Market Overview

Kratos SAT Corporation Awarded Multi-Million Dollar Contract to Provide Satellite Signal Monitoring for Space Systems/Loral

SAN DIEGO, Aug. 16, 2012 (GLOBE NEWSWIRE) -- Kratos Defense & Security Solutions, Inc. (Nasdaq: KTOS), a leading National Security Solutions provider, announced today that its SAT Corporation subsidiary has received a multi-million dollar order to supply its Monics® carrier monitoring system and related products to Space Systems/Loral (SS/L) in support of one of its customers that will provide broadband communications services in remote areas. The name of the end-user customer was not disclosed.

Monics is the industry-leading Radio Frequency (RF) monitoring system that provides automatic carrier monitoring as well as advanced interference detection and analysis capabilities. To support multi-beam monitoring of SSL's customer's constellation of next-generation Ka band satellites, Monics will be implemented on SAT's new SAT-DSP-6000 instrument. The DSP-6000 uses advanced Digital Signal Processing (DSP) technology to produce 250MHz of instantaneous bandwidth and an extended L-band input frequency range of 900MHz to 2450MHz. Among other advantages, this allows for much faster measurements of entire transponders and makes Monics the preferred choice for the industry's growing Ka band monitoring needs.

Monics' In-service In Orbit Test (IS-IOT) feature will be activated to ensure optimum performance of multi-beam satellites. IS-IOT uses advanced measurement techniques to characterize transponders in terms of gain, frequency response and phase and can do so even while the transponder is operating. IS-IOT is the industry's only true in-service IOT solution that does not impact revenue-generating traffic while performing network data stream analysis or characterizing transponder performance.

Monics' native scalability and flexibility will enable a fully-distributed, autonomous system for monitoring payload traffic and RF interference, including co-channel interference. SAT will also supply antennas and ruggedized trailer-mounted and flyaway systems to be employed as part of approximately 21 monitoring stations. These stations will be capable of monitoring the satellite fleet from anywhere in its service area, including outlying islands.

"We are extremely pleased to be a part of this initiative to provide broadband services, and we are proud to be recognized for the cutting-edge technology behind Monics and our other interference mitigation solutions," said Bob Potter, President of SAT Corporation.

About Kratos Defense & Security Solutions

Kratos Defense & Security Solutions, Inc. (Nasdaq: KTOS) is a specialized National Security technology business providing mission critical products, services and solutions for United States National Security. Kratos' core capabilities are sophisticated engineering, manufacturing and system integration offerings for National Security platforms and programs. Kratos' areas of expertise include Command, Control, Communications, Computing, Combat Systems, Intelligence, Surveillance and Reconnaissance (C5ISR), satellite communication systems, unmanned systems, cyber warfare, cybersecurity, information assurance, and critical infrastructure security. Kratos has primarily an engineering and technically oriented work force of approximately 4,400. The vast majority of Kratos' work is performed on a military base, in a secure facility or at a critical infrastructure location. Kratos' primary end customers are National Security related agencies. News and information are available at www.KratosDefense.com.

The Kratos Defense & Security Solutions, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=3519

About Space Systems/Loral

Space Systems/Loral, a subsidiary of Loral Space & Communications (Nasdaq: LORL), has a long history of delivering reliable satellites and spacecraft systems for commercial and government customers around the world. As the world's leading provider of commercial satellites, the company works closely with satellite operators to provide spacecraft for a broad range of services including television and radio distribution, digital audio radio, broadband Internet, and mobile communications. Billions of people around the world depend on SS/L satellites every day. For more information, visit www.ssloral.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, including risks related to product failure, general economic conditions and cutbacks in spending. 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. 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 25, 2011, and in subsequent reports on Forms 10-Q and 8-K and other filings made with the SEC by Kratos.

CONTACT: Press Contact: Yolanda White 858-812-7302 Direct Investor Information: 877-934-4687 investor@kratosdefense.com

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