SYS Technologies Announces Award of $29.7 Million Prime Contract

  
    
  
  
    
      SYS Technologies, Inc. (“SYS”) 
      (AMEX:SYS), a leading provider of information connectivity solutions 
      that enable situational awareness and real-time collaboration, announced 
      today that they have been awarded a five-year (one base year, four 
      option years) prime contract valued at approximately $29.7 million if 
      all options are exercised to provide technical support services for 
      Space and Naval Warfare Systems Center Charleston (SSC Charleston). This 
      award was received concurrent with an initial $522,000 task order under 
      this new vehicle.
    
    
      SYS, who recently entered into a merger agreement with Kratos Defense & 
      Security Solutions, Inc. (NASDAQ:KTOS), will provide technical support 
      services to SSC Charleston encompassing analysis, design, and assessment 
      for the Human System Integration (HSI), Human Capital Management (HCM), 
      Knowledge Management (KM), and Naval Personnel Integration (NAVPRINT) 
      initiatives. This award gives SYS the opportunity to both continue to 
      support and to help broaden SSC Charleston’s 
      leadership in the development of HSI Enterprise Architecture which 
      governs the Navy’s approach to HSI, and HSI’s 
      role within HCM. Additionally, SYS will provide support for initiatives 
      associated with Manpower, Personnel, Training & Education (MPT&E) for 
      new acquisitions and modernization efforts targeting specific U.S. Navy 
      warfare enterprises.
    
    
      “This award is a credit to our employees whose 
      talents have supported SSC Charleston’s 
      advancement of the Navy’s HSI and Learning and 
      Performance objectives in support of the Naval Enterprise,” 
      said Cliff Cooke, president and Chief Executive Officer of SYS. “We, 
      along with our industry partners, are proud to be given the opportunity 
      to continue to innovate with the Navy in this increasingly important 
      field.”
    
    
      About SYS Technologies
    
    
      SYS (AMEX:SYS), is a leading provider of information connectivity 
      solutions that capture, analyze and present real-time information to its 
      customers in the Department of Defense, Department of Homeland Security, 
      other government agencies and to commercial companies. Using 
      interoperable communications software, sensors, digital video broadcast 
      and surveillance technologies, wireless networks, network management, 
      decision-support tools and Net-centric technologies, SYS technical 
      experts enhance complex decision-making. The company also provides 
      solution lifecycle support with program, financial, test and logistical 
      services and training. Founded in 1966, SYS is headquartered in San 
      Diego and has principal offices in California and Virginia. For 
      additional information, visit www.systechnologies.com.
    
    
      About Kratos Defense & Security Solutions
    
    
      Kratos Defense & Security Solutions, Inc. (Nasdaq: KTOS) provides 
      mission critical engineering, IT services and war fighter solutions for 
      the U.S. federal government and for state and local agencies. Principal 
      services include C5ISR, weapon systems lifecycle support, military 
      weapon range and technical services, network engineering services, 
      advanced IT services, security and surveillance systems, and critical 
      infrastructure design and integration. The Company is headquartered in 
      San Diego, California, with resources throughout the U.S. and in key 
      strategic military locations. News and information are available at www.KratosDefense.com.
    
    
      Notice Regarding Forward-Looking Statements
    
    
      This news release contains certain forward-looking statements 
      including, without limitation, expressed or implied statements 
      concerning the Company’s expectations 
      regarding the timing of closing of the acquisition, anticipated benefits 
      to be realized from the acquisition, future financial performance and 
      cash flows and market developments that involve risks and uncertainties. 
      Such statements are only predictions, and the Company’s 
      actual results may differ materially. Factors that may cause the Company’s 
      results to differ include, but are not limited to: risks that the 
      closing will be delayed or that the conditions to closing will not be 
      satisfied; risks that the integration will prove more costly, take more 
      time, or be more distracting than currently anticipated; risks 
      that the transaction will cause disruption of the Company’s 
      operations and distraction of its management; risks of adverse 
      regulatory action or litigation; risks associated with debt leverage; 
      risks that changes or cutbacks in spending by the U.S. Department of 
      Defense may occur, which could cause delays or cancellations of key 
      government contracts; failure to successfully consummate acquisitions or 
      integrate acquired operations and competition in the marketplace which 
      could reduce revenues and profit margins. The Company undertakes no 
      obligation to update any forward-looking statements. These and other 
      risk factors are more fully discussed in the Company’s 
      Securities and Exchange Commission filings.
    
    
      Additional Information
    
    
      In connection with the proposed acquisition of SYS by Kratos Defense & 
      Security Solutions, Inc. (“Kratos”), 
      Kratos intends to file with the U.S. Securities and Exchange Commission 
      (the “SEC”) a 
      registration statement on Form S-4, containing a joint proxy 
      statement/prospectus and other relevant materials. INVESTORS AND 
      SECURITY HOLDERS OF KRATOS AND SYS ARE URGED TO READ THE JOINT PROXY 
      STATEMENT/PROSPECTUS WHEN IT BECOMES AVAILABLE BECAUSE IT WILL CONTAIN 
      IMPORTANT INFORMATION ABOUT KRATOS, SYS AND THE ACQUISITION. The joint 
      proxy statement/prospectus and other relevant materials (when they 
      become available), and any other documents filed by Kratos or SYS with 
      the SEC, may be obtained free of charge at the SEC’s 
      web site at www.sec.gov. In addition, 
      investors and security holders may obtain free copies of the documents 
      filed with the SEC by Kratos by directing a request to: Kratos Defense & 
      Security Solutions, Inc., 4810 Eastgate Mall, San Diego, CA 92121, Attn: 
      Investor Relations, or by going to Kratos’s 
      corporate website at www.kratosdefense.com. 
      Investors and security holders may obtain free copies of the documents 
      filed with the SEC by SYS by contacting SYS Technologies, Inc., 5050 
      Murphy Canyon Road, Suite 200, San Diego, CA 92123, Attn: Investor 
      Relations, or by going to SYS’ corporate 
      website at www.systechnologies.com.
    
    
      Kratos, SYS and their respective executive officers and directors may be 
      deemed to be participants in the solicitation of proxies from the 
      stockholders of Kratos and SYS in favor of the acquisition. Information 
      about the executive officers and directors of Kratos is set forth in the 
      proxy statement for Kratos’s 2007 Annual 
      Meeting of Stockholders, which was filed with the SEC on October 10, 
      2007. Information about the executive officers and directors of SYS and 
      their ownership of SYS common stock is set forth in the proxy statement 
      for SYS’s 2007 Annual Meeting of 
      Stockholders, which was filed with the SEC on October 29, 2007. 
      Investors and security holders may obtain more detailed information 
      regarding the direct and indirect interests of Kratos, SYS and their 
      respective executive officers and directors in the acquisition by 
      reading the joint proxy statement/prospectus regarding the acquisition 
      when it becomes available.