DRS Technologies Completes Acquisition of Boeing’s Sensors and Electronic Systems Business

DRS Technologies,
Inc. announced today that it has completed the acquisition
of the assets and certain liabilities of the Sensors and Electronic
Systems (SES) business of The Boeing Company.

The purchase price was approximately $67 million, subject to
adjustment.

SES, located in Anaheim, California, is a leading provider of
advanced electro-optical airborne and naval surveillance and targeting
systems, high-performance military infrared cooled sensor systems, and
cutting edge infrared uncooled sensor products for military and
commercial applications. A preeminent worldwide supplier of advanced
electro-optical systems, subsystems and components, SES is recognized
as a national resource for infrared sensor technology. SES is a world
leader in helicopter and surface ship surveillance and targeting
systems and is known for technical superiority in the development of
high-performance focal plane array (FPA) sensors for space- and
air-based applications.

Commenting on the transaction, Mark S. Newman, chairman, president
and chief executive officer of DRS Technologies, said, “The
acquisition of SES broadens our electro-optical systems product lines
and customer base, particularly those focused on naval and air-based
applications, providing a strong complement to our own offerings in
ground-based Forward Looking Infrared (FLIR) technology supporting the
U.S. Army. SES’s well-regarded reputation for large-scale, complex
system integration is strategically significant to our long-term goals
for growth in the defense-related electro-optical systems business.
This acquisition is expected to add approximately $80 million to our
funded backlog and be accretive to earnings within its first year.”

DRS reported backlog of approximately $494 million at June 30,
2001, the end of the company’s fiscal 2002 first quarter.

Mr. Newman continued, “SES, renamed DRS Sensors & Targeting
Systems, Inc., provides the company with an opportunity to participate
in national missile defense programs, as well as become a leading
supplier of uncooled infrared sensor components, opening up a new
market for us. This transaction reinforces DRS’s commitment as a
leading mid-tier defense electronics industry consolidator.”

DRS Sensors & Targeting Systems is operating as a unit of the
company’s Electro-Optical Systems Group. The company financed the
acquisition through bank borrowings. Bear, Stearns & Co. Inc. served
as financial advisor to DRS on the transaction.

As a leader in Second Generation infrared sighting and targeting
systems used on the most critical front-line U.S. Army ground vehicle
and weapons platforms in existence, DRS Technologies is considered a
key supplier of multicolor cooled FPA sensors for ground targeting and
missile guidance systems. DRS Sensors & Targeting Systems expands
DRS’s pursuit of large electro-optical system programs associated with
military helicopters and U.S. Navy cruisers, destroyers and aircraft
carriers.

DRS Sensors & Targeting Systems also produces infrared cooled
sensor systems operating on the U.S. Government’s most advanced
satellite and space telescope programs, including Defense Support
Program satellites and NASA’s Hubble Space Telescope. Its uncooled
infrared sensor components are designed for low-cost military and
commercial applications and are revolutionizing the thermal imaging
systems market, offering accelerated growth in such markets as
automotive, surveillance and security systems, fire fighting and
medical devices.

DRS Technologies provides leading edge products and services to
government and commercial customers worldwide. Focused on defense
electronics, the company develops and manufactures a broad range of
mission critical systems and components in the areas of
communications, combat systems, rugged computers, electro-optics, data
storage, digital imaging, flight safety and space.

Additional information is available on the company’s web site at
www.drs.com.

Safe Harbor Statement under the Private Securities Litigation
Reform Act of 1995: Except for historical information contained
herein, the matters set forth in this news release are forward-looking
statements. The forward-looking statements set forth above involve a
number of risks and uncertainties that could cause actual results to
differ materially from any such statement, 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.