DRS Technologies Announces New, Integrated, Customer-Focused Organization

DRS Technologies, Inc. (NYSE: DRS) announced today that it has created a new operating organization, which realigns all of its businesses into four operating segments. The new organization repositions the company’s operating units, bringing together operations with similar customers and complementary lines of business, sharpening customer focus to better serve the company’s diverse customer base, leveraging operating efficiencies to improve cost competitiveness, and enhancing long-term growth and profitability. The new structure, which reduces the number of strategic business units, also creates greater transparency by streamlining the organization and by reducing operational management infrastructure. The company reaffirmed its fiscal 2007 earnings guidance issued on August 3, 2006 and anticipates this action will not adversely impact its expectations for record operating results for the fiscal year ending March 31, 2007. "Designed to combine operations with common customers and complementary areas of expertise, the new organization creates a customer-centric organization, improves cost competitiveness and enhances the company’s ability to rapidly address new opportunities,” said Robert F. Mehmel, DRS Technologies’ executive vice president and chief operating officer. Mark S. Newman, DRS Technologies’ chairman, president and chief executive officer, remarked, "DRS’s new organization encourages inter-segment cooperation and the development of joint initiatives to pursue new business opportunities. Evolving from a shared culture and a common focus on providing value-added solutions for our customers, the highly productive environment we are creating will be a critical component of our continued success and future growth.” "DRS Technologies has outstanding capabilities and employees,” he continued. "The action announced today will ensure that the company operates at peak efficiency, continues to deliver the highest quality products and services to our customers, improves coordination with employees and customers, and maximizes stockholder value.” Action Taken The action announced today includes: • Realignment of the company’s operating groups to form four operating segments, while reducing management infrastructure; • Creation of two new segments from the former S3 Group; • Transfer of several operating units from the former Surveillance & Reconnaissance Group to the C4I Segment, where their integration enhances customer focus and improves operational effectiveness; • Expansion of the roles of key operational management; and • Streamlining of organizational processes and reporting, promoting increased efficiencies and the potential to drive profitability. The new organization, implemented to meet current and future defense challenges and homeland security growth opportunities, consists of the Command, Control, Communications, Computers and Intelligence (C4I) Segment, the Reconnaissance, Surveillance & Target Acquisition (RSTA) Segment, the Sustainment Systems Segment and the Technical Services Segment. Steven T. Schorer continues to lead the C4I Segment as president. James M. Baird, president of the former RSTA business line, has been named president of the new RSTA Segment. Thomas G. Cornwell has been promoted to president of the Sustainment Systems Segment, and Mitchell B. Rambler, president of the former Support Services business, leads the new Technical Services Segment as president. In these capacities, they report to Robert F. Mehmel, the company’s executive vice president and chief operating officer. "Concurrent with the organizational realignment announced today, I would like to acknowledge the contributions of Dan Rodrigues, president of the former S3 Group, and Fred Marion, president of the former Surveillance & Reconnaissance Group, for their leadership and service to DRS,” added Mr. Newman. "The talented teams they helped build throughout their organizations will continue to have a positive effect at our company’s operations. I extend my sincere gratitude to them and wish them every success for their future.” DRS Technologies, headquartered in Parsippany, New Jersey, is a leading supplier of integrated products, services and support to military forces, intelligence agencies and prime contractors worldwide. The company employs approximately 10,000 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,” "estimates,” "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.