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March 6, 2019
Kratos High Performance Target Drone System, BQM-177A Achieves IOC with US Navy

SAN DIEGO - Kratos Defense & Security Solutions, Inc.(NASDAQ:KTOS), a leading National Security Solutions provider, announced today that the BQM-177A Subsonic Aerial Target (SSAT) has achieved Initial Operational Capability as reported by the US Navy (NAVAIR website article) who stated, “On 27 February 2019 the US Navy's next-generation Sub-Sonic Aerial Target (SSAT), the BQM-177A, reached its program milestone of Initial Operational Capability (IOC). The first site the BQM-177A will be operated from is Pt Mugu, California. The target is capable of speeds in excess of 0.9 Mach and a sea-skimming altitude as low as 10 feet which provides sea-skimming anti-ship cruise missile threat emulation for the US Navy.”

Steve Fendley, President of Kratos Unmanned Systems Division, said, “We are incredibly proud to support the US Navy and our warfighters by providing these high performance unmanned jet target aircraft and appreciate the team relationship we have enjoyed with our Navy customer in developing and advancing the system to this critical milestone.  We look forward to continuing to support the Navy for many years to come with the BQM-177A system and its abilities to replicate current and evolving threats.”

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 Company’s Annual Report on Form 10-K for the period ended December 30, 2018, and in our other filings made with the Securities and Exchange Commission.

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