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02 Oct 06. DRS Technologies, Inc. (NYSE: DRS) has created a new operating organization, which realigns all of its businesses into four operating segments.

The new organization repositions the company’s operating units, bringing together operations with similar customers and complementary lines of business, sharpening customer focus to better serve the company’s diverse customer base, leveraging operating efficiencies to improve cost competitiveness, and enhancing long-term growth and profitability. The new structure, which reduces the number of strategic business units, also creates greater transparency by streamlining the organization and by reducing operational management infrastructure.

The company reaffirmed its fiscal 2007 earnings guidance issued on August 3, 2006 and anticipates this action will not adversely impact its expectations for record operating results for the fiscal year ending March 31, 2007.

“Designed to combine operations with common customers and complementary
areas of expertise, the new organization creates a customer-centric
organization, improves cost competitiveness and enhances the company’s
ability to rapidly address new opportunities,” said Robert F. Mehmel, DRS Technologies’ executive vice president and chief operating officer.

Mark S. Newman, DRS Technologies’ chairman, president and chief executive officer, remarked, “DRS’s new organization encourages inter-segment
cooperation and the development of joint initiatives to pursue new business opportunities. Evolving from a shared culture and a common focus on providing value-added solutions for our customers, the highly productive environment we are creating will be a critical component of our continued success and future growth.”

“DRS Technologies has outstanding capabilities and employees,” he continued. “The action announced today will ensure that the company operates at peak efficiency, continues to deliver the highest quality products and services to our customers, improves coordination with employees and customers, and maximizes stockholder value.”

Action Taken

The action announced today includes:

* Realignment of the company’s operating groups to form four operating
segments, while reducing management infrastructure;

* Creation of two new segments from the former S3 Group;

* Transfer of several operating units from the former Surveillance &
Reconnaissance Group to the C4I Segment, where their integration enhances customer focus and improves operational effectiveness;

* Expansion of the roles of key operational management; and

* Streamlining of organizational processes and reporting, promoting

increased efficiencies and the potential to drive profitability.

The new organization, implemented to meet current and future defense
challenges and homeland security growth opportunities, consists of the
Command, Control, Communications, Computers and Intelligence (C4I) Segment, the Reconnaissance, Surveillance & Target Acquisition (RSTA) Segment, the Sustainment Systems Segment and the Technical Services Segment.

Steven T. Schorer continues to lead the C4I Segment as president. James M. Baird, president of the former RSTA business line, has been named president of the new RSTA Segment. Thomas G. Cornwell has been promoted to president of the Sustainment Systems Segment, and Mitchell B. Rambler, president of the former Support Services business, leads the new Technical Services Segment as president. In these capacities, they report to Robert F. Mehmel, the company’s executive vice president and chief operating officer.

“Concurrent with the organizational realignment announced today, I would like to acknowledge the contributions of Dan Rodrigues, president of the former S3 Group, and Fred Marion, president of the former Surveillance & Reconnaissance Group, for their leadership and service to DRS,” added Mr. Newman. “The talented teams they helped build throughout their organizations will contin

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