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November 12, 2018
FUSE Tether System Completes Law Enforcement Flight Operations at Multiple Large Public Events

SAN DIEGO - Kratos Defense & Security Solutions, Inc. (Nasdaq: KTOS), a leading National Security Solutions provider, announced today that it has recently completed multiple series of approximately twenty flights, including many intercept flights, for new and long term national security related customers, utilizing numerous Kratos high performance, jet powered unmanned aerial target drone systems.  Kratos is the industry leader in the rapid development, demonstration and delivery of affordable high performance unmanned aerial drone systems for tactical and force multiplication missions and requirements, and for threat simulation and emulation target drone requirements to exercise and test weapon systems for the United States and its allies.  The success of these recent multi-day exercises are expected to lead to potential significant future deliveries of Kratos high performance target drones for a new customer set, and additional deliveries to our established customers.  These recent exercises were performed at various secure undisclosed locations.

Steve Fendley, President of Kratos Unmanned Systems Division said, “With the increased global threat environment of peer and near peer adversaries to the United States and its allies, we are seeing increased interest above the already high demand for Kratos high performance target drone systems, utilized for the test, evaluation, and exercise of radars, missiles, and other systems to protect against the ever-evolving threats.  These recent successful missions, which included multiple intercepts and corresponding intentional kills of Kratos target drones, are expected to lead to a significant new future customer requirement for Kratos as well as an increase in deliveries to an existing customer.”

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 and combat systems. 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 31, 2017, and in subsequent reports on Forms 10-Q and 8-K and other filings made with the SEC by Kratos.

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