DRS Technologies Announces Its 2% Convertible Senior Notes Have Become Convertible

  
    
  
  
    
      DRS Technologies, Inc. (NYSE: DRS) announced today that, as a result of 
      the anticipated consummation of the merger with Finmeccanica S.p.A. 
      (FNC.MI), DRS Technologies’ 2% Convertible 
      Senior Notes due 2026 (the “Notes”) 
      have become convertible.
    
    
      As announced on May 12, 2008, Finmeccanica and DRS Technologies jointly 
      signed a definitive merger agreement for Finmeccanica to acquire all of 
      the outstanding stock of DRS Technologies for $81.00 per share in cash 
      in a transaction with an enterprise value of approximately $5.2 billion. 
      Consummation of the merger remains subject to customary closing 
      conditions, including clearance from United States government bodies 
      responsible for national security reviews for foreign acquisitions.
    
    
      DRS Technologies today gave notice to the holders of the Notes that a “Fundamental 
      Change” (as defined in the indenture governing 
      the Notes) would occur upon the consummation of the merger and that the 
      holders may surrender their Notes for conversion at any time up until 
      the “Fundamental Change Purchase Date.” 
      In accordance with the indenture, DRS Technologies will notify holders 
      of the Fundamental Change Purchase Date no later than 30 days after the 
      effective date of the merger.
    
    
      Notes that are surrendered for conversion will be converted into the 
      right to receive cash, less any applicable withholding taxes, and, if 
      applicable, shares of common stock of DRS Technologies in accordance 
      with the indenture (the “Settlement Amount”). 
      However, any Settlement Amount that is due from and after the effective 
      time of the merger will be paid solely in cash, less any applicable 
      withholding taxes, and will not include any shares of common stock of 
      DRS Technologies. Holders that convert their Notes after the effective 
      date of the merger in some circumstances may be entitled to an increased 
      conversion rate, as explained in the notice to holders. Under no 
      circumstances will holders that convert their Notes prior to the 
      effective date of the merger be entitled to an increased conversion rate.
    
    
      This press release is being issued as required pursuant to Section 
      12.1(a) of the Indenture. Holders of the Notes should read carefully the 
      notice sent by the Company today regarding the anticipated Fundamental 
      Change, as it contains important information as to the procedures and 
      timing for converting Notes in connection with such Fundamental Change.
    
    
      DRS Technologies, headquartered in Parsippany, New Jersey, is a leading 
      supplier of integrated products, services and support to military 
      forces, government agencies and prime contractors worldwide. The company 
      employs approximately 10,500 people.
    
    
      For more information about DRS Technologies, please visit the company’s 
      web site at www.drs.com.
    
    
      SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM 
      ACT OF 1995: This press release contains forward-looking statements, 
      within the meaning of Section 27A of the Securities Act of 1933, as 
      amended, and Section 21E of the Securities Exchange Act of 1934, as 
      amended, that are based on management’s 
      beliefs and assumptions, current expectations, estimates and 
      projections. Such statements, including statements relating to DRS 
      Technologies’ expectations for future 
      financial performance, are not considered historical facts and are 
      considered forward-looking statements under the federal securities laws. 
      These statements may contain words such as “may,” 
      “will,” “intend,” 
      “plan,” “project,” 
      “expect,” “anticipate,” 
      “could,” “should,” 
      “would,” “believe,” 
      “estimate,” “contemplate,” 
      “possible” or 
      similar expressions. These statements are not guarantees of the Company’s 
      future performance and are subject to risks, uncertainties and other 
      important factors that could cause actual performance or achievements to 
      differ materially from those expressed or implied by these 
      forward-looking statements and include, without limitation, demand and 
      competition for the Company’s products and 
      other risks or uncertainties detailed in the Company’s 
      Securities and Exchange Commission filings. Given these uncertainties, 
      you should not rely on forward-looking statements. Such forward-looking 
      statements speak only as of the date on which they were made, and the 
      Company undertakes no obligations to update any forward-looking 
      statements, whether as a result of new information, future events or 
      otherwise.