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November 2nd, 2017
Kratos Awarded $11.3 Million Contract Modification to Update Air Force Satellite Control and Operations

SAN DIEGO – Kratos Defense & Security Solutions, Inc. (Nasdaq:KTOS), a leading National Security Solutions provider, announced today that it has received a modification under an existing contract from the U.S. Air Force to update satellite control and management systems.  Valued at approximately $11.3 million, the update will allow system-consolidation, architectural updates, and security improvements to support current and future military communication satellite missions while decreasing operation and maintenance costs.

Kratos’ satellite communication business, the Company’s largest, supports more than 85% of U.S. space missions and is used by more than 75% of the world’s commercial satellite operators, with products and services ranging from command & control (C2) to signal processing, RF interference mitigation, network operations and cybersecurity. Kratos satellite products include EPOCH® IPS, the industry’s leading satellite fleet management system; Monics®, the leading carrier management product; Compass® for managing satellite networks; and NeuralStar® for terrestrial network operations and Service Quality Management (SQM). Additionally, through its Kratos RT Logic subsidiary, the Company delivers advanced products and capabilities for space-to-ground communications, assured data transport, applied test & training and cyber/mission assurance.

Kratos, through its satellite business, operates the only global network of RF monitoring and interference detection sensors, providing commercial and government clients with important situational awareness data and analytics. It currently includes 18 worldwide monitoring sites hosting 70+ antennas with visibility to over 60 satellites, 150 beams and 280 transponders.

Eric DeMarco, Kratos President and CEO said, “Kratos is an industry leader in satellite communications command and control, signal monitoring, intelligence and satellite beam monitoring via our global spectrum solutions monitoring and geo location business.  Kratos customers recognize our Company’s leadership position in innovation, and rapidly developing and fielding leading technology solutions at an affordable cost, and we are proud to support our National Security related customers in their missions”.

About Kratos Defense & Security Solutions
Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) develops transformative, affordable technology for the Department of Defense and commercial customers. Kratos is changing the way breakthrough technology for these industries are brought to market through proactive research and a streamlined development process. Kratos specializes in unmanned systems, satellite communications, cyber security/warfare, microwave electronics, missile defense, training and combat systems. For more information go to 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 25, 2016, and in subsequent reports on Forms 10-Q and 8-K and other filings made with the SEC by Kratos.