DRS Awarded $109M Contract to Provide Environmental Control Systems for USAF

(PARSIPPANY, N.J.)-- DRS Technologies, Inc. (NYSE: DRS) announced today that it has been awarded a five-year contract, valued at approximately $109 million, including options, to provide replacement Environmental Control Systems for the electronic equipment and personnel of the Minuteman III Intercontinental Ballistic Missile (ICBM) launch and missile alert facilities. The Minuteman III ICBM is an element of the United States' strategic deterrent forces. DRS received initial funding of $14.4 million on this contract from Northrop Grumman Space and Mission Systems in Clearfield, Utah, as part of the U.S. Air Force, Northrop Grumman Corporation (NYSE: NOC) and The Boeing Company (NYSE: BA) Environmental Control Systems Replacement Program team. The government contracting agency is Ogden Air Logistics Center at Hill Air Force Base in Utah. This program will extend the life of the Environmental Control Systems through 2020 by replacing existing launch facility and missile alert facility brine chillers and associated pneumatic control systems, fans, dampers, controllers and alarms with modern components. Training services will be provided for maintenance and support equipment. Work for this contract will be accomplished by the company's DRS Sustainment Systems units in St. Louis, Missouri, and Florence, Kentucky. Deliveries of products and services are expected to continue through 2011. "The initial Environmental Control System Replacement production system was recently shipped to the customer, in keeping with the team's track record of consistently delivering world class performance by meeting program milestones," said Thomas G. Cornwell, president of DRS's Sustainment Systems Segment. "We are pleased to receive this long-term production order, which demonstrates the government's continued commitment to the support of the Minuteman III ICBM and highlights its importance to the strategic deterrence initiatives of the U.S." The Environmental Control Systems will provide temperature- and humidity-controlled, filtered, circulating air to 500 operational launch facilities, 50 operational missile alert facilities, 4 test sites at the Hill Air Force Base Strategic Missile Integration Complex, 6 sites at Vandenberg Air Force Base in California and 23 ICBM Type I trainer facilities. The Environmental Control Systems Replacement Program was initiated in 2003 with a system study to define components requiring replacement and develop a system-level design. This was followed by a development and demonstration phase, which integrated commercially available components into a nuclear-hardened weapon system. The initial production system shipped on schedule on October 6, in keeping with the program's track record of providing quality products and meeting schedule requirements. The Minuteman III was the world's first multiple, independent, re-entry vehicle ICBM, permitting each missile to carry multiple warheads and direct each one at a separate target. Today, it is the sole ICBM deployed by the United States.

Source: DRS Technologies, Inc.
Date: Jan 8, 2007

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