DRS Technologies completes the sale of two non-core operating units

Parsippany, NJ, March 11 -- DRS Technologies, Inc. (NYSE: DRS) announced today that it has completed the sale of its DRS Broadcast Technology, Inc. and DRS Weather Systems, Inc. units to The Veritas Capital Fund II, L.P., a New York-based investment company, in a stock purchase transaction. The company’s intent to sell these operating units was disclosed previously.

DRS Broadcast Technology and DRS Weather Systems were subsidiaries of Integrated Defense Technologies, Inc. (IDT), of which Veritas was the largest shareholder. IDT was acquired by DRS on November 4, 2003.

"The sale of these units was a strategic decision to concentrate our resources and integration efforts on our core defense technology businesses," said Mark S. Newman, chairman, president and chief executive officer of DRS Technologies. "We believe their established customer bases will continue to be well served in the transfer of these operations to a buyer that is focused on their success and very familiar with them, having been a former owner."

DRS Broadcast Technology develops and manufactures radio frequency broadcast transmitters, systems and power amplifiers primarily for commercial U.S. and international government broadcast stations worldwide, as well as university laboratories. DRS Broadcast Technology will continue to operate at its current location in Dallas, Texas.

DRS Weather Systems develops and manufactures Doppler weather surveillance radar systems, receivers, components and software primarily for U.S. and international governments, meteorology, and aviation and research institutions. DRS Weather Systems will continue to operate at its current location in Enterprise, Alabama.

Jefferies Quarterdeck, a division of Jefferies & Company, Inc., served as financial advisor to DRS on the sale of DRS Broadcast Technology. Houlihan Lokey Howard & Zukin served as financial advisor to DRS on the sale of DRS Weather Systems.

DRS Technologies, headquartered in Parsippany, New Jersey, provides leading edge products and services to defense, government intelligence and commercial customers. Focused on defense technology, DRS develops and manufactures a broad range of mission critical systems. The company employs 5,800 people worldwide.

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