DRS Technologies Receives $24M in New Orders for U.S. Navy Display Workstations

(PARSIPPANY, N.J.) -- DRS Technologies, Inc. (NYSE: DRS) announced today that it has been awarded approximately $24 million in new orders to provide production, spares and services for the U.S. Navy's AN/UYQ-70(V) Advanced Display Systems. These computer display workstations are being installed throughout the U.S. Navy's surface, subsurface and air fleet, including the LHA class amphibious assault platforms, CVN-68 USS Nimitz class aircraft carriers and SSN-774 Virginia class NSSN New Attack Submarines, as well as DDG-51 Arleigh Burke Aegis class surface ships and E-2C Hawkeye aircraft. The new orders are part of an indefinite delivery/indefinite quantity (IDIQ) contract awarded to DRS in October 2005 by Lockheed Martin (NYSE: LMT) Maritime Systems & Sensors segment in Eagan, Minnesota, the company's industry teammate and the prime contractor on the AN/UYQ-70 program. The manufacture of these Commercial Off-The-Shelf (COTS)-based systems will be performed by the company's DRS Laurel Technologies unit in Johnstown, Pennsylvania. Product deliveries supporting this contract are expected to continue through August 2010. "DRS continues to provide the Navy with the most current processing and display technologies, while reducing costs associated with the upgrading, integration and maintenance of combat systems across several platform types," said Richard S. Danforth, president of DRS's Command, Control & Communications (C3) business. "As an integral part of the Navy's plans for implementing open-system architecture for the network-centric tactical warfare environment, these systems support rapid data exchange between cooperative forces and are key components in the Navy's fleet modernization initiatives." For the AN/UYQ-70(V) Advanced Display Systems program, DRS is manufacturing a family of display consoles, processors and network systems that integrate the latest commercial computing technology and systems for combat, command and control, and mission-essential applications. The systems comply with current Navy architecture standards, incorporating modular designs and Commercial Off-The-Shelf/Non-Developmental Item (COTS/NDI)-based components and software, integrated using commercial software and interface standards. The Q-70 Advanced Display Systems provide display, peripheral processor and memory, and network functions on surface, subsurface and air platforms, and at shore sites. As one of the first standard combat computer systems implemented across the Navy, the UYQ-70 supports the common operating environment being implemented in surface, subsurface, land and airborne military platforms. Incorporating modular designs and COTS-based components and software, its design provides the most flexible display and computing infrastructure available to allow the Navy and other Department of Defense customers to accommodate new combat system development or the upgrade of existing systems. The UYQ-70 workstations provide benefits throughout their life cycle, including low cost of ownership, improved maintainability, faster technology insertion, smooth integration with legacy systems and adaptability to new environments. DRS Technologies and Lockheed Martin have been supporting the AN/UYQ-70 program since it was competitively awarded in 1994 and successfully re-competed in 1998 and 2004. They will continue on this program for the next few years under a sole-source follow-on contract.

Source: DRS Technologies, Inc.
Date: Nov 22, 2006

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