SYS Technologies Announces Defense Network Management Contracts Worth $1.6 Million

  
    
  
  
    
      SYS Technologies, Inc. (“SYS”) 
      (AMEX: SYS), a leading provider of information connectivity solutions 
      that enable situational awareness and real-time collaboration, announced 
      two separate agreements today with an unnamed secure defense agency to 
      use dopplerVUE as the management software platform for its networks. 
      These agreements for both products and services are valued at 
      approximately $1.6 million.
    
    
      SYS, which recently signed an agreement to be acquired by Kratos Defense 
      Solutions (Nasdaq: KTOS), noted that the first agreement, valued at 
      approximately $1.1 million, is an expansion of the agency’s 
      current relationship with SYS. The agency currently uses NeuralStar, SYS’ 
      flagship network management solution, as the management platform for 
      their large, enterprise networks and will now incorporate dopplerVUE 
      into their network management framework. dopplerVUE has a smaller 
      footprint to better align with the operational needs of the agency, 
      including use with their tactical networks.
    
    
      “The expanded relationship pairing dopplerVUE 
      and NeuralStar is a testament to the underlying architecture and their 
      respective strengths in meeting both strategic and tactical objectives," 
      said Cliff Cooke, CEO of SYS Technologies. "As the nation’s 
      defense comes to rely more and more upon the net-centered applications 
      and communications, assuring the reliability and security of these 
      systems is imperative. SYS is proud to play a role in this essential 
      service.”
    
    
      dopplerVUE is a next-generation network management tool, integrating 
      fault and performance with discovery and automated mapping into a single 
      unified dashboard across devices, applications and services. With 
      superior visibility and advanced monitoring features, dopplerVUE brings 
      the power of advanced features to networks directly supporting the war 
      fighter.
    
    
      The second agreement, a two year services contract, has a base year for 
      2008 and an option year for 2009. The base year has a ceiling value of 
      $0.5 million, and calls for SYS to provide local and on-site engineering 
      support as well as support for the NeuralStar and dopplerVUE 
      implementations.
    
    
      About dopplerVUE
    
    
      dopplerVUE is SYS Technologies’ network 
      management solution for smaller and mid-sized organizations and 
      enterprises. It is an easy to use, quick to install solution that brings 
      management and monitoring features once available only in expensive 
      enterprise solutions. Priced and packaged for even small organizations, 
      dopplerVUE delivers unmatched visibility and self-aware monitoring that 
      helps overburdened management teams extend their reach and 
      effectiveness. For more information, visit www.dopplervue.com.
    
    
      About SYS Technologies
    
    
      SYS (AMEX: SYS) is a leading provider of information connectivity 
      solutions that capture, analyze and present real-time information to our 
      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, our technical 
      experts enhance complex decision-making. We also provide 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. Principle 
      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 of the proposed merger between SYS and Kratos 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.