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April 22, 2020 | International, Naval

Kratos Wins Place on U.S. Navy Unmanned Surface Vehicle Family of Systems in $982.1 Million IDIQ Multiple Award Contract

San Diego, April 16, 2020 (GLOBE NEWSWIRE) -- Kratos Defense & Security Solutions, Inc. (Nasdaq: KTOS), a leading National Security Solutions provider, announced today that its Kratos Unmanned Systems Division (KUSD) has been selected, and will participate in the Indefinite-Delivery Indefinite Quantity - Multiple Award Contract (IDIQ-MAC) to support the U.S. Naval Sea Systems Command Unmanned Surface Vehicle (USV) Family of Systems (FoS).

The USV FoS includes platforms and systems that comprise the U.S. Navy's future unmanned surface fleet.

With a contract ceiling for all orders under this IDIQ-MAC of $982.1 million, the government intends to support, maintain and modernize USV systems and subsystems to meet current and future operational requirements for Unmanned Maritime Systems under Program Executive Office Unmanned and Small Combatants. Under the contract KUSD is eligible to compete for individual tasks and/or delivery orders.

The USV FoS IDIQ-MAC base contracting vehicle has an initial ordering period of 60 months after date of contract award. If options are exercised the base contracting vehicle will extend to an ordering period of 120 months.

Steve Fendley, President of Kratos Unmanned Systems Division, said, “Kratos Unmanned is excited to extend its unparalleled experience in fielding unmanned systems for air, land, and sea applications further into the unmanned surface vessel domain. KUSD has a unique combination of expertise in the design, engineering, integration, and manufacturing of affordable unmanned system components, which will bring innovative, responsive, and best-value solutions to FoS customers.”

Kratos Unmanned Systems Division is a leading provider of high performance unmanned aerial drone and target systems for threat representative target missions to exercise weapon, radar, and other systems; and tactical aerial drone systems for strike/ISR and force multiplication missions.

About Kratos Defense & Security Solutions
Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) develops and fields transformative, affordable technology, platforms and systems for United States National Security related customers, allies and commercial enterprises. Kratos is changing the way breakthrough technology for these industries are rapidly brought to market through proven commercial and venture capital backed approaches, including proactive research and streamlined development processes. Kratos specializes in unmanned systems, satellite communications, cyber security/warfare, microwave electronics, missile defense, hypersonic systems, training, combat systems and next generation turbo jet and turbo fan engine development. For more information go to www.KratosDefense.com.

Notice Regarding Forward-Looking Statements
Certain statements in this press release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are made on the basis of the current beliefs, expectations and assumptions of the management of Kratos and are subject to significant risks and uncertainty. Investors are cautioned not to place undue reliance on any such forward-looking statements. All such forward-looking statements speak only as of the date they are made, and Kratos undertakes no obligation to update or revise these statements, whether as a result of new information, future events or otherwise. Although Kratos believes that the expectations reflected in these forward-looking statements are reasonable, these statements involve many risks and uncertainties that may cause actual results to differ materially from what may be expressed or implied in these forward-looking statements. For a further discussion of risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the business of Kratos in general, see the risk disclosures in the Annual Report on Form 10-K of Kratos for the year ended December 29, 2019, and in subsequent reports on Forms 10-Q and 8-K and other filings made with the SEC by Kratos.

Press Contact:
Yolanda White
858-812-7302 Direct

Investor Information:
877-934-4687
investor@kratosdefense.com

View source version on GlobeNewswire: http://www.globenewswire.com/news-release/2020/04/16/2017266/0/en/Kratos-Wins-Place-on-U-S-Navy-Unmanned-Surface-Vehicle-Family-of-Systems-in-982-1-Million-IDIQ-Multiple-Award-Contract.html

