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February 12th, 2018
Kratos High Performance Unmanned Aerial Drone Systems Successfully Complete Flight Test Series with Enhanced Capabilities

SAN DIEGO – Kratos Defense & Security Solutions, Inc. (Nasdaq:KTOS), a leading National Security Solutions provider, announced today that it has successfully completed a series of flight tests related to its high performance unmanned aerial drone systems. Through the flight test missions, Kratos was able to test and demonstrate numerous upgrades and enhancements to the aerial drone system, and validate the system’s enhanced capability to support Kratos customers and their missions around the globe. Kratos Unmanned Systems business is an industry leader in the rapid design, demonstration and fielding of affordable, high performance jet powered unmanned aerial drone systems used for tactical and threat representation (target) missions. Due to competitive and other considerations, no additional information will be provided.

Eric DeMarco, President & CEO of Kratos, said, “Kratos’ continued focus on developing increased and enhanced mission capability is extremely important to both our international and domestic customers. These recent successful tests enable us to apply Kratos unmanned aerial drone systems to a rapidly increasing number of mission types with an increasing number of customer sets. As we evolve our capabilities and increase the capability and level of threat representation, we are sharing many of these enhancements across our portfolio of high performance jet powered unmanned aerial drone systems to maintain our technological and low cost advantage in the industry, which is a clear competitive differentiator for Kratos. We are currently working toward a large production contract with a new international customer which we hope to receive in the next several months.”

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.