F Chinook and the UH-60M Black Hawk. Architected to increase training options while reducing training costs, the MBRAT VIE is a virtually immersive, full-task trainer that blends spatial physical awareness with virtual environments and the appropriate aircraft platform's system configuration.

"The MBRAT VIE uses a cost effective blend of Computer Based Training (CBT) and replicated physical controls," said Jose Diaz, Senior Vice President for Kratos' Training Solutions. "As a result, it provides the best of both worlds: an immersive physical, visual and tactile experience that also yields enhanced flexibility and a superior training environment at a far lower cost than traditional part- and full-task trainers."

The MBRAT VIE can be installed at a training institution to support school instruction or delivered in a mobile configuration to facilitate deployment to the Warfighter. It can operate as a standalone unit or as multiple units connected and controlled by a single instructor station.

About Kratos Defense & Security Solutions

Kratos Defense & Security Solutions, Inc. (Nasdaq:KTOS) is a specialized National Security 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 Systems, Intelligence, Surveillance and Reconnaissance (C5ISR), satellite communication systems, electronic warfare, unmanned systems, missile defense, cyber warfare, cybersecurity, information assurance, and critical infrastructure security. Kratos has primarily an engineering and technically oriented work force of approximately 3,600. 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 29, 2013, and in subsequent reports on Forms 10-Q and 8-K and other filings made with the SEC by Kratos.

CONTACT: Press Contact:

         Yolanda White

         858-812-7302 Direct



         Investor Information:

         877-934-4687

         investor@kratosdefense.com

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Source: Kratos Defense & Security Solutions, Inc.

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