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    By SYDNEY J. FREEDBERG JR. WASHINGTON: China is besting the United States in key military technologies like hypersonic missiles and electronic warfare, Gen. Paul Selva, vice-chairman of the Joint Chiefs said today. We can still catch up, he predicted. What about Artificial Intelligence? That's too close to call, said former deputy Defense Secretary Bob Work, so we'd better get a move on. Both men spoke at a CNAS conference on “Strategic Competition: Maintaining The Edge.” “I actually regret talking about the Third Offset Strategy, in hindsight,” Work said, referring to the high-tech initiative he launched in the Obama Pentagon. “It made it sound like we had the advantage and we had the time to think about it and go through the motions.... I wish I would have said, ‘we need to start about upsetting the Chinese offset, which is coming uncomfortably close to achieving technological parity with the US.' “At this point, I would think that the outcome is too close to call,” Work said. “It's time for the US to crack the whip. (Let's) hope it's not too late.” Hypersonics & Electronic Warfare So what are some of these shortfalls? The most high-profile is hypersonics, weapons designed to move through the atmosphere at more than five times the speed of sound. Defense Undersecretary for R&D Mike Griffin has made hypersonics his top priority and has warned that China has conducted 20 times more tests than the US. China has demonstrated some impressive technology, Gen. Selva said today, but the race is far from over. “They haven't mass-deployed hypersonics or long-range ballistic missiles,” he said. “What they have done is proven the technologies, so they are able now to deploy those capabilities on a larger scale. “We are behind in the demonstration of many of those technologies,” Selva admitted, elaborating on a statement he made in January, “but we also can take asymmetric approaches and catch up. We are way ahead in a lot of the sensor integration technologies” — essential for telling the hyper-fast weapons where to go — “and we have to maintain that edge.” What about Electronic Warfare, I asked? Detecting, triangulating, and jamming enemy radio transmissions has long been a Russian strength and is increasingly a Chinese one, while the US disbanded many of its EW forces after the Cold War. Selva's answer got into technical nuances I hadn't heard before. “We're a step behind,” Selva said. “It's not hard to catch up, but as soon as you catch up the fast followers will actually leap over the top of you — and that's the dynamic that's set up by having digital radio frequency management capability.” DRFM, also called Digital Radio Frequency Memory, uses modern computing power to record enemy radio and radar signals, modify them, and copy them, allowing forces to transmit a false signal that the enemy can't tell from the real thing. It's a much more effective way of “spoofing” than traditional analog techniques, which suffered from telltale signal degradation. “We assumed wrongly that encryption and our domination in the precision timing signals would allow us to evade the enemy in the electromagnetic spectrum,” Selva said. It turns that that timing is everything in EW as well as comedy. While GPS is now part of daily life, a much less well-known feature is that GPS requires incredibly precise timing — within about three-billionths of a second — which can be used for other purposes, such as coordinating different radios as they switch rapidly from one frequency to another to avoid enemy detection and jamming. But apparently that wasn't enough to evade DRFM-based jamming, which can create a false timing signal that causes the entire network to fall out of synch. “We took a path that they have now figured out,” Selva said. “The Chinese and the Russians took an alternative path, which was to employ digitally managed radio frequency manipulation, which changed the game in electronic warfare. “We have done an in-depth study of where we are relative to the Chinese and Russians (across) the entire spectrum, and we've got some work to do,” Selva said. “We have to figure out alternative pathways for communications and command and control so it doesn't have to be an RF (Radio Frequency) game...It's an RF game because we chose to make it so.” He didn't specify what the alternatives to radio communication were, but there's been promising work using lasers to beam messages. (Breaking D readers will remember that we first reported the demise of America's lead in spectrum four years ago.) Securing our communications networks isn't enough, Work told me afterwards, because every weapon system now has chips in it that can be hacked into. “We have focused on securing network communications, but our biggest vulnerabilities now, Sydney, are in the DoD Internet of Things — the way you can crack into the network through platforms (e.g. tanks, aircraft, ships) and through components on platforms,” Work said. “The Russians and the Chinese understand these vulnerabilities and really try to exploit them.” So there are really three fronts in cyber/electronic warfare, and Work isn't sanguine about any of them. “Dominating the electromagnetic spectrum, and securing the DoD Internet of Things, and securing networks, all of these three things, in my view, we're well behind in,” he told me. The whole “Chinese theory of victory,” he said, is known (in translation) as “systems destruction warfare” because it focuses on electronically paralyzing command-and-control rather than physically destroying tanks, ships, and planes. Artificial Intelligence Now, artificial intelligence could potentially revolutionize electronic warfare. Computers can identify signals, trace them, and making jamming decisions much faster than human minds — a concept called “cognitive EW.” But that's just one of the many military applications of AI, from advising human commanders to coordinating swarms of combat robots. While Selva didn't address Artificial Intelligence, Work did; it's one of his passions and the central theme of the (now deprecated) Third Offset Strategy. So who's ahead in AI? Defense Innovation Advisory Board chairman Eric Schmidt, a former Google AI guru, told Work he had once thought the US was five years ahead of the Chinese, Work recounted. But after a recent trip to China, Work recounted, Schmidt changed his verdict: “If we have six months, we're lucky.” Schmidt said last year that the US lacks a coherent strategy to counter the Chinese in this area. The US has never been in a competition this intense, Work said. China has made AIan official national priority — something he thinks the White House should do here — and the Chinese have great coders. The Pentagon is now creating a Joint Artificial Intelligence Center, something Schmidt's DIB proposed over a year ago, Work noted. “We've got a lot of advantages and we can do very, very well in this race but don't take anything for granted,” Work told me. Just as politicians are warned never to take victory for granted, neither should DoD. “It's a political rule to always run like you're losing, and that's what we have to do in this area....The Chinese are very clever and very capable competitors, and they're intent on surpassing us.” https://breakingdefense.com/2018/06/us-must-hustle-on-hypersonics-ew-ai-vcjcs-selva-work/

